CH15 JIT - formula Push system – make as much as they can...

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4/10/2008 Bus 140 Notes CH15 JIT and Lean Operations Just in time Def - A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed Less cost of warehouse And have inventory when it is needed Wal-Mart, Toyota, Southwest air (20mins turnaround) Concept is easy but to implement it takes a long time, years. Building blocks of JIT - Product design - Process design - Personnel - Manufacturing, Planning , Control Reduce the cost of buying and putting together parts (Small lot sizes) Sources of waste Over Production Time Big JIT Vendor relations Human relations Tech management Materials and inventory managements Personnel as assets Cross trained workers Continuous improvement Cost account Leadership / project management Planning and control Level Loading – same loads of production and shipment every weeks, months, quarters. Pull system – if the machine needs the inventory it pulls from the prior inventory (kanban
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Unformatted text preview: formula) Push system – make as much as they can and push forward to the next station or machine Kanban Formula N = (DT(1+X)) / C Tiered Supplier Network More suppliers are supplying to other suppliers to make part of the product For the JIT to work the quality should increase and the shipping should do more frequently, and should be cheaper. Default expectation – if you want to provide inventory, your company should be as efficient CH11 Supply Chain Management Supply Chain – the sequence of organizations - their facilities, functions, and activities - that are involved in producing and delivering a product or service. Typical supply chain Purchasing – receiving- storage – operations – storage Purchasing cycle 1. Requisition Received 2. Supplier selected 3. Order is placed 4. Monitor Orders 5. Receive the order...
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CH15 JIT - formula Push system – make as much as they can...

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