How much WIP is needed in a pull system?

amount may vary from stage to stage and for different items depending on 1. what is lead time to replenish 2. what is the demand or usage rate 3. how much safety stock is desired

Formula for calculating the number of Kanban containers (see slide 19)

variables in formula are not defined on the slide

ways to show respect for people - (lean key)

1. level payrolls,fewer job grades,more cross-training 2.employee suggestion programs 3.quality circles 4.participative management 5.quality at the source for employees & suppliers 6.cooperative management-employee relations7.employee training encouraged

participative management

1.management by consensus, empowered employees 2. push decision-making down in the organization

4 rules of the Toyota Production System

General rules: 1. work 2. customer-supplier connection 3. product pathway 4. improvements at lowest level

all work shall be highly specified as to content, sequence, timing and outcome

Toyota Rule 2 - customer-supplier connection

every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses

the pathway for every product and service must be simple and direct

any improvement must be made with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization

Total Quality Control - Lean implementation requirements

1. worker responsibility 2. root cause 3. solve permanently 4. failsafing 5. team approach 6. continual education

Supplier Partnerships require networks of responsive suppliers - Lean implementation requirements

1.long-term relationships 2.shorter precise lead times 3.more frequent deliveries of smaller quantities 4.quality at source 5.help suppliers develop superior capabilities 6.tightly integrated information system 7.coord.of production and shipment schedules

8 benefits of Successful JIT/Lean Production Implementation Card 1

1. streamlined flow of materials from raw materials to the final customer 2. reduced investment in inventories 3. decreased cash to cash cycle4. better designed products 5. more predictable, better controlled processes 6. reduced levels of product defects

8 benefits of Successful JIT/Lean Production Implementation Card 2

7. more reliable suppliers 8. improved responsiveness to changing markets and customer requirements

steps in a decreased cash-to-cash cycle (see slide 26 for further illustration)

1. order arrives 2.order entry cycle 3. procurement cycle 4. production cycle 5. pack and ship cycle 6. distribution cycle 7. accounts receivable cycle (back to beginning, number 1 order arrives

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OTM - 22

JIT/LEAN - Facility Location Decisions - Part 2

Question	Answer
WIP	work in progress (?)
How much WIP is needed in a pull system?	amount may vary from stage to stage and for different items depending on 1. what is lead time to replenish 2. what is the demand or usage rate 3. how much safety stock is desired
Formula for calculating the number of Kanban containers (see slide 19)	variables in formula are not defined on the slide
ways to show respect for people - (lean key)	1. level payrolls,fewer job grades,more cross-training 2.employee suggestion programs 3.quality circles 4.participative management 5.quality at the source for employees & suppliers 6.cooperative management-employee relations7.employee training encouraged
participative management	1.management by consensus, empowered employees 2. push decision-making down in the organization
4 rules of the Toyota Production System	General rules: 1. work 2. customer-supplier connection 3. product pathway 4. improvements at lowest level
Toyota Rule 1 - work	all work shall be highly specified as to content, sequence, timing and outcome
Toyota Rule 2 - customer-supplier connection	every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses
Toyota Rule 3	the pathway for every product and service must be simple and direct
Toyota Rule 4	any improvement must be made with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization
Total Quality Control - Lean implementation requirements	1. worker responsibility 2. root cause 3. solve permanently 4. failsafing 5. team approach 6. continual education
Supplier Partnerships require networks of responsive suppliers - Lean implementation requirements	1.long-term relationships 2.shorter precise lead times 3.more frequent deliveries of smaller quantities 4.quality at source 5.help suppliers develop superior capabilities 6.tightly integrated information system 7.coord.of production and shipment schedules
8 benefits of Successful JIT/Lean Production Implementation Card 1	1. streamlined flow of materials from raw materials to the final customer 2. reduced investment in inventories 3. decreased cash to cash cycle4. better designed products 5. more predictable, better controlled processes 6. reduced levels of product defects
8 benefits of Successful JIT/Lean Production Implementation Card 2	7. more reliable suppliers 8. improved responsiveness to changing markets and customer requirements
steps in a decreased cash-to-cash cycle (see slide 26 for further illustration)	1. order arrives 2.order entry cycle 3. procurement cycle 4. production cycle 5. pack and ship cycle 6. distribution cycle 7. accounts receivable cycle (back to beginning, number 1 order arrives

Created by: rainesv

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