15

JIT and
Lean Operations

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

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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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 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
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
 Poor quality
 Equipment breakdowns
 Schedule changes
 Late deliveries
 Make system flexible
 Handle product mix
 Smoothly handle volume changes
 Eliminate waste, especially excess
inventory
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 Sources of Waste

 Overproduction
 Waiting time (material should “flow”)
 Unnecessary transportation
 Processing waste (scrap)
 Inefficient work methods
 Product defects (rework)

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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 (cont’d)
 Supported by a visual system
 Focuses attention where value is created
 Value stream mapping
 Process oriented
 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

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Production Flexibility (cont’d)
 Use many small units of capacity
 Use off-line buffers
 Reserve capacity for important customers

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 Quality Improvement
 Autonomation
 Automatic detection of defects during
production (not at the end of the line by a
QC inspector)
 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
 Activity-based costing
 Leadership/project
management
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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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 Limited Work in Process
 Benefits
 Lower carrying costs
 Increased flexibility
 Aids scheduling
 Saves cost of rework and scrap
 Two general approaches
 Kanban – focuses on individual work stations
 Constant work in process (CONWIP) – focuses
on the system as a whole

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 Traditional Supplier Network
Figure 15.4a

Buyer
Supplier Supplier
Supplier

Supplier Supplier Supplier Supplier

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 Tiered Supplier Network
Figure 15.4b
Buyer

First Tier Supplier Supplier

Second Tier Supplier Supplier Supplier

Third Tier Supplier Supplier Supplier Supplier Supplier

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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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 Housekeeping Five S’s
1. Sort
2. Straighten
3. Sweep
4. Standardize
5. Self-discipline
6. Safety (US)

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 Comparison of JIT and
Table 15.3 Traditional
Factor Traditional JIT

Inventory Much to offset forecast Minimal necessary to operate

errors, late deliveries
Deliveries Few, large Many, small

Lot sizes Large Small

Setup; runs Few, long runs Many, short runs

Vendors Long-term relationships Partners

are unusual
Workers Necessary to do the work Assets

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 Benefits of JIT Systems

 Reduced inventory levels

 High quality
 Flexibility
 Reduced lead times
 Increased productivity

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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
Table 15.4
 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)
Table 15.4

 Poka-yoke – fail safe tools and methods

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

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