JITmanagement/lean thinking

JITmanagement/lean thinking

1. $5mil, % year study at MIT on car industry

   • groundbreaking analysis, Toyota Lean production, typified by Toyota
     • Lean thinking= applies to everything not just cars.

2. Lean thinking=TPS=JIT

3. 1990's Womack&Jones-origins thought from TPS and japanese management

4. aimed to reduce waste- in system design, process control and synchronisation

5. configure product system, time required for materials+parts=only as long as sum of value adding steps

   • produce required items at required times, right quality and right quantity
   • Waste elimination=fundamental

6. not just management=way of thinking based on waste elimination + continuous improvement of productivity

   • No Muda, Muri, Mura= No waste, excess, uneveness
     • Muda-consume resource, no added value
       • don't add value: storing, inspection, transport, counting, waiting
     • Muri-variation in operation process, not cause by end customer
       • waste=from, unreliable vendors, bad design, long set up times, inspection of line
     • Muri: to much equipment, facilities, people

7. primary elements

   • inventory only when needed
   • zero defects quality
   • reduce lead/setup times, queue lengths+lot sizes
   • incrementally revise operations themselves
   • accomplish all at minimum cost

8. JIT synonyms

   • IBM=continuous flow manufacturing
   • HP, stockless production
   • GE, management by site
   • Motorola, short cycle manufacturing
   • Toyota: TPS
   • Boeing:Lean manufacturing
   • John Deere:one piece flow manufacturing

9. philosophy of manufacturing management with objectives

   • attack fundamental problems
   • eliminate waste
   • simplicity in production management
   • identify problems not mask

10. Lean process each step=

    • Valuable-judge by customer
    • capable:right first+every time
    • Available:ready when needed
    • Adequate:just enough capacity
    • Flexible:switch different task- low££

11. lower inventory level= issues arise easier- scrap, setup time, quality probs, late delivery, process downtime

12. Push strategy, work from production to retailer. Production set on historic conditions, not responsive to changes in demand=overstocking, bottlenecks, unaceptable service levels, obsolescence

    • supply chain=combo of both, intersection= decoupling point/push-pull boundary
      • dell build to order-components=push, final assembly=pull, decoupling point=assembly line
    • work=on demand
    • photocopy shop, amazon

13. Pull: demand driven not forcast driven. doesn't require make to order, TMM-nearly pull production-more supermarket style, use kanban cards when stock=low

    • work released based on system status
    • vending machine,supermarket

14. key elements-

    • total quality management- workers=own quality inspectors, scrap/rework=inconsistant with flow
    • supply chain intergration - extend enterprise, partnerships, collaboration
    • total productive maintenance- no breakdowns-maximise equipment effectiveness
    • shop floor management-teamwork-cells-lean flows- set-up reduction
    • total employee involvement- commitment+participation by everyone

15. 5 basic concepts

    • specify value- separate value from waste-eliminate waste, product=meet customer needs, teamwork=eliminate waste, specify values human relations=more complicated than human-product interactions
    • identify value stream-no all activities to make product+optimise them, take customer viewpoint=identify activities that add value, activities=focus on tier-one supply chain companies
      • perfection-1st 4 steps=combine=perfection, unattainable goal, vale creation
    • Flow-no interruption, contrast to batch=batches processed sequentially, lean=not permit no flow at any expense-quality problems= no go
    • Pull- respond to demand, produced in accordance to mix+volume ordered, avoids purchasing to inaccurate forecast.

16. benefits- inventory levels=reduced=frees capital, less storage customer responsiveness=increase, product cycle=drops, improved quality(product), scrap/rework cost = down, forces managers to fix problems/eliminate waste

    • preconditions-trust=labour+management, recognition of processes, familiarity with problem solving, quality at source, agreement over value+waste, right settings, agreement that change=needed