0. Introduction To Just In Time (JIT)
No support files or supplies required.

1. The Breakthrough Strategy Process Check
1. Select Output Characteristic
2. Define Performance Standards
3. Validate Measurement System
4. Establish Baseline Process Capability
5. Define Performance Objectives
6. Identify Variation Sources
Screen Potential Causes
Discover Variable Relationships
Establish Operating Tolerances – Implement Improvements
10. Validate Measurement System
11. Determine Final Process Capability
12. Implement Process Controls
Just In Time (JIT) concepts help us implement our process improvements
JIT applies in other steps as well, especially in Steps 6 and 8

2. Module Objectives
By the end of this module, the participant will be able to:
Define what is a Just In Time System (JIT)
Discuss the benefits of JIT
Explain the importance of pacing operations to “Takt”
Describe the concept of “Flow”
Define “Pull” production 1 2 3 4 5 6 7 8 9 10 11 12 D M A C I

3. Lean Enterprise Model What is a JIT System?
It’s a system which produces:
What the customer wants
In the quantity the customer wants
When the customer wants it
While using the minimum:
Raw materials
Equipment
Labor
Space
The key to this slide is “minimum resources”. JIT can be accomplished with inventory, but at a great cost. True lean systems achieve JIT while using minimum resources.

4. JIT Principles Pace to “Takt” time Create “Flow” processes
Incorporate “Pull” system
Don’t discuss detail here. Just note that the order of application maters.
Define Takt
Then create Flow
Enables Pull

5. JIT Relies On Many Factors
MATERIAL MANAGEMENT
SUPPLIER MANAGEMENT
PRODUCT AND PROCESS DESIGN
STANDARD PROCESSES
TOTAL PRODUCTIVE MAINTENANCE
PROCESS CAPABILITY
MULTI-FUNCTION ORGANIZATION
PLANT LAYOUT
COMPLETION WITHIN TAKT TIME
PULL PROCESS
JIT systems don’t like variability. These are some of the areas that can cause problems. Most are covered in other modules. Once a JIT system is turned on, expect some of these liabilities to surface. This should be viewed and an opportunity for continuous improvement.
QUICK PROCESS CHANGEOVER

6. Supports the focus on quality, cost, and delivery.
JIT Benefits
A system intolerant of production abnormalities
Reduced documentation and processing steps
Reduces Lead Time
Improves On-Time-Delivery
Operation Flexibility
“Pull” vs. “Push” Processes
Stop the Line Authority: Fix The Problems
Reduces Inventory
5S+1 (Visual Management)
Layout Efficiency
Supports the focus on quality, cost, and delivery.

7. Adding Value And Eliminating Waste
Inventory Hides Problems
Inventory Level
Suppliers’ issues
Quality problems
Machine downtime
Inventory is like a river; when water level is lowered, boulders have to be dealt with.
Long set ups
Productivity Problems
Scrap
Processes
not capable
Maintenance issues
Imbalanced lines
Machine downtime
Lack of teamwork
This slide also works as a warning. Lean efforts always attack inventory which is a safety net. Teams need to be aware that JIT will expose problems, the process can and will stop. These occurrences need to be viewed as opportunities to remove variation.
Reducing inventory levels brings problems to the surface and forces their resolution.

8. Takt Time
“Takt” – German; refers to the tempo set by the conductor of an orchestra with his baton
Used in JIT to set production rate equal to the customer demand rate
Since Takt time is demand driven, in reality, the customer determines the Takt Time
Companies that can’t digest the concept of operating to Takt struggle to realize benefits of lean. Without the pace setting concept processes are still able to make more than is needed, before it’s needed, of stuff that’s not needed (also know as “Just In Case” manufacturing.)

9. Customer Demand per day
Takt Time
The rate of production required to meet customer demand.
Available Time in a day
Takt Time =
Customer Demand per day
Detail on calculating Takt will be covered in Standard Operations Module
The time is usually expressed in seconds per piece, by using seconds in our time we can measure even the smallest improvement.

10. Takt Time vs. Cycle Time Do not confuse Takt Time with Cycle Time!
It’s not uncommon to here people use these terms interchangeably. Emphasize; Takt is set by customer demand and only changes when the customer adjusts their consumption. Cycle times represent the process and can be improved with Sigma Lean tools.

