Reid & Sanders, Operations Management © Wiley 2002 Just-In-Time Systems 7 C H A P T E R

Reid & Sanders, Operations Management © Wiley 2002 Page 2 Learning Objectives Explain the JIT philosophy Define waste in a JIT environment Understand push versus pull production Explain JIT manufacturing Understand the role of TQM in JIT Understand the role of people in JIT

Reid & Sanders, Operations Management © Wiley 2002 Page 3 Just-In-Time Getting the right quantity of goods to the right place – exactly when needed! Just-In-Time= not late & not early

Reid & Sanders, Operations Management © Wiley 2002 Page 4 Philosophy of JIT Elimination of waste Broad view of operations Simplicity Continuous improvement Visibility Flexibility

Reid & Sanders, Operations Management © Wiley 2002 Page 5 Eliminate Waste Waste is anything that doesn’t add value: –Unsynchronized production –Inefficient & unstreamlined layouts –Unnecessary material handling –Scrap & rework

Reid & Sanders, Operations Management © Wiley 2002 Page 6 Broad View of Operations Understanding that operations is part of a larger system Goal is to optimize the system – not each part: –Avoid narrow view: “That’s not in my job description!” –Avoid sub-optimization

Reid & Sanders, Operations Management © Wiley 2002 Page 7 Simplicity It’s often easy to develop complex solutions to problems by adding extra steps Goal is to find a simpler way to do things right: –Less chance to forget extra step –Fewer opportunities to make mistakes –More efficient

Reid & Sanders, Operations Management © Wiley 2002 Page 8 Continuous Improvement Traditional viewpoint: “It’s good enough” JIT viewpoint: “If it’s not perfect, make it better”

Reid & Sanders, Operations Management © Wiley 2002 Page 9 Visibility Waste can only be eliminated after it’s discovered Clutter hides waste JIT requires good housekeeping

Reid & Sanders, Operations Management © Wiley 2002 Page 10 Visibility

Reid & Sanders, Operations Management © Wiley 2002 Page 11 Flexibility Easy to make volume changes: –Ramp up & down to meet demand Easy to switch from one product to another: –Build a mix of products without wasting time with long changeovers

Reid & Sanders, Operations Management © Wiley 2002 Page 12 Three Elements of JIT

Reid & Sanders, Operations Management © Wiley 2002 Page 13 JIT Manufacturing Kanbans & pull production systems Quick setups & small lots Uniform plant loading Flexible resources Efficient facility layouts

Reid & Sanders, Operations Management © Wiley 2002 Page 14 Pull Production & Kanbans

Reid & Sanders, Operations Management © Wiley 2002 Page 15 Number of Kanbans Required N = number of containers D = demand rate at the withdraw station T = lead time from supply station C = container size

Reid & Sanders, Operations Management © Wiley 2002 Page 16 Quick Setups & Small Lots Setup times = time required to get ready –E.g.: clean & calibrate equipment, changing tools, etc. Internal versus external setups –Stop production or setup will still running Internal setups = lost production time –Inefficient setups = waste

Reid & Sanders, Operations Management © Wiley 2002 Page 17 Uniform Plant Loading

Reid & Sanders, Operations Management © Wiley 2002 Page 18 Flexible Resources General purpose equipment: –E.g.: drills, lathes, printer-fax-copiers, etc. –Capable of being setup to do many different things Multifunctional workers: –Cross-trained to perform several different duties

Reid & Sanders, Operations Management © Wiley 2002 Page 19 Efficient Facility Layouts Workstations in close physical proximity to reduce transport & movement Streamlined flow of material Often use: –Cellular Manufacturing (instead of job shops) –U-shaped lines: (allows material handler to quickly drop off materials & pick up finished work)

Reid & Sanders, Operations Management © Wiley 2002 Page 20 Job Shop Layout

Reid & Sanders, Operations Management © Wiley 2002 Page 21 Cellular Manufacturing

Reid & Sanders, Operations Management © Wiley 2002 Page 22 TQM & JIT Quality at the Source Jidoka (authority to stop line) Poka-yoke (foolproof the process) Preventive maintenance

Reid & Sanders, Operations Management © Wiley 2002 Page 23 Respect for People: The Role of Workers Cross-trained workers Actively engaged in problem-solving Workers are empowered Everyone responsible for quality Workers gather performance data Team approaches used for problem-solving Decision made bottom-up Workers responsible for preventive maintenance

Reid & Sanders, Operations Management © Wiley 2002 Page 24 Respect for People: The Role of Management Responsible for culture of mutual trust Serve as coaches & facilitators Support culture with appropriate incentive system Responsible for developing workers Provide multi-functional training Facilitate teamwork

Reid & Sanders, Operations Management © Wiley 2002 Page 25 Supplier Relations & JIT Use single-source suppliers Build long-term relationships Co-locate facilities to reduce transport Stable delivery schedules Share cost & other information

Reid & Sanders, Operations Management © Wiley 2002 Page 26 Benefits of JIT Smaller inventories Improved quality Reduced space requirements Shorter lead times Lower production costs Increased productivity Increased machine utilization Greater flexibility

Reid & Sanders, Operations Management © Wiley 2002 Page 27 Implementing JIT Manufacturing Identify & fix problems Reorganize workplace –Remove clutter & designate storage Reduce setup times Reduce lot sizes & lead times Implement layout changes –Cellular manufacturing & close proximity Switch to pull production Extend methods to suppliers

Reid & Sanders, Operations Management © Wiley 2002 Page 28 JIT in Services Multifunctional workers Reduce cycle times Minimize setups Parallel processing Good housekeeping Simple, highly-visible flow of work

Reid & Sanders, Operations Management © Wiley 2002 Page 29 The End Copyright © 2002 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United State Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.