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Just-in-Time
and Lean Systems

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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)

 Lean Production supplies customers with

exactly what the customer wants, when the
customer wants, without waste, through
continuous improvement.

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What Does Just-in-Time Do?

 Attacks waste
 Anything not adding value to the product
 From the customer’s perspective

 Exposes problems and bottlenecks

caused by variability
 Deviation from optimum
 Achieves streamlined production
 By reducing inventory

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Features of Lean production

WHAT IT IS WHAT IT DOES

• Management philosophy
• Attacks waste
• “Pull” system though the plant

WHAT IT REQUIRES WHAT IT ASSUMES

• Employee participation • Stable environment

• Continuing improvement
• Small lot sizes

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 JIT Demand-Pull
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Here the customer starts

the process, pulling an Logic
inventory item from
Final Assembly…
Then sub-
assembly work is Fab Vendor
pulled forward by
that demand… Sub
Fab Vendor
Customers
Final
Assembly

The process continues Sub Fab Vendor

throughout the entire
production process and
supply chain Fab Vendor
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The Toyota Production System

 Based on two
philosophies:
 1. Elimination of
waste

 2. Respect for
people
Toyota’s run smoother
than this!

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Introductory Quotation

Waste is ‘anything other

than the minimum amount
of equipment, materials,
parts, space, and worker’s
time, which are absolutely
essential to add value to the
product.’
— Shoichiro Toyoda
President, Toyota © 1995 Corel Corp.

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Types of Waste

 Overproduction
 Waiting
 Transportation
 Inefficient processing
 Inventory
 Unnecessary motion © 1995

Product defects
Corel
Corp.


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Elements that address elimination

of waste
1. Focused factory Networks
2. Group Technology
3. Quality at source
4. Uniform Plant loading
5. JIT production
6. Kanban Production control
7. Minimized the set up times
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These are small specialized

Minimizing Waste: plants that limit the range
Focused Factory of products produced
Networks (sometimes only one type of
product for an entire
facility)

Some plants in
Japan have as
Coordination few as 30 and as
System Integration many as 1000
employees

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Minimizing Waste: Group Technology (Part 1)

Note how the flow lines are going back and forth
 Using Departmental Specialization for plant layout can cause
a lot of unnecessary material movement

Saw Saw Saw Grinder Grinder

Heat Treat

Lathe Lathe Lathe Press Press Press

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Minimizing Waste:
Group Technology (Part 2)
 Revising by using Group Technology Cells can reduce
movement and improve product flow

Grinder
1 2
Saw Lathe Lathe Press

Heat Treat

Grinder
Saw Lathe A B Lathe Press

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Minimizing Waste:
Uniform Plant Loading (heijunka)
Suppose we operate a production plant that produces a single
product. The schedule of production for this product could be
accomplished using either of the two plant loading schedules
below.

Not uniform Jan. Units Feb. Units Mar. Units Total

1,200 3,500 4,300 9,000
or

Uniform Jan. Units Feb. Units Mar. Units Total

3,000 3,000 3,000 9,000
How does the uniform loading help save labor costs?
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Example-Mixed model
production system in Toyota
 Model Monthly Daily Cycle
Quantity Quantity Time
Sedan 5000 250 4 min
Hardtop 2500 125 2 min
Wagon 2500 125 2 min

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Inventory Hides Problems Just as

Water in a Lake Hides Rocks

Inventory level

Inventory level

Process Process
Scrap Scrap
downtime downtime
Setup Setup Quality
Quality time
time problems problems

Late Late
deliveries deliveries

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Lowering Inventory
Reduces Waste

Work in process inventory level

(hides problems)

Unreliable Capacity
Scrap
Vendors Imbalances

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Lowering Inventory
Reduces Waste
Reducing inventory reveals
problems so they can be solved.

WIP
Unreliable Capacity
Scrap
Vendors Imbalances

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Lowering Inventory
Reduces Waste
Reducing inventory reveals
problems so they can be solved.

Unreliable WIP Capacity

Scrap
Vendors Imbalances

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 To Lower Inventory,
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Reduce Lot Sizes

Inventory Level
Average
Lot Size 200
inventory = 40 Average inventory
= 100

Lot Size 80

Average inventory = (Lot size)/2 Time

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Frequent Orders can
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Reduce Average Inventory

Q1 When average order size = 200,
average inventory is 100

Q2 When average order size = 100,

average inventory is 50
200
Inventory
100

Time

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Reducing Lot Sizes Increases the

Number of Lots
Customer Lot size = 5
orders 10 Lot 1 Lot 2

Lot size = 2
Lot 1 Lot 2 Lot 3 Lot 4 Lot 5

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Relationship b/w Lot size &
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Set up cost
Cost

Setup Cost

Optimal Lot Size

Lot Size

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Relationship b/w Lot size &

Set up cost
Cost

Setup Cost
New optimal Original
optimal Lot Size
lot size
lot size
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Minimizing Waste: Kanban

Production Control Systems
Once the Production kanban is This puts the
received, the Machine Center Withdrawal system back
produces a unit to replace the kanban were it was
one taken by the Assembly Line before the item
people in the first place was pulled

Storage Storage
Machine Part A Part A Assembly
Center
Line

Production kanban
Material Flow
The process begins by the Assembly Line
people pulling Part A from Storage Card (signal) Flow
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Diagram of Outbound Stock

point with Warning Signal Marker

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Kanban Signals “Pull”

Material Through the Process

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