Lean Six Sigma for Supply Chain Management, Second Edition by James William Martin

Lean Six Sigma for Supply Chain Management, Second Edition by James William Martin

Author:James William Martin
Language: eng
Format: epub
Published: 2018-09-28T16:00:00+00:00


Just-In-Time (JIT) Inventory Systems

JIT inventory systems rely on the basic elements of a Lean system, including operational stability, high quality, and JIT implementation. JIT consists of level loading of customer demand on the system to stabilize the manufacturing schedule. These concepts were discussed in Chapter 2 and are shown in Table 2.2 and Figure 2.3. Using the expected demand on the system (which must be relatively stable over long periods of time), the kanban container quantities are calculated using service level, lead time, and demand (which has been broken down linearly to an hourly basis). Kanban quantities are based on the PIM formula, but lead time and demand are assumed to be constant (except for a small safety-stock quantity, as shown in Figure 5.15). Raw materials and WIP inventories are controlled using kanban quantities, which are moved between manufacturing operations and external suppliers. These concepts were discussed in Chapter 5, and a generic version of a kanban system is shown in Figure 5.11.



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