Chapter 10:

JIT and Lean Operations

Instructor: Dao Minh Anh (PhD.)

 Learning Objectives
▪ Explain what is meant by the term lean operations
system.
▪ List each of the goals of JIT and explain its
importance.
▪ List and briefly describe the building blocks of JIT.
▪ List the benefits of the JIT system.
▪ Outline the considerations important in converting
a traditional mode of operations to a JIT system.
▪ List some of the obstacles that might be
encountered when converting to a JIT system.
 JIT/Lean Production
▪ Just-in-time (JIT): A highly coordinated
processing system in which goods move through the
system, and services are performed with precise
timing at each step of the process, just as they are
needed,
▪ “JIT” and “Lean Production” are used
interchangeably
▪ JIT ➔ pull (demand) system
▪ JIT operates with very little “fat” = “lean” in terms
of minimal levels of inventories, minimal waste,
minimal space, and minimal transactions
 JIT/Lean Production

▪ JIT/Lean Production refers to a highly

coordinated, repetitive manufacturing or
service system
▪ Designed to produce a high volume of output
▪ With fewer resources than more traditional
repetitive systems,
▪ But with the ability to accommodate more
variety than traditional systems.
 Example of JIT at Southwest Airlines
▪ Successful using a JIT approach: by focusing on
having its planes spend as little time as possible
on the ground between flights
▪ A goal of getting time on the ground down to 18 min or
less → achieved the goal and further to nearly 12
minutes.
▪ How? → Persistence and attention to detail / Using just
one type of airplane, a Boeing 737
▪ Reduction in pilot training, aircraft maintenance (parts
inv), cleaning, and flight preparation are all
standardized → low turnaround time and low costs as
well!
 The Toyota Approach
▪ From the book, The Machine that Changed the
World, by Womack, Jones, & Roos in 1991
▪ Also from a more recent book, The Toyota Way
by Jeffrey (2004)
▪ Some of the terms associated with “LP”
▪ Muda: Waste and inefficiency that need to be
minimized.
▪ Kanban: A manual system used for controlling the
movement of parts and materials that responds to
signals of the need (i.e., demand) for delivery
▪ Pull system: replacing material or parts based on
demand; produce only what is needed
 The Toyota Approach (cont’d)

▪ Heijunka: The workload must be leveled; volume and

variety must be averaged to achieve a steady work flow
▪ Kaizen: continuous improvement of the system
▪ Jidoka: Autonomation (Automatic detection of defects
during production / Quality at the source by each worker.
▪ Poka-yoke: Safeguards built into a process to reduce the
possibility of committing an error
▪ Team concept: Use small teams of workers for process
improvement
 Summary JIT Goals and Building Blocks
Figure 15.1
 Goal of JIT
The ultimate goal of JIT is a balanced
system.
Achieves a smooth, rapid flow of materials
through the system
 Supporting Goals
▪ Eliminate disruptions:
▪ Disruptions are caused by poor quality, equipment
breakdowns, changes to the schedule, and late
deliveries.
▪ Make system flexible:
▪ Robust enough to handle a mix of products, often a
daily basis, and to handle changes in the level of output
while still maintaining balance and throughput speed.
▪ Reducing setup times and lead time is very important

▪ Eliminate waste, especially excess inventory

 Sources of Waste

▪ Overproduction
▪ Waiting time
▪ Unnecessary transportation
▪ Processing waste
▪ Inefficient work methods
▪ Product defects
 Kaizen Philosophy
▪ Kaizen: “Continuous Improvement”
▪ Waste is the enemy
▪ Improvement should be done gradually and
continuously
▪ Everyone should be involved
▪ Built on a cheap strategy – it does not
require spending great sums on technology
or consultants
▪ Can be applied anywhere
 Kaizen Philosophy (cont’d)
▪ Supported by a visual system: make
problems and wastes visible to everybody
▪ Focuses attention where value is created
▪ Process oriented
▪ Stresses main effort of improvement should
come from new thinking and work style
▪ The essence of organizational learning is to
learn while doing
 Big vs. Little JIT

▪ Big JIT – broad focus

▪ Vendor relations
▪ Human relations
▪ Technology management
▪ Materials and inventory management
▪ Little JIT – narrow focus
▪ Scheduling materials
▪ Scheduling services of production
 JIT Building Blocks

▪ Product design
▪ Process design
▪ Personnel/organizational
elements
▪ Manufacturing
planning and control
 Product Design

▪ Standard parts
▪ Modular design
▪ Highly capable production
systems
▪ Concurrent
engineering
 Process Design
▪ Small lot sizes
▪ Setup time reduction
▪ Manufacturing cells
▪ Limited Work-In-Process (WIP)
▪ Quality improvement
▪ Production flexibility
▪ Balanced system
▪ Little inventory storage
Benefits of Small Lot Sizes

Reduces inventory
Less rework
Less storage space
Problems are more apparent
Increases product flexibility
Easier to balance operations
Benefits of Small Lot Sizes
 Single-Minute Exchange of Die

▪ Single-Minute Exchange of Die (SMED): A

system for reducing changeover time
▪ Categorize changeover activities
▪ Internal – activities that can only be done while
machine is stopped
▪ External – activities that do not require stopping
the machine
 Production Flexibility

▪ Reduce downtime by reducing changeover time

▪ Use preventive maintenance to reduce
breakdowns
▪ Cross-train workers to help clear bottlenecks
▪ Use many small units of capacity
▪ Use off-line buffers
▪ Reserve capacity for important customers
 Production Flexibility

