JIT Scheduling + Kanban + JIT Services

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JIT Scheduling, KANBAN, JIT Services

Przemyslaw Nawrot, Louis SchmidtJIT Scheduling Schedules have to be communicated inside and outside of a companyInventory is low Reduction of workOrdering big amount makes your costs lower

stock

Lower Setup costs Lower Total costs

rstkosten

fluent way of producing -> lower setup costs and plummeting odering and holding costs

JIT exists only when a supplier and purchaserwork together

prefer small batches than a large batch

Jelly bean scheduling

exactly schedule can improve performance improve performance and you only produce what your demand is!KANBANJapanese word = Card

authorization for next container of materialsmall lot sizes move inventory only as neededrather than pushing it whether the next workstation is ready for it or not

Different sorts of signals are used, but the system is still called Kanban (CARD)cardsflagsempty positions on the floor

important = authorization of the card pulled from the producing department/ supplier

KANBAN - no visual contact / visual contact

signal markerPart numbersmark collection

no visual contactvisual contactcardselectronic signals (computer, lights, internet)

empty positions on the floorflags

move when its needed = PULL-SYSTEM

arrivals in work center to match processing timereduce inventory pull only when needed

how kanban works, pulling units as needed from production.e.g. similar to the resupply that occurs in your neighborhood supermarket

customer buysstock clerk observes the shelf or receives notice from the end-of-day sales list and restockslimited supply in the stores storage is depleted, a pull signal is sent to the warehouse, distributor, or manufacturer for resupply, usually that night.the complicating factor in a manufacturing firm is the time needed for the actual manufacturing to take place.Kanban - more informationeach card = responsible specific parts or quantitypossible that a multiple card system is usedKanban system limit on the amount of work-in-process between cellsKanban doesnt has to be FORMAL.Example of KANBAN + JIT(fast-food restaurant)KANBAN:

6 cars in line informal kanban signal is5 will order french fries and 3 Big Mac chef should start cooking

2. JIT

Cooking french fries and BigMacs in a JIT - way!

Example of JIT McD's

Number of Kanban Containersinformation needed:lead time to produce a container of partsamount of safety stock needed

Number of KanbansDaily demandProduction lead time(Wait time + Material handling time + Processing time)Safety stockContainer size= 500 cakes= 2 daysaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa= day demand= 250 cakes Demand during lead time = 2 days x 500 cakes = 1.000

Number of Kanbans = (1.000 + 250)/250 = 5Advantages of KanbanReduced amount of faulty or delayed materialproblems are immediately evidentPuts downward pressure on bad aspects of inventorystandardized containers reduce weight, disposal costs, wasted space + laborKanban final statement MRP system JIT schedule as a build authorization and the kanban as a type of pull system that initiatives the actual production

JIT in services JIT techniques used in services: suppliers

layout

inventory

scheduling

Suppliersrestaurant deals with supplier on JIT basis

otherwise problems with customers occur

Layout conditions must be adapted to needs - e.g. McDrive

new selling channels and faster process

Inventorystockbrokers drivingdown inventory = occurs at McDonalds

preparing only the food, which is already ordered

Scheduling based on forecasted demanddifferent Examples:Airline ticket Counter(consider flights)McDonald (5 min)Salon (elaborate,seasonal, weekly)

ExerciseCompany SuperCar is trying to reduce inventory and wants to install a kanban system for compressors on one of its assembly lines. Determine the number of kanbans (containers) needed. Given Setup cost = $10Annual holding cost per compressor = $100Annual usage = 25.000 (50 weeks x 5 days each x daily usage of 100 compressors)Size of one Container = 100Lead time = 3 daysSafety stock = days production of compressors

Determination the number of kanbansDemand during lead time = 300 ( =3 days x daily usage 100)Safety stock = 100 (= x daily production of 200)

Quiz 1What are the positive aspects of JIT-Scheduling ?

a) The ability to meet customer ordersb) Drives down inventory by allowing smaller lot sizesc) Reduces work-in-processd) All of them abovecorrect answer = d)Quiz 2What kind of System is the KANBAN - System?

a) Push-Systemb) Pull-Systemc) Horizontal - Systemd) Vertical - Systemcorrect answer = b)Quiz 3Where does the Kanban come from?

a) Germanyb) Chinac) Japan d) US c) JapanTrue or False?Inventory has only one positive aspect, which is availability; inventory has several negatives, including increased material handling, obsolescence, and damage.

True