1 Operations Management Chapter 16 –JIT and Lean OperationsBy :Hermawan Susilo (13)Istiyana Ulta K (14)L. Tri Wahyudi (16)Aditya Narendra M (20)
2 Toyota Motor Corporation Largest vehicle manufacturer in the world with annual sales of over 9 million vehiclesSuccess due to two techniques, JIT and TPS by Taiichi OhnoCentral to JIT is a continuous problem solving by making only what is needed, when it is neededCentral to TPS is employee learning and continuing effort to create product under ideal conditions, without wasteSan Antonio plant, small building but high levels of production
3 DICTINCTION Just-In-Time, TPS, and Lean Operations JIT emphasizes continuos forced problem solving by reduced inventoryTPS emphasizes employee learningLean production supplies the customer with their exact wants when the customer wants it without wasteThoughput
4 The 5s - jepang Eliminate Waste “ Waste is anything that does not add value from the customer point of view ”Sort/segregate – keep what neededSimplify/straighten – methods analysis toolsShine/sweep – clean dailyStandardize – remove variations from processesSustain/self-discipline – review work and recognize progress - motivasiOhno’s Seven WasteOverproduction overproduksiQueues antrianTransportation raw matrialInventory penyimpananMotion pergerakan orangOverprocessing proses yang tidka perlu dilakukanDefective productsSafety – build in good practicesSupport/maintenance – reduce variability and unplanned downtime
5 Remove VariabilityJIT systems require managers to reduce variability caused by both internal and external factorsVariability is any deviation from the optimum process(variability = problems)Less variability results in less wasteSource of variability :Incomplete or inaccurate drawings or specificationsPoor production processes resulting in incorrect quantities, late, or non-conforming unitsUnknown customer demandsPenyebab :Pure production/produksi tidka sempurna karena defectCuetomer tidak jelas mintanya apa
6 PULL SYSTEM Improve Throughput Throughput time is the time it takes to move an order from receipt to deliveryThe time between the arrival of raw materials and the shipping of the finished order is called manufacturing cycle timeDriving down manufacturing cycle time can make a major improvement in throughputPULL SYSTEMImprove throughtput :
7 PULL SYSTEM Pulls a unit to where it is needed just as it is needed By pulling material in small lots, inventory cushions are removed, exposing problems and emphasizing continual improvementPulls systems are standart tools of JIT systemPull system berangkat dari lean operationKita
8 Just-In-Time (JIT) Powerful strategy for improving operations Materials arrive where they are needed when they are neededPartnershio : hubungan antara pabrik dengan supplierTujuannya adalah menghilankan kegiatan yang ndak perluMengurangi stock barang di pabrik
9 JIT PARTNERSHIPSJIT partnerships exist when a supplier and purchaser work together to remove waste and drive down costsFour goals of JIT partnerships are:Removal of unnecessary activitiesRemoval of in-plant inventoryRemoval of in-transit inventoryImproved quality and reliability
10 Concerns of SuppliersDiversification – ties to only one customer increases riskScheduling – don’t believe customers can create a smooth scheduleChanges – short lead times mean engineering or specification changes can create problemsQuality – limited by capital budgets, processes, or technologyLot sizes – small lot sizes may transfer costs to suppliers
11 Reduce waste due to movement JIT LayoutReduce waste due to movementDistance Reduction – major constribution of work cells, work centre, focused factoriesIncrease Flexibility – easily rearranged, change result of product & processImpact on employees - flexible & efficiencyReduced space and inventory - with reduced space, inventory must be in very small lots
12 JIT InventoryInventory is at the minimum level necessary to keep operations runningJIT Inventory TacticsUse a pull system to move inventoryReduce lot sizesDevelop just-in-time delivery systems with suppliersDeliver directly to point of usePerform to scheduleReduce setup timeUse group technologyTable 16.2