11. Producing To Takt Benefits
Aligns true customer demand to the process
Reduces excess inventory
Eliminates missed deliveries
Increased productivity by matching operator Cycle Times to Takt Time
Operating at Takt has many benefits. All companies would see improvements in lead time and inventory by simply producing to true customer demand at the pace they are consuming it.

12. Concept Of Flow Flow in a Transactional Environment
In order to eliminate and reduce NVA (Non-Value-Added) activities, the flow of information should be smooth and un-interrupted. A stop-start flow implies waiting, reviews, excessive hand-offs, and over processing
Once information has started on its process route, it should complete it in one single flow
The analogy for information flow is that of water in a river – The best flow is through clear, wide, well-defined channels that go directly to the required destination
Emphasize the concept of “line if sight”. Ideally we would like to be able to stand at one end of the process and see finished product coming out the other side. This implies connected processes, no vision blocking monuments, and visuals communicating the health of the process.

13. Batch Fake Flow 1pc. Flow The Journey…
Bath – Data moves in piles between corporate, the factory, eventually to the line.
Fake Flow – People are relocated closer to each other, but data inventory still exists between process steps.
1pc. Flow – This example a meeting is held where all functional groups can sign off on a proposal.
1pc. Flow

14. Batch Processing Example
Product requires three processes that take one minute each.

15. Batch Processing Example
Product requires three processes that take one minute each.

16. Batch Processing Example
Product requires three processes that take one minute each.
The math is the same whether the process is manufacturing or transactional. Someone may point out the amount of work done to each part is the same so where’s the real savings. While it’s true that the value add portion of the process didn’t change, the improvements come in that parts are not waiting in line for each process step. The savings are reduced inventory in the pipeline, and shorter lead-times.
Complete processing of first batch of five takes 15 minutes
First good part out takes 11 minutes (plus transport time)
There are at least 11 parts in-process

17. Continuous Flow Processing Example
Product requires three processes that take one minute each.
First part out in three minutes
Five completed in seven minutes
Only two sub-assemblies in process at a time

18. Benefits Of Creating Flow
A. Quality:
Work is passed directly to next Process with
no defects.
B. Productivity:
Minimize wasted movement, warehouses, and double handling.
C. Productivity:
Problems are identified and solved real time.
D. Lead Time:
Shortest supply chain, highest flexibility to satisfy customer demand.
E. Team Member Morale:
Value of work is more visible, recognized.
F. Cost:
Reduced Inventory Levels
Source: Toyota

19. Flow Production Benefits
Eliminates excess WIP (Work In Process)
Eliminates defective batches
Reduces lead times
Quality control by minimizing transportation, handling damage, and excess motion
Increases production flexibility
Processes located in process order
Small and inexpensive equipment (no monuments)
Flow is a fairly simple concept. For many companies it’s obvious to connect processes for logistical reasons. Don’t be surprised if students state that some amount of flow exists. The next module “Pull production” is the true test to see if processes are operating at the leanest level.

20. Pull Systems Definition:
In a pull system, replenishment is based on what is consumed by the customer. The customer pulls what they need from the producer. The producer must then pull from their supplier to replace what was consumed.
Traditional System
When process A completes it’s work, it hands the information off to process B, where it is stored until needed.
Pull System
Process B is responsible for getting information and supplies from process A as they are needed. There is no intermediate storage.
Pull systems are difficult because they require discipline. It’s difficult for people to adjust their production (sometimes slowing down) to match customer demand (Takt). In the past we’ve always rewarded being busy, producing as much product as possible. We as consumers naturally pull from suppliers. Suppliers tend to push production because their economic models measure/reward earned hours, and of course inventory is a asset on the balance sheet.

21. Worker and Equipment Capacity Planning
The Basic Laws Of JIT Production
Pull Scheduling
Supermarket
Production
Internal Suppliers
Customers
Assembly
Worker and Equipment Capacity Planning
12 Week Rolling Forecast
Estimate of Future
Requirements
Forecast
Kanban Loop
Supermarket
Finished goods
Kanban Loop
Kanban Loop
Kanban Loop
External Suppliers
Kanban Loop
Don’t get into too much detail, material concepts are covered in Material module. Focus on the concept of how each customer pulls from their supplier, who then pulls from their supplier etc.

