# 1. JIT Systems

Just-in-Time (JIT) Systems
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People Potential
The talents of our people are greatly underestimated, and their skills are underutilized. Our biggest task is to fundamentally redefine our relationships with our employees.
Jack Welch, Chairman, General Electric (From 1981 to 2001)
Message from Tom Peters*

From: Change is the Only Constant To : Revolution is the Only Constant Imagination as the Source of Value! Get and be: Excited/Obsessed/Supercharged!
A Simple Definition of JIT

A philosophy of manufacturing based on planned elimination of ALL WASTE, and improvement of productivity and customer value, through Continuous Improvement (or Kaizen)
Introductory Quotation
Waste is anything other than the minimum amount of equipment, materials, parts, space, and workers time, which are absolutely essential to add value to the product. Shoichiro Toyoda President, Toyota
Examples of Waste Waste in Operations
Examples of Waste
Traditional View
Inventory is good:
To To To To To To meet variations in demand smooth out production requirement allow flexibility in the production system maintain independence of operations protect against stock outs take advantage of low price/quantity discounts
Inventory is bad:
Its costly
Inventory exists, in case problems arise

JIT View
Inventory is evil because:
It is costly It hides problems
So produce only when needed Eliminate Inventory
Inventory Hides Problems
Less Inventory Exposes Problems
Inventory Hides Problems
Bad Design Lengthy Setups Inefficient Layout Poor Quality Machine Breakdown Unreliable Supplier
To Expose Problems: Reduce Inventory Levels
Bad Design Lengthy Setups Inefficient Layout Poor Quality Machine Breakdown Unreliable Supplier
Remove Sources of Problems and Repeat the Process
Poor Quality
Lengthy Setups Bad Design
Inefficient Layout
Machine Breakdown
Unreliable Supplier
Push System versus Pull System

Push System (Traditional) (MRP Approach) Central planning approach determines & disseminates production schedules to all processes simultaneously An item is released for production at a specified time, with an associated due date The item moves through a sequence of operations
When one operation is finished, the item is pushed to the next operation Finally, the product is pushed to inventory, to meet forecast demand
Inventory often used as a cushion against lapses in coordination and inventory can be huge.

Pull System (JIT) It focuses on the output of the system rather than the input Do not produce more than that can be used / sold Finished products are pulled from the final operation in response to firm customer orders This leads to a chain reaction, with each station pulling material from its preceding station JIT uses the Kanban system to control the flow of material with very little work-in-process inventory

Traditional Flow
Production Process (stream of water) Customers Inventory (stagnant ponds) Material (water in stream) Customers Streamlined Production
Suppliers
Flow with JIT

Suppliers
Traditional Firm Push System (Material Requirements Planning)

Material is pushed into downstream workstations regardless of whether resources are available
Lot arrivals trigger production

WS 1 WS 2
WS 3
Excess -Inventory, Equipment, Workers & Overproduction
Material Information (Production Schedule)

JIT System Pull System (Just In Time)

Material is pulled to a workstation just as it is needed
Withdrawals trigger production
WS 1
WS 2
WS 3
Material Information (via Kanban/Card)

Pull System Production Control

Send more widgets Production Step1 Send more widgets Production Step 2 Here they come Production Step 3 Here they come
Production at Step 2 in controlled by step 3 Production at Step 1 in controlled by step 2

How JIT works

Suppliers Sub Assembly Suppliers Sub Assembly Suppliers
1. Production Planner gives a schedule to final assembly

Final Assembly
2. Final assembly withdraws part from stations that feed it (subassembly)
4. In order to do so, those stations withdraw parts from preceding stations (suppliers)
3. Feeding stations then manufacture to replace those withdrawn
Pull System Production Control
Just-in-Time What it is?

Producing only
what is needed, when it is needed
Management philosophy
Continuous & Forced Problem Solving Respect for People Elimination of Waste
An Integrated Management System

Pull System
Origins of JIT
Pioneered by Toyota Adopted by other Japanese manufacturers Discovered much later by Western World JIT is also called as
Japanese Hewlett Packard General Electric Motorola IBM Boeing Harley Davidson Westinghouse -
Toyota Production System Stockless Production Management by Sight Short Cycle Manufacturing (Based on Time-Based Competition) Continuous Flow Manufacturing Lean Manufacturing MAN (Material as Needed) MIPS (Minimum Inventory Production System)
RJ Schonberger - World Class Manufacturing

Just-in-Time What it does?

Attacks waste
Anything not adding value to the product
From the customers perspective
Exposes problems & bottlenecks caused by variability

Deviation from optimum
Achieves streamlined production

By reducing inventory
JIT Objective: Profit through

Productivity improvement Cost reduction by eliminating waste:
Excessive production resources Overproduction Unnecessary capital investment. etc.
JIT When it Works Best?

Stable Environment Demand is highly stable Assembly Line production
Just-in-Time What it requires?

