CH 26

Ch 26 Just-In-Time and
Lean Production
Sections:
1. Lean Production and Waste in Manufacturing
2. Just-in-time Production Systems
3. Autonomation (“Automation with a human touch”)
4. Worker Involvement
©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book
Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.
Lean Production
Material requirements planning (MRP), capacity planning,
inventory control, and the other topics discussed in the
previous chapter are the traditional areas in a
production planning and control system.
A just-in-time (JIT) production system represents a
nontraditional approach to production and inventory
control that was first used at the Toyota Motor
Company in Japan in the 1950s and refined over
subsequent decades.
1
Lean Production
Roughly, JIT means delivering materials or parts to the
next processing station in a manufacturing sequence
just prior to the time when those parts are needed at
the station.
This results in minimum work-in-process inventory and
promotes high quality in the materials and parts that
are delivered, JIT is one of the fundamental
approaches used in the Toyota Production System.
In this chapter, we will examine the methods used at
Toyota that have later come to be called
lean production.
What is Lean Production?
Lean production means doing more work with fewer

resources.
Adaptation of mass production, in which work is
accomplished in:
less time,
smaller space,
with fewer workers and
less equipment.
Lean production also means giving customers what they
want, and satisfying or surpassing their expectations.
2
The term lean production was coined by researchers in

the International Motor Vehicle Program at the
Massachusetts Institute of Technology to describe the way
in which production operations were organized at the
Toyota Motor Company in Japan during the 1980s.
Toyota had pioneered a system of production that was
quite different from the mass production techniques used
by automobile companies in the United States and
Europe.
Table 26.1 summarizes most of the comparisons between
mass production and lean production.
3
The Toyota Production System had evolved starting in the

1950s to cope with the realities of Japan’s postwar
economy.
These economic realities included:
(1) a much smaller automotive market than in the United
States and Europe,
(2) a scarcity of Japanese capital to invest in new plants
and equipment, and
(3) an outside world that included many well-established
automobile companies determined to defend their
markets against Japanese imports.

To deal with these challenges, Toyota developed a
production system that could produce a variety of car
models with:
fewer quality problems,
lower inventory levels,
smaller manufacturing lot sizes for the parts used in
the cars, and
reduced lead times to produce the cars.
Development of the Toyota production system was led by
Taiichi Ohno, a Toyota vice president, whose efforts were
motivated largely by his desire to eliminate “waste” in all
its various forms in production operations.
4
Structure of Lean Production System
Taiichi Ohno's
structure of the
Toyota Production
System.
Activities in Manufacturing
1. Actual work - activities that add value to the product,

2. Auxiliary work - activities that support the value-adding
activities,
3. Muda (in English: waste) - activities that neither add
value nor support the value-adding activities.
5
Muda (Waste)
Taiichi Ohno’s seven forms of waste:

1. Production of defective parts,
2. Production of more parts than needed (overproduction),
3. Excessive inventories,
4. Unnecessary processing steps,
5. Unnecessary movement of people,
6. Unnecessary handling of materials,
7. Workers waiting.
Keys to Eliminating Waste
1. Just-in-time production
2. Autonomation (“automation with a human touch”)
3. Worker involvement
6
Just-In-Time Production
Production and delivery of exactly the required number

of each component to the downstream operation in the
manufacturing sequence just at the moment when the
component is needed (i.e. prior to the time when those
parts are needed).
Minimizes:
Work-in-process, and
Manufacturing lead time.
Requisites for JIT
1. A pull system of production control,

2. Setup time reduction for smaller batch sizes,
3. Stable and reliable production operations.
7
Pull System of Production Control
A system in which the order to make and deliver parts at
each workstation in the production sequence comes from
the downstream station that uses those parts.
JIT is based on a pull system of production control.
When the supply of parts at a given workstation is about to
be exhausted, that station orders the upstream station to
replenish the supply.
Only upon receipt of this order is the upstream station
authorized to produce the needed parts.
When this procedure is repeated at each workstation
throughout the plant, it has the effect of pulling parts
through the production system.
Push System of Production Control

