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Module IV
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Just-in-Time (JIT)
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Just-In-Time (JIT)

Schonberger defines the JIT system as to :

”Produce and deliver finished goods just in time
to be sold, sub-assemblies just in time to be
assembled into finished goods, and purchased
materials just in time to be transformed into
fabricated parts”.
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The Concept of JIT Manufacturing

• Revise factory layouts

• Reduce set-up times

• Implement a pull system of production

• Better coordination with suppliers

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Pre-JIT: Traditional Mass Production

Big lot sizes

Lots of inventory
”PUSH” material to next
stage
Big purchase shipments

???

Lower
per unit
cost

Big “pushes” of finished goods

to warehouses or customers
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Post-JIT: “Lean Production”

Tighter coordination along the supply chain

Goods are pulled along
— only make and ship what is needed
Smaller shipments
Smaller lots
Faster setups
Less inventory, storage space
”PULL” material to next stage

Minimal
or no
inventory Goods are pulled out of
holding plant by customer demand
cost
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Kanban Example
Workcenter A Workcenter B

Workcenter B uses parts produced by Workcenter A

How can we control the flow of materials so that B always

has parts and A doesn’t overproduce?
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Kanban card: Signal to produce

Workcenter A Workcenter B

Kanban Card

When a container is opened by Workcenter B, its kanban card is

removed and sent back to Workcenter A.
This is a signal to Workcenter A to produce another box of parts.
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Empty Box: Signal to pull

Workcenter A Workcenter B

Empty box sent back. Signal to pull another full box into
Workcenter B.
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Kanban Visual System

Manufacturing Manufacturing Manufacturing
Cell 1 (MC 1) Cell 2 (MC 2) Cell 3 (MC 3)

Step 4 Step 4 Step 4

Step 3

Racks containing bins of Racks containing bins of Racks containing bins of

components components components
manufactured at MC 1 manufactured at MC 2 manufactured at MC 3

Store

Work-In-Process Inventory

Racks containing bins of Racks containing bins of Racks containing bins of

components required at components required at components required at
WS 1 WS 2 WS 3

Mizosomashi or
supply worker
Step 1 Step 1 Step 1
(Step 2)

Workstation 1 Workstation 2 Workstation 3

(WS 1) (WS 2) (WS 3)

Car 1 Car 2 Car 3

Conveyor

The Assembly Line

© Oxford University Press 2007. All
rights reserved.
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Benefits of JIT

Heightened
Reduced buffer
awareness of
stocks and/or
problems &
operators
causes

Fast feedback on
defects
Ideas for cutting
Ideas for improving JIT Ideas for
lot sizes delivery performance controlling defects
Smoother
output rates
Scrap/ quality
control
Lot size JIT
reductions production
Less
material
waste
Less stock in Less indirect Fewer rework
the system cost hours

Less material, labor, and indirect inputs for the same or higher output = higher productivity

Less inventory in the system = faster market response, better forecasting, less administration

© Oxford University Press 2007. All

rights reserved.
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A comparison of the Japanese JIT Supply Chain Management and
the Traditional US purchasing

• Purchase lot size • Mode of transportation

• Supplier selection • Product specifications
• Evaluating the supplier • Paperwork
• Receiving inspection • Packaging
• Negotiating and bidding
process
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Thanks