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

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

Full day workshop

Discover how Toyota’s lean manufacturing and just-in-time logistics principles and techniques are applied to orchestrate complex, low-volume, high-variety multi-tiered supply chain flow.

Progressive enterprise stages discussed will be 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). Attendees will learn:
  • Traditional manufacturing push replenishment supply chain, production control, and internal materials management.
  • Toyota’s lean manufacturing, and just-in-time logistics principles and methods with key elements of the supply chain and production management and control.
  • 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.
  • Actual complex, low volume, high variety, multi-tier supply chain component flow through four tiers of a simulated supply channel.

From a Hi-Mix supply chain perspective, learn about:
  • 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 supply channels, and buffering to mitigate unavoidable delays.
  • Toyota’s just-in-time principles and how to 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.

Attendees will take the following learning points to their organizations:
  • Optimize your entire enterprise (i.e. complete system) (e.g. order processing, SC and production flow).
  • Seek a holistic lean system design operating backward from their customer.
  • “Right Size” focused factories (i.e. dedicated cells) internally and throughout the supply chains.
  • Seek to “index” customer required, time based, need sized “work units” (e.g. ship sets, kits, subassemblies) through all possible progressive SC tiers.
  • Maintain customer sequence first-in, first-out (FIFO) flow & timing through progressive stages.
  • Supply buffers should be inserted only where time delays are unavoidable (e.g. ship transport, batch processing, etc.)
  • Openly communicate end customer sequence and problems and their resolutions at all stages.
  • “Freeze” end customer sequence to equal lead time from earliest order component launch point.
  • Integrate pull Internal flow with pull supply chain flow (always operating at end customer’s need tempo).
Presenters: Jim Price / Art Hau
Jim Price served for over 20 years as a logistics officer and defense industrial operations commander within the US Army. He served as general manager for Ryder Integrated Logistics’ Toyota North America team, responsible for directing in-bound assembly parts logistics processes and dock operations for the Toyota plants in Georgetown, KY and Toyota's NUMMI plant in Freemont, CA. He also served as plant manager at two highway tractor/trailer remanufacturing plants, a steel crankshaft forging company, and as director of operations at a hydraulic and pneumatic drive control machining and assembly manufacturer. He transformed the operations to lean manufacturing and implemented kanban pull systems. As director of logistics and production control, Price transformed a large scale forklift assembly plant to the cultural of lean manufacturing and just-in-time logistics. From 2001 t0 2008, Price served on the faculty of the College of Engineering at the University of Kentucky where he created an on-campus Lean Boot Camp program and an industry-focused lean transformation support program. For the past 13 years, he has served on the board of directors of the AME Southeast region and is currently the board’s president-elect. Price is the executive director of the Kentucky-based Just-in-time Enterprise Institute (JEI). He has a MSc in operations research and systems engineering and was a research fellow with the Rand Corporation.