For comparison, in a push system of production control,
parts at each workstation are produced irrespective of the
immediate need for those parts at their respective
downstream station.
In effect, this production discipline pushes parts through the
plant.
e.g. Material requirements planning (MRP Section 25.2) is a
push system of production control.
The risk in a push system is that, more parts get produced in
the factory than the system can handle, resulting in large
queues of work in front of machines.
The machines are unable to keep up with arriving work, and
the factory becomes overloaded with work-in-process
inventory.
8
Kanban System
The Toyota production system implemented its pull

system by means of kanbans.
The word kanban is derived from two Japanese
words: kan, meaning card; and ban, meaning signal.
Taken together, kanban means signal card.
A Kanban system of production control is based on
the use of cards that authorize:
(1) parts production, and
(2) parts delivery in the plant.
Kanban System
Thus, in the conventional implementation of a kanban

system, there are two types of cards:
1. Production kanban – authorizes upstream station to
produce a batch of parts.
As they are produced, the parts are placed in
containers, so the batch quantity is just sufficient to
fill the container.
Production of more than this quantity of parts is not
allowed in the kanban system.
2. Transport kanban – authorizes transport of the
container of parts to the downstream station.
9
Kanban System
Kanban System is Toyota’s way of implementing a pull

system of production control.
Some of today’s kanban implementations in the
automotive industry rely on modern communications
technologies rather than cards.
These electronic kanban systems connect production
workers to the material handlers who deliver the parts.
Modern implementation of a kanban system utilizes
bar codes and other automated data collection
technologies to reduce transaction times and increase
accuracy of shop floor data.
Kanban System
For example, one system installed at Ford Motor Company

uses battery-powered wireless buttons located at each
operator workstation.
When the supply of parts gets down to a certain level, the
operator presses the button, which signals the material
handlers to deliver another batch of parts.
Each button emits a low power signal that is received by
antennas attached to the plant ceiling and transmitted to
a computer system that provides instructions to the
material handlers about what to deliver, where, and
when.
10
Operation of a Kanban System
1. Station i+1 removes next P-kanban from dispatching rack.

This P-kanban authorizes it to process a container of part b.
A material handling worker removes the T-kanban from
incoming container of part b and takes it back to station i.
2. At station i, the material handling worker finds the container of

part b, removes the P-kanban and replaces it with a T-kanban.
He then puts the P-kanban in the dispatching rack at station i.
11
3. The container of part b that was at station i is moved to station

i+1 as authorized by the T-kanban.
The P-kanban for part b at station i authorizes station i to
process a new container of part b, but it must wait its turn in
the dispatching rack.
Scheduling of work at each station is determined by the order
of P-kanbans.
Stations i and i+1 are only two adjacent stations in a

longer sequence.
All other pairs of upstream and downstream stations
operate according to the same kanban pull system.
This production control system avoids unnecessary
paperwork.
The kanban cards are used over and over again instead
of generating new production and transport orders every
cycle.
Although considerable labor is involved in material
handling (moving cards and containers between
stations), this supposedly promotes teamwork and
cooperation among workers.
12
Setup Time Reduction
Starting point in setup time reduction is recognition that

the work elements in setup are of two types:
1. Internal elements – can only be done while the
production machine is stopped.
2. External elements – do not require the machine to be
stopped.
External Work Elements
Can be accomplished while previous job is still running.

Strategy:
Design the setup tooling and plan the changeover
procedure to permit as much of the setup as
possible to consist of external elements.
Examples:
Retrieve tooling for next job from tool crib,
Assemble tools for next job,
Reprogram machine for next job.
13
Internal Work Elements
Use time and motion study and methods improvement to

minimize the sum of the internal work element times,
Use two workers rather than one to accomplish the
changeover,
Eliminate adjustments in the setup,
Use quick-acting fasteners rather than bolts and nuts,
Use U-shaped washers instead of O-shaped washers,
Design modular fixtures consisting of a base plus insert
tooling that can be quickly changed for each new part style.
Base part remains attached to production machine.
Internal Work Elements

Some of the more general approaches that can be used to
reduce setup times in production include the following:
Develop permanent solutions for problems that cause
delays in the setup.
Schedule batches of similar part styles in sequence to
minimize the amount of change required in the setup.
Use group technology and cellular manufacturing so that
similar part styles are produced on the same equipment.
This will tend to reduce the amount of work that must be
performed during changeovers.
Although methods for reducing setup time were pioneered
by the Japanese, U.S. firms have also adopted these
methods. ©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist.
14
Examples of Setup Reduction
Results of the efforts are sometimes dramatic.

