Lean=JIT=Kaizen=World Class Manufacturing=Toyota Production System

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LeanJITKaizenWorld Class ManufacturingToyota
Production System

• Two Dreams
• Best Products for Customers
• Best Worklife for Employees

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Sport Obermeyer
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JIT Is NOT

• Just Prompt Delivery
• Last Minute Activity
• Without Much Planning
• An Inventory System

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JIT Redefines Waste

• Traditional Waste Definition
• Focus is on the PROCESS
• Optimization of each operation
• Idle Men or Machines
• Any Under-capacity Operation

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JIT Redefines Waste

• JIT Waste Definition
• Focus is on OUTPUT of the Process
• Idle Inventory
• Any Activity That Does Not Add Value
• Dont Make or Do Anything Until It Is Needed
• Optimize the Entire Flow - Not Just A Process

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Seven Wastes

• Defects
• Overproducing
• Idle / Unnecessary Inventory
• Waiting
• Unnecessary Process Steps
• Unnecessary Worker Movement
• Unnecessary Materials Movement

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Just-in-Time

• Fundamental Objectives
• Eliminate Waste
• Increase Flexibility
• Reduce Lead Times
• JIT is a Pull Process
• Final Customer
• Manufacturing Processes
• Basic Raw Material

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Just-in-Time

• Align Supply Chain Strategies
• Inventory Levels, Fill Rates
• Inventory Locations
• Postponement
• Collaborative Logistics
• Supplier Strategic Focus

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JIT Prerequisites

• JIT Prerequisites
• Stable Design
• Stable Schedule
• Faultless Shop Floor Quality
• Absolutely Reliable Supply Base
• Quality
• On-Time Delivery
• Accurate Data

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JIT Features

• Pull, Not Push System
• Improves Material Flow, Reduces Throughput Time
• Minimizes WIP Inventories
• Improves Shop Floor Quality
• Reduces Protection Inventories
• Improves Supplier Quality, On-Time Delivery
• Reduces Protection Inventories
• Reduced Set-Ups
• Increases Flexibility, Reduces Lot Sizes
• Reduces WIP Inventories

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JIT Features, cont.

• Improved Maintenance Assures Machine Availability
• Reduces Protection Inventories
• Reduced Inventory Storage Need Reduces Space
  Requirements
• Reductions in Inventories From JIT Implementation
  are By-products of Process Improvements
• The Major Benefit of JIT is Improved Quality

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JIT Implementation

• Kanban - Pull System
• Set-up Reduction
• Cellular Layout (flow)
• Statistical Process Control on the Shop Floor
• Preventive Maintenance
• Multifunctional Workers
• Jidoka

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JIT Impacts on Supply and Logistics Management

• Purchasing
• Few Suppliers, Long Term Close Relationships
• Receiving
• No Receiving, No QC Checks
• Inventory Levels
• Minimal Raw Materials
• MRO May Be Stable
• JIT Logistics Costs
• Specialized Equipment
• Consolidation, Full Use of Equipment

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Vendor Managed Inventory

• Suppliers Manage Inventories of Materials They
  Supply
• May, or Man Not Include Consignments
• Process
• Supplier and Buyer AGREE on Policies
• Supplier and Buyer AGREE on Levels and Bounds
• Within the Above Bounds, Supplier Orders and
  Maintains Inventory

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Coordinated Supply Chain Design
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Key Concepts

• Clockspeed
• Logistics Design
• Modularity
• Standardization
• Push/Pull Boundaries
• Early Supplier Involvement
• CPFR

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Logistics Design

• Distribution Network
• Consolidation
• Product and Packaging Design
• UPS/FedEx Dimensional Weights
• Recycling

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Standardization

• Internal
• Processes
• Materials
• Equipment
• External
• Industry Standards (Materials)
• Industrial Standardization (SAE)
• Multi-Industry (ANSI, ASTM)
• International (ISO, Metrics)

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Standardization

• Industry Standards
• Company Standardization
• Impacts on Inventory
• Impacts on Purchasing
• Impacts on Maintenance and Repair
• Impacts on Quality
• Implementation

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Standardization in Logistical System Design

• Evaluate Material Flow
• Pallets
• Cartons
• International Influences
• Design System Characteristics
• Standardize Pallets
• Pallet Racks
• Material Handling Equipment

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Euro Pallet Dimensions

• A Euro pallet is a block-style pallet that
  measures 800mm x 1200mm (31 1/2" x 47 1/4").
• Half pallets are 800mm x 600mm.
• Quarter pallets are 400mm x 600mm.
• Eighth pallets are 400mm x 300.

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Euro Pallet Collars

• Euro pallet collars are a clever European
  innovation designed with reusability and
  practicality in mind. Euro pallet collars are
  collapsible, wooden frames that affix easily to
  standard 800 x 1200 mm euro pallets.Pallet
  collars can also be used to build temporary bins
  for storing all kinds of products including
  fruits and other agricultural items. Orchard and
  garden owners in particular will appreciate our
  sturdy collars configured as wooden bins for
  their reusability and minimal storage space
  needs.

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Euro Pallet Collars
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Euro Pallet Collars
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Recycled Plastic Euro Pallets