In this chapter, the following content will be discussed: What is inventory, cost of inventory, benefits of inventory, multi period model, optimal quantity to order, safety stock, periodic review system, Single period Inventory model. | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 25 1 Summary of last Session Chapter: JIT and Lean Operations Global Company Profile: Toyota Motor Corporation Just-in-Time, the Toyota Production System, and Lean Operations Eliminate Waste Remove Variability Improve Throughput 2 Summary of last Session (Contd.) Just-in-Time JIT Partnerships Concerns of Suppliers JIT Layout Distance Reduction Increased Flexibility Impact on Employees Reduced Space and Inventory 3 Summary of last Session (Contd.) JIT Inventory Reduce Variability Reduce Inventory Reduce Lot Sizes Reduce Setup Costs JIT Scheduling Level Schedules 4 JIT Schedulling Kanban Toyota Production System Lean Operations Agenda for this Session 5 Agenda for this Session (Contd.) CHAPTER : Maintenance and Reliability Operations Global Company Profile: Orlando Utilities Commission The Strategic Importance of Maintenance and Reliability Reliability Improving Individual Components Providing Redundancy 6 6 Agenda for | LSM733-PRODUCTION OPERATIONS MANAGEMENT By: OSMAN BIN SAIF LECTURE 25 1 Summary of last Session Chapter: JIT and Lean Operations Global Company Profile: Toyota Motor Corporation Just-in-Time, the Toyota Production System, and Lean Operations Eliminate Waste Remove Variability Improve Throughput 2 Summary of last Session (Contd.) Just-in-Time JIT Partnerships Concerns of Suppliers JIT Layout Distance Reduction Increased Flexibility Impact on Employees Reduced Space and Inventory 3 Summary of last Session (Contd.) JIT Inventory Reduce Variability Reduce Inventory Reduce Lot Sizes Reduce Setup Costs JIT Scheduling Level Schedules 4 JIT Schedulling Kanban Toyota Production System Lean Operations Agenda for this Session 5 Agenda for this Session (Contd.) CHAPTER : Maintenance and Reliability Operations Global Company Profile: Orlando Utilities Commission The Strategic Importance of Maintenance and Reliability Reliability Improving Individual Components Providing Redundancy 6 6 Agenda for this Session (Contd.) Maintenance Implementing Preventive Maintenance Increasing Repair Capabilities 7 7 JIT Scheduling Schedules must be communicated inside and outside the organization Level schedules Process frequent small batches Freezing the schedule helps stability Kanban Signals used in a pull system 8 8 Table Better scheduling improves performance JIT Scheduling Tactics Communicate schedules to suppliers Make level schedules Freeze part of the schedule Perform to schedule Seek one-piece-make and one-piece move Eliminate waste Produce in small lots Use kanbans Make each operation produce a perfect part JIT Scheduling 9 9 Level Schedules Process frequent small batches rather than a few large batches Make and move small lots so the level schedule is economical “Jelly bean” scheduling Freezing the schedule closest to the due dates can improve performance 10 Scheduling Small Lots A B C A A A B B B B B C JIT Level Material-Use Approach A C A A A B B B B B C C B B B B A A .