Table (26.4) presents some examples of setup reductions in
Japanese and U.S. industries.
Setup Time
Equipment type Before After Reduction
1000 ton press 4 hr 3 min 98.7%

Transfer line 9.3 hr 9 min 98.4%
Punch press 2 hr 3 min 97.5%
Machine tool 6 hr 10 min 97.2%
45 ton press 50 min 2 min 96.0%
15
Stable and Reliable

Production Operations
Other requirements for a successful JIT production system
include:
Production leveling - distribute changes in product mix and
quantity as evenly as possible over time,
On-time delivery of components,
Defect-free components and materials,
Reliable production equipment,
Workforce that is cooperative, committed, and cross-
trained,
Dependable supplier base.
16
Autonomation
The word seems like a misspelling of ‘automation.”

Taiichi Ohno referred to autonomation as
“automation with a human touch”.
Production machines operate autonomously as long
as they are functioning properly.
When they do not function properly (e.g., they produce a
defect), they are designed to stop.
Autonomation topics:
1. Stop the process
2. Error prevention
3. Total Productive Maintenance (TPM)
Stop the Process - Jidoka
Much of autonomation is embodied in the Japanese word

jidoka.
“Jidoka”
Japanese word meaning machines that are
designed to stop automatically when something
goes wrong.
Stop the process when:
Defective parts are produced,
Required production quantity has been completed.
Avoids overproduction
17
Stop the Process - Jidoka
Although autonomation is often applied to automated

production machines, it can also be used with manual
operations.
In either case, it consists of the following control devices:
(1) a sensor to detect abnormal operation that would result
in a quality defect,
(2) a device to count the number of parts that have been
produced, and
(3) a means to stop the machine or production line when
abnormal operation is detected or the required batch
quantity has been completed.
Error Prevention – Poka-yoke

“Poka-yoke”
Japanese word meaning detection and prevention
or of errors.
Reliable, simple and low cost devices are used.
Common mistakes in manufacturing:
Omitting processing steps,
Incorrectly locating a part in a fixture,
Using the wrong tool,
Neglecting (forgetting) to add a part in assembly.
Poka - Error
Yoke - Prevention
18
Poka-Yoke Functions
Performs 100% inspection for the following:
Workpart deviations,
Processing and methods deviations,
Counting and timing functions,
Verification of steps during work cycle.
When an error or other exception is identified,
the poka-yoke responses are either or both of the
following:
Stops the process when an error or problem is
detected,
Provides an audible or visible warning to alert operator
and other workers.
Poka-Yoke Functions
Most of the functions performed by poka-yoke devices in

production can be classified into the following categories:
Detection of workpart deviations
Detection of processing and methods deviations
This type of poka-yoke is designed to detect mistakes
made during an assembly or processing operation.
The mistake is usually associated with manual
operation.
For example, did the worker correctly position the
workpart in the fixture?
19
Poka-Yoke Functions
Counting and timing functions

Timing or counting devices can monitor these kinds of
situations.
For example, did the spot-welder apply the correct
number of spot-welds during the work cycle?
Verification functions
This function is concerned with the verification of a
desired status or condition during the work cycle.
For example, is the workpart present or absent in the
clamping device?
Total Productive Maintenance
Goal: zero breakdowns

Total Productive Maintenance (TPM) - integration of
preventive and predictive maintenance to avoid
emergency maintenance.
Emergency maintenance - repair equipment that breaks
down.
Preventive maintenance - routine repairs to avoid
breakdowns.
TPM
Predictive maintenance - anticipating malfunctions
before they occur.
20
Total Productive Maintenance –

