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OTM 22

JIT/LEAN - Facility Location Decisions - Part 1

QuestionAnswer
facility location decisions 1. market-related factors 2. tangible cost factors 3. qualitative factors 4. requires long-term systems view
centroid method 1. Used for locating single facilities 2. Uses formulas to compute co-ordinates of the 2 dimensional point that meets distance and volume criteria
centroid method for location (see slides 3,4,5,6) 1. considers existing facilities 2. the distance between them 3. volumes of goods to be shipped between them
Just-in-Time (JIT) production systems 1.used in Toyota production facilities for several decades 2. a management philosophy that can be used throughout the enterprise
fundamental concepts of JIT 1. elimination of waste of resources 2. respect for people **NOTES- the process by which all human intelligence is used as efficiently as possible**
JIT is not... 1. a physical system to be implemented 2. simply an inventory control system 3. strictly a manufacturing-oriented management approach
JIT is an enforced problem solving system with improved material flows (**NOTES - see rocks in material flow** 1. improvement of customer service (on-time deliveries, higher quality) 2. more effective use of resources (equipment, workers, inventory)through improved materials flows
JIT vs lean 1. JIT manufacturing is the implementation of JIT principles in the production area only 2. lean manufacturing refers to the adoption of the JIT philosophy throughout the enterprise
NUMMI - (New United Motors Manufacturing, Inc)-1987 1. landmark experiment in the history of lean production at the worst performing GM plant in Fremont,CA 2. joint venture between GM and Toyota management leading unionized US workforce 3. Could JIT production methods succeed in unionized US facility?
NUMMI Results (slide 12 for detailed chart showing exact numbers) GM improved in all areas on the chart 1. hours/car 2. defects/car 3. assembly space/car 4. average inventory
waste as defined by Shoichiro Toyoda, President, Toyota (lean key)includes **NOTES** waste is anything other than the minimum amount of equipment, materials, parts, space and workers' time, which are absolutely essential to add value to the product **NOTES - not just inventory**
elimination of waste results in improved product design(lean key element) 1. standard product configuration 2. standardize and reduce number of parts 3. process design with product design 4. quality expectations
design a flow process (lean key element for elimination of waste) 1. link operations closely 2. balance workstation capacities 3. often, may use cellular manufacturing
uniform plant loading (lean key element for elimination of waste) 1. means that we maintain a stable product mix 2. we try to maintain firm short-term schedules 3. does not mean we can only produce a single product
eliminate unnecessary ________movement and _________ movement (lean key element for elimination of waste) material movement and worker movement
additional lean key elements for elimination of waste 1.emphasize preventive maintenance by predictability 2. reduce setup/changeover times 3. reduce lot sizes by making products more often and reducing inventory 4. quality at the source to eliminate inspections and line-stopping
long set up times **NOTES** EQUAL 1. longer product runs 2. more inventory
pull system of production control (SEE slide 17 for flow chart) 1.produce what is needed, when it is needed and nothing more
JIT Material Flow **NOTES - rocks under the boat in illustration are problems preventing material flow Examples 1.engineering changes 2.missing tools 3. machine breakdown 3.vendor relationships 5.quality 6.scrap and rework 7.long setups
Created by: rainesv
 

 



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