Quick and Economic Setups

Traditionally, firms manufacture their products in large lots resulting in a lower number of machine
setups. But JIT manufacturing firms undergo a larger number of setups as they produce in small lots.
Therefore, JIT manufacturing firms require quick and inexpensive setups to minimize the disadvantages
of having more number of setups.
The successful implementation of a JIT system is greatly dependent on its ability to reduce setup times.
JIT firms engage specialists and consultants to train their workers to reduce setup times. Firms adopt the
following procedure to reduce setup times:
Analyze existing setup procedures
The existing setup procedure is recorded, normally with the help of videotapes. Then the management
of the firm collects information from its employees relating to the execution of these setup procedures.
The procedures are then analyzed to determine how they can be improved.
Separation of internal and external setup activities
External setup activities are those that can be performed without stopping the current production
process. The management of a JIT firm can improve its setup process by separating external setup
activities from internal setup activities, and then developing a plan to perform the external activities,
while the production process is under way. This sales time in the production process.
Convert internal setup activities into external setup activities
Next, the management of the firm should try to convert its internal setup activities into external
activities by changing work methods, adding work aids or by purchasing duplicate sets of tools or
equipment. Some procedures that enable the conversion of internal setup activities into external setup
activities are described as follows.
Heating
Instead of heating materials before beginning a production process (as a part of the internal setup),
materials can be preheated outside the setup so that the actual heating activity can be finished in less
time. This can be done by preheating the material in another vessel during the production of previous
batches instead of stopping the production process to merely heat it. The same type of reasoning can
also be applied to other operations like cooling and mixing of materials.
Cleaning
Cleaning activities can also be converted into external setup activities by using two sets of tools and
equipment. Workers can replace contaminated equipment with a clean set to continue the production
process while the contaminated equipment is cleaned externally. This will result in increased speed of
the production process.
Streamline work
Simplifying internal activities and streamlining the work in a firm reduces setup times. For example, a set
of tools can be provided to each work center so that workers need not wait for a standard tool required
while another processing is going on. The use of standardized parts also simplifies the processes and
reduces setup times. For example, fasteners used in a setup process can be standardized to the same
size, so that they can be loosened and re-tightened by using a single wrench. For an overview of JIT
manufacturing in the US, refer Exhibit 17.3.
Exhibit
The Practice of JIT by US Companies
After World War II, several US companies became competitive by setting up larger plants, which allowed
them to benefit from economies of scale, but also required the maintenance of huge inventories. Later,
they realized the importance of JIT systems and put it into practice in order to protect themselves from
the expansion of Japanese companies in the US market and other international markets. North America
first gained exposure to JIT system through joint ventures. General Motors (GM) and Toyota established
the NUMMI plant in 1983 at Fremont, California. Toyota produced the Chevy Nova for GM and GM's
managers were trained in Toyota's JIT production system.
General Motors implemented the JIT system effectively and was able to make its production system
more flexible. Ford also attempted to implement a JIT system, but failed, as it had very little flexibility in
its production system. Some of the reasons that made it difficult for US firms to implement JIT system
are given below:
US companies emphasize cost and quality more than achieving flexibility in production.
Japanese companies were more successful than US companies in using flexible schedules with their
suppliers. But US companies found suppliers unwilling to cater to flexible JIT requirements.
The morale of workers in US firms was low as compared to the morale of Japanese workers consider
work as the most important part of their life, while Americans work in order to support their outside life.
Therefore, American companies should develop more flexibility by breaking down their departmental
barriers for successful implementation of JIT systems.