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CHAPTER 9 JUST IN TIME OPERATIONS MANAGEMENT CHAPTER 9 JUST IN TIME OPERATIONS MANAGEMENT

JUST IN TIME DEFINED n n Just-in-Time Manufacturing is an organization-wide quest to produce JUST IN TIME DEFINED n n Just-in-Time Manufacturing is an organization-wide quest to produce output within the minimum possible lead time and at the lowest possible cost by continuously identifying and eliminating all forms of waste and variance. Waste is anything other than the minimum amount of equipment, materials, parts and human input that are absolutely necessary to achieve the desired rate of production. – – 7가지의 Waste의 형태 Waste as a Symptom of Problem : 예) Inventory as Waste : 비용 발생 , 문제파악 불가능 2

BENEFIT OF JIT MANUFACTURING n n n n Inventory Reduction Quality Control Improvement Lead BENEFIT OF JIT MANUFACTURING n n n n Inventory Reduction Quality Control Improvement Lead Time Reduction : setup & move Flexible work force Vendor Control/Performance Improvement : Power, delivery & quality Continuous Improvement Total Productive Maintenance : Corrective → preventive →productive → TPM Strategic Gain(SCA 수단) 3

HITORICAL ROOTS OF JIT MANUFACTURING n 일본의 환경과 대응( Toyota의 Taiichi Ohno) – – HITORICAL ROOTS OF JIT MANUFACTURING n 일본의 환경과 대응( Toyota의 Taiichi Ohno) – – – n Ford’s Mass production system in JIT : techniques – n Oil crisis→재고감소, lacked capital resources→인적자원역할중요 rigorous competition →비용과 생산성 경쟁 Waste 제거(엄격한 세부명세와 표준 설정), continuous improvement, setup reduction-delay 방지, improved housekeeping, level product scheduling, respect for people Supermarkets and JIT Manufacturing : idea와 vision – What is needed, at the time needed, in the amount needed 4

THE GOAL & THE OBJECTIVES OF JIT MANUFACTURING n n Goal : provide the THE GOAL & THE OBJECTIVES OF JIT MANUFACTURING n n Goal : provide the right amount of product at the right time with the right quality level at the right place objective – – – – Produce only what the customers want. Produce only as quickly as they want to use them. Produce product with perfect quality. Produce in the minimum possible lead times. Produce goods with features that customers want and no others. Produce with no waste of labor, material or equipment; designate a purpose for every movement to leave zero idle inventory. Produce to enhance worker skill development. 5

CRITICAL TRAITS OF JIT n The process supporting JIT must: – – be able CRITICAL TRAITS OF JIT n The process supporting JIT must: – – be able to produce small order sizes(1단위) be able to respond to demand with short lead times(customer demand vs. forcast) place execution of operating plans in the hands of workers, i. e. , decentralize decision making create an atmosphere that is intolerant of waste and ineffectiveness 6

THE JIT TOOL n n n Kanban (pull scheduling) Level, mixed-model scheduling Setup reduction THE JIT TOOL n n n Kanban (pull scheduling) Level, mixed-model scheduling Setup reduction Poka-yoke (fool proofing) Quality at the Source Flexible, cross-trained workers Group technology Focused Factories Statistical process control Standardization/Simplification Supplier partnerships Kaizen 7

PUSH SYSTEM & PULL SYSTEM n Push System – 부품을 구입하고, 대량으로 생산 – PUSH SYSTEM & PULL SYSTEM n Push System – 부품을 구입하고, 대량으로 생산 – 수량 할인의 혜택 구매와 생산의 규모의 경제 과도하게 많은 재고를 보유 → 재고 통제 시스템에 의존 – – n Pull System – – 부품의 생산은 주문과 동시에 이루어짐 Component는 구입하고, 부품은 생산 → Pulled to the next workstation based on need 8

KANBANS IN OPERATION (a) Work Center A Status: Idle (b) Withdrawal Kanban Work Center KANBANS IN OPERATION (a) Work Center A Status: Idle (b) Withdrawal Kanban Work Center B Status: Busy Movement of Empty Bin Work Center A Status: Idle Work Center B Status: Busy (c) Production Kanban Movement of Empty Bin Work Center A Status: Busy Movement of Filled Bin Empty Bin 9 Production Kanban Withdrawal Kanban Work Center B Status: Busy

