Just In Time

What Is JIT  Management philosophy (produce only what is needed when it is needed)  A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed  Represents Pull type system

History of JIT Manufacturing  Evolved in Japan after World War II, as a result of their diminishing market share in the auto industry.  Toyota Motor Company- Birthplace of the JIT Philosophy Under Taiichi Ohno.  JIT is now on the rise in American Industries.

Definition  JIT is a manufacturing philosophy involving an integrated set of procedures/activities designed to achieve a high volume of production using minimal inventories

More Introduction  Raw materials, parts & sub assemblies are pulled through the manufacturing process when they are needed.  Simply put, JIT is a philosophy of “make what is needed … when it is needed”.

Goal of JIT  The ultimate goal of JIT is a balanced system.  Achieves a smooth, rapid flow of materials through the system  Eliminate disruptions  Make system flexible  Eliminate waste, especially excess inventory

Summary of JIT Goals and Building Blocks Product Design Process Design Personnel Elements Manufactur- ing Planning Eliminate disruptions Make the system flexible Eliminate waste A balanced rapid flow Ultimate Goal Supporting Goals Building Blocks

 Big JIT – broad focus  Vendor relations  Human relations  Technology management  Materials and inventory management  Little JIT – narrow focus  Scheduling materials  Scheduling services of production Big vs. Little JIT

What JIT Does  Eliminates waste  Achieves streamlined production  Eliminate disruptions in production … caused by poor quality, schedule changes, late deliveries.  Makes the manufacturing delivery system flexible by allowing it to handle a variety of products and changes in the level of output  Reduces setup and delivery times

Eight Wastes THE EIGHT TYPES OF WASTE OR MUDA WasteDefinition 1.OverproductionManufacturing an item before it is needed. 2.Inappropriate Processing Using expensive high precision equipment when simpler machines would suffice. 3.WaitingWasteful time incurred when product is not being moved or processed. 4.TransportationExcessive movement and material handling of product between processes. 5.MotionUnnecessary effort related to the ergonomics of bending, stretching, reaching, lifting, and walking. 6. InventoryExcess inventory hides problems on the shop floor, consumes space, increases lead times, and inhibits communication. 7. DefectsQuality defects result in rework and scrap, and add wasteful costs to the system in the form of lost capacity, rescheduling effort, increased inspection, and loss of customer good will. 8. Underutilization of Employees Failure of the firm to learn from and capitalize on its employees’ knowledge and creativity impedes long term efforts to eliminate waste.

Sources of Waste  Overproduction  Waiting time  Unnecessary transportation  Processing waste  Inefficient work methods  Product defects

Strategies For Minimizing Waste By Using JIT  Manufacturing in smaller lot sizes reduces excess inventory  Reducing inventory levels allows the problems to be uncovered … thus creating opportunities for manufacturing process improvement

Principles Of JIT Manufacturing  Total Quality Management  Production Management  Supplier Management  Inventory Management  Human Resource Management

1 st Principle Of JIT Total Quality Management

 Seek long-term commitment to quality efforts with continuous improvement  Quality must be a higher priority than cost  Minimizing waste

Total Quality Management  Eliminate Quality Inspectors  Quality is everyone’s responsibility  Do it right the first time

2 nd Principle Of JIT Production Management

 Pull System vs. Push System  Pull = Made to order  Push = Made for inventory  Flexibility of the system  Design For Testability – In the process  Poka-Yoke= Mistake-proofing  Throughout entire process

Production Management  Reduced lot sizes= Shorter cycle times  Eliminate disruptions in the process  Standardized Parts/ Simplicity

Production Management  Communication Techniques  Completion of task-Kanban  Problem- Siren/light  Stopping the process if something goes wrong =Jidoka  Preventive Maintenance

3 rd Principle Of JIT Supplier Management

 Establish Long Term Relationships with few suppliers.  Delivery of Parts = 100% Defect Free  Where they are needed  When they are needed  The exact quantity  Work Together

Supplier Management  Elimination inspection of parts  Communicate problems to suppliers in a positive manner.

