5. JIT Philosophy JIT Lower inventory levels / small lots sizes Streamlined with no waste or variability in production system A “Pull” system thru the plant Fewer suppliers (keiretsu) with long-term guaranteed contract Employee empowerment Guaranteed delivery times A management philosophy Works well in high-volume production with minimal inventory (RM, WIP, FG) Exposes problems & bottlenecks, requires TQM
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7. JIT Objectives Objectives Zero lead time Zero failures Flow process Flexible manufacture Eliminate waste Zero Inventory
8. JIT – Building Blocks JIT Product Design Process Design Manf Plan & Control Human Resource / Organisation
18. What is Kanban Kanban Kan=card Ban= signal Cards to signal & communicate reorder information Minimise storage in the production area Workstations only produce / deliver components when a card PLUS empty container is received Toyota in 1950s developed it to manage line / material flows Authorisation to produce more inventory Limits the amount of inventory in process To deliver components to a work station as & when needed (pull) Work-station produces enough to fill the container
19. Kanban System Machine Centre Assembly Line Bin Part A Bin Part A Material Flow Card (signal) Flow Withdrawal kanban Production kanban
21. Kanban Card # of containers released Name / location of preceding process Routing process Store bin / location Units of measure Part # Container type & capacity Name / location of next process Supplier Part # Supplier Name Reorder / Lot Qty Description Kanban #
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25. Kanban Challenges Challenges Assumes stable repetitive production Gets complex when upstream w/station makes several parts, each with separate signaling card Poor quality (scrap & rework) affect functioning Doesn't eliminate variability and / or lengthy down times Less suited to industries where mix & volumes fluctuate Buffer stocks may be needed