5. Summary JIT Goals and Building Blocks Figure 14.1 Product Design Process Design Personnel Elements Manufactur- ing Planning Eliminate disruptions Make the system flexible Eliminate waste A balanced rapid flow Ultimate Goal Supporting Goals Building Blocks
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12. Benefits of Small Lot Sizes Reduces inventory Less storage space Less rework Problems are more apparent Increases product flexibility Easier to balance operations
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20. Kanban Formula N = Total number of containers D = Planned usage rate of using work center T = Average waiting time for replenishment of parts plus average production time for a container of parts X = Policy variable set by management - possible inefficiency in the system C = Capacity of a standard container N = DT(1+X) C
22. Tiered Supplier Network Figure 14.4b First Tier Supplier Second Tier Supplier Third Tier Supplier Supplier Supplier Supplier Supplier Supplier Supplier Buyer Supplier
23. Comparison of JIT and Traditional Table 14.3 Assets Necessary to do the work Workers Partners Long-term relationships are unusual Vendors Many, short runs Few, long runs Setup; runs Small Large Lot sizes Many, small Few, large Deliveries Minimal necessary to operate Much to offset forecast errors, late deliveries Inventory JIT Traditional Factor
