15

JIT and
Lean Operations

McGraw-Hill/Irwin

Copyright 2007 by The McGraw-Hill Companies, Inc. All

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.
Outline the considerations important in converting
a traditional mode of operations to a JIT system.
List some of the obstacles that might be
encountered when converting to a JIT system.
15-2

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
15-3

Goal of JIT
The ultimate goal of JIT is a balanced
system.
Achieves a smooth, rapid flow of
materials through the system

15-4

Summary JIT Goals and Building

Blocks
Figure 15.1
Ultimate
A
Goal balanced
rapid flow
Supporting
Goals

Eliminate disruptions

Make the system flexible

Product
Design

Process
Design

Eliminate waste

Personnel
Elements

Manufacturing Planning

Building
Blocks

15-5

Supporting Goals
Eliminate disruptions
Make system flexible
Eliminate waste, especially excess
inventory

15-6

Sources of Waste
Overproduction
Waiting time
Unnecessary transportation
Processing waste
Inefficient work methods
Product defects

15-7

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

15-8

Kaizen Philosophy (contd)

Supported by a visual system
Focuses attention where value is created
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

15-9

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

15-10

JIT Building Blocks

Product design
Process design
Personnel/organizational
elements
Manufacturing
planning and control

15-11

Product Design
Standard parts
Modular design
Highly capable production systems
Concurrent
engineering

15-12

Process Design
Small lot sizes
Setup time reduction
Manufacturing cells
Limited work in process
Quality improvement
Production flexibility
Balanced system
Little inventory storage
15-13

Benefits of Small Lot Sizes

Reduces inventory
Less rework
Less storage space
Problems are more apparent
Increases product flexibility
Easier to balance operations

15-14

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

15-15

Production Flexibility
Reduce downtime by reducing
changeover time
Use preventive maintenance to
reduce breakdowns
Cross-train workers to help clear
bottlenecks

15-16

Production Flexibility (contd)

Use many small units of capacity
Use off-line buffers
Reserve capacity for important customers

15-17

Quality Improvement
Autonomation
Automatic detection of defects during
production

Jidoka
Japanese term for autonomation

15-18

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

15-19

Personnel/Organizational
Elements
Workers as assets
Cross-trained
workers
Continuous
improvement
Cost accounting
Leadership/project
management
15-20

Manufacturing Planning and

Control
Level loading
Pull systems
Visual systems
Close vendor relationships
Reduced transaction
processing
Preventive maintenance
15-21

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

15-22

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.
15-23

Kanban Formula
N

DT(1+X)
C

N = Total number of containers

D = Planned usage rate of using work center
T = Average waiting time for replenishment of parts
plus average production time for a
container of parts
X = Policy variable set by management
- possible inefficiency in the system
C = Capacity of a standard container
15-24

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
15-25

Traditional Supplier Network

Figure 15.4a

Buyer
Buyer
Supplier
Supplier

Supplier
Supplier
Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

15-26

Tiered Supplier Network

Figure 15.4b

Buyer
Buyer
First Tier Supplier
Second Tier Supplier

Third Tier Supplier

Supplier
Supplier
Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

15-27

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.

15-28

Housekeeping Five Ss
1.
2.
3.
4.
5.

Sort
Straighten
Sweep
Standardize
Self-discipline

15-29

Table 15.3

Comparison of JIT and

Traditional

Factor

Traditional

JIT

Inventory

Much to offset forecast

errors, late deliveries

Minimal necessary to operate

Deliveries

Few, large

Many, small

Lot sizes

Large

Small

Setup; runs

Few, long runs

Many, short runs

Vendors

Long-term relationships
are unusual

Partners

Workers

Necessary to do the work Assets

15-30

Transitioning to a JIT System

Get top management commitment
Decide which parts need most effort
Obtain support of workers
Start by trying to reduce setup times
Gradually convert operations
Convert suppliers to JIT
Prepare for obstacles
15-31

Obstacles to Conversion
Management may not be committed
Workers/management may not be
cooperative
Difficult to change company culture
Suppliers may
resist
Why?

15-32

Suppliers May Resist JIT

Unwilling to commit resources

Uneasy about long-term commitments
Frequent, small deliveries may be difficult
Burden of quality control shifts to supplier
Frequent engineering changes may cause
JIT changes

15-33

JIT in Services
The basic goal of the demand flow technology in
the service organization is to provide optimum
response to the customer with the highest
quality service and lowest possible cost.

Eliminate disruptions
Make system flexible
Reduce setup and lead times
Eliminate waste
Minimize WIP
Simplify the process

15-34

JIT II
JIT II: a supplier representative works
right in the companys plant, making
sure there is an appropriate supply on
hand.

15-35

Benefits of JIT Systems

Reduced inventory levels
High quality
Flexibility
Reduced lead times
Increased productivity

15-36

Benefits of JIT Systems (contd)

Increased equipment utilization
Reduced scrap and rework
Reduced space requirements
Pressure for good vendor relationships
Reduced need for indirect labor

15-37

Table 15.4

Elements of JIT

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

15-38

Table 15.4

Elements of JIT (contd)

Poka-yoke fail safe tools and methods

Preventative maintenance
Good housekeeping
Set-up time reduction

Cross-trained employees
A pull system

15-39

Video: Made for you

15-40

Video: New system

15-41

Video: McDonalds Process

15-42

Video: Layout Gortrac

15-43