Just-In-Time

Founded by: Taichi Ohno

Just-In-Time (JIT) Defined

JIT can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods) JIT also involves the elimination of waste in production effort JIT also involves the timing of production resources (i.e., parts arrive at the next workstation just in time)

Elements/ Goals of JIT

Smooth flow of work (the ultimate goal) Elimination of waste Continuous improvement Eliminating anything that does not add value Simple systems that are easy to manage Use of product layouts to minimise moving materials and parts Quality at the source

Elements /Goals of JIT (contd)

Preventative maintenance Good housekeeping Set-up time reduction Cross-trained employees A pull system

Benefits of JIT Systems

Reduced inventory levels High quality Flexibility Reduced lead times Increased productivity

Benefits of JIT Systems (contd)

Increased equipment utilization Reduced scrap and rework Reduced space requirements Pressure for good vendor relationships Reduced need for indirect labor

JIT and Lean Management

JIT can be divided into two terms: Big JIT and Little JIT Big JIT (also called Lean Management) is a broader philosophy of operations management that seeks to eliminate waste in all aspects of a firms production activities: human relations, vendor relations, technology, and the management of materials and inventory Little JIT focuses narrowly on scheduling goods inventory and providing service resources where and when needed

Here the customer starts the process, pulling an inventory item from Final Assembly Then subassembly work is pulled forward by that demand
Customers

JIT Demand-Pull Logic

Prod Sub Prod

Vendor

Vendor

Final Assembly
Sub Prod Vendor

The process continues throughout the entire production process and supply chain

Prod

Vendor

The Toyota Production System Based on two philosophies: 1. Elimination of waste 2. Respect for people

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

Minimising Waste: Just-In-Time Production

WHAT IT IS Management philosophy Pull system though the plant WHAT IT DOES Attacks waste
Exposes problems and bottlenecks Achieves streamlined production

WHAT IT REQUIRES

WHAT IT ASSUMES Stable environment

Employee participation
Industrial engineering/basics Continuing improvement Total quality control Small lot sizes

Minimizing Waste: Inventory Hides Problems

Machine downtime Scrap Work in process queues (banks) Vendor delinquencies Change orders Design backlogs

Example: By identifying defective items from a vendor early in the production process the downstream work is saved

Engineering design redundancies

Paperwork backlog

Inspection backlogs

Decision backlogs

Example: By identifying defective work by employees upstream, the downstream work is saved

Respect for People

Level payrolls Cooperative employee unions Subcontractor networks Bottom-round management style Quality circles (Small Group Involvement Activities)

Toyota Production Systems Four Rules

1. All work shall be highly specified as to content, sequence, timing, and outcome 2. Every customer-supplier connection must be direct, and there must be an unambiguous yes-or-no way to send requests and receive responses 3. The pathway for every product and service must be simple and direct 4. Any improvement must be made in accordance with the scientific method, under the guidance at the lowest possible level in the organization

JIT Building Blocks

Product Design Process Design Total Quality Control Personnel/Organizational elements Manufacturing Planning and Control

Product Design
Standard parts Modular design Highly capable production systems

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

Production Flexibility
Reduce downtime by reducing changeover time Use preventive maintenance to reduce breakdowns Cross-train workers to help clear bottlenecks Reserve capacity for important customers

Total Quality Control Worker responsibility Measure SQC Enforce compliance Fail-safe methods Automatic inspection

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

Manufacturing Planning and Control

Level loading Pull systems Visual systems Close vendor relationships Reduced transaction processing Preventive maintenance

Traditional Supplier Network

Buyer
Supplier Supplier Supplier Supplier Supplier

Supplier

Suppiler

Tiered Supplier Network

Buyer

First Tier Supplier Second Tier Supplier

Supplier

Supplier

Supplier

Third Tier Supplier

Supplier

Supplier

Supplier

Supplier

JIT Goals and Building Blocks

Ultimate A Goal balanced rapid flow Supporting Goals Reduce setup and lead times Eliminate waste Eliminate disruptions Make the system flexible Minimize inventories

Product Design

Process Design

Personnel Elements

Manufacturing Planning

Building Blocks

Converting to a JIT System

Get top management commitment Decide which parts need most effort Obtain support of workers Start by trying to reduce setup times Gradually convert operations Convert suppliers to JIT Prepare for obstacles

Obstacles to Conversion
Management may not be committed Workers/management may not be cooperative Suppliers may resist

JIT in Service
The basic goal of the demand flow technology in the service organisation is to provide optimum response to the customer with the highest quality service and lowest possible cost.
Organise Problem-Solving Groups Eliminate disruptions & unnecessary activities Make system flexible Reduce setup and lead times Eliminate waste Upgrade Housekeeping Minimize WIP Upgrade Quality Simplify the process

JIT Purchasing
New challenges
Meeting manufacturing requirements Changing from traditional thinking and practices frequent on-time delivery of small quantities Long term relationships with suppliers as partners

JIT II
JIT II: The practice of allowing vendors to manage some aspects of buying their products or services for the buyer