JIT/LEAN - Facility Location Decisions - Part 2

Help!

Question

Answer

WIP

work in progress (?)

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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

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

variables in formula are not defined on the slide

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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

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participative management

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

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4 rules of the Toyota Production System

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

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Toyota Rule 1 - work

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

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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

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Toyota Rule 3

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

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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

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Total Quality Control - Lean implementation requirements

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

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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

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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

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8 benefits of Successful JIT/Lean Production Implementation Card 2

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

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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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Created by: rainesv