11/7/2011

TOYOTA SEVEN WASTES

What is JIT ?
9 Primary objective of a business operating
under JIT is
CUSTOMER SERVICE
9 Producing only what is needed, when it is needed
9 A philosophy / An integrated management system

9 JITs mandate:
Eliminate all waste and
Achieve a smooth rapid flow

Producing defects
Transportation
Inventoryy small lots and p
pull system
y
Overproduction
Waiting time
Processing
Motion

Waste in Operations

Waste in Operations

Waste in Operations

Summary JIT Goals and

Building Blocks
Ultimate
A
Goal balanced
rapid flow
Supporting
Goals

Reduce setup
and lead times
Eliminate waste
Eliminate disruptions
Make the system flexible
Minimize inventories

1.Product
Design

2.Process
Design

3.Personnel
Elements

4.Manufacturing Planning

Building
Blocks

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2.0 Process Design

1.0 Product Design

z

Standard parts

Modular design

Highly capable production

systems

Small lot sizes *

Setup time reduction

Manufacturing cells

Limited work in process

Quality improvement

Production flexibility*

Little inventory storage

4.0 Manufacturing Planning and Control

3.0 Personnel/Organizational Elements

z

Workers as assets

Level loading

Cross-trained
Crossworkers

Pull systems*

Visual systems*

Continuous
improvement

Cl
Close
vendor
d
relationships

Cost accounting

Leadership/project
management

Reduced transaction
processing

Preventive maintenance

Factor 1: The Pull System

9 Material is pulled through the system
when needed
9 Reversal of traditional p
push system
y
where material is pushed according to a
schedule
9 Forces cooperation
9 Prevent over and underproduction

How Does Push Work?

Week 5

Week 6

Week 7

Week 8

Week 9

50 Parts
Due Date
Week 10
C

Release 50
parts on Week
6!
Release 50
parts on Week
5!

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How Does Pull Work?

How Does Pull Work?

Due Date

Due Date

Week 10
1

Lot Sizes:

Kanban Size

Capacity:

Balanced With Historical Demand

Raw Materials:

Ordered in Kanban Lots

Demand:

Known and Stable

Week 10

For Example, a Demand of Two Greens

1. The Demand Pulls Two Greens Out of Kanbans 3 and 8

How Does Pull Work?

How Does Pull Work?

Due Date

Due Date

Week 10
1

Week 10
1

2
B

A
4

For Example, a Demand of Two Greens

A
7

For Example, a Demand of Two Greens

1. The Demand Pulls Two Greens Out of Kanbans 3 and 8

1. The Demand Pulls Two Greens Out of Kanbans 3 and 8

2. Kanban 8 Falls Below Re-Order Point, Which Triggers Production of A

2. Kanban 8 Falls Below Re-Order Point, Which Triggers Production of A

3. A Produces One Kanban of Greens, Kanban 7 Falls Below Re-Order Point, Which Triggers Production for B

How Does Pull Work?

Expanded Basic Elements of JIT

Due Date
Week 10

D
4

2
B

A
7

For Example, a Demand of Two Greens

1. The Demand Pulls Two Greens Out of Kanbans 3 and 8
2. Kanban 8 Falls Below Re-Order Point, Which Triggers Production of A
3. A Produces One Kanban of Greens, Kanban 7 Falls Below Re-Order Point, Which Triggers Production for B
4. B Produces One Kanban of Greens, Kanban 6 Falls Below Re-Order Point, Which Triggers Production for etc.

1. Pull production system

2. Flexible resources*
3. Cellular Manufacturing*
4. Kanban p
production control*
5. Small-lot production
6. Quick setups, SMED
7. Uniform production levels, mix sequencing
----------------------------------------------------------1. Quality at the source - jidoka
2. Total productive maintenance
3. Supplier networks- Close supplier relationships

11/7/2011

Factor 2: Flexible Resources

9 Multifunctional workers
9 General purpose machines
arranged as cells
9 Study operators & improve
operations
9 Manage cycle time within cells
and equate to TAKT time

Process vs Cellular Layout

Factor 3: Cellular Manufacturing

9 Group dissimilar machines in manufacturing
cell to produce family of parts
9 Work flows in one direction through cell
9 Cycle time adjusted by changing worker
paths
9 Cycle time for each cell operation set equal
to TAKT time, where TAKT time is the time
between production of two products
9 TAKT time = Available time in period (say: shift)
demand for product in period

Manufacturing Cell with Worker

Routes
Cell 1

Worker
1
Worker
2
Worker
3

Worker Routes Lengthened as Volume

Decreases
Cell 1

Cell 2

Worker
1

Worker
2

9 Kanban card indicates standard quantity

of production
9 Derived from two-bin
two bin inventory system
9 Kanban maintains discipline of pull
production
9 Production kanban authorizes production
9 Withdrawal kanban authorizes movement
of goods

Worker
3

Cell 3

Cell 4

Factor 4: Kanban Production

Control System

Cell 5

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A Sample Kanban

The Origin of Kanban

a) Two
Two--bin inventory system

b) Kanban inventory system

Bin 1
Kanban
Bin 2
Reorder
card

Q-R
R

Q = order quantity
R = reorder point - demand during lead time

Types of Kanbans

Factor 5: Small Batch Production

Types of Kanbans

Factor 6: Steps to Reduce Setup Time

Initial Setup Time
Step 1

Separate setup into preparation, and actual setup,

doing as much as possible while the
machine/process is running (save 30 minutes)
Step 2

Move material closer and improve

material
t i l hhandling
dli ((save 20 minutes)
i t )

Standardize and
improve tooling (save
15 minutes)
Use one-touch system to
Training operators and Step 4
eliminate adjustments (save
standardizing work
10 minutes)
Step 5
procedures (save 2

90 min

60 min
45 min

Step 3

25 min
15 min
13 min

minutes)

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Factor 6 : SMED PrinciplesPrinciplesToyota story

Factor 7: Mixed
Mixed--Model Sequencing

1. Separate internal setup from

external setup
2 Convert internal setup to external
2.
setup
3. Streamline all aspects of setup
4. Perform setup activities in
parallel or eliminate them entirely

Summary: Basic Elements of JIT

Inventory Hides Problems

1. Pull production system

2. Flexible resources*
3. Cellular Manufacturing*
4. Kanban p
production control*
5. Small-lot production
6. Quick setups, SMED
7. Uniform production levels, mix sequencing
----------------------------------------------------------1. Quality at the source - jidoka
2. Total productive maintenance
3. Supplier networks- Close supplier relationships

Roadmap to Manufacturing Excellence

Thank You !