Introduction

Just in time : a highly coordinated processing system in which goods move through the system and services are performed just as they are needed Lean operation : a highly coordinated system that uses minimal resources and produces high quality goods or services

Terms associated with lean operations

Muda Kanban Pull system Heijunka Kaizen Jidoka Poka-yoke Team concept

Goals and building blocks of lean systems

Supporting Goals
Eliminate disruptions

Make system flexible

Eliminate waste, especially excess inventory

Sources of Waste
Overproduction

Waiting time
Unnecessary transportation

Processing waste
Inefficient work methods Product defects

JIT Building Blocks

Product design

Process design
Personnel/organizational elements Manufacturing planning and control

Product design
Standard parts Modular design Highly capable production systems with quality built in Concurrent engineering

Process design
Small lot sizes Setup time reduction Manufacturing cells Quality improvement Production flexibility A balanced system Little inventory storage Fail-safe methods

Personnel/organizational elements
Workers as assets Cross-trained workers Continuous improvement Cost accounting Leadership/project management

Manufacturing planning and control

Level loading Pull systems Visual systems Limited work in progress Cross vendor relationships Reduced transaction processing Preventive maintenance and housekeeping

Comparison of JIT and Traditional

Transitioning to a jit system

Planning a successful conversion
Make sure top management is committed to the conversion Study the operations carefully Obtain the support and cooperation of workers Begin by trying to reduce the setup times while maintaining the current system Gradually convert operations, beginning at the end of the process and working backward Convert suppliers to JIT and be prepared to work closely with them Be prepared to encounter obstacles to conversion

 Obstacles to conversion
Management may not be totally committed Workers-management may not display a cooperative spirit Difficult to change the culture of the organization Resistance on part of the suppliers

Downside of conversion to a JIT system

Time and cost requirements Commitment of resources Attention to the smallest of details Management and worker commitment for continuous improvement Traffic congestion due to frequent deliveries Increased transportation cost

JIT in services
Eliminate disruptions Make the systems flexible Reduce setup times and processing times Eliminate waste Minimize work in process Simplify the process

JIT II
Bose corporation Vendor managed inventory a supplier representative works right in the companys plant, making sure there is an appropriate supply on hand

Benefits of JIT system

Reduced inventory levels

High quality
Flexibility Reduced lead times Increased productivity

Cont..
Increased equipment utilization

Reduced scrap and rework

Reduced space requirements Pressure for good vendor relationships Reduced need for indirect labor

Toyotas lean manufacturing system

The Toyota lean manufacturing system lays out a plan to increase the profitability of companies by reducing the costs that can be incurred. When a company adopts the Toyota lean manufacturing system, it knows that it can direct cost savings by eliminating wastes in the system. Using the Toyota lean manufacturing process, companies can readily see the following improvements in their company: 1. An increased morale and productivity of the employee. 2. Satisfaction for the customer because of reduced defects on the goods and an improved delivery. 3. The goods will also be faster to market.

DELL AND JIT

JIT has been adopted by a lot of corporations since its inception. But no one has gone as far as Dell. Eleven years ago, Dell carried 20 to 25 days of inventory in a sprawling network of warehouses. Today, it has no warehouses. And though it assembles nearly 80,000 computers every 24 hours, it carries no more than two hours of inventory in its factories and a maximum of just 72 hours across its entire operation. To Kevin Rollins, who succeeded Michael Dell as CEO this past July (Dell continues as chairman), inventory is like fish. "The longer you keep it the faster it deteriorates -- you can literally see the stuff rot," he says. The key to this robust production system is a solid process that monitors demand and supply on a real-time, continuing basis. "But when you have basically zero inventory, it's like draining a swamp -all of the stumps start to show," Dell says. "The problems reveal themselves, and you can take immediate corrective action to fix them."