Just-in-Time and

Lean Systems
 Just-in-Time and Lean Systems
• JIT Defined

• The Japanese Approach to Productivity

• JIT Implementation Requirements

• JIT in Services
 Just-In-Time (JIT)
Defined
• JIT can be defined as an integrated set of
activities designed to achieve high-volume
production using minimal inventories (raw
materials, work in process, and finished goods).
• JIT also involves the elimination of waste in
production effort.
• JIT also involves the timing of production
resources (e.g., parts arrive at the next
workstation “just in time”).
 Exhibit
Exhibit10.1
10.1
JIT Demand-Pull Logic

Fab Vendor

Sub
Fab Vendor
Final
Customers Assembly

Sub Fab Vendor

Fab Vendor
The Japanese Approach to Productivity
• Imported technologies
• Efforts concentrated on shop floor
• Quality improvement focus
• Elimination of waste
• Respect for people
 Waste in Operations
(1) Waste from overproduction
(2) Waste of waiting time
(3) Transportation waste
(4) Inventory waste
(5) Processing waste
(6) Waste of motion
(7) Waste from product defects
 Minimizing Waste:
Focused Factory Networks

Coordination
System Integration
Final Assembly
 Minimizing Waste:
•
Group Technology (Part 1)
Using Departmental Specialization for plant layout can cause a lot of
unnecessary material movement.

Saw Saw Saw Grinder Grinder

Heat Treat

Lathe Lathe Lathe Press Press Press

 Minimizing Waste:
Group Technology (Part 2)
• Revising by using Group Technology Cells can reduce movement and improve
product flow.

Grinder 1 2
Saw Lathe Lathe Press

Heat Treat

Grinder
Saw Lathe A B Lathe Press
 Minimizing Waste:
Uniform Plant Loading
Suppose we operate a production plant that produces a single
product. The schedule of production for this product could be
accomplished using either of the two plant loading schedules below.

Not uniform Jan. UnitsFeb. Units Mar. Units Total

1,200 3,500 4,300 9,000

or

Uniform Jan. UnitsFeb. Units Mar. Units Total

3,000 3,000 3,000 9,000

How does the uniform loading help save labor costs?

 Exhibit
Exhibit10.3
10.3
Minimizing Waste: Just-In-Time
Production
WHAT IT IS WHAT IT DOES

• Management philosophy • Attacks waste

• Exposes problems and bottlenecks
• “Pull” system though the plant
• Achieves streamlined production

WHAT IT REQUIRES WHAT IT ASSUMES

• Employee participation
• Industrial engineering/basics • Stable environment
• Continuing improvement
• Total quality control
• Small lot sizes
 Exhibit
Exhibit10.4
Minimizing Waste: Inventory 10.4

Hides Problems
Example: By identifying
defective items from a
Machine
downtime vendor early in the
production process the
Scrap Vendor downstream work is
Work in delinquencies Change saved.
orders
process
queues Engineering design Design
(banks) redundancies backlogs

Example: By identifying
Paperwork Inspection Decision defective work by
backlog backlogs backlogs employees upstream,
the downstream work is
saved.
 Exhibit
Exhibit10.6
10.6
Minimizing Waste:
Kanban Production Control
Withdrawal kanban
Systems

Storage Storage
Machine Part A Part A Assembly
Center
Line

Production kanban Material Flow

Card (signal) Flow
 Determining the Number of
Kanbans Needed
• Setting up a kanban system requires
determining the number of kanbans (or
containers) needed.

• Each container represents the minimum

production lot size.

• An accurate estimate of the lead time required

to produce a container is key to determining
how many kanbans are required.
 The Number of Kanban Card Sets
Expected demand during lead time  Safety stock
k
Size of the container

dL (1  S )

C

k = Number of kanban card sets (a set is a card)

d = Average number of units demanded over some time period
L = lead time to replenish an order (same units of time as demand)
S = Safety stock expressed as a percentage of demand during lead
time
C = Container size
 Example of Kanban Card
Determination: Problem Data
• A switch assembly is assembled in batches of 4 units from
an “upstream” assembly area and delivered in a special
container to a “downstream” control-panel assembly
operation.

• The control-panel assembly area requires 5 switch

assemblies per hour.

• The switch assembly area can produce a container of

switch assemblies in 2 hours.

• Safety stock has been set at 10% of needed inventory.

 Example of Kanban Card
Determination: Calculations
Expected demand during lead time  Safety stock
k
Size of the container

dL (1  S ) 5(2)(1.1)
   2.75, or 3
C 4

Always round up!

 Respect for People
• Level payrolls

• Cooperative employee unions

• Subcontractor networks

• Bottom-round management style

• Quality circles (Small group involvement activities)

 JIT Requirements: Design See
SeeExhibit
Exhibit10.8
10.8

Flow Process
• Link operations

• Balance workstation capacities

• Relayout for flow

• Emphasize preventive maintenance

• Reduce lot sizes

• Reduce setup/changeover time

 JIT Requirements: Total Quality
Control
• Worker responsibility

• Measure SQC

• Enforce compliance

• Fail-safe methods

• Automatic inspection
 JIT Requirements: Stabilize
Schedule
• Level schedule

• Underutilize capacity

• Establish freeze windows

 JIT Requirements: Kanban-Pull
• Demand pull

• Backflush

• Reduce lot sizes

 JIT Requirements: Work with
Vendors
• Reduce lead times

• Frequent deliveries

• Project usage requirements

• Quality expectations
 JIT Requirements: Reduce
Inventory More
• Look for other areas

• Stores

• Transit

• Carousels

• Conveyors
 JIT Requirements: Improve
Product Design
• Standard product configuration

• Standardize and reduce number of parts

• Process design with product design

• Quality expectations
 JIT in Services (Examples)
• Organize Problem-Solving Groups

• Upgrade Housekeeping

• Upgrade Quality

• Clarify Process Flows

• Revise Equipment and Process Technologies

 JIT in Services (Examples)
• Level the Facility Load

• Eliminate Unnecessary Activities

• Reorganize Physical Configuration

• Introduce Demand-Pull Scheduling

• Develop Supplier Networks