1. Just-In-Time and Lean Production

2. JIT In Services Competition on speed & quality
Multifunctional department store workers
Work cells at fast-food restaurants
Just-in-time publishing for textbooks - on demand publishing a growing industry
Construction firms receiving material just as needed

3. What is JIT ? Producing only what is needed, when it is needed
A philosophy
An integrated management system
JIT’s mandate: Eliminate all waste

4. Lean Operations: Best Implementation is Toyota Production System
TPS is a production management system that aims for the “ideal” through continuous improvement
Includes, but goes way beyond JIT. Pillars:
Synchronization
Reduce transfer batch sizes
Level load production
Pull production control systems (vs. push): Kanban
Quality at source
Layout: Cellular operations
Continuous Improvement (Kaizen): through visibility & empowerment
....

5. Toyota’s waste elimination in Operations
1. Overproduction
2. Waiting
3. Inessential handling
4. Non-value adding processing
5. Inventory in excess of immediate needs
6. Inessential motion
7. Correction necessitated by defects

6. Waste in Operations

7. Waste in Operations

8. Waste in Operations

9. Flexible Resources Multifunctional workers General purpose machines
Study operators & improve operations

10. The Push System
Pre-planned issues of supplies/merchandise regardless of customer demand criteria
Creates excess and shortages
not efficient over the long run

11. The Pull System Material is pulled through the system when needed
Reversal of traditional push system where material is pushed according to a schedule
Forces cooperation
Prevent over and underproduction

12. Kanban Production Control System
Kanban card indicates standard quantity of production
Derived from two-bin inventory system
Kanban maintains discipline of pull production
Production kanban authorizes production
Withdrawal kanban authorizes movement of goods

13. A Sample Kanban

14. Types of Kanbans Bin Kanban - when bin is empty replenish
Kanban Square
Marked area designed to hold items
Signal Kanban
Triangular kanban used to signal production at the previous workstation
Material Kanban
Used to order material in advance of a process
Supplier Kanbans
Rotate between the factory and suppliers

15. Components of Lead Time
Processing time
Reduce number of items or improve efficiency
Move time
Reduce distances, simplify movements, standardize routings
Waiting time
Better scheduling, sufficient capacity
Setup time
Generally the biggest bottleneck

16. Common Techniques for Reducing Setup Time
Preset Buttons/settings
Quick fasteners
Reduce tool requirements
Locator pins
Guides to prevent misalignment
Standardization
Easier movement

17. Uniform Production Results from smoothing production requirements
Kanban systems can handle +/- 10% demand changes
Smooths demand across planning horizon
Mixed-model assembly steadies component production

18. Quality at the Source Jidoka is authority to stop production line
Andon lights signal quality problems
Undercapacity scheduling allows for planning, problem solving & maintenance
Visual control makes problems visible
Poka-yoke prevents defects (mistake proof the system)

19. Kaizen Continuous improvement Requires total employment involvement
Essence of JIT is willingness of workers to
Spot quality problems
Halt production when necessary
Generate ideas for improvement
Analyze problems
Perform different functions

20. Goals of JIT Reduced inventory - where?
Improved quality
Lower costs
Reduced space requirements
Shorter lead time
Increased productivity
Greater flexibility
Better relations with suppliers
Simplified scheduling and control activities
Increased capacity
Better use of human resources
More product variety
Continuous Process Improvement

21. JIT Implementation Use JIT to finely tune an operating system
Somewhat different in USA than Japan
JIT is still evolving
JIT as an inventory reduction program isn’t for everyone - JIT as a CPI program is!
Some systems need Just-in- Case inventory