Just in Time
IEEM 517
Just-In-Time
LEARNING OBJECTIVES
1
1. 2. 3.
Understand the philosophy of Just-In-Time (JIT) Learn the working procedure of JIT Know the differences between the two production-control systems, MRP (the push system) and JIT (the pull system)
1
CONTENTS
• Motivation • JIT Philosophy • JIT Procedure – Toyota Kanban Systems • MRP vs. JIT • Summary
2
PRODUCTION AND OPERATIONS MANAGEMENT
Product development long term Product portifolio Purchasing Supply network design Partner selection Supply contract design Manufacturing Facility location and layout Distribution Demand fulfillment
3
Distribution network design
medium term
Derivative product development Adaptions Current product support
Aggregate planning
Demand forecasting Inventory management
short term
Materials ordering
Production control Operations scheduling
Distribution planning Transport planning
Fulfillment implementation
2
INVENTORY MASKS PROBLEMS excessive inventory
4
low forecasting accuracy low product quality low productivity long leadtime … … Excessive inventory masks problems (water covers rocks) Reduced inventories reveal problems (rocks becomes visible)
EOQ AND EPL MODELS REVISITED
EOQ
5
Y(Q*) = 2ADh + cD
EPL
D Y(Q*) = 2ADh1 - + cD P
3
CONTENTS
• Motivation • JIT Philosophy • JIT Procedure – Toyota Kanban Systems • MRP vs. JIT • Summary
6
HISTORY OF JIT
Origin of JIT The idea and the practice of Just-in-time (JIT) were initiated in 1970’s at Toyota, the leading automobile manufacturer of Japan Characteristics of Manufacturing Environment in Japan • Limited working space • Closeness to suppliers and consumers • Small economy scale • Relatively uniform taste of consumers • Eastern culture (well organized, system-oriented, etc.) ⇒ Improving productivity and reducing inventory become necessary and possible
7
4
GOALS OF JIT (ZERO INVENTORY)
• High product quality is
Just-In-Time
LEARNING OBJECTIVES
1
1. 2. 3.
Understand the philosophy of Just-In-Time (JIT) Learn the working procedure of JIT Know the differences between the two production-control systems, MRP (the push system) and JIT (the pull system)
1
CONTENTS
• Motivation • JIT Philosophy • JIT Procedure – Toyota Kanban Systems • MRP vs. JIT • Summary
2
PRODUCTION AND OPERATIONS MANAGEMENT
Product development long term Product portifolio Purchasing Supply network design Partner selection Supply contract design Manufacturing Facility location and layout Distribution Demand fulfillment
3
Distribution network design
medium term
Derivative product development Adaptions Current product support
Aggregate planning
Demand forecasting Inventory management
short term
Materials ordering
Production control Operations scheduling
Distribution planning Transport planning
Fulfillment implementation
2
INVENTORY MASKS PROBLEMS excessive inventory
4
low forecasting accuracy low product quality low productivity long leadtime … … Excessive inventory masks problems (water covers rocks) Reduced inventories reveal problems (rocks becomes visible)
EOQ AND EPL MODELS REVISITED
EOQ
5
Y(Q*) = 2ADh + cD
EPL
D Y(Q*) = 2ADh1 - + cD P
3
CONTENTS
• Motivation • JIT Philosophy • JIT Procedure – Toyota Kanban Systems • MRP vs. JIT • Summary
6
HISTORY OF JIT
Origin of JIT The idea and the practice of Just-in-time (JIT) were initiated in 1970’s at Toyota, the leading automobile manufacturer of Japan Characteristics of Manufacturing Environment in Japan • Limited working space • Closeness to suppliers and consumers • Small economy scale • Relatively uniform taste of consumers • Eastern culture (well organized, system-oriented, etc.) ⇒ Improving productivity and reducing inventory become necessary and possible
7
4
GOALS OF JIT (ZERO INVENTORY)
• High product quality is