PULL / JIT

1. PULL / JIT LT6 Training Module

2. INTRODUCTION

3. INTRODUCTION What are Pull & JIT? • An inventory strategy • Improves the return on investment of a business by… • Reducing in-process inventory • Reducing cycle time • Driven by signals, or Kanban, to… • Make the next part, or • Move the next part PULL/JIT|LT6 Training Module

4. HISTORY • First used by the Ford Motor Company (early 1900’s) • "dock to factory floor" – not stored in warehouse, on factory floor • Adopted by Toyota as part of its Toyota Production System (TPS) • Little space for inventory • Required shortening Set Up Times, through SMED • Changed assumptions about Economic Lot Quantity (ELQ) • ELQ fell to 1 unit • When a part disappeared, a signal to produce or order a replacement. PULL/JIT|LT6 Training Module

5. WHY JIT & PULL JIT AND PULL, related to…… PULL/JIT|LT6 Training Module

6. WHY JIT & PULL But why is it important? 8 Wastes Defects Overproduction Waiting Non-utilized talent Transportation Inventory Motion Extra processing PULL/JIT|LT6 Training Module

7. Why Inventory? So… What’s So Bad About Inventory? PULL/JIT|LT6 Training Module

8. Work in process inventory level(hides problems) Poor Quality Unreliable Vendors Capacity Imbalances Why Inventory? What’s So Bad About Inventory? It HIDES problems PULL/JIT|LT6 Training Module

9. WIP Unreliable Vendors Capacity Imbalances Scrap Why Inventory? What’s So Bad About Inventory? Lower Inventory level to expose problems, then… • Work on problems by: • Reducing variability • Eliminating waste • Streamlining production and material flows • Accurate information PULL/JIT|LT6 Training Module

10. JIT So, Pull & JIT are……? • A management philosophy of continuous and forced problem solving • Supplies and components are ‘pulled’ through system to arrive where they are needed when they are needed • Goal: Achieve the minimal level of resources required to add the necessary value in the production system. • A means of making WASTE easy to see. PULL/JIT|LT6 Training Module

11. JIT JIT Philosophy…… • JIT means the right quantity at the right place and the right time. • Minimize or eliminate wastes (hidden rocks) • Simpler is better • Focuses on improving all operations • Flexibility to produce different models/features with minimal set up PULL/JIT|LT6 Training Module

12. JIT JIT Elements…… • Inventory reduction - exposes problems • Kanbans & pull production systems • Small lots & quick setups • Uniform plant loading (leveling the load) • Flexible resources • Efficient facility layouts PULL/JIT|LT6 Training Module

13. JIT JIT Objectives…… • To eliminate waste, by….. • Producing the needed item • at the right time • and the exact quantity AND…. • When a problem is identified, fixing it PULL/JIT|LT6 Training Module

14. JIT JIT Principles…… • Produce only what the customer wants • Produce only at the rate the customer wants • Produce with perfect quality • Produce with minimum lead time • Produce with no waste of labor, material or equipment • Produce with “flow” PULL/JIT|LT6 Training Module

15. Flow What is Flow? • One piece at a time, opposite of batching • Minimal distance between operations • Small flexible equipment VS Large inflexible • Cross Functional VS Departmentalized • Cross Trained operators, easily moved • Produce to the Takt, • Level Loaded production PULL/JIT|LT6 Training Module

16. Enablers What ENABLES JIT to work • Quick set ups (SMED) • Stable processes • Use of standard containers • Doable stable schedules with adequate visibility • TAKT-Time • 5-S efforts • Kaizen Events • Visual controls • Flexible workers • Tools at the point of need • Products designed for manufacturing • Group Technology (product families) • Total Productive Maintenance • Kanban PULL/JIT|LT6 Training Module

17. Benefits What kind of benefits can you expect with JIT? • Smaller inventories • Shorter lead times • Quicker response to customer demand • Improved quality • Reduced space requirements • Lower production costs • Increased productivity • Greater flexibility • Lower inventory carry costs (%25) PULL/JIT|LT6 Training Module

18. Works Best JIT works best when…. • Trust is present • labor/management • suppliers/consumers • Individuals are familiar with problem solving • Quality at the source is emphasized • There is agreement over value and waste • Applied in the growth to maturity phases of Product Life Cycle • Products are somewhat “standard” • Standard/fixed pay-rate • Problems with piece-rate systems • Universal agreement that change is needed PULL/JIT|LT6 Training Module

19. Key Enablers… Quality at the Source • For JIT to work, quality must be high • There should be no extra inventory to buffer against the production or use of defective units • Producing poor-quality items, and reworking or rejecting them is wasteful • The workers must be responsible for inspection & production quality • The philosophy is, “NEVER pass along a defective item PULL/JIT|LT6 Training Module

20. Key Enablers… One Piece Flow, Continuous Flow • The opposite of batch, lot, or mass processing • Product should move (flow) from operation to operation, only when it is needed, in the smallest increment possible • One piece is the ultimate (single-piece-flow) • Cross train operators • Operators float to the bottleneck PULL/JIT|LT6 Training Module

21. Key Enablers… Pull Production, an feature of JIT • Actual customer demand drives the manufacturing process • It creates a system of cascading production and delivery signals from downstream demand to upstream production in which nothing is produced by the upstream supplier until the downstream customer signals a need • Big Benefit – Schedule only one point the value stream • The rate of production for each product is equal to the rate of customer consumption PULL/JIT|LT6 Training Module

22. Sub Sub Key Enablers… Leveled Schedule Pull Example Production Schedule Vendor Fab A C A B A Vendor Fab Customer Request Final Assy Fab Vendor Fab Vendor PULL/JIT|LT6 Training Module

23. Key Enablers… Work Balancing / TAKT Time • Work balancing maximizes operator efficiency by matching work content to TAKT time • TAKT time is the rate at which customers require your product • TAKT time is calculated as follows: Available work time per day Daily required customer demand in parts per day PULL/JIT|LT6 Training Module

24. Simulation… Let’s see how this works • YESCO Aviation – Brand new operation • Building planes • 4 Assembly Operators • 1 Material Delivery • 1 Timer • 1 Customer • 1 Manager PULL/JIT|LT6 Training Module

25. Simulation… Let’s see how this works • YESCO Aviation – Brand new operation • Customer watches for defects • Building and moving 3 at a time (ELQ) • Call Mtl Handler to move product • Customer will take all you can build • Don’t change layout • Colored paper will track “Lead Time” • Will run until enough work in process to capture data PULL/JIT|LT6 Training Module

26. Simulation… Let’s see how this works • YESCO Aviation – How’d we do? PULL/JIT|LT6 Training Module

27. Simulation… Let’s see how this works • YESCO Aviation – Run # 2 • Move however you like • Lot Size – 1 • Introduce Single Piece Flow discipline • How’d we do • Wrap up PULL/JIT|LT6 Training Module

28. Conclusion What’s next? • Ensure quality • Remove clutter & minimize storage • Reduce setup times • Level load orders, produce to takt • Implement layout changes • Cellular manufacturing &/or close proximity • Cross train and teach to float to the bottleneck • Move to pull production • Extend methods to suppliers • Review and improve PULL/JIT|LT6 Training Module

29. Conclusion Q & A PULL/JIT|LT6 Training Module