22. Pull Transactional Example
In this value stream C is the slowest process, followed by B, then A
Should A keep pushing work to B, and B keep pushing to C? Does A pushing work to B increase the amount of work B can produce?
What will C have to do to meet demand?
What’s the root cause of work piling up?
Process C In
Out
Process B In
Out
Process A In
Out
Focus on concept that; working faster than the next process will only pile up work. Piles of inventory are symptoms and should be investigated.
Push
Push

23. Pull Transactional Solution
To create the pull discipline
Define Takt Time, what’s the demand, what’s the pace
Even once balanced we may have a capacity constraint
Create flow, line of sight, visual controls
Standard work for pull discipline
How does it work?
Customer pulls from C Outbox
C pulls from B Outbox
B refills Outbox
B pulls from A Outbox
A refills A Outbox
A pulls from A Inbox
What do we gain?
Predictable Flow
Predictable WIP
Predictable Lead Time
Visual controls
Process intolerant of variation
Out
Process B
Out
Process C
Out
Pull
Walk through the example slow. Make sure students understand that no work is to be performed until the next operation pulls it from them. Refer back to the previous slide and ask what happens if the pull discipline is not followed. In

24. Pull Manufacturing Example
In this value stream operation 3 is the slowest
Should 1 keep pushing work to 2, and 2 keep pushing to 3? Does 2 pushing work to 3 increase the amount of work 3 can produce?
What will 3 have to do to meet demand?
What’s the root cause of work piling up?
What about Takt, are we meeting it? Are we beating it? 1 2 3 4
In manufacturing operations, performance metrics often drive this kind of problem. If we reward operators for their output, as opposed to the system’s output, we will see inventory pile up at slower operations. Earned hours will also drive shops to overproduce to meet goals. Remind students not to be fooled by “busy”. A “busy” shop is not always a productive, efficient shop.
Push
Push
Push

25. Pull Manufacturing Solution
To create the pull discipline – Same as Transactional example
Define Takt Time
Create flow, line of sight, balanced work, visual controls
Layout is even more critical in manufacturing world
Standard work for pull discipline
How does it work?
Customer pulls operation 4 Finish Goods (FG)
4 processes and refills 4 (FG)
4 pulls from 3 completed
3 processes and refills 3 completed
3 pulls from 2 completed
2 processes and refills 2 completed
And so on through operation 1
What do we gain
Predictable Flow
Predictable WIP
Predictable Lead Time
Visual controls
Process intolerant of variation 2 3
This example works the same as the transactional solution. If the subsequent process is not ready for another part, the operator should not produce one. This is a very difficult concept for most people. We are taught to stay busy, and waiting for a pull signal seems counterintuitive.
Refer back to the JIT definition; we product what the customer wants, when they want it, in the quantity the want, and not before. 1 4
Pull FG

26. Pull Production Benefits
Better work balance
Constant flow
Have control to make what we need
Provides a method to keep score
Can change quickly to meet the customers’ demands
Visual WIP control
Pull discipline is enables is to maximize the concepts of Takt and Flow.

27. Additional JIT Benefits
Create environment for Standard Operations
Allows for multi-process- handling workers
Makes material management more visual
Creates capacity and the opportunity to redeploy workers for business growth

28. Critical Success Factors For JIT
Management leadership
Management-Labor cooperation
Multi-functional/multi-skilled employees
Focus on flow of production/process
Quick Changeovers
Quality at the source
Team Approach
Operator Maintenance
Visual Controls
Constancy of Purpose

29. Key Learning Points
Try to draw the following points out of the participants:
Pace production to “Takt”
Make Value “Flow”
“Pull” at the demand of the customer
Eliminate waste

30. Objectives Review The participant should now be able to:
Define what is a Just In Time System (JIT)
Discuss the benefits of JIT
Explain the importance of pacing operations to “Takt”
Describe the concept of “Flow”
Define “Pull” production

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