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Lecture Logistics theory - lecture 13: Just-in-time and lean thinking

At the end of this lecture, students should be able to understand the concept of just-in-time, identify and address three major issues managers must address, differentiate between push and pull scheduling, understand the lean thinking concepts and how it can be applied to cutting waste out of supply chains. | Just-in-time and lean thinking Learning outcomes Understand the concept of Just-in-time Understand the Lean thinking concepts and how it can be applied to cutting waste out of supply chains Identify and address three major issues managers must address Differentiate between push and pull scheduling At the end of this lecture, students should be able to Just-in-time 1 What are the implications of Just-in-time for logistics? 2 How can just-in-time principles be applied to other forms of material control such as reorder point and material requirements planning? Key issues Just-In-Time (JIT) Powerful strategy for improving operations Materials arrive where they are needed when they are needed Identifying problems and driving out waste reduces costs and variability and improves throughput Requires a meaningful buyer-supplier relationship Just-in-time Good production systems require that managers address three issues that are pervasive and fundamental to operations management: . | Just-in-time and lean thinking Learning outcomes Understand the concept of Just-in-time Understand the Lean thinking concepts and how it can be applied to cutting waste out of supply chains Identify and address three major issues managers must address Differentiate between push and pull scheduling At the end of this lecture, students should be able to Just-in-time 1 What are the implications of Just-in-time for logistics? 2 How can just-in-time principles be applied to other forms of material control such as reorder point and material requirements planning? Key issues Just-In-Time (JIT) Powerful strategy for improving operations Materials arrive where they are needed when they are needed Identifying problems and driving out waste reduces costs and variability and improves throughput Requires a meaningful buyer-supplier relationship Just-in-time Good production systems require that managers address three issues that are pervasive and fundamental to operations management: eliminate waste, remove variability, and improve throughput Just-in-time: A definition Just-in-time is actually a broad philosophy of management that seeks to eliminate waste and improve quality in all business processes. The concept was introduced in Japan under the name of Kanban. According to this concept, all materials and components are supplied to the workstation just at the time they are required for use. It tries to keep the level of inventory at the bare minimum. Kanban Kanban is the Japanese word for card The card is an authorization for the next container of material to be produced A sequence of kanbans pulls material through the process Many different sorts of signals are used, but the system is still called a kanban Kanban User removes a standard sized container Signal is seen by the producing department as authorization to replenish Part numbers mark location Signal marker on boxes Kanban Kanban Kanban Final assembly Work cell Kanban Material/Parts Supplier .