Availability
The traditional measure of machine reliability is
availability, which refers to the proportion of the total
desired operating time that the machine is actually
available and operating.
When a piece of equipment is brand new (and being
debugged), and later when it begins to age, its availability
tends to be lower.
This results in a typical U-shaped curve for availability as a
function of time over the life of the equipment, as shown in
Figure 26.4.
21
Equipment Availability Curve
There are other reasons besides breakdowns why a piece

of production equipment may be operating at less than its
full capability.
The other reasons include:
(1) low utilization,
(2) production of defective parts, and
(3) operation at less than the machine’s designed speed.
Utilization refers to the amount of output of a production

machine during a given time period (e.g., week) relative to
its capacity during that same period.
22
Utilization
Utilization can also be measured as the number of hours

of productive operation relative to the total number of
hours the machine is available.
Reasons for poor machine utilization include poor
scheduling of work, machine starved for work by upstream
operation, setups and changeovers between production
batches, worker absenteeism, and low demand for the
type of process performed by the machine, utilization can
be assessed for a single machine, an entire plant, or any
other productive resource (e.g. labor).
It is often expressed as a percent (e.g., the plant is
operating at 83% of capacity).
Fraction Defect Rate
Production of defective parts may be due to

incorrect machine settings,
inaccurate adjustments in the setup, or
improper tooling.
All of these reasons are related to equipment problems.
23
Fraction Defect Rate
The fraction defect rate (q) is defined as the probability of

producing a defective piece each cycle of operation.
It is the proportion of defective parts that are produced in a
given process.
The yield of the process is:
Y: process yield (ratio of conforming parts produced to

total parts processed), and
q: fraction defect rate.
Operating Capability
Running the equipment at less than its designed speed

also reduces its operating capability (ros), which is the ratio
of the actual operating speed divided by the designed
speed of the machine.
24
Overall Equipment Effectiveness
Measure that includes availability (reliability), equipment
utilization, yield of good product, and operating capability.
OEE = A U Y ros
OEE : overall equipment effectiveness,
A : availability (proportion uptime),
U : equipment utilization (time equipment is used relative
to available time),
Y : yield of good product = 1 - q,
where q is fraction defect rate,
ros : operating capability (actual speed / design speed).
The objective of total productive maintenance is to make
OEE as close as possible to unity (100%).
Worker Involvement
Components:
Continuous improvement,
Visual management and 5S,
Standardized work procedures.
25
Continuous Improvement - Kaizen
“Kaizen”
Japanese word meaning continuous improvement
of production operations.
Usually implemented by worker teams, sometimes called
“quality circles”, that are organized to address specific
problems that have been identified in the workplace.
The teams deal not only with quality problems, but also
with problems relating to productivity, cost, safety,
maintenance, and other areas of interest to the
organization.
The term kaizen circle is also used, suggesting the
broader range of issues that are usually involved in team
activities.
Kaizen is a process that attempts to involve all workers as

well as their supervisors an managers.
Workers are often members of more than one kaizen
circle.
Although a principal purpose of organizing workers into
teams is to solve problems in production, there are other
less obvious but also important objectives; as
Kaizen circles also encourage workers’ sense of
responsibility, allow workers to gain acceptance and
recognition among colleagues, and improve their technical
skills.
26
Kaizen is applied on a problem-by-problem basis by

worker teams.
The team is convened to deal with a specific problem, and
the project activities of the problem-solving team are
called kaizen events.
They serve part-time on a project team in addition to
fulfilling their regular operational duties.
On completion of the project, the team is disbanded.
The usual expectation is that the team will meet two to four
times per month, and each meeting will last about an hour.
Visual Management –
Worker Involvement through 5S
One means of involving workers in the visual workplace is a
system called 5S.
The 5S system is a set of procedures that is used to
organize work areas in the plant.
The five S’s are the first letters of five Japanese words as
they would be spelled in English, and their translation
into English yields five words and phrases that also
begin with S.
The five English words are
(1) sort, (2) set in order,
(3) shine, (4) standardize, and
(5) self-discipline.
27
Japanese word English equivalent
Seiri Sort
Seiton Set in order, simplify access
Seiso Shine, sweep, scrub
Seiketsu Standardize
Shitsuke Self-discipline, sustain
The steps in 5S provide an additional means of

implementing visual management to provide a clean,
orderly, and visible work environment that promotes
high morale among workers and encourages
continuous improvement.
Worker teams are usually made responsible for
accomplishing the steps, and the 5S system must be a
continuing process to sustain the accomplishments that
have been made.
28
1. Sort. This step consists of sorting things in the workplace.

