1. Just-in-time

2. — Shoichiro Toyoda President, Toyota
Waste is ‘anything other than the minimum amount of equipment, materials, parts, space, and worker’s time, which are absolutely essential to add value to the product.’
— Shoichiro Toyoda President, Toyota
© 1995 Corel Corp.

3. What is Just-in-Time?
Management philosophy of continuous and forced problem solving
Supplies and components are ‘pulled’ through system to arrive where they are needed when they are needed.
It is good at this point to emphasize the notion that JIT is a philosophy not simply delivery of small lots at specific times. It is also helpful to emphasize that JIT requires an ongoing effort.

4. THE APPLICABILITY OF JIT
System characteristics for a good fit:
demand is reasonably stable
high-volume repetitive systems making standardized product-service bundles
Requires cooperation and coordination of employees and suppliers
Continuous improvement and employee involvement are core aspects
Cellular manufacturing arrangement is ideal characteristic of JIT suppliers

5. Push versus Pull
Push system: material is pushed into downstream workstations regardless of whether resources are available
Pull system: material is pulled to a workstation just as it is needed

6. Streamlined Production
Customers
Material (water in stream)
Traditional Flow
Suppliers
Production Process (stream of water)
Inventory (stagnant ponds)
Customers
Flow with JIT
Suppliers

7. Just-in-Time Success Factors
Suppliers
Preventive Maintenance
Layout
Inventory
Scheduling
Quality
Employee Empowerment
JIT
This side outlines the essential features, more detail is provided in subsequent slides.

8. JIT Contribution to Competitive Advantage
Suppliers
reduced number of vendors
supportive supplier relationships
quality deliveries on time

9. JIT Contribution to Competitive Advantage - continued
Inventory
small lot sizes
low setup times
specialized bins for holding set number of parts
Scheduling
zero deviation from schedules
level schedules
suppliers informed of schedules
Kanban techniques

10. To Lower Inventory, Reduce Lot Sizes
Inventory Level
Average inventory = 40
Lot Size 200
Average inventory = 100
Lot Size 80
The next several slides look at the process and consequences of reducing inventory.
Average inventory = (Lot size)/2
Time

11. Reducing Lot Sizes Increases the Number of Lots
Customer orders 10
Lot size = 5
Lot 1
Lot 2
Lot size = 2
Lot 1
Lot 2
Lot 3
Lot 4
Lot 5

12. …Which Increases Inventory Costs
Total Cost
Holding Cost
Setup Cost
Smaller Lot Size
Optimal Lot Size
Lot Size

13. …Need to reduce setup cost
Total Cost
Holding Cost
Setup Cost
New optimal Lot Size
Optimal Lot Size
Lot Size

14. …Need to reduce setup cost
New Total Cost
Total Cost
Holding Cost
Setup Cost
New optimal Lot Size
Optimal Lot Size
Lot Size

15. Steps to Reduce Setup Time
90 min
Initial Setup Time
Separate setup into preparation, and actual setup, doing as much as possible while the machine/process is running (save 30 minutes)
Step 1
60 min
Move material closer and improve material handling (save 20 minutes)
Step 2
45 min
Standardize and improve tooling (save 15 minutes)
Step 3
Use one-touch system to eliminate adjustments (save 10 minutes)
25 min
Training operators and standardizing work procedures (save 2 minutes)
Step 4
15 min
13 min
Step 5

16. Small versus Large Lots
JIT produces same amount in same time if setup times are lowered
JIT Small Lots A A B B B C A A B B B C
Time
Small lots also increase flexibility to meet customer demands
Large-Lot Approach
In discussing this slide, it is helpful to stress the caveat that JIT works given that other problems are solved. JIT not only requires the solution of other problems, it also helps in diagnosis. A A A A B B B B B B C C
Time

17. JIT Contribution to Competitive Advantage - continued
Preventive Maintenance
scheduled
daily routine
operator involvement
Quality Production
statistical process control
quality by suppliers
quality within firm

18. JIT Contribution to Competitive Advantage - continued
Employee Empowerment
empowered and cross-trained employees
few job classifications to ensure flexibility of employees
training support
Commitment
support of management, employees, and suppliers

19. Single-Card Kanban System
Assembly always withdraws from fabrication (pull system)
Containers cannot be moved without a kanban
Containers should contain the same number of parts
Only good parts are passed along
Production should not exceed authorization
Part Number: Z
Location: Aisle 5
Bin 47
Lot Quantity: 6
Supplier: WS 83
Customer: WS 116
KANBAN
This slide presents the general operating rules for a single card system as presented in the text.

20. How many Kanban containers?

21. How many Kanban containers?
Lead time – time between placement of an order and receipt of an order.
Lead time demand – the demand that occurs during the lead time
Safety stock – extra stock to allow for uneven demand.

22. Westerville Auto Parts Company
Westerville Auto Parts produces rocker-arm assemblies for use in the steering and suspension systems of 4-WD trucks. The daily expected demand is A Kanban container holds 22 assemblies. The lead time to produce a container of parts is 0.08 days. The safety stock is 16 assemblies. How many Kanbans are required?
The next series of slides presents Example The series builds in steps to the conclusion of the Example showing the development of key equations along the way.
This slide advances automatically.

23. Number of Containers Westerville Auto Parts
Demand = 2000 units/day Safety stock = 16
Lead time = 0.08 days Container Size = 22

24. Number of Containers Westerville Auto Parts
Demand = 2000 units/day Safety stock = 16
Lead time = 0.08 days Container Size = 22

25. Number of Containers Westerville Auto Parts
Demand = 2000 units/day Safety stock = 16
Lead time = 0.08 days Container Size = 22
This slide advances automatically.

26. Number of Containers Westerville Auto Parts
Demand = 2000 units/day Safety stock = 200
Lead time = 0.8 days Container Size = 22
This slide advances automatically.

27. Lean manufacturing Just-in-time manufacturing with Kanban approach
Production smoothing in the schedule
Reduce set-up time
Line balance by standardizing operations
Machine layout and multi-functional workers for flexible production
Continuous improvement/employee involvement
Quality

28. Can Boeing Make Lean Manufacturing Fly?

29. Can Boeing Make Lean Manufacturing Fly?
How has lean manufacturing affected the line-workers?
Explain the statement: “Provided it [Boeing] can sell the philosophy to its workers.”
What has Boeing implemented on the Long Beach assembly line besides the ‘moving’ plane?
How has the supplier behavior changed?
What is the role of the ‘water-spiders’?