4f - JIT & LPS

Production Planning &
Control
Just-in-Time and Lean Production
Systems
Learning Outcomes
When you complete this supplement, you should
be able to :
Identify or Define:
 Types of waste
 Kanban
Describe or Explain:
 Just-in-Time (JIT) philosophy
 Pull systems
 Push systems
 The goals of JIT partnerships
 Lean Production
Introductory Quotation
Waste is ‘anything other than the

minimum amount of equipment,
materials, parts, space, and
worker’s time, which are absolutely
essential to add value to the
product.’
— Shoichiro Toyoda
President, Toyota
© 1995 Corel Corp.
Just-in-Time Goal
To minimize the presence of non-value-adding
operations and non-moving inventories in the
production line.
Result
a) shorter throughput times
b) better on-time delivery performance,
c) higher equipment utilization
d) lesser space requirement
e) lower dpm’s
f) lower costs, and greater profits.
What is Just-in-Time?
 Management philosophy of continuous and forced

problem solving
 Supplies and components are ‘pulled’ through
system to arrive where they are needed when they
are needed.
 Key ingredient of lean production
Lean Production
 Lean Production supplies customers with exactly

what the customer wants, when the customer
wants, without waste, through continuous
improvement.
 Driven by the “pull” of the customer order
What Does Just-in-Time Do?
 Attacks waste
 Anything not adding value to the product
 From the customer’s perspective
 Exposes problems and bottlenecks caused by

variability
 Deviation from optimum
 Achieves streamlined production
 By reducing inventory
Types of Waste
 Overproduction
 Waiting
 Transportation
 Inefficient processing
 Inventory
 Unnecessary motion
 Product defects
© 1995
Corel
Corp.
JIT Reduced Waste
at Hewlett-Packard
Waste Reduction (%)
Setup Time 20%
Scrap 30%
Finished Goods
Inventory 30%
Space 40%
Lead Time 50%
Raw Material
Inventory 50%
Work-in-Process
Inventory
82%
0% 20% 40% 60% 80% 100%
Push versus Pull
 Push system: material is pushed into

downstream workstations regardless of whether
resources are available
 Pull system: material is pulled to a workstation

just as it is needed
JIT Contribution to Competitive
Advantage
 Suppliers
 reduced number of vendors
 supportive supplier relationships
 quality deliveries on time
 Layout
 work-cell layouts with testing at each step of the process
 group technology
 movable, changeable, flexible machinery
 high level of workplace organization and neatness
 reduced space for inventory
 delivery direct to work areas
Advantage - Continued
 Inventory
 small lot sizes
 low setup times
 specialized bins for holding set number of parts
 Scheduling
 zero deviation from schedules
 level schedules
 suppliers informed of schedules
 Kanban techniques
 Preventive Maintenance
 scheduled
 daily routine
 operator involvement
 Quality Production
 statistical process control
 quality by suppliers
 quality within firm
 Employee Empowerment
 empowered and cross-trained employees
 few job classifications to ensure flexibility of employees
 training support
 Commitment
 support of management, employees, and suppliers
Just-in-Time
Success Factors
Suppliers
Employee
Layout
Empowerment
JIT
Quality Inventory
Preventive
Scheduling
Maintenance
JIT Success Factors
JIT Requires:
JIT and Competitive Advantage
Which Results In:
Which Yields:
Table 16.1
Suppliers
 JIT partnerships exist when a
supplier and purchaser work
together to remove waste and drive
down costs
 Four goals of JIT partnerships are:
 Elimination of unnecessary
activities
 Elimination of in-plant inventory
 Elimination of in-transit inventory
 Elimination of poor suppliers
Layout
 JIT objective: Reduce movement of people and
material
 Movement is waste!
 JIT requires
 Work cells for product families
 Moveable or changeable machines
 Short distances
 Little space for inventory
 Delivery directly to work areas
Inventory
 Traditional: inventory exists in case