JUST-IN-TIME (JIT) AND
LEAN SYSTEMS
SASARAN SESI
• Mampu menjelaskan prinsip Lean Thinking
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REFERENSI
Operations Management an Integrated Approach (6th ed.) (2016) by Reid & Sanders.
Wiley.
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JUST-IN-TIME (JIT)
JIT philosophy means getting the right quantity of goods at the right
place and the right time
JIT exceeds the concept of inventory reduction; it is an all-
encompassing philosophy geared to eliminate waste, anything that does
not add value
A broad JIT view – or lean production/lean systems - is one that
encompasses the entire organization
PHILOSOPHY OF JIT
• JIT originated in Japan at Toyota Motor Co, fueled by a need to survive the
devastation post WWII
• JIT gained worldwide prominence in the 1970s
• Often termed “Lean Production” or “Lean Systems”
• Broad view that entire organization has the same goal - to serve customers
DEFINING BELIEFS OF JIT
• Everyone should have a broad view of the organization and work toward
the same goal, which is serving the customer
• JIT is built on simplicity - simpler is better
• Continuous improvement – often using kaizen blitz
• Visibility – all waste must be visible to be identified and eliminated
• Flexibility - to adapt to changes in environment
THREE ELEMENTS OF JIT
THREE ELEMENTS OF JIT - CONT'D
JIT manufacturing
focuses on production system to achieve value-added manufacturing
TQM
is an integrated effort designed to improve quality performance at
every level
Respect for people
rests on the philosophy that human resources are an essential part of
JIT philosophy
ROLE OF INVENTORY REDUCTION
• Inventory = Lead Time (less is better)
• Inventory hides problems
E L E M E N T S O F J I T M A N U FA C T U R I N G
JIT Manufacturing is a philosophy of value-added manufacturing
Achieved by focusing on these elements:
Inventory reduction - exposes problems
Kanbans & pull production systems
Small lots sizes & quick setups
Uniform plant loading
Flexible resources
Efficient facility layouts
J I T M A N U FAC T U R I N G : T H E P U L L SYS T E M
NUMBER OF KANBANS REQUIRED
DT + S
N=
C
N = number of containers
D = demand rate at the withdraw station
T = lead time from supply station
C = container size
S = safety stock
Computing the Number of Kanbans: an aspirin manufacturer has converted to JIT manufacturing using kanban
containers. They must determine the number of containers at the bottle filling operation which fills at a rate of 200 per
hour. Each container holds 25 bottles, it takes 30 minutes to receive more bottles, safety stock is 10% of demand during LT.
Solution :
D = 200 bottles per hour
T = 30 minutes = .5 hour
C = 25 bottles per container
S = 0.10(demand)(T) = 0.10(200)(.5) = 10 bottles
DT + S (200)(.5) + 10
N= = = 4.4 kanban containers
C 25
Question : round up or down?
Tip: round up = would provide additional slack
round down = need to make improvements in operations
VA R I AT I O N S O N K A N B A N
PRODUCTION
• Kanban boxes
• space on factory floor for storing supplies
• Flags (signal kanban)
• used to indicate when supplies need to be ordered
• Supplier kanbans
• brings filled containers to point of usage in factory/picks up empty containers
SMALL LOT SIZES & QUICK SETUPS
Small lots mean less average inventory and shorten manufacturing lead time
Small lots with shorter setup times increase flexibility to respond to demand changes
Strive for single digit setups- < 10 minutes
Setup reduction process is well-documented
External setup- do as much preparation while present job is still running; thus can be performed
while machine is still running
Internal setup- simplify, eliminate, shorten steps involved with location, clamping, & adjustments;
requires the machine to be stopped in order to be performed
Ultimate goal is single unit lot sizes
UNIFORM PLANT LOADING
A “level” schedule is developed
so that the same mix of
products is made every day in
small quantities
Leveling the schedule can have
big impact along whole supply
chain
FLEXIBLE RESOURCES
Moveable, general purpose equipment:
Portable equipment with plug in power/air
Drills, lathes, printer-fax-copiers, etc.
