BAJIT.pptVIP

BA339 – Chapter 16 - JIT Just-In-Time (JIT) Philosophy Suppliers JIT Layout Inventory Scheduling Quality Employee Empowerment Lean Production JIT in Services BA339 – Chapter 16 - JIT JIT Philosophy “Continuous and forced problem solving” Supplies/materials are “pulled” thru a systems to arrive where they are needed, when they are needed (vs. push system – dumps orders on downstream workstation regardless of timeliness or resource availability) “Problem” is identified when good units to not arrive just as needed Drives out waste unwanted variability No unwanted/excess inventory or time, costs associated with unneeded inventory are eliminated Support strategies of rapid response and low cost BA339 – Chapter 16 - JIT JIT Philosophy Waste reduction Anything that does not add value is considered waste Products stored, inspected, delayed, waiting in queues, and defective is considered waste also, any activity that does not add value from the customer’s perspective is waste as well Variability reduction Less variability = less waste Employees, machines, or suppliers producing units that do not conform to std, are late, or wrong qty. Inaccurate engineering drawings/specs. Production personnel producing before engineering drawings or specs. are complete Unknown customer demands BA339 – Chapter 16 - JIT JIT Suppliers Partnerships – see Table S12.2 (page 519 in text) Exist when supplier and purchaser work together to reduce waste and drive down costs Suppliers viewed as extension of the organization Goals of JIT partnerships: Elimination of unnecessary activities (e.g., incoming inspection) Elimination of in-plant inventory – materials delivered when and where needed; small lots directly to the department/operation where they are needed Elimination of in-transit inventory – encourages suppliers to locate near mfg. facilities and ship in small lots Consignment inventory – supplier owns until it is used Elimination of poor suppliers – fewer suppliers, higher quality/reliabi