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JUST IN TIME PRODUCTION SYSTEMS:Organizational and Operational Strategies

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Production and Operations Management ­MGT613
VU
Lesson 36
JUST IN TIME PRODUCTION SYSTEMS
Just In Time Production or Lean Production systems focus on the efficient delivery of products or
services. Some of the distinguishing elements of the JIT systems are a pull method to manage material
flow, consistently high quantity, small lot sizes, uniform work station loads. The JIT systems provide an
organizational structure for improved supplier coordination by integrating the logistics, production and
purchasing processes. When Operations Manager focuses on their organization's competitive advantage
they aim for low cost of production, consistent quality with reductions in inventory, space requirements,
paperwork and increases in productivity, employee participation and effectiveness.
JIT/Lean Production
Lean Manufacturing: is a management philosophy focusing on reduction of the seven wastes.
1. Over-production ( Capacity exceeding demand)
2. Waiting time
3. Transportation
4. Processing
5. Costs
6. Inventory
7. Motion ( Lack of coordination of body movements)
JIT/Lean Production Features
By eliminating waste (muda), quality is improved, production time is reduced and cost is
reduced.
"Pull" production (by means of Kanban).
While some believe that Lean Manufacturing is a set of problem solving tools.
In addition, experts in this field believe that philosophy-based Lean Manufacturing strategy
is the most effective way to launch and sustain lean activities.
Key lean manufacturing principles
1.
Key lean manufacturing principles include:
2.
Perfect first-time quality - quest for zero defects
3.
Waste minimization
4.
Continuous improvement
5.
Pull processing: products are pulled from the consumer end, not pushed from the production
end.
6. Flexibility
7. Building and maintaining a long term relationship with suppliers through collaborative risk
sharing, cost sharing and information sharing arrangements.
Applications of Lean Manufacturing
1.
Lean Healthcare Systems
2.
Lean Software Manufacturing
3.
Systems Engineering
4.
Lean Systems in Defense Industry
168
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Production and Operations Management ­MGT613
VU
Generic Strategy for Implementation of a Lean program
1.
Top Management to agree and discuss their lean vision.
2.
Management brainstorm to identify project leader and set objectives.
3.
Communicate plan and vision to the workforce.
4.
Ask for volunteers to form the Lean Implementation team.
5.
Appoint members of the Lean Manufacturing Implementation Team.
6.
Train the Implementation Team in the various lean tools.
Organizational and Operational Strategies
1. Organizations aiming for JIT system should focus on the Human Resource Management with
proper system of incentives, rewards, labor classification, cooperation and trust in place.
2. Organizations should concentrate on effective management of inventory, purchasing, logistics
and scheduling.
3. Organizations should develop a demand base system so less waste is generated and good
management of high quality, small lot sizes, good quality, standardized components and work
methods is ensured.
4. Lean or JIT Systems are effective only if they are designed to produce or deliver the right
product or the right services in the right quantities just in time to serve subsequent processes or
customers.
5. Organizations who design their Operations on JIT philosophy need to encourage partnership
concept whether it's between organizations's purchasing department and supplier or partnership
between management and labor.
169
Table of Contents:
  1. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT
  2. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT:Decision Making
  3. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT:Strategy
  4. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT:Service Delivery System
  5. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT:Productivity
  6. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT:The Decision Process
  7. INTRODUCTION TO PRODUCTION AND OPERATIONS MANAGEMENT:Demand Management
  8. Roadmap to the Lecture:Fundamental Types of Forecasts, Finer Classification of Forecasts
  9. Time Series Forecasts:Techniques for Averaging, Simple Moving Average Solution
  10. The formula for the moving average is:Exponential Smoothing Model, Common Nonlinear Trends
  11. The formula for the moving average is:Major factors in design strategy
  12. The formula for the moving average is:Standardization, Mass Customization
  13. The formula for the moving average is:DESIGN STRATEGIES
  14. The formula for the moving average is:Measuring Reliability, AVAILABILITY
  15. The formula for the moving average is:Learning Objectives, Capacity Planning
  16. The formula for the moving average is:Efficiency and Utilization, Evaluating Alternatives
  17. The formula for the moving average is:Evaluating Alternatives, Financial Analysis
  18. PROCESS SELECTION:Types of Operation, Intermittent Processing
  19. PROCESS SELECTION:Basic Layout Types, Advantages of Product Layout
  20. PROCESS SELECTION:Cellular Layouts, Facilities Layouts, Importance of Layout Decisions
  21. DESIGN OF WORK SYSTEMS:Job Design, Specialization, Methods Analysis
  22. LOCATION PLANNING AND ANALYSIS:MANAGING GLOBAL OPERATIONS, Regional Factors
  23. MANAGEMENT OF QUALITY:Dimensions of Quality, Examples of Service Quality
  24. SERVICE QUALITY:Moments of Truth, Perceived Service Quality, Service Gap Analysis
  25. TOTAL QUALITY MANAGEMENT:Determinants of Quality, Responsibility for Quality
  26. TQM QUALITY:Six Sigma Team, PROCESS IMPROVEMENT
  27. QUALITY CONTROL & QUALITY ASSURANCE:INSPECTION, Control Chart
  28. ACCEPTANCE SAMPLING:CHOOSING A PLAN, CONSUMER’S AND PRODUCER’S RISK
  29. AGGREGATE PLANNING:Demand and Capacity Options
  30. AGGREGATE PLANNING:Aggregate Planning Relationships, Master Scheduling
  31. INVENTORY MANAGEMENT:Objective of Inventory Control, Inventory Counting Systems
  32. INVENTORY MANAGEMENT:ABC Classification System, Cycle Counting
  33. INVENTORY MANAGEMENT:Economic Production Quantity Assumptions
  34. INVENTORY MANAGEMENT:Independent and Dependent Demand
  35. INVENTORY MANAGEMENT:Capacity Planning, Manufacturing Resource Planning
  36. JUST IN TIME PRODUCTION SYSTEMS:Organizational and Operational Strategies
  37. JUST IN TIME PRODUCTION SYSTEMS:Operational Benefits, Kanban Formula
  38. JUST IN TIME PRODUCTION SYSTEMS:Secondary Goals, Tiered Supplier Network
  39. SUPPLY CHAIN MANAGEMENT:Logistics, Distribution Requirements Planning
  40. SUPPLY CHAIN MANAGEMENT:Supply Chain Benefits and Drawbacks
  41. SCHEDULING:High-Volume Systems, Load Chart, Hungarian Method
  42. SEQUENCING:Assumptions to Priority Rules, Scheduling Service Operations
  43. PROJECT MANAGEMENT:Project Life Cycle, Work Breakdown Structure
  44. PROJECT MANAGEMENT:Computing Algorithm, Project Crashing, Risk Management
  45. Waiting Lines:Queuing Analysis, System Characteristics, Priority Model