1. Chapter 7 – Just-in-Time and Lean Systems
Operations Management by
R. Dan Reid & Nada R. Sanders
2nd Edition © Wiley 2005
PowerPoint Presentation by R.B. Clough - UNH

2. Learning Objectives Explain the core beliefs of the JIT philosophy
Describe the meaning of waste in JIT
Explain the differences between “push” and “pull” systems
Explain the key elements of JIT manufacturing
Explain TQM’s role in JIT manufacturing
Describe the role of people in JIT
Understand impact of JIT on service and manufacturing
Understand functional impact of JIT on all areas

3. The Philosophy of JIT Often termed “Lean Systems”
All waste must be eliminated- non value items
Broad view that entire organization must focus on serving customers
JIT is built on simplicity- the simpler the better
Focuses on improving every operation- Kaizen
Install simple visible control systems
Flexibility to produce different models/features

4. Three Elements of JIT

5. Elements of JIT Manufacturing
Inventory reduction exposes problems
Kanbans & pull production systems
Small lots & quick setups
Uniform plant loading
Flexible resources
Efficient facility layouts

6. Role of Inventory Reduction
Inventory = Lead Time (less is better)
Inventory hides problems

7. The Pull System

8. Number of Kanbans Required
N = number of containers
D = demand rate at the withdraw station
T = lead time from supply station
C = container size
S = safety stock

9. Computing the Number of Kanbans: an aspirin manufacturer has converted to JIT manufacturing using kanban containers. They wish to 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.

10. 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 tasks- do as much preparation while present job is still running
Internal tasks- simplify, eliminate, shorten steps involved with location, clamping, & adjustments

11. 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

12. Flexible Resources Moveable, general purpose equipment:
Portable equipment with plug in power/air
E.g.: 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

13. Effective Facility Layouts
Workstations in close physical proximity to reduce transport & movement
Streamlined flow of material
Often use:
Cellular Manufacturing (instead of process focus)
U-shaped lines: (allows material handler to quickly drop off materials & pick up finished work)

14. Traditional Process Focused Layout
Jumbled flows, long cycles, difficult to schedule

15. JIT Cellular Manufacturing
Product focused cells, flexible equipment, high visibility, easy to schedule, short cycles

16. JIT and TQM- Partners Build quality into all processes
Focus on continuous improvement - Kaizen
Quality at the source- sequential inspection
Jidoka (authority to stop line)
Poka-yoke (fail-safe all processes)
Preventive maintenance- scheduled
Work environment- everything in its place, a place for everything

17. Respect for People: The Role of Employees
Genuine and meaningful respect for associates
Willingness to develop cross-functional skills
Actively engage in problem-solving (quality circles)
Everyone is empowered
Everyone is responsible for quality: understand both internal and external customer needs
Associates gather performance data
Team approaches used for problem-solving
Decisions made from bottom-up
Everyone is responsible for preventive maintenance

18. The Role of Management Responsible for culture of mutual trust
Serve as coaches & facilitators
Support culture with appropriate incentive system including non-monetary
Responsible for developing workers
Provide multi-functional training
Facilitate teamwork

19. Supplier Relationships and JIT
Use single-source suppliers when possible
Build long-term relationships
Work together to certify processes
Co-locate facilities to reduce transport if possible
Stabilize delivery schedules
Share cost & other information
Early involvement during new product designs

20. Benefits of JIT Smaller inventories Shorter lead times
Improved quality
Reduced space requirements
Lower production costs
Increased productivity
Greater flexibility

21. Implementing JIT Implementation needs a designated “Champion”
Make quality improvements- all processes O-P
Reorganize workplace
Remove clutter & minimize storage
Reduce setup times
Reduce lot sizes & lead times
Implement layout changes
Cellular manufacturing & close proximity
Switch to pull production
Extend methods to suppliers

22. JIT in Services
Most of the JIT concepts apply equally to Service companies
Cellular layouts, product focused, & flexible employees shorten response times
Service inventory, “paperwork”, should be eliminated, simplified, examined for “waste”
“Fail-safe” all processes from Orders-Payment
Team based organizations

23. Chapter 7 Highlights
JIT manufacturing has become the standard for many industries; concept incorporates TQM and respect for people.
JIT views waste as anything that does not add value.
JIT converts traditional “push” systems to a “pull” production system.
Key elements of JIT are “pull”, kanbans, small lots, quick setups, uniform plant loading, flexibility, and work cells.

24. Chapter 7 Highlights (Continued)
TQM concepts must be incorporated JIT manufacturing.
Team based work systems, empowerment, cross-functional flexibility, with appropriate reward systems are all part of JIT.
Most of the JIT concepts are equally applicable to “Service Organizations.”
JIT requires changes to be made in all functional areas and examination of all processes for waste.

25. The End
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