4 th Principle Of JIT Inventory Management

 Eliminate Safety Stock = Zero Inventory  JIT is not an inventory control system  Reduction in inventory opens up space

 Inventory hides problems in a process.  Water Level = Inventory  Rocks = Problems in the system  Boat = Company Operations

5 th Principle Of JIT Human Resource Management

 Company-wide Involvement  Motivation for continuous improvement  Problem Solving  High Employee Interaction  Build Pride In Workmanship

Human Resource Management  Self-Inspection of work  Diversified Employees  Absenteeism  To eliminate boredom in process  Management Support and Empowerment of workforce

JIT Manufacturing Building Blocks  Product design  Process design  Personnel/organizational elements  Manufacturing planning and control

1. Product Design  Standard parts  Design Simplification  Highly capable production systems  Concurrent engineering

Design Simplification

2. Process Design  Small lot sizes  Setup time reduction  Limited work in process  Quality improvement  Production flexibility  Little inventory storage

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

Quality Improvement  Autonomation  Automatic detection of defects during production  Jidoka  Japanese term for autonomation

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  Reserve capacity for important customers

3. Personnel/Organizational Elements  Workers as assets  Cross-trained workers  Continuous improvement  Leadership

4. Manufacturing Planning and Control  Pull systems  Visual systems (kanban)  Close vendor relationships  Reduced transaction processing (delays in delievery)  Preventive maintenance

 Evaluation and selection of vendor (suppliers) network to develop a tiered supplier network – reducing the number of primary suppliers.

Transitioning to a Successful 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  Suppliers may resist

Comparison of JIT and Traditional FactorTraditionalJIT Inventory Much to offset forecast errors, late deliveries Minimal necessary to operate Deliveries LargeSmall Lot sizes LargeSmall Setup; runs Few, long runsMany, short runs Vendors Long-term relationships are unusual Partners Workers Necessary to do the work Assets

Comparison Of JIT & MRP  JIT  Repetitive production  Minimal shop floor control  Simpler  Relies on visual or audible signals to trigger production and inventory (e.g. auto carpets)  Lower inventories related to need “at the time”  MRP  Lot size or batch production  Extensive shop floor control  More complex  Relies on computer system to trigger production and order inventory Inventories related to batch or lot sizes

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.

JIT Benefits  Reduced Inventory  Improved quality  Lower costs  Reduced space requirements  Shorter lead-time  Increased productivity  Greater flexibility  Improved vendor relations

JIT Benefits (contd.)  Simplified scheduling & control  Increased capacity  Better utilization of personnel  More product variety  Increased equipment utilization  Reduced paperwork  Valid production priorities  Work force participation

JIT … Not For Everyone  JIT concepts work best when goods can be produced in response to consumer demand (e.g. automobiles, etc.)  JIT is less effective for the production of standardized consumer goods (e.g. basic clothing, food, soft drinks, toasters, etc.)  There are cases where JIT concepts apply to sub-processes of a make to stock environment. (e.g. computers etc.)

References  Cammaranano, J. Lessons to be Learned: JIT. Atlanta, Georgia: Engineering and Management Press,  Dear, A. Working toward JIT: Management Technology. London: Derek Doyle and Associates,  Fisher, D. The JIT Self Test: Success Through Assesment and Implementation. Chicago, IL: Irwin Inc.,  Hernandez, A. JIT Quality: A Practical Approach. Englewood Cliffs, NJ: Prentice-Hall,  Hutchins, D. Just-In-Time: Inventory Control. Brookfield, VT: Gower Publishing,  O’Grady, P.J. Putting the JIT Philosophy Into Practice. New York, NY: Nichols Publishing,  Reinfeld, N.V. Handbook of Production and Inventory Control. Englewood Cliffs, NJ: Prentice-Hall,  Schneiderjans, M.J. Advanced Topics In JIT Management: JIT Systems. Westport, CT: Greenwood Publishing Group,  Taver, R.W. Manufacturing Solutions for Consistent Quality and Reliability: The 9 Step Problem Solving Process. New York, NY: AMACON,  Wesner, J.W., Hiatt, J.M., and Trimble, D.C. Winning with Quality: Applying Quality Principles in Product Development. Reading, MASS: Addison- Wesley Publishing Co., 1995.