Jit Analysis of Lean Production

Just-in-Time 1

Just-In-Time: An Analysis of Lean Production

Kerowyn

BUS

Professor

02/13/12

Just-in-Time 2

Just-In-Time: An Analysis of Lean Production

This paper will provide a review of JIT as a production process. It will discuss the role it plays in lean production and inventory control. The concept of SMED will also be covered. The paper will also define kanban and the ability to invoke a JIT process without it as well as discussing how a dual-card kanban system operates successfully.

The purpose of JIT is to increase a business' return on investment by reducing the volume of in-process inventory, and reducing the associated costs. JIT can be implemented without kanban, but it is not as successful. One application would be the order-up-to-target system. This periodic review implements just-in-time deliveries from suppliers and orders what is actually used, no more, no less. This does not require kanban. It requires accurate forecasting. It also requires a worker to notice the stock is depleted so the next order can take place. When the order is placed, order only what supplies are needed to manufacture the specified supplies. Once those items are manufactured and accounted for, retrieve the next set of components for the next set of items.

Kanban in its simplest form is this. A component needs to make widgets is a bolt. The bolts come on a pallet. Each pallet contains 100 bolts. When the pallet is empty, the card on the pallet it sent of the area that manufactures the bolts. Then another pallet of bolts is sent to the machine area that assembles widgets.

With a dual-card system, there would be at least two pallets. The first pallet is being refilled while the second pallet is being emptied, creating an "endless supply" of bolts. According to the abstract from IIE Transactions Mar 2007 article on the performance of two-stage multi-product kanban systems; the authors evaluate the steps to invoke the process. They

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recommend a staged approach, proposing that the processing and setup times would be exponentially distributed based on the single product manufacturing facility. Then, demand the arrivals at the output store of the second stage.

Single minute exchange of die, or SMED, is a method used by lean production to reduce waste in the manufacturing process. When implemented successfully, it will significantly reduce the time it takes to complete the changeover of equipment. The purpose is to complete the changeover to the equipment while the equipment is still running. This will lower manufacturing cost, recue lot sizes, enable more flexible scheduling for