This includes identifying items that are not used and
disposing of them, thus eliminating the clutter that
usually accumulates in a workplace after many years.
2. Set in order. Remaining in the work area, after sorting are
organized according to frequency of use, providing
easy access to the items that are most often needed.
3. Shine. This step involves cleaning the work area and
inspecting it to make sure that everything is in its
proper place.
4. Standardize. Standardization in the 5S system refers to

documenting the standard locations for items in the
workplace, for example, using a “shadow board” for
hand tools, in which the outline of the tool is painted on
the board to indicate where it belongs.
Looking at the shadow board, workers can immediately
tell whether a tool is present and where to return it.
29
5. Self-discipline. Finally, the fifth step establishes a plan for

sustaining the gains made in the previous four steps,
and it assigns individual responsibilities to team
members for maintaining a clean and orderly work
environment.
Workers are made responsible for taking care of the
equipment they operate, which includes cleaning and
performing minor maintenance tasks.
Visual Management and 5S
Principle: the status of the work situation should be

evident just by looking at it.
Objects that obstruct the view are not allowed,
Build-up of work-in-process is limited to a specific
height,
Worker training includes use of photos and diagrams to
document work instructions,
30
Visual Management and 5S
Principle: the status of the work situation should be
evident just by looking at it.
Andon boards located above the assembly line indicate
the status of the workstations,
Different colored lights are often used to indicate the
status of the operation.
For example, a green light indicates normal operation,
yellow means a worker has a problem and is calling for
help, and red shows that the line has stopped.
Other color codes may be used to indicate the end of a
production run, shortage of materials, the need for a
machine setup, and so on.
Standardized Work Procedures

Standardized work procedures are established in the
Toyota Production System, using approaches that are
similar to traditional methods engineering techniques.
Time study is used to determine the length of time that
should be taken to complete a given work cycle.
The objectives of using standardized work procedures at
Toyota are:
Increase productivity, that is, accomplish the
required amount of production using the fewest
possible number of workers,
Balance the workload among all processes,
Minimize work-in-process in the production
sequence.
31
Standardized Work Procedures
In the Toyota system, a standardized work procedure for a
given task has three components:
1. Cycle time – actual time required.
“Takt time”: reciprocal of demand rate adjusted
for available shift time.
2. Work sequence
Basically the same as a standard method.
3. Standard work-in-process
Minimum number of parts to avoid waiting of
workers.
These components are documented using forms that
emphasize Toyota’s unique manufacturing
procedures.
Standardized Work Procedures –

Cycle Time
The cycle time is the actual time the task takes to
complete a given operation.
This time is established using stopwatch time study.
The cycle time is documented in a form called the part
production capacity chart, which indicates the daily
production capacity for the operations listed.
32
Takt Time and Cycle Time
Closely related to the cycle time is the takt time, which is
the reciprocal of the demand rate for a given product or
part, adjusted for the available shift time in the factory
(“takt” is a German word: cadence (rhythm, beat) or pace).
Ttakt = EOT / Qdd
Ttakt : Takt time

EOT : effective daily operating time
Qdd : daily quantity demanded
In the Toyota Production System, the work must be
designed so that the operation cycle time is consistent
with the takt time.