Capable of being setup to do many different things with minimal
setup time
Multifunctional workers:
Workers assume considerable responsibility
Cross-trained to perform several different duties
Trained to also be problem solvers
FA C I L I T Y L AYO U T S
• Workstations in close physical proximity to reduce transport &
movement
• Streamlined flow of material
• Often use:
• Cell Manufacturing
• Placement of dissimilar machines and equipment together to produce a family of
products with similar processing requirements
• U-shaped lines
• allows material handler to quickly drop off materials & pick up finished work; flexibility
TQ M
Product versus process Preventative Maintenance:
Regular inspections and
Quality in JIT is centered on maintenance to keep machines
building quality into the operational
process Costly, yes but less expensive than
Quality at the source - unexpected machine breakage.
sequential inspection Work environment
Jidoka - authority to stop line perform maintenance as part of
Poka-yoke - fail-safe all their regular work
processes Care of equipment and well-
trained workers are very
important.
RESPECT FOR PEOPLE
The Role of Employees:
• Genuine and meaningful respect for employees
• Willingness to develop cross-functional skills
• Associates gather performance data; make production and quality decisions
• Bottom-round management
• consensus management by committees or teams
• Quality circles
• small volunteer teams that solve quality problems
• Everyone is responsible for Quality and preventive maintenance
RESPECT FOR PEOPLE - CONT ’D
Lifetime Employment:
• Everyone feels secure/is empowered
• Everyone is responsible for quality: understand both
internal and external customer needs
RESPECT FOR PEOPLE CONT ’D
The Role of Management:
• Responsible for culture of mutual trust
• Serve as coaches & facilitators
• Responsible for developing workers
• Provide multi-functional training
• Facilitate teamwork
• Support culture with appropriate incentive system
including non-monetary
RESPECT FOR PEOPLE - CONT ’D
Supplier Relationships
• Single-source suppliers
• Can supply entire family of parts; external factory
• Build long-term relationships with small number of suppliers
• Suppliers locate near customer
• Fewer contracts
• Cost and information sharing
• Work together to certify processes
BENEFITS OF JIT
• Reduction in inventories
• Improved quality
• Reduced space requirements
• Shorter lead times
• Lower production costs
• Increased productivity
• Increased machine utilization
• Greater flexibility
IMPLEMENTING JIT
• Starts with a company shared vision of where it is and where
it wants to go
• Management needs to create the right atmosphere
• Implementation needs a designated “Champion”
IMPLEMENTING JIT – CONT'D
Implement the sequence of seven steps:
1. Make quality improvements
2. Reorganize workplace
3. Reduce setup times
4. Reduce lot sizes & lead times
5. Implement layout changes
6. Switch to pull production
7. Develop relationship with suppliers
JIT IN SERVICES
Many JIT concepts also apply to Service companies
▪ Improved quality such as timeliness, service consistency, and
courtesy
▪ Uniform facility loading to provide better service responsiveness
▪ Use of multifunction workers
▪ Reduction in cycle time
▪ Minimizing setup times and parallel processing
▪ Workplace organization
JIT & LEAN SYSTEMS: HOW IT
ALL FITS TOGETHER
JIT: an overriding philosophy that affects all other
business decisions
▪ Quality improvements (chs 5 & 6)
▪ Partnering with suppliers (ch 4)
▪ Changing job designs (ch 11)
▪ Facility layout (ch 10)
▪ Changes in production process (ch 3)
▪ Changes in inventory (ch 12)
J I T A C R O S S T H E O R G A N I Z AT I O N
JIT eliminates organizational barriers and
improves communications
• Accounting changes or relies on activity-based costing
• Marketing by interfacing with the customers
• Finance approves and evaluates financial investments
• Information systems create the network of
information necessary for JIT to function
J I T A C R O S S T H E O R G A N I Z AT I O N
JIT eliminates organizational barriers and
improves communications
• Accounting changes or relies on activity-based costing
• Marketing by interfacing with the customers
• Finance approves and evaluates financial investments
• Information systems create the network of
information necessary for JIT to function
TERIMA KASIH
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