Class 28 - JIT and Lean Production - Chap 16

Class 28 - JIT and Lean Production - Chap 16 - BUS 370 JIT...

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BUS 370: JIT / Lean Production Chapter 16 Donavon Favre College of Management North Carolina State University
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Just-in-time (synonymous with Lean) A philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity
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Lean A philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise. It involves identifying and eliminating non-value-added activities
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JIT/Lean Approach to Operations Maximize use of people Simplify first, add technology second Gradual, but continuous improvement Minimize waste (including poor quality)
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Traditional Mass Production Big lot sizes Lots of inventory ”PUSH” material to next stage Lower per unit cost Big purchase shipments Big “pushes” of finished goods to warehouses or customers ???
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JIT/Lean Production Tighter coordination along the supply chain Goods are pulled along only make and ship what is needed Smaller lots Faster setups Less inventory, storage space ”PULL” material to next stage Minimal or no inventory holding cost Smaller shipments Goods are pulled out of plant by customer demand
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JIT Goals Eliminate disruptions Make the system flexible Minimize inventory Eliminate waste
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Waste: Definition: “any activity that does not add value to the good or service in the eyes of the consumer.”
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Class 28 - JIT and Lean Production - Chap 16 - BUS 370 JIT...

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