Quản trị kinh doanh - Chapter 6: Just - In - time (lean) purchasing

1Chapter 6:Just-in-Time (Lean)PurchasingPurchasing and Supply Chain Management, 3rd edition, Copyright © 2013 W. C. Benton Jr., All rights reservedThe Two Rival Production systemsMRP production systemsJust-in-time (JIT) manufacturingPopularity of JITJIT conversion success testimonialsHarley-Davidson and Hewlett-Packard2Just-in-time (JIT) PhilosophyJust-in-time (JIT) is not just a set of tools but rather a philosophyThe JIT philosophy is based on: Elimination of wasteContinuous improvementExample of the JIT philosophy applied to a firmJust-in-time (JIT) productionJust-in-time (JIT) purchasing3Just-in-time (JIT) ProductionA powerful management tool Based on planned elimination of all waste and on continuous improvementAlso referred to as lean productionApplied to repetitive manufacturing processesReduces:Inventory levelsVariability Delivery lead timesSetup costsThus, improving product quality4Definition of Lean Production SystemA set of several manufacturing practices including:Worker empowermentProcess focusPull productionContinuous improvementThe main objective:Satisfy customer needs on the highest possible level through the elimination of waste5Push and Pull Production SystemsAlternative systems for executing the production processWhen should the next unit of production be made?The three systems:Push system Pull system Hybrid productionCombination of push and pull6Determining the Number of Kanban Cards 7Example: Number of KanbansHow many kanbans are required for the bottling process?Average of 90 bottles/hour output (d)Container size of six bottles (C)Lead time of 20 minutes (L)Safety stock level of 10 percent (S)8 JIT Purchasing AdvantagesReduced inventory levelsImproved lead-time reliabilityScheduling flexibilityImproved quality and customer satisfactionReduced costs of partsConstructive synergies with suppliers9Just-in-time (JIT) and Environment Cultural Fit Need a culture that facilitates cooperation and harmony between organizationsFor example, difference between corperate cultures of Japan and USALow Variability in Demand10Questions?11