Chapter 16: JIT, TPS, and Lean Operations

 Just-in-time is continuous and forced problem solving via a focus on

throughput and reduced inventory.
 Toyota Production System focuses on continuous improvement, respect for
people, and standard work practices.
 Lean Operations eliminates waste through continuous improvement and
focus on exactly what the customers want

Eliminate Waste
Seven Wastes:
1. Overproduction: producing more than customer orders
2. Queues: idle time, storage, waiting
3. Transportation: moving materials more than once
4. Inventory: materials that add no value
5. Motion: movement of equipment or people that add no value
6. Over processing: edits on a product that add no value
7. Defective Product: returns, warranty claims, rework, scrap
5Ss
1. Sort/Segregate: keep what is needed
2. Simplify/Straighten: arrange and use method analysis tools to improve
work flow and reduce motions
3. Shine/Sweep: Clean daily
4. Standardize: remove variations from the processes by developing standard
operating procedures and checklists
5. Sustain/Self-Discipline: review periodically to recognize efforts and to
motivate to sustain progress

Remove Variability
Variability is any deviation from the optimum process that delivers the perfect
product on time.
Most variability is caused by tolerating waste or by poor management. Among the
many sources of variability are:
 Poor production processes that allow employees and suppliers to produce
improper quantities or late non-confirming units
 Unknown customer demands
 Incomplete or inaccurate drawings, specifications, and bills of material

Improve Throughput
 Throughput is the time it takes to move an order from receipts to delivery.
 Manufacturing Cycle Time is the time between the arrival of raw materials
and the shipping of the final product
 Pull systems pull units to where they are needed just as they are needed. By
pulling material through the system just as it is needed eliminates waste and
 inventory. Push systems dumps orders on the next downstream workstation
disregarding timeliness.

JIT Layout

Distance Reduction
 Putting work cells in U-shapes so they are closer together.
 Group technology codes help identify components with similar
characteristics so we can group them into families.
 Once families are identified, work cells are built for them. The cells produce
one good unit at a time after a customer orders

Increased Flexibility
 Modern work cells are designed so they can easily be rearranged to adapt to
changes in volume, product improvements, of even new designs.

Impact on Employees
 Employees working together can tell each other about problems and
opportunities for improvement.
 When layouts provide for sequential operations, feedback can be immediate.

Reduced Space & Inventory

 Because JIT layouts reduce travel distance, they also reduce inventory by
removing space for inventory. When there is little space, inventory must be
moved in small lots or large units. Inventory is always moving
 EOQ production order quantity model can be modified to determine the
desired setup time:

2𝐷𝑆
𝑄𝑝∗ = √
𝑑
𝐻[1 − (𝑝 )]

D= Annual Demand
S= Setup Cost
H= Holding Cost
d= daily demand
p= daily promotion

JIT Layout Tactics

 Build work cells for families of products
 Include a large number of operations in small areas
 Minimize distance
 Design little space for inventory
 Improve employee communication
  Use poka-yoke devices
 Build flexible/moveable equipment
 Cross-train workers to add flexibility

JIT Inventory Tactics

 Use a pull system to move inventory
 Reduce lot size
 Develop just-in-time delivery system with suppliers
 Deliver directly to point of use
 Perform to schedule
 Reduce setup time
 Use group technology