Just-in-time Enterprise Institute (JEI) 
Intermediate level

Just-in-time (JIT) multi-tiered supply chain flow

Full-day workshop
Wednesday, May. 9 Location Code

The workshop’s objective is to describe, discuss, then experience how Toyota's lean manufacturing and "just-in-time" logistics principles and techniques are applied to orchestrate complex, low volume, high variety product multi-tiered supply chain flow. Progressive enterprise stages discussed are; production planning, order processing, supply chain planning, management, and flow, and internal materials management and flow. These functions will be discussed within the context of achieving “indexing” or “pulsing” of required components/parts/kits as they sequentially flow from upper tier suppliers to the Customer’s points-of-use (POU) at the customer defined demand tempo (i.e., takt). 

Our approach will be to:

  • Discuss traditional manufacturing push replenishment supply chain, production control, and internal materials management. 
  • Introduce and align Toyota’s lean manufacturing & just-in-time logistics principles and methods with key elements of the supply chain and production management and control. 
  • Present and discuss how leveled demand operations and logistics management approaches can be used to orchestrate the launch of components/parts/kits at upper tier suppliers, then flow them first-in, first-out (FIFO) through the supply channel to the customer’s POUs. 
  • Reinforce this learning by experiencing actual complex, low volume, high variety, multi-tier supply chain component flow through four tiers of a simulated supply channel.

From a high-mix supply chain perspective, we will discuss:

  • Customer value, the importance of shortening lead time, pulling customer orders throughout the entire enterprise, operational pacing, work and activity balancing (heijunka), importance of open communications, right-sizing and balancing throughput rates (TPR) at all supply chain stages, launching orders at upper tier suppliers, milk run pick-up tours, synchronizing feeder supplychannels, and buffering to mitigate unavoidable delays.  
  • Demonstrate how Toyota’s just-in-time principles can be successfully applied to complex, low volume, high variety product production and logistics systems to demonstrate their value in exactly satisfying customers' needs, shortening total system lead (span) time, assuring quality, and reducing costs

Presenter: Jim Price

Jim Price gained his credentials in just-in-time logistics and manufacturing processes while serving as general manager of Ryder’s Toyota North America team. He was also plant manager at two highway tractor remanufacturing plants, a steel crankshaft forging company, a forklift manufacturing company, and director of operations at a hydraulic and pneumatic drive control machining manufacturer. From 2001-2008, Price served on the faculty of the University of Kentucky where he created an industry-focused lean transformation support program. For the past 15 years, he has served on AME’s Southeast Region board of directors and is currently the board’s president.