JUST IN TIME

JIT

A philosophy of manufacturing based on planned elimination of waste and continuous improvement of productivity

JUST IN TIME
A way of planning operations Reduces variability of demand Improves responsiveness Manufacturing is done close to the time of consumption

JIT : OBJECTIVES
Only the required inventory : when needed; Improve quality to near zero defects; to reduce lead times by reducing setup times, queue lengths, and lot sizes; Incrementally revise the operations to improve productivity Accomplish these things at minimum cost.

JUST IN TIME
Reduced inventory ( 70%) Improved quality - Reduced rework by 90% - Reduced scrap by 50% - Reduced warranty claims by 70% Increased productivity by 40%

JIT SYNONYMS
IBM - Continuous Flow Manufacturing HP - Stockless Production - Repetitive Manufacturing System GE - Management by Sight Motorola - Short Cycle Manufacturing Toyota - Toyota manufacturing System Boeing - Lean Manufacturing

JUST IN TIME INVENTORY

JUST-IN-CASE INVENTORY
Unreliable supplier Late deliveries Operational complexity Machine breakdowns Absenteeism Long setup times Poor scheduling Defective components

INVENTORY HIDES INEFFICIENCIES

Machine Breakdowns In-Process InInventory Workload Imbalances Worker Absenteeism Production Problems

Out-ofOut-of-Spec Materials Quality Quality Problems Problems

Material Shortages

BUFFER STOCK
Prefer excess capacity to excess inventory Work with suppliers to reduce complexity Work with customers to reduce uncertainty Improve responsiveness

SAFETY STOCK
SUPPLY UNCERTAINTY Delay or Defective - Long term contract - Certify process capabilities - Supplier certification - Improve employee relationships

SAFETY STOCK
OPERATIONAL COMPLEXITY/UNCERTAINTY - Simplify product/process design - Cellular mfg/ Group technology - Small lot sizes

SAFETY STOCK
INFRASTRUCTURAL INERTIA We do it this way Better leadership Flexible work attitude Flexible labor policies Justification policies

SAFETY STOCK
CAPACITY IMBALANCES Demand & Supply - Reduce set up times - Shipments in smaller consignments

SAFETY STOCK
WORK IN PROCESS - Reduce decision cycle time - Reduce lot sizes - Quicken flow of material

JUST-IN-TIME MANUFACTURING

LEAN MANUFACTURING
A philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise. It involves:
identifying and eliminating non-valueadding activities, employing teams of multi-skilled workers, using highly flexible, automated machines

ENVIRONMENT
Standardized product service bundle Limited variety Stable demand High Volume Repetitive Value added system/ Higher reliability Higher capacity Employee involvement/ Multi skill Long term supplier relationship

SCHEDULING IN JIT
Level scheduling -Creation of value & consumption at the same time -Reduce set up cost Plan how many units and not what

ORDER-TOORDER-TO-DELIVERY CYCLE TIME BASED COMPETITION

Manufacturing Cumulative Lead Time
CustoCustomer Places Order EngiEngiOrder SchedSchedneering Entry uling Design Manufacturing DistriDistriLead Times bution and Customer Purchasing Service Lead Times

Order-toOrder-to-Delivery Cycle

TRADITIONAL VIEW OF MANUFACTURING

Maximum utilization of capacity Large queues of in-process inventory waiting at work centers. Workers and machines never had to wait for product to work on Production costs were low. Products spend most of their time in manufacturing just waiting

JIT Manufacturing Philosophy

Reduce manufacturing lead times. Reductions in work-in-process (WIP). 100% capacity utilization is not the predominant objective. The result is a smooth, uninterrupted flow of small lots of products throughout production.

Capacity Utilization
Production Lead Times (days)
60 50 40 30 20 10

Traditional Manufacturing

JIT Manufacturing % Capacity Utilization

10 20 30 40 50 60 70 80 90 100

CAPACITY VS LEAD TIME

Small increase in capacities can lead to:
Significant reduction of manufacturing lead times Significant reduction of work-in-process inventory

SETUP TIME
Inside Exchange of Die Outside Exchange of Die Convert as much IEDs to OEDs IED activities streamlined by design simplifications OED activities streamlined or eliminated OED portion to be less than production run

Kanban Production Control Systems

Machine Center

Storage Part A

Storage Part A

Assembly Line

Material Flow Card (signal) Flow

Number of Kanbans
Expected demand during lead time  Safety stock k! Size of the container DL(1  S ) ! C
k = Number of kanban card sets (a set is a card) D = Average number of units demanded over some time period L = lead time to replenish an order (same units of time as demand) S = Safety stock expressed as a percentage of demand during leadtime C = Container size

JIT IN SERVICES
Organize continuous improvement teams : problems of power poles getting knocked down Reduce employee absenteeism and turnover Cross train employees Blueprint the service Process Update equipment & process technology Level demand Service recovery plan Eliminate unnecessary activities Change layout Use demand pull scheduling