JIT and

Lean Operations

McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
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JIT/Lean Production

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 Learning Objectives
 Explain what is meant by the term lean operations
system.
 List each of the goals of JIT and explain its
importance.
 List and briefly describe the building blocks of JIT.
 List the benefits of the JIT system.
 Outline the considerations important in converting
a traditional mode of operations to a JIT system.
 List some of the obstacles that might be
encountered when converting to a JIT system.

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 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”
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 Push System of Production
Product Layout

Raw
Station Station Station Station Finished
materials 1 2 3 4 item
or customer
Material Material Material Material
and/or and/or and/or and/or
labor labor labor labor

Used for Repetitive or Continuous Processing

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 What is a “Just-in-time System”?

“Just-in-time”: A philosophy of manufacturing

based on planned elimination of all waste and
continuous improvement of productivity.

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JIT Manufacturing Vs. JIT Purchasing
 JIT manufacturing: An Organization- wide
approach to produce output with in the minimum
possible lead time and at the lowest possible
total cost by continuously identifying and
eliminating all forms of waste and variance.

 JIT purchasing: Same pull type approach used in

JIT manufacturing applied to purchasing
shipments of parts and components from
suppliers.

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Characteristics of JIT/Lean System
1. Pull method of material flow
2. Standardized components and work methods
3. Constantly high quality, Kaizen
4. Quality at the source, Poka- Yoke i.e. Fool
proofing)
5. Close supplier ties
6. Flexible workforce
(Cross-train workers)
7. Involvement of people
8. Preventive maintenance
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 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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 Quiz
Which of following statement is correct
(I) JIT operates with very little fat.
(II) In JIT, waste is considered as an enemy.

A. Only I
B. Only II
C. Both are correct
D. Both are incorrect

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 Summary JIT Goals and Building
Figure 15.1 Blocks
Ultimate A
Goal balanced
rapid flow

Supporting
Goals Eliminate disruptions
Make the system flexible Eliminate waste

Product Process Personnel Manufactur- Building

Design Design Elements ing Planning 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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 Quiz
Which of following statement is correct
(I) JIT is a foolproof system.
(II) Close supplier tie is a key for the success of
lean manufacturing.

A. Only I
B. Only II
C. Both are correct
D. Both are incorrect
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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

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 Kaizen Philosophy (cont’d)
 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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 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
 Limited work in process
 Quality improvement
 Production flexibility
 Balanced system
 Little inventory storage

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 Production Flexibility

 Reduce downtime
 Use preventive maintenance to
reduce breakdowns
 Cross-train workers to help clear
bottlenecks
 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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 Balanced System
 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
 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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 Quiz
 The japnees term associated with visual pull
system under Lean Manufacturing is

 A. Poka-yoke
 B. JIDOKA
 C. Kaizen
 D. Kanban

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 Quiz
 The japnees term associated with visual pull
system under Lean Manufacturing is

 A. Poka-yoke – Mistake free/ foolproof

 B. JIDOKA - Automation
 C. Kaizen – Continues improvement
 D. Kanban – Card/ Signal based pull demand
system.

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 Manufacturing Planning and
Control
 Level loading
 Pull systems
 Visual systems
 Close vendor
relationships
 Reduced transaction
processing
 Preventive maintenance
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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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 Preventive Maintenance and
Housekeeping
 Preventative maintenance: Maintaining
equipment in good condition and replacing
parts that have a tendency to fail before they
actually fail.
 Housekeeping: Maintaining a workplace that
is clean and free of unnecessary materials.

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 Transitioning 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

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 Obstacles to Conversion

 Management may not be committed

 Workers/management may not be
cooperative
 Difficult to change company culture
 Suppliers may
resist
 Why?

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 Suppliers May Resist JIT
 Unwilling to commit resources
 Uneasy about long-term commitments
 Frequent, small deliveries may be difficult
 Burden of quality control shifts to supplier
 Frequent engineering changes may cause
JIT changes

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Benefits

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 Benefits of JIT Systems

 Reduced inventory levels

 High quality
 Flexibility
 Reduced lead times
 Continuous Improvement
 Increased productivity
 Close supplier ties
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 Benefits of JIT Systems (cont’d)

 Increased equipment utilization

 Reduced scrap and rework
 Reduced space requirements
 Pressure for good vendor relationships
 Reduced need for indirect labor

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 Elements 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 minimize
moving materials and parts
 Quality at the source
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 Elements of JIT (cont’d)

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

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Thanks

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