Classes 9: JIT, Toyota, MRP

1
Operations Management Performance Modeling

• 1 Operations Strategy
• 2 Process Analysis
• 3 Lean Operations
• Class 3b House Game
• Class 4a The Paradigm of Lean Operations The
  ideal
• Class 4b Getting to the ideal with Product
  Variety TPS
• Managing variety/flexibility
• Toyota Production System
• 4 Supply Chain Management
• 5 Capacity Management in Services
• 6 Total Quality Management
• 7 Business Process Reengineering

2
How to run Lean Operations Managing Variety

• Monthly Production Requirement

• How should production be scheduled for the month?

3
Synchronize Heijunka Mixed Level/Balanced
Production

• Batch Production Schedule Mixed Production
  Schedule
• (AAAABBBB..) (ABAB...)
• Product Apr/12.................15............
  ...............30
  Apr/12....................15......................
  .30
• A
• B

4
Synchronize Heijunka Uniform Plant Loading

• This does not mean building a single product.
• Rather
• maintain a stable mix of products,
• and firm frozen schedules based on actual orders
• Benefits
• Costs Must reduce scale economies

5
Reducing Waste Reduced Setup Times

• What are the consequences of long setup times?
• A requirement for small-lot-size, mixed-model
  production?

6
Reducing Waste Mixed-Load Pickup and Delivery
Part A Plant
Individual Pickup
Assembly Line
Part B Plant
Part C Plant
Part A Plant
Mixed-Load Pickup
Assembly Line
Part B Plant
Part C Plant
7
Reducing Waste Quality at the Source
8
Reducing Waste Quality at the Source

• Fool-proof/Fail-safe design (Poka-Yoke)
• Inspection
• Self
• Automated (Jidoka)
• Line-stopping empowerment (Andon)
• Human infrastructure

9
Continuous Improvement Kaizen

• Increase visibility of waste
• Targeted improvements
• Active worker involvement
• Time for experimentation
• Supplier involvement
• Exploratory stress
• Human infrastructure

10
Lean Operations Best Implementation is TPS

• TPS is a production management system that aims
  for the ideal through continuous improvement
• Includes, but goes way beyond JIT. Pillars
• Synchronization through JIT Heijunka
• Quality at Source through Jidoka
• Continuous Improvement (Kaizen) through
  empowerment, visibility stress

....
11
Class 4b Learning Objectives

• Lean Operations In Search for the Holy Grail and
  zero Waste
• Efficient Workflow Cellular Layout
• Level Mixed Production Heijunka
• Reduced batch sizes
• Pull Execution Kanbans
• Quality at source Jidoka
• Continuous Improvement Kaizen

Flow Synchronization
Low Cost
Get ever closer to ideal