Supply Chain Management. Dr Mariusz Maciejczak

Transcription

1 Supply Chain Management Just-in in-time and other SCM systemss Dr Mariusz Maciejczak

2 Topics to be Covered Review of JIT & Waste Objectives of JIT JIT Principles JIT and Variance JIT Tools and Procedures

3 What is JIT? a corporate system designed to produce output within the minimum lead time and at the lowest total cost by continuously identifying and eliminating all forms of corporate waste and variance. a corporate strategy a philosophy Focus of JIT: variance & waste

4 Seven Basic Types of Waste Transportation waste Process Waste Inventory Waste Waste of motion Waste from product defects Waiting time Overproduction

5 Common Causes of Waste Layout (distance) Long setup time Incapable processes Poor maintenance Poor work methods Lack of training Inconsistent performance measures Ineffective production planning Lack of workplace organization Poor supply quality/reliability

6 Objective of JIT Produce only the products the customer wants. Produce products only at the rate that the customer wants them. Produce with perfect quality Produce with minimum lead time. Produce products with only those features the customer wants.

7 Objectives Produce with no waste of labor, material or equipment -- every movement must have a purpose so that there is zero idle inventory. Produce with methods that allow for the development of people

8 JIT Principles Create flow production one piece flow machines in order of processes small and inexpensive equipment U cell layout, counter clockwise multi-process handling workers easy moving/standing operations standard operations defined

9 Push Vs. Pull Scheduling Push Scheduling traditional approach move the job on when finished problems - creates excessive inventory Pull scheduling coordinated production driven by demand (pulled through system) extensive use of visual triggers (production/withdrawal kanbans)

10 Visual Control A system for making problems obvious without the need for sophisticated monitoring computer systems Andon light system Kanbans Create a sense of urgency Clearly identify where the problems are located

11 Supplier Partnerships Reliance on suppliers for problem solving expertise quality at the source timely communication participants in cost reduction programs Increased reliance on supplier certification

12 Standardization/Simplification Eliminate inherent sources of variance eliminate opportunity for human discretion error Examples Container sizes MacDonalds with interaction with customers Consistent with Deming Wheel Standarize expose problems solve problems implement new methods

13 Other Techniques Milk runs Poka-Yoke Systems Continuous Improvement Programs (CIP)

14 JIT & Lean Manufacturing Lean Manufacturing Doing more with less Less of: materials, time, resources overhead, people waste money JIT is a subset of Lean Manufacturing Now seen as most applicable to mass production settings

15 Kaizen Event A relatively new concept Kaizen Blitz, Gemba Kaizen Process focused Operates at two levels on-going process of identifying opportunities for improvement strategic, top management short-term project lasting 1-4 days training, documentation of process as is, identification of potential improvements, implementation, presentation, action list

16 Kaizen Events - Key Traits Very short-term, finite in life Highly focused Creativity before capital Team-oriented Action-Oriented Verifiable Metrics Repetitive

17 Kaizen Event Process Top management buy-in Public Kaizen Events Assessment of current processes top management Target Processes training documentation - as is opportunities change presentation/action list

18 Typical Metrics Floor space occupied by process being assessed Operators required per day Distance traveled by an order within the process WIP Inventory Setup (measured in minutes) Quality recommendations generated Safety Improvements implemented

19 Limitations of JIT Preconditions to JIT trust must be present labor/management suppliers/consumers recognition of processes familiarity with problem solving quality at the source agreement over value and waste

20 Limitations of JIT Right Settings applicable in growth to maturity phases of Product Life Cycle standard product Steinway and JIT standard/fixed pay-rate problems with piece-rate scheme Universal agreement that change needed

21 Theoretical Benefits of JIT Unpleasant surprises eliminated Less computerization visual control Improved quality WIP reduced Better communications Less pressure on receiving docks and incoming inspection areas Lower costs Change in attitude Defects are treasures

22 Dealing with Variance Four major stances: Buffer against it Ignore it Manage it Eliminate it All forms of variance create cost

23 JIT & Variance Variance a fact of life Comes from many sources internal scheduling changes, scheduling practices, manufacturing planning & control systems, absenteeism, process variability external changes in forecasts, actual demand, customer requested changes, government, competition, vendors

24 Cycle Times Operator Cycle Time total time required for a worker to complete one cycle of an operation Machine Cycle Time total time for a machine to finish one complete cycle includes loading and unloading

25 The 5-S 5 S Program Seiri segregate and discard get rid of what is not needed Seiton arrange and identify for ease of use a place for everything and everything in its place Seiso Clean Daily clean work place enhances quality

26 The 5-S 5 S Program Seiketsu Revisit frequently revisit the first 3 steps to maintain workplace safety and effectiveness Shitsuki Motivate to sustain promote adherence through visual performance measurement tools