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The problem with lean manufacturing
9 lean manufacturing principles
The problem with lean manufacturing
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INEN : 5354
LEAN MANUFACTURING
Home Work 2
T.S.R.Sanjay (L20352031)
8/6/2015
1) Investigate and explain in your own words Just-in-Time production (JIT).
JIT- Just in Time was an approach used to achieve Lean manufacturing. JIT to explain it shortly it means producing right item at right time and at right quantity. Toyota introduced JIT approach in 1950 when the company facing Tough competition, high capital investment, rapid change in automobile market in terms of price value and technology.
The need to introduce JIT to Toyota the primary need is to control the over production which is being on Toyota shop floor producing items irrespective of market demand following PUSH system conventionally which is later replaced by PULL system by TPS. The other main reason to introduced JIT is to track the order and status of INVENTORY which was the main problem on the Toyota shop floor.
2) Withdrawal Kanban: this Kanban reserves the information about the inventory strategy at customer or downstream level.
These two Kanban details are coordinated at the supplier where the production and the withdrawal are crossed together. In Kanban we produce only items which are with drawled by the customer at the supplier and we will never dispatch the defected items to the customers.
Kanban system requires only one kind of production schedule. Conventional push system requires scheduling and rescheduling the production process by applying the LEAN PULL system the need to reshuffle the schedule all the times can be avoided. The most important advantage of the Kanban is this visual tool makes the production transparency visible and it is a great help. Kanban was a system that sync manufacturing process with the customer demand.
There are 6 basic rules of KANBAN, they are
Never dispatch the Defected or Bad items to
“Quality of lean systems is based on kaizen, the Japanese term for “change for the good of all” or continuous improvement” (Russell & Taylor, 2013, pg. 737). Continuous improvement involves “every employee at every level” (Russell & Taylor, 2013, pg. 737). It is the process of employees identify “quality problems, halt operations when necessary, generate ideas form improvement, analyze processes, perform different functions, and adjust their working routines” (Russell & Taylor, 2013, pg. 737). “The idea focuses on improving processes and products while using employee creativity to help define the way procedures and systems can be improved” (Wagner, N., 2015). The kaizen approach encourages an organization to achieve better operational excellence and improve their productivity. The key component to achieve a successful kaizen “is finding the root cause of a problem and eliminating it so the problem does not reoccur” (Russell & Taylor, 2013, pg. 738). One of the techniques for achieving the root cause of a problem is asking the “5 Why’s”: “repeatedly asking “why?” until a root cause is identified” (Russell & Taylor, 2013, pg. 738). Kaizen is that big results from many small changes accumulated over time. This does not mean that kaizen means small changes. What is does mean, is that everyone involved is making improvement for a more streamline process. Kaizen is part of the quality of source that involve; visual control,
Lean is not a new concept and surfaced as a result of Toyota’s Production System. Manufacturing has been using lean principles since the 1980’s (Sarkar, 2008). Lean today goes beyond manufacturing into health, education,
Inditex also fully owned 20 factories for internal manufacture. These factories apply just-in-time production (JIT). Again, this gave Zara further competitive advantage, in terms of both cost and control.
Based on future supplier contracts, shortening lead time for delivery of parts and materials establishing leaner processes, namely addressing wastes identified through implementing a Just-In-Time (JIT) system. A centralized wharehouse system, co-located near the manufacturing plant will reduce shipping and transportation costs or look for larger space with warehousing capacity. Savings, significant enough will be a factor if space with warehousing falls within the
So that our decisions would lead to a better performance on the inventory levels which means a more stable inventory according our policies but our order policy based on the expected demand would not be changed while the impact of our policy on the inventory is better because our orders are met with a better
middle of paper ... ... Reduce overhead costs of working with JIT based customers by. o Consider implementing JIT production and inventory methodology. o Reduce order handling overhead by implementing standing JIT orders (i.e. one order for a total quantity over time, instead of a separate order for each delivery).
During this project, I am going to mention the details of TOYOTA production process system which was developed more than 40 years ago by Taiichi Ohno, the president of Toyota Motor company at that time. The production system that Toyota company uses now and before is relevant to the concept of the process costing system which is currently used in all department of the company.
Operations – To work out the right layout and work flow process in the company. The manpower resource allocation is also critical in the situation on the right balance of resource to handle the production. If possible, adopt a hybrid model to handle the flexibility in the product nature, make both the production line being able to configure standard and customized so to reduce setup and changeover time and cope with the demands.
Simpson, W. (2010). Project Planning and Control When Time Matters: Focus on Process to Synchronize and Drive Results. Production and Inventory Management Journal, 46(2), 26-43. Retrieved July 19, 2011, from ABI/INFORM Global. (Document ID: 2278162401).
(The origin of the Toyota production system, n.d.). These ideals led to the Just-in-Time method, which is a practice of only making what is needed, when it is needed, using only the amount needed. Just-in-Time is incorporated within the continuous improvement method being that if all elements are performed efficiently and effectively, then it is evident that the corporation will have a lesser chance of becoming stagnant. Their ability to focus on research and development allows them to keep their technological advantage at bay amongst their products, which in turn leads to innovation and sales.
In addition, at the time, the economy was doing great, therefore, using the push system to stock pile inventory was acceptable. However, during the dot-com bust of the 2000’s, its sales and the demand for its products greatly decreased. Unfortunately, during this time, Cisco discovered that it possessed an abundance of inventory, and, wrote off more than $1 billion in inventory. Consequently, the company learned that acquiring inventory in anticipation of market demand, and not factoring in the human element of its business increased its risks of failure. Obviously, Cisco wanted to meet its customer’s demands, however, the problem was that it held more inventory than what the customers were demanding. Nevertheless, afterwards, it knew that it needed to adopt a new, more efficient approach to inventory. Therefore, Cisco had to reevaluate its supply chain system and seek input from IT, customers, suppliers, and finance. Further, by including input from these sources, Cisco adopted the more efficient pull system. The pull system, is dependent upon producing smaller repeating orders. Rather than the push system, which relies on larger less repeating orders. Effective inventory management, when administered correctly, can reduce and keep the inventory to a more desired level. In addition, Cisco discovered that inventory management can reduce inventory levels, enhance cash flow and reduce overall
Just In Time production concepts originated in Japan, and are generally associated with the Toyota motor company. JIT was initially known as the “Toyota Production System” and its originator was Taiichi Ohno. Ohno examined American manufacturing and devised a new system of production based on the elimination of waste.
In 1950s, Toyota has developed lean thinking. The Toyota Production System aspires to minimize waste and increase efficiency while at the same time enhances its product quality. From this initiative, Toyota managed to widen its competitive edge by employed fewer employees in the car production with a small number of flaw products.
• While making a methodology is challenging, executing it is considerably more troublesome. Numerous organizations comprehend Toyota Production System now, yet at the same time think that it is troublesome to execute and implement.
Toyota has implemented many different systems such as performance monitoring software, the Just in time (JIT) inventory system, electronic quality control system, communication system and information system thought out their value chain which enable to make correct decision during the manufacturing process. They have identified that having large inventories of spares cost them extensive capital and they have implemented the Just in time (JIT) inventory system which advices the suppliers the exact spares that the product line required and provides a time frame. Toyota adopted continuous learning and embraces change allowing their staff to research and innovation (Toyota