PULL / JIT

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PULL / JIT

• LT6 Training Module

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INTRODUCTION
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What are Pull JIT?
INTRODUCTION

• An inventory strategy
• Improves the return on investment of a business
  by
• Reducing in-process inventory
• Reducing cycle time
• Driven by signals, or Kanban, to
• Make the next part, or
• Move the next part

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HISTORY

• First used by the Ford Motor Company (early
  1900s)
• "dock to factory floor" not stored in
  warehouse, on factory floor
• Adopted by Toyota as part of its Toyota
  Production System (TPS)
• Little space for inventory
• Required shortening Set Up Times, through SMED
• Changed assumptions about Economic Lot Quantity
  (ELQ)
• ELQ fell to 1 unit
• When a part disappeared, a signal to produce or
  order a replacement.

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JIT AND PULL, related to
WHY JIT PULL
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But why is it important?
WHY JIT PULL
8 Wastes Defects Overproduction Waiting Non-util
ized talent Transportation Inventory Motion Extra
processing
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Why Inventory?

• So
• Whats So Bad About Inventory?

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Whats So Bad About Inventory?
Why Inventory?

• It HIDES problems

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Whats So Bad About Inventory?
Why Inventory?

• Lower Inventory level to expose problems, then
• Work on problems by
• Reducing variability
• Eliminating waste
• Streamlining production and material flows
• Accurate information

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So, Pull JIT are?
JIT

• A management philosophy of continuous and forced
  problem solving
• Supplies and components are pulled through
  system to arrive where they are needed when they
  are needed
• Goal Achieve the minimal level of resources
  required to add the necessary value in the
  production system.
• A means of making WASTE easy to see.

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JIT Philosophy
JIT

• JIT means the right quantity at the right place
  and the right time.
• Minimize or eliminate wastes (hidden rocks)
• Simpler is better
• Focuses on improving all operations
• Flexibility to produce different models/features
  with minimal set up

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JIT Elements
JIT

• Inventory reduction - exposes problems
• Kanbans pull production systems
• Small lots quick setups
• Uniform plant loading (leveling the load)
• Flexible resources
• Efficient facility layouts

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JIT Objectives
JIT

• To eliminate waste, by..
• Producing the needed item
• at the right time
• and the exact quantity
• AND.
• When a problem is identified, fixing it

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JIT Principles
JIT

• Produce only what the customer wants
• Produce only at the rate the customer wants
• Produce with perfect quality
• Produce with minimum lead time
• Produce with no waste of labor, material or
  equipment
• Produce with flow

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What is Flow?
Flow

• One piece at a time, opposite of batching
• Minimal distance between operations
• Small flexible equipment VS Large inflexible
• Cross Functional VS Departmentalized
• Cross Trained operators, easily moved
• Produce to the Takt,
• Level Loaded production

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What ENABLES JIT to work
Enablers

• Quick set ups (SMED)
• Stable processes
• Use of standard containers
• Doable stable schedules with adequate visibility
• TAKT-Time
• 5-S efforts
• Kaizen Events
• Visual controls
• Flexible workers
• Tools at the point of need
• Products designed for manufacturing
• Group Technology (product families)
• Total Productive Maintenance
• Kanban

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What kind of benefits can you expect with JIT?
Benefits

• Smaller inventories
• Shorter lead times
• Quicker response to customer demand
• Improved quality
• Reduced space requirements
• Lower production costs
• Increased productivity
• Greater flexibility
• Lower inventory carry costs (25)

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JIT works best when.
Works Best

• Trust is present
• labor/management
• suppliers/consumers
• Individuals are familiar with problem solving
• Quality at the source is emphasized
• There is agreement over value and waste
• Applied in the growth to maturity phases of
  Product Life Cycle
• Products are somewhat standard
• Standard/fixed pay-rate
• Problems with piece-rate systems
• Universal agreement that change is needed

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Quality at the Source
Key Enablers

• For JIT to work, quality must be high
• There should be no extra inventory to buffer
  against the production or use of defective units
• Producing poor-quality items, and reworking or
  rejecting them is wasteful
• The workers must be responsible for inspection
  production quality
• The philosophy is, NEVER pass along a defective
  item

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One Piece Flow, Continuous Flow
Key Enablers

• The opposite of batch, lot, or mass processing
• Product should move (flow) from operation to
  operation, only when it is needed, in the
  smallest increment possible
• One piece is the ultimate (single-piece-flow)
• Cross train operators
• Operators float to the bottleneck

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Pull Production, an feature of JIT
Key Enablers

• Actual customer demand drives the manufacturing
  process
• It creates a system of cascading production and
  delivery signals from downstream demand to
  upstream production in which nothing is produced
  by the upstream supplier until the downstream
  customer signals a need
• Big Benefit Schedule only one point the value
  stream
• The rate of production for each product is equal
  to the rate of customer consumption

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Pull Example
Key Enablers
Leveled Schedule
Production Schedule
Vendor
Fab
A
C
A
B
A
Vendor
Fab
Customer Request
Final Assy
Fab
Vendor
Fab
Vendor
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Work Balancing / TAKT Time
Key Enablers

• Work balancing maximizes operator efficiency by
  matching work content to TAKT time
• TAKT time is the rate at which customers require
  your product
• TAKT time is calculated as follows

Available work time per day Daily required
customer demand in parts per day
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Lets see how this works
Simulation

• YESCO Aviation Brand new operation
• Building planes
• 4 Assembly Operators
• 1 Material Delivery
• 1 Timer
• 1 Customer
• 1 Manager

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Lets see how this works
Simulation

• YESCO Aviation Brand new operation
• Customer watches for defects
• Building and moving 3 at a time (ELQ)
• Call Mtl Handler to move product
• Customer will take all you can build
• Dont change layout
• Colored paper will track Lead Time
• Will run until enough work in process to capture
  data

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Lets see how this works
Simulation

• YESCO Aviation Howd we do?

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Lets see how this works
Simulation

• YESCO Aviation Run 2
• Move however you like
• Lot Size 1
• Introduce Single Piece Flow discipline
• Howd we do
• Wrap up

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Whats next?
Conclusion

• Ensure quality
• Remove clutter minimize storage
• Reduce setup times
• Level load orders, produce to takt
• Implement layout changes
• Cellular manufacturing /or close proximity
• Cross train and teach to float to the bottleneck
• Move to pull production
• Extend methods to suppliers
• Review and improve

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Q A
Conclusion
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