People Involvement / Employee Participation Industrial Engineering Basics Continuous Improvement Total Quality Management Supplier Integration
What Are Basic Elements of JIT?
Basic Elements of JIT

Group Technology Cell Design
SMED Quick Changeover
5 S Technique Visual Control Systems
How Basic Elements of JIT Contribute to the System Flexible Resources

Facilitates cellular layouts, TPM, and Kaizen
Cellular Layouts
Retain relevant flexibility of job shop, obtain efficiency of production line
Pull (Kanban) Production Control System

Produce only what is needed - only when it is needed
Small-Lot Production
Faster through-put, greater flexibility
Quick Setups
Facilitates economical small-lot-size production
Uniform Production
Create and maintain a stable production system
How Basic Elements of JIT Contribute to the System Quality at the Source
Facilitates removal of buffers and contributes to stability of the system
Total Productive Maintenance

Contributes to stability of the system
Supplier Networks
Facilitates frequent, small quantity delivery of materials
JIT - A System of Inter-Related Parts

Each of the elements support and facilitate many of the other elements!
If you implement part of system, you may get only part (or less) of the systems potential benefits
JIT Contribution to Competitive Advantage

Suppliers
reduced number of suppliers, better relations supportive supplier relationships, timely quality deliveries shorter lead times
Layout
work-cell layouts (group technology based) movable, changeable, flexible machinery high level of workplace organization and neatness reduced space requirements delivery direct to work areas

Inventory reduced inventory small lot sizes low setup times Scheduling simplified zero deviation from schedules level schedules suppliers informed of schedules Kanban techniques
Maintenance scheduled, daily routine operator involvement no breakdowns Quality Production no scrap, no defects statistical process control Improved quality (design, process, vendor)

Employee Empowerment
Motivated, empowered, cross-trained employees few job classifications to ensure flexibility of employees training support
Commitment
support of management, employees, and suppliers Faster response to the customer and higher quality
A Competitive Advantage!
Benefits of Lean Production

Lower costs Increased productivity Greater flexibility Better relations with suppliers Increased capacity Better use of human resources More product variety Smoother production flows Worker participation in problem solving Better vendor relationships Reduction in indirect labour
Epilogue
What I hear I forget, what I see I remember, what I do I understand Confucius

Modified
What I hear, I forget. What I hear and see, I remember a little. What I hear, see and ask questions about or discuss, I begin to understand. When I hear, see, discuss and do, I acquire as knowledge and skill. What I teach to another, I master. Anon.
Warning:
In nature there are neither rewards nor punishments; there are only consequences. Robert B. Ingersoll
Hope:
One of the greatest discoveries a man makes, one of his great surprises, is to find he can do what he was afraid he couldnt do Henry Ford
Thank You!

# 1. JIT Systems

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Just-in-Time (JIT) Systems

PDF created with pdfFactory trial version www.pdffactory.com

Message from Tom Peters*

A Simple Definition of JIT

PDF created with pdfFactory trial version www.pdffactory.com

Examples of Waste Waste in Operations

PDF created with pdfFactory trial version www.pdffactory.com

PDF created with pdfFactory trial version www.pdffactory.com

Inventory exists, in case problems arise

So produce only when needed Eliminate Inventory

PDF created with pdfFactory trial version www.pdffactory.com

Inventory Hides Problems

PDF created with pdfFactory trial version www.pdffactory.com

Less Inventory Exposes Problems

PDF created with pdfFactory trial version www.pdffactory.com

Inventory Hides Problems

PDF created with pdfFactory trial version www.pdffactory.com

To Expose Problems: Reduce Inventory Levels

PDF created with pdfFactory trial version www.pdffactory.com

Remove Sources of Problems and Repeat the Process

Lengthy Setups Bad Design

PDF created with pdfFactory trial version www.pdffactory.com

Push System versus Pull System

Push System versus Pull System

PDF created with pdfFactory trial version www.pdffactory.com

Push System versus Pull System

Flow with JIT

Traditional Firm Push System (Material Requirements Planning)

Lot arrivals trigger production

Excess -Inventory, Equipment, Workers & Overproduction

Material Information (Production Schedule)

JIT System Pull System (Just In Time)

Withdrawals trigger production

Material Information (via Kanban/Card)

Pull System Production Control

Production at Step 2 in controlled by step 3 Production at Step 1 in controlled by step 2

How JIT works

1. Production Planner gives a schedule to final assembly

2. Final assembly withdraws part from stations that feed it (subassembly)

3. Feeding stations then manufacture to replace those withdrawn

Pull System Production Control

PDF created with pdfFactory trial version www.pdffactory.com

Just-in-Time What it is?

An Integrated Management System

PDF created with pdfFactory trial version www.pdffactory.com

RJ Schonberger - World Class Manufacturing

Just-in-Time What it does?

Exposes problems & bottlenecks caused by variability

Achieves streamlined production

JIT Objective: Profit through

JIT When it Works Best?

PDF created with pdfFactory trial version www.pdffactory.com

Just-in-Time What it requires?

What Are Basic Elements of JIT?

PDF created with pdfFactory trial version www.pdffactory.com

Basic Elements of JIT

SMED Quick Changeover

5 S Technique Visual Control Systems

PDF created with pdfFactory trial version www.pdffactory.com

How Basic Elements of JIT Contribute to the System Flexible Resources

Pull (Kanban) Production Control System

Total Productive Maintenance

PDF created with pdfFactory trial version www.pdffactory.com