▪ Balance system: Distributing the workload

evenly among work stations
▪ Work assigned to each work station must be
less than or equal to the cycle time
▪ Cycle time is set equal to the task time
▪ Task time is the cycle time needed to match
customer demand for final product
 Quality Improvement

▪ Autonomation
▪ Automatic detection of defects during
production
▪ Jidoka
▪ Japanese term for autonomation
 Personnel/Organizational Elements

▪ Workers as assets
▪ Cross-trained
workers
▪ Continuous
improvement
▪ Cost accounting
▪ Leadership/project
management
 Manufacturing Planning and Control

▪ Level loading
▪ Pull systems
▪ Visual systems
▪ Close vendor
relationships
▪ Reduced transaction
processing
▪ Preventive maintenance
 Pull/Push Systems

▪ Pull system: System for moving work

where a workstation pulls output from
the preceding station as needed. (e.g.
Kanban)
▪ Push system: System for moving work
where output is pushed to the next
station as it is completed
 Kanban Production Control System

▪ Kanban: Card or other device that

communicates demand for work or
materials from the preceding station
▪ Kanban is the Japanese word meaning
“signal” or “visible record”
▪ Paperless production control system
▪ Authority to pull, or produce comes
from a downstream process.
 Kanban Formula

DT(1+X)
N =
C
N = Total number of containers
D = Planned usage rate of using work center
T = Average waiting time for replenishment of parts
plus average production time for a
container of parts
X = Policy variable set by management
- possible inefficiency in the system
C = Capacity of a standard container
 Limited Work In Process (WIP)
▪ Benefits
▪ Lower carrying costs
▪ Increased flexibility
▪ Aids scheduling
▪ Saves cost of rework and scrap
▪ Two general approaches
▪ Kanban – focuses on individual work stations
▪ Constant work in process (CONWIP) – focuses
on the system as a whole
 Traditional vs. Tiered Supplier Network
Figure 15.4
 Preventive Maintenance and
Housekeeping

▪ Preventative maintenance: Maintaining

equipment in good condition and replacing
parts that have a tendency to fail before they
actually fail.
▪ Housekeeping: Maintaining a workplace that
is clean and free of unnecessary materials.
 Housekeeping Five S’s

1. Sort (Seiri)
2. Straighten (Seiton)
3. Sweep (Seiso)
4. Standardize (Seiketsu)
5. Self-discipline (Shisuke)
Case Study

15-33
Case Study

15-34
Seiri or Sort

▪ Sorting of the clutter

from the other items
within the work area
that are actually
needed

15-35
Seiton or Straighten

▪ Straighten is the process

of taking the required
items that are remaining
after the removal of clutter
and arranging them in an
efficient manner through
the use of ergonomic
principles and ensuring
that every item “has a
place and that everything
is in its place.”
15-36
Seiso or Sweep

▪ Sweep is the
thorough cleaning of
the area, tools,
machines and other
equipment to ensure
that everything is
returned to a “nearly
new” status

15-37
Seiketsu or Standardize

Standardize is the
process of ensuring
that what we have
done within the first
three stages of 5S
become standardized;
We ensure that we
have common
standards and ways
of working

15-38
Shitsuke or Self-discipline/
Sustain
▪ Ensuring that the
company continue to
continually improve
using the previous
stages of 5S, maintain
housekeeping, and
conduct audits and so
forth

15-39
 Kaizen and 5S at Panasonic
▪ Assemble 60 nuzzles in 30 minutes

▪ Apply Kaizen and 5S in facility layout,

inventory, machines and equipment to work
effectively and efficiently

▪ Actual results: 20-30 nuzzles in 60 minutes,

including defective items
▪ So what to do???
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 Application
▪ Do you want to work at this office?

15-47
 Application
▪ Can you apply 5S at school? At home?

▪ Any where else?

▪ Apply Kaizen and 5S at FTU’s canteen to

improve service quality

15-48
 Comparison of JIT and Traditional
Table 15.3

Factor Traditional JIT

Inventory Much to offset forecast Minimal necessary to operate

errors, late deliveries
Deliveries Few, large Many, small

Lot sizes Large Small

Setup; runs Few, long runs Many, short runs

Vendors Long-term relationships Partners

are unusual
Workers Necessary to do the work Assets
 Transitioning to a JIT System

▪ Get top management commitment

▪ Decide which parts need most effort
▪ Obtain support of workers
▪ Start by trying to reduce setup times
▪ Gradually convert operations
▪ Convert suppliers to JIT
▪ Prepare for obstacles
 Obstacles to Conversion

▪ Management may not be committed

▪ Workers/management may not be
cooperative
▪ Difficult to change company culture
▪ Suppliers may
resist
▪ Why?
 Suppliers May Resist JIT

▪ Unwilling to commit resources

▪ Uneasy about long-term commitments
▪ Frequent, small deliveries may be difficult
▪ Burden of quality control shifts to supplier
▪ Frequent engineering changes may cause
JIT changes
 JIT in Services
The basic goal of the demand flow technology
in the service organization is to provide
optimum response to the customer with the
highest quality service and lowest possible
cost.
▪ Eliminate disruptions
▪ Make system flexible
▪ Reduce setup and lead times
▪ Eliminate waste
▪ Minimize WIP
▪ Simplify the process
 JIT II
▪ JIT II: a supplier representative works
right in the company’s plant, making sure
there is an appropriate supply on hand.

▪ Often called as VMI or Vendor Managed

Inventory, especially in Grocery or retail
industry.