14 JIT SchedulingSchedules must be communicated inside and outside the organizationLevel schedulesProcess frequent small batchesFreezing the schedule helps stabilityKanbanSignals used in a pull system
15 Level SchedulesProcess frequent small batches rather than a few large batchesMake and move small lots so the level schedule is economicalFreezing the schedule closest to the due dates can improve performance
16 Kanban Kanban is the Japanese word for card The card is an authorization for the next container of material to be producedA sequence of kanbans pulls material through the processMany different sorts of signals are used, but the system is still called a kanban
17 JIT Quality Strong relationship JIT cuts the cost of obtaining good quality because JIT exposes poor qualityBecause lead times are shorter, quality problems are exposed soonerBetter quality means fewer buffers and allows simpler JIT systems to be used
18 JIT Quality Tactics Use statistical process control Empower employees Build fail-safe methods (poka-yoke, checklists, etc.)Expose poor quality with small lot JITProvide immediate feedbackTable 16.4
19 Toyota Production System Continuous improvementBuild an organizational culture and value system that stresses improvement of all processesPart of everyone’s jobRespect for peoplePeople are treated as knowledge workersEngage mental and physical capabilitiesEmpower employeesStandard work practiceWork shall be completely specified as to content, sequence, timing, and outcomeInternal and external customer-supplier connection are directProduct and service flows must be simple and directAny improvement must be made in accordance with the scientific method at the lowest possible level of the organization
20 Lean OperationsDifferent from JIT in that it is externally focused on the customerStarts with understanding what the customer wantsOptimize the entire process from the customer’s perspective
21 Building a Lean Organization Transitioning to a lean system can be difficultLean systems tend to have the following attributesUse JIT techniquesBuild systems that help employees produce perfect partsReduce space requirementsDevelop partnerships with suppliersEducate suppliersEliminate all but value-added activitiesDevelop employeesMake jobs challengingBuild worker flexibility
22 Lean Operations in Services SuppliersLayoutsInventoryScheduling
23 JIT at Arnold Palmer Hospital VIDEO CASE :JIT at Arnold Palmer Hospital
24 ABOUT ARNOLD PALMER RS Ibu dan Anak, berdiri tahun 1989 Melayani kelahiran per tahunRanking 5 kelahiran selamat tertinggiDiperlukan $ 30 Juta/ tahun untuk kepuasan pelanggan dan biaya inventory.
25 JIT ARNOLD PALMER Custom Surgical Packs, dengan 10 pack yang berbeda. Obat didistribusikan melalui dispensing machines (seperti vending machines).Custom Surgical Packs, dengan 10 pack yang berbeda.
29 JIT FOR SURGICAL PACKAGE Jadwal OperasiOrder ke supplier(1:00 – 2:00 PM)Dipersiapkan untuk operasiSupplier kirim ke RS(4:00 AM)
30 ADVANTAGE JIT ARNOLD PALMER Waste reductionVariability reductionInventory pull when neededMenghemat biaya inventory harian dari $400,000 menjadi 114,000.
31 JUST-IN-TIME MODEL IN CONSTRUCTION LOGISTICS Agung Sedayu Group
32 Proyek konstruksi sangat kompleks Resource intensivePerlu perencanaan matang dalam hal pembelihan, pengiriman, penyimpanan, dan pemindahan material konstruksi
33 KEY SUCCESSHubungan kerjasama yang stabil dan jangka panjang antara developer dengan suppliersSuppliers memiliki akses langsung pada informasi progress project dan kebutuhan materialMutual understanding & komitmen semua pihak mengenai Biaya-Mutu-Waktu
36 KESIMPULANDengan adanya tranfer informasi selama proses konstruksi, pengetahuan mengenai kebutuhan bahan bangunan dari Planning Department dan suppliers akan semakin baik.Planning Department bisa menyiapkan rencana jauh-jauh hari dan mentranfernya kepada Purchasing Department sebelum material bangunan habis.Good logistics system relies on good communication among the parties.