1

JUST IN TIME

11
ANDChapter
LEAN SYSTEMS
Just-in-Time
and Lean
IN TOYOTA
Systems

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Just-In-Time (JIT)
Defined
JIT can be defined as an integrated set of
activities designed to achieve high-volume
production using minimal inventories (raw
materials, work in process, and finished
goods)
JIT also involves the elimination of waste
in production effort
JIT also involves the timing of production
resources (i.e., parts arrive at the next
workstation just in time)
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JIT and Lean Management

JIT can be divided into two terms: Big JIT
and Little JIT
Big JIT (also called Lean Management) is a
philosophy of operations management that
seeks to eliminate waste in all aspects of a
firms production activities: human relations,
vendor relations, technology, and the
management of materials and inventory
Little JIT focuses more narrowly on
scheduling goods inventory and providing
service resources where and when needed
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The Toyota Production System

Based on two
philosophies:
1. Elimination of
waste
2. Respect for
people
Toyotas run smoother
than this!

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Waste in Operations
1. Waste from overproduction
2. Waste of waiting time
3. Transportation waste
4. Inventory waste
5. Processing waste
6. Waste of motion
7. Waste from product defects
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Minimizing Waste:
Minimizing
Waste:
Focused Factory
Focused
Factory
Networks
Networks

Coordination
System Integration

These
Theseare
aresmall
smallspecialized
specialized
plants
plantsthat
thatlimit
limitthe
therange
range
of
ofproducts
productsproduced
produced
(sometimes
(sometimesonly
onlyone
onetype
typeof
of
product
productfor
foran
anentire
entire
facility)
facility)
Some
Someplants
plantsin
in
Japan
Japanhave
haveas
as
few
fewas
as30
30and
andas
as
many
manyas
as1000
1000
employees
employees

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Minimizing Waste: Group Technology (Part 1)

Note
Notehow
howthe
theflow
flowlines
linesare
aregoing
goingback
backand
andforth
forth
Using
UsingDepartmental
DepartmentalSpecialization
Specializationfor
forplant
plantlayout
layoutcan
cancause
causeaalot
lotof
of
unnecessary
unnecessarymaterial
materialmovement
movement

Saw

Saw

Saw

Grinder

Grinder

Heat Treat

Lathe

Lathe

Lathe

Press

Press

Press

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Minimizing Waste:
Group Technology (Part 2)
Revising
Revisingby
byusing
usingGroup
GroupTechnology
TechnologyCells
Cellscan
canreduce
reducemovement
movementand
and
improve
improveproduct
productflow
flow

Grinder
Saw

Lathe

Lathe

Press

Lathe

Press

Heat Treat

Grinder
Saw

Lathe

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Minimizing Waste:
Uniform Plant Loading (heijunka)
Suppose
Supposewe
weoperate
operateaaproduction
productionplant
plantthat
thatproduces
producesaasingle
single
product.
product. The
Theschedule
scheduleof
ofproduction
productionfor
forthis
thisproduct
productcould
couldbe
be
accomplished
accomplishedusing
usingeither
eitherof
ofthe
thetwo
twoplant
plantloading
loadingschedules
schedules
below.
below.

Not uniform

Jan. Units

Feb. Units

Mar. Units

Total

1,200

3,500

4,300

9,000

or
Uniform

Jan. Units

Feb. Units

Mar. Units

Total

3,000

3,000

3,000

9,000

How
Howdoes
doesthe
theuniform
uniformloading
loadinghelp
helpsave
savelabor
laborcosts?
costs?
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10

Minimizing Waste: Just-In-Time

Production
WHAT IT IS
Management philosophy
Pull system though the plant
Hydraulic Push Systems

WHAT IT REQUIRES

Employee participation

Industrial engineering/basics
Continuing improvement
Total quality control
Small lot sizes

WHAT IT DOES
Attacks waste
Exposes problems and bottlenecks
Achieves streamlined production

WHAT IT ASSUMES
Stable environment

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11

Minimizing Waste: Inventory

Hides Problems
Machine
downtime
Scrap
Work in
process
queues
(banks)

Paperwork
backlog

Vendor
delinquencies Change
orders

Engineering design
redundancies

Inspection
backlogs

Example: By
identifying defective
items from a vendor
early in the
production process
the downstream work
is saved

Design
backlogs
Decision
backlogs

Example: By
identifying defective
work by employees
upstream, the
downstream work is
saved
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12

Minimizing Waste: Kanban

Production Control Systems
Once the Production kanban is
received, the Machine Center
produces a unit to replace the
one taken by the Assembly Line
people in the first place

Machine
Center

Withdrawal
kanban

Storage
Part A

Production kanban
The process begins by the Assembly Line
people pulling Part A from Storage

Storage
Part A

This puts the

system back
were it was
before the item
was pulled

Assembly
Line

Material Flow
Card (signal) Flow
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13

Determining the Number of Kanbans

Needed
Setting up a kanban system requires determining the
number of kanbans cards (or containers) needed
Each container represents the minimum production lot
size
An accurate estimate of the lead time required to
produce a container is key to determining how many
kanbans are required
Side Bar In Japan space is a very important
consideration since there is so little of it. This process
saves on space requirements. May explain why
concept NIH.
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14

Example of Kanban Card

Determination: Problem Data
A switch assembly is assembled in batches of 4 units
from an upstream assembly area and delivered in a
special container to a downstream control-panel
assembly operation
The control-panel assembly area requires 5 switch
assemblies per hour
The switch assembly area can produce a container of
switch assemblies in 2 hours
Safety stock has been set at 10% of needed inventory

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15

Example of Kanban Card

Determination: Calculations
Expected
Expecteddemand
demandduring
duringlead
leadtime
timeSafety
Safetystock
stock
kk
Size
Sizeof
of the
thecontainer
container
DL
(1
SS)) 5(2)(1.1)
DL
(1

5(2)(1.1)22..75
75,,or
or33
CC
44
Always round up!
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16

Respect for People

Level payrolls
Cooperative employee unions
Reliable Subcontractor networks
Bottom-round management style (i.e.,
consensus management)
Quality circles (Small Group Involvement
Activities or SGIAs)
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