Homework 2

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JIT: Value Added and Waste Elimination

Outline

  • Value-added focus
  • Sources of waste
  • JIT Principles
  • The meaning of JIT

Value-added Focus

  • Distinguish necessary and unnecessary activities
  • Improve the necessary ones, eliminate the unnecessary ones

The Support Organization

  • A large portion of most companies is involved in support activities
  • Planning, control, accounting
  • Logistics
  • Quality activities
  • Change activities
  • Most of these don’t add value, and many may be unnecessary

Employee involvement

  • The people most familiar with the processes are the workers
  • Employee involvement is critical to successful improvement efforts

Sources of Waste

  • Toyota’s seven wastes
  • Canon’s nine wastes

Toyota’s Seven Wastes

  • Producing defects
  • Transportation
  • Inventory
  • Overproduction
  • Waiting time
  • Processing
  • Motion

Canon’s Nine Wastes

  • Work-in-process
  • Defects
  • Equipment
  • Expense
  • Indirect Labour
  • Planning
  • Human resources
  • Operations
  • Startup

Waste Reduction and the Environment

  • Design for environment (DFE)
  • Minimize use of environmentally unfriendly materials and processes
  • Maximize use of environmentally friendly alternatives
  • Design products for ease of repair
  • Design products for ease of disassembly after disposal

JIT Principles

  • Simplification
  • Cleanliness and organization
  • Visibility
  • Cycle timing
  • Agility
  • Variation reduction
  • Measurement

Product Simplification

Process Simplification

Procedure Simplification

Cleanliness and organization
– the Five S’s

  • Seiri – proper arrangement and organization
  • Seiton – orderliness
  • Seiso – cleanup
  • Seiketsu – cleanliness
  • Shitsuke - discipline

Cleanliness and organization

Visibility

Library shelf

Work station

Visual kanbans

Tool board

Machine controls

Better

Good

Best

30-50

How

to

sensor

Information should be visible.

Cycle timing

  • Processes should be repetitive and predictable
  • Cycle time should be based on demand

Agility

  • Lean manufacturers are also agile
  • Agility means responding to unpredictable change
  • Changing demand
  • Changing product mix
  • New products
  • Agile elements of Lean
  • Short setups and small batches
  • Flexible equipment
  • Flexible workers

Variation reduction

  • Variability always makes performance worse
  • The goal is to reduce or eliminate variability of all kinds
  • Example:
  • Batch and queue has high variability
  • Every day is different
  • Small lot, repetitive, flow production has low variability
  • Every day is the same

Measurement

  • Measurement is critical to improvement
  • Without measurement, how do we know things are better (or worse)?

Other Issues

  • Limitations and implementation barriers
  • Attitudes
  • Time commitment
  • Quality commitment
  • Variation reduction and stability
  • Misunderstanding of JIT
  • Social impact needs to be considered
  • Implement lean practices FIRST, then automate
  • Learn as you go

Information should be visible.