The effective daily operating time is the shift hours worked
each day, without subtracting any allowances for delays,
breakdowns, or other sources of lost time.
The reason the effective daily operating time is not
adjusted for lost time (delays, breakdowns) and the daily
quantity is not increased to account for defects is to draw
attention to these deficiencies so that corrective action will
be taken to minimize or eliminate them.
The work is designed so that the operation cycle time is
synchronized with the takt time.
This is accomplished through planning of the work
sequence and standardizing the work-in-process quantity.
33

Work Sequence
Shows the machines that must be visited by

the worker during each work cycle.
34
U-shaped Work Cell
Allocation of
work at nine
machines
between
three
workers in a
production
work cell.
Operations Routine Sheets
Allocation of
work at nine
machines for
three workers in
a production
work cell.
35
Standard Work-In-Process Quantity
Defined as the minimum number of parts necessary to avoid
workers waiting.
Factors that affect the standard WIP quantity:
If quality inspections must be performed as distinct
steps, then additional parts must be provided.
If processing includes heating of parts, then additional
parts must be provided for heating and cooling time.
If the worker's work sequence is in the opposite
direction of the part processing sequence, then at least
one workpart must be held between machines to avoid
waiting time.
36

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Ch 26 Just-In-Time and

What is Lean Production?

 Lean production means doing more work with fewer

 The term lean production was coined by researchers in

What is Lean Production?

 The Toyota Production System had evolved starting in the

What is Lean Production?

1. Actual work - activities that add value to the product,

Taiichi Ohno’s seven forms of waste:

Keys to Eliminating Waste

Production and delivery of exactly the required number

Requisites for JIT

1. A pull system of production control,

Push System of Production Control

 The Toyota production system implemented its pull

Thus, in the conventional implementation of a kanban

 Kanban System is Toyota’s way of implementing a pull

For example, one system installed at Ford Motor Company

1. Station i+1 removes next P-kanban from dispatching rack.

Operation of a Kanban System

2. At station i, the material handling worker finds the container of

3. The container of part b that was at station i is moved to station

Operation of a Kanban System

 Stations i and i+1 are only two adjacent stations in a

 Starting point in setup time reduction is recognition that

External Work Elements

 Can be accomplished while previous job is still running.

 Use time and motion study and methods improvement to

Internal Work Elements

 Results of the efforts are sometimes dramatic.

1000 ton press 4 hr 3 min 98.7%

Examples of Setup Reduction

Stable and Reliable

 The word seems like a misspelling of ‘automation.”

Stop the Process - Jidoka

 Much of autonomation is embodied in the Japanese word

 Although autonomation is often applied to automated

Error Prevention – Poka-yoke

Most of the functions performed by poka-yoke devices in

 Counting and timing functions

Total Productive Maintenance

 Goal: zero breakdowns

Total Productive Maintenance –

Total Productive Maintenance

 There are other reasons besides breakdowns why a piece

 Utilization refers to the amount of output of a production

 Utilization can also be measured as the number of hours

Fraction Defect Rate

 Production of defective parts may be due to

 The fraction defect rate (q) is defined as the probability of

Y: process yield (ratio of conforming parts produced to

 Running the equipment at less than its designed speed

Continuous Improvement - Kaizen

 Kaizen is a process that attempts to involve all workers as

 Kaizen is applied on a problem-by-problem basis by

Worker Involvement through 5S

The steps in 5S provide an additional means of

1. Sort. This step consists of sorting things in the workplace.

Lean production means doing more work with fewer

The term lean production was coined by researchers in

The Toyota Production System had evolved starting in the

The Toyota production system implemented its pull

Kanban System is Toyota’s way of implementing a pull

Stations i and i+1 are only two adjacent stations in a

Starting point in setup time reduction is recognition that

Can be accomplished while previous job is still running.

Use time and motion study and methods improvement to

Results of the efforts are sometimes dramatic.

The word seems like a misspelling of ‘automation.”

Much of autonomation is embodied in the Japanese word

Although autonomation is often applied to automated

Counting and timing functions

Goal: zero breakdowns

There are other reasons besides breakdowns why a piece

Utilization refers to the amount of output of a production

Utilization can also be measured as the number of hours

Production of defective parts may be due to

The fraction defect rate (q) is defined as the probability of

Running the equipment at less than its designed speed

Kaizen is a process that attempts to involve all workers as

Kaizen is applied on a problem-by-problem basis by

Principle: the status of the work situation should be