JIT and Lean Operations

JIT/Lean Production
Just-in-time (JIT): A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed,
JIT lean production JIT pull (demand) system JIT operates with very little fat

Goal of JIT
The ultimate goal of JIT is a balanced system. Achieves a smooth, rapid flow of materials through the system

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Summary JIT Goals and Building Blocks

Ultimate A Goal balanced rapid flow Supporting Goals Eliminate disruptions Make the system flexible Eliminate waste

Product Design

Process Design

Personnel Elements

Manufacturing Planning

Building Blocks

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Supporting Goals
Eliminate disruptions Make system flexible Eliminate waste, especially excess inventory

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Sources of Waste
Overproduction Waiting time Unnecessary transportation Processing waste Inefficient work methods Product defects

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Kaizen Philosophy
Waste is the enemy

Improvement should be done gradually and continuously

Everyone should be involved Built on a cheap strategy Can be applied anywhere

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Kaizen Philosophy (contd)

Supported by a visual system

Focuses attention where value is created

Process orienteted Stresses main effort of improvement should come from

new thinking and work style The essence of organizational learning is to learn while doing

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Big vs. Little JIT

Big JIT broad focus Vendor relations Human relations Technology management Materials and inventory management Little JIT narrow focus Scheduling materials Scheduling services of production

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JIT Building Blocks

Product design

Process design
Personnel/organizational

elements
Manufacturing

planning and control

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Product Design
Standard parts Modular design Highly capable production systems Concurrent

engineering

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Process Design
Small lot sizes Setup time reduction Manufacturing cells Limited work in process Quality improvement Production flexibility Balanced system Little inventory storage

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Benefits of Small Lot Sizes

Reduces inventory Less rework Less storage space

Problems are more apparent Increases product flexibility

Easier to balance operations

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Single-Minute Exchange
Single-minute exchange of die (SMED): A system for

reducing changeover time Categorize changeover activities

Internal activities that can only be done while machine is stopped External activities that do not require stopping the machine

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Production Flexibility
Reduce downtime by reducing changeover time Use preventive maintenance to reduce

breakdowns
Cross-train workers to help clear bottlenecks

Production Flexibility (contd)

Use many small units of capacity Use off-line buffers

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Reserve capacity for important customers

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Quality Improvement
Autonomation
Automatic detection of defects during production

Jidoka
Japanese term for autonomation

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Production Flexibility
Balance system: Distributing the workload evenly among

work stations Work assigned to each work station must be less than or equal to the cycle time Cycle time is set equal to the takt time Takt time is the cycle time needed to match customer demand for final product

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Personnel/Organizational Elements
Workers as assets Cross-trained workers Continuous improvement Cost accounting Leadership/project

management

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Pull/Push Systems
Pull system: System for moving work where a

workstation pulls output from the preceding station as needed. (e.g. Kanban)
Push system: System for moving work where output is

pushed to the next station as it is completed

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Kanban Production Control System

Kanban: Card or other device that communicates

demand for work or materials from the preceding station

Kanban is the Japanese word meaning signal or

visible record

Paperless production control system Authority to pull, or produce comes

from a downstream process.

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Kanban Formula
N = DT(1+X) C

N = Total number of containers D = Planned usage rate of using work center T = Average waiting time for replenishment of parts plus average production time for a container of parts

X = Policy variable set by management - possible inefficiency in the system C = Capacity of a standard container

Usage at each work center is 300 parts per day, and a standard container holds 25 parts. It takes an average of .12 day for a container to complete a circuit from the time a Kanban card is received until the container is returned empty. Compute the number of Kanban cards required if X = .20

N=? D = 300 parts per day T = .12 day C = 25 parts per container X = .20 N= 300 (.12)(1+.20) / 25 = 1.728 = 2

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