Chapter 15 - Lean operations and JIT

The key principle of lean operations is relatively straightforward to understand: it means moving
towards the elimination of all waste in order to develop an operation that is faster and more
dependable, produces higher quality products and services and, above all, operates at low cost.
Synonyms
continuous flow manufacture
high value-added manufacture
stockless production
low-inventory production
fast-throughput manufacturing
lean manufacturing
Toyota production system
short cycle time manufacturing






JIT Material Flow



JIT and capacity utilization




JIT definitions
JIT aims to meet demand instantly, with perfect quality and no waste
More fully:
Improved overall productivity and elimination of waste
Cost-effective production and delivery of only the necessary quantity of parts at the right
quality, at the right time and place, while using a minimum amount of facilities, equipment,
materials and human resources
JIT is dependent on the balance between the suppliers flexibility and the users flexibility
JIT is accomplished through the application of elements that require total employee
involvement and teamwork
A key philosophy of JIT is simplification

The lean philosophy of operations is the basis for JIT techniques that include JIT methods of
planning and control


The 5 Ss
Sort (Seiri): Eliminate what is not needed and keep what is needed.
Straighten (Seiton): Position things in such a way that they can be easily reached whenever they are
needed.
Shine (Seiso): Keep things clean and tidy; no refuse or dirt in the work area.
Standardize (Seiketsu): Maintain cleanliness and order perpetual neatness.
Sustain (Shitsuke): Develop a commitment and pride in keeping to standards.


Delivering smaller quantities more often can reduce inventory levels


Waste (muda)
Which of these symbols signify non-value- adding activities?


The problem with inventory


Types of waste:
over-production
waiting time
transport
process
inventory
motion
defective goods
influencing the throughput efficiency
Small machines
The conventional Western approach is to purchase large machines to get economies of scale.
These often have long, complex set-ups, and make big batches, quickly creating waste.
Using several small machines rather than one large one allows simultaneous processing, is more robust
and is more flexible
JIT small machines approach:






Visible, enforced improvement
Traditional production systems often accept waste and use the insurance of all types of inventory
In JIT systems:
gradual reduction of inventory
identify exposed problems
eliminate these problems
repeat the cycle
Emphasis: continuous improvement in
small steps, to expose waste and eliminate it
JIT, MRP, or both?






easy to move layout
quick set up
flexible scheduling
cheaper tooling planned maintenance
fewer set-ups needed
Emphasis: Flexibility Economies of
Scope
Key Terms Test

Just-in-time (JIT)
A method of planning and control and an operations philosophy that aims to meet demand
instantaneously with perfect quality and no waste.
Kaizen
Japanese term for continuous improvement.
Set-up reduction
The process of reducing the time taken to change over a process from one activity to the next; also
called single minute exchange of dies (SMED) after its origins in the metal pressing industry.
Single minute exchange of dies (SMED)
Alternative term for set-up reduction.
Andon
A light above a workstation that indicates its state: whether working, waiting for work, broken down,
etc. Andon lights may be used to stop the whole line when one station stops.
Kanban
Japanese term for card or signal; it is a simple controlling device that is used to authorize the release of
materials in pull control systems such as those used in JIT.
Levelled scheduling (Heijunka)
The idea that the mix and volume of activity should even out over time so as to make output routine and
regular, sometimes known by the Japanese term heijunka.