JIT/Lean Goods and Services Design Resource Management

1. JIT/LeanGoods and Services DesignResource Management

2. JIT/Lean

3. JIT Redefines Waste • Traditional Waste Definition • Idle Men or Machines • Any Under-capacity Operation • Focus is on the PROCESS • Optimization of each operation JIT Waste Definition • Idle Inventory • Any Activity That Does Not Add Value • Focus is on OUTPUT of the Process • Don’t Make or Do Anything Until It Is Needed • Optimize the Entire Flow - Not Just A Process

4. Seven Wastes of JIT • Overproduction • Waiting • Process • Unnecessary Transportation • Motion • Material/Inventory • Defects

5. Five “S” • Sort (Eliminate anything unnecessary) • Straighten (Often used, most easily accessible, everything in its place) • Sweep, Shine (Clean and keep clean) • Standardize (Same task, same way) • Sustain (No backsliding)

6. JIT Prerequisites • Inventory Reduction is Byproduct • Primary JIT Advantage is Quality • JIT Prerequisites • Stable Design • Stable Schedule • Faultless Shop Floor Quality • Absolutely Reliable Supply Base • Quality • On-Time Delivery • Accurate Data • JIT is NOT Just Prompt Deliveries

7. Just-in-Time • Fundamental Objectives • Eliminate Waste • Increase Flexibility • Reduce Lead Times • Idle Inventory = Waste

8. JIT Features • Pull, Not Push System • Improves Materials Flow • Reduces Throughput Time • Reduces Inventories • Improves Quality • Reduces Inventories

9. JIT Features • Improves Supply Base • Improves Quality of Raw Materials • Improves On-Time Delivery • Reduces Inventories • Reduced Set-Ups • Increases Flexibility • Reduces Lot Sizes • Reduces Inventories

10. JIT Features, cont. • Improved Maintenance • Assures Machine Availability • Reduces Inventories • Reduces Space Requirements Reductions in Inventories From JIT Implementation are By-products of Process Improvements The Major Benefit of JIT is Improved Quality

11. JIT Implementation • Set-up Reduction • Cellular Layout (flow) • SPC on the Shop Floor • Kanban - Pull System • Preventive Maintenance • Multifunctional Workers • Capacity Control • Jidoka

12. JIT Impacts on Supply Chains • Purchasing • Few Suppliers • Long Term Close Relationships • Receiving • No Receiving • No QC Checks • Inventory Levels • Minimal Raw Materials, Work-in-Process, Finished Goods • MRO May Be Stable

13. JIT Applications • JIT Works Best For • MTS Firms • ATO Firms • Products in Maturity or Saturation Phases of Product Life Cycle • JIT Is Most Difficult For • ETO Firms • Products in Early Growth or Late Decline Phases of Product Life Cycle • Push/Pull Boundaries

14. ‘Pull’ Strategies • JIT is a Pull Process • Final Customer • Manufacturing Processes • Basic Raw Material • Align Supply Chain Strategies • Inventory Levels, Fill Rates • Inventory Locations • Postponement • Collaborative Logistics • Supplier Strategic Focus

15. Process Improvement • Continuous Improvement • Breakthroughs • PDCA (Plan, Do, Check, Act) Deming • DMAIC (Define Measure Analyze Improve Control)

16. DMAIC • D Define a problem or improvement opportunity. • M Measure process performance. • A Analyze the process to determine the root causes of poor performance; determine whether the process can be improved or should be redesigned. • I Improve the process by attacking root causes. • C Control the improved process to hold the gains.

17. Process Improvement • Really Understand Customer Needs • Establish Standard Procedures / Train • Standardize Materials and Machinery • Simplify Everywhere • Synchronize Flow • Continuously Evaluate and Improve • Kaizen Blitz • Administrative Processes, too

18. Goods and Service Design

19. Goods and Service Design • Develop the Habit of Looking for Opportunities • Simplify Something Hard • Make Easy Something Distasteful • Find Unfulfilled Need • Truly Understand the Customer • Exhaustively Evaluate the Market • Create Solution to Customer Need • Prototype and Test

20. New Market Entrants • Entry ease/barriers • Geographical factors • Incumbents resistance • New entrant strategy • Routes to market Porter’s Five Forces of Competition Supplier Power • Brand reputation • Geographical coverage • Product/service level quality • Relationships w/ customers • Bidding processes/capabilities Competitive Rivalry • Number & size of firms • Industry size & trends • Fixed & variable cost bases • Product/service ranges • Differentiation, strategy Buyer Power • Buyer choice • Buyer size/number • Change cost/frequency • Product/service importance • Volumes, JIT scheduling Product & Technology Development • Alternatives price/quality • Market distribution changes • Fashion & trends • Legislative effect s

21. Design • For Manufacturability (or Ease of Service) • Minimize Complexity • Maximize Simplicity • For Quality and Reliability • Process Control • Consistency

22. DDesign • For Sustainability • Minimize Non-renewable Resources • Minimize Carbon Footprint • Minimize Waste • Social Responsibility • For Disassembly • After Life Recycling/Reuse • Recognize Limits of Capabilities

23. Resource Management

24. Resource Management • Forecasting • Master Production Schedule • MRP • Purchasing Activity • Shop Floor Activity • Transportation and Delivery

25. Purchasing and Lot Sizing • Lot-for-Lot • Fixed Quantity, Variable Time • Fixed Time, Variable Quantity • EOQ • Supplier Full Box Lots

26. Brunswick Motors

27. Questions, Comments, Observations, Conclusions, Arguments?