LEVEL, MIXED-MODEL SCHEDULING n Master production schedule(MPS) – n Load Leveling – n balance LEVEL, MIXED-MODEL SCHEDULING n Master production schedule(MPS) – n Load Leveling – n balance the rate of production with the rate of at which the market wants products Mixed-Model Scheduling – n A periodic(usually monthly) statement of the number of units of each specific end product that an OM process will build and when it will build each product A method for setting a production sequence for end product Benefit – Smoother response to market demand, simpler coordination of supply, Flatter learning curve, less inventory 10

SETUP REDUCTION n Setup cost – n n Setup cost-Inventory trade-off objective – – SETUP REDUCTION n Setup cost – n n Setup cost-Inventory trade-off objective – – n Process preparation time, Process teardown time, Learning time Evolve toward lot sizes of 1 unit Run every part every day Make the first piece right every time Keep setup times to 10 minutes Procedures – Process flow analysis of setup times, Housekeeping, Practiced teamwork 11

POKA-YOKE/QUALITY AT THE SOURCE/FLEXIBL WORKERS n Poka-yoke – – n Quality at the Source POKA-YOKE/QUALITY AT THE SOURCE/FLEXIBL WORKERS n Poka-yoke – – n Quality at the Source – – n Design parts and processes in ways that make desired results inevitable Method : color code, set up counter, place template Target efforts to improve quality at the activities that produce it Jidoka ( autonomation ) Stop-and-Fix/Line-Stop systems Andons/Trouble lights Flexible/cross-trained workers – Pay for skill 12

GROUP TECHNOLOGY n n n 유사한 특성을 지닌 제품이나 부 n Functinal layout VS. GROUP TECHNOLOGY n n n 유사한 특성을 지닌 제품이나 부 n Functinal layout VS. GT 품을 하나의 군(family)으로 묶고 – Shrink Physical distance , 이를 생산하는 기계의 군을 별 – Eliminate the need for 도로 운영하는 것 automated material-handling 제품이나 부품의 군은 크기, 모 양, 필요 작업, 경로성의 유사점, equipment 수요 등의 요인에 기초하여 분류 – Produce orders with fewer 부품을 군으로 분류한 다음에는 Cell이라고 불리는 분리된 공간 setup 에, 이들 부품의 기본적인 공정 – Aviod relearning 에 필요한 기계 장치들을 설치 – 13 Improve quality(visual inspection)

FOCUSED FACTORIES/SPC/SIMPLIFICATION n Focused Factories – – n Statistical Process Control – n 회사의 FOCUSED FACTORIES/SPC/SIMPLIFICATION n Focused Factories – – n Statistical Process Control – n 회사의 모든 제품을 한 곳에서 생산하던 대규모 공장을 다수의 소규모 공장으로 분할 단일 System이 다양한 목표를 달성하려고 노력하는 것보 다는 특정한 목표 시장의 요구를 충족시키는 것 Process의 성과를 관리하고, Process의 통제 상황을 평가 Standardization/simplification – – 단순화 : 불필요한 프로세스 단계 제거 표준화 : 프로세스과업에 대한 표준화 시행 14

SUPPLIER PARTNERSHIPS n Suppliers as sources of expertise – n n n Problem solving SUPPLIER PARTNERSHIPS n Suppliers as sources of expertise – n n n Problem solving at the buyer’s site, product design advice, product design completion, problem solving at the supplier’s site Suppliers as practitioners of quality at the source principles-supplier certification Suppliers as timely communicators Suppliers as participants in cost reduction programs – Long-term contracts, Narrow supplier bases, stable production plans 15

LIMITATION OF JIT n No one business strategy is appropriate for all competitive situations. LIMITATION OF JIT n No one business strategy is appropriate for all competitive situations. n Just-in-Time will have limited success if: – applied in a non-learning organization – management distrusts workers and vice versa – worker pay is based on individual incentives – demand does not permit: n load leveling n product standardization – product demand requires low volume production – does not have strong supplier relationships 16

LEAN PRODUCTION & JIT n LEAN PRODUCTION is defined as an organizationwide OM system LEAN PRODUCTION & JIT n LEAN PRODUCTION is defined as an organizationwide OM system orientation to design and develop higher value products while consuming fewer resources for both direct and overhead. n It differs from JIT in that it: – emphasizes product mix flexibility as the key to producing higher valued/niche products – extends supplier involvement to the design stage – focuses heavily on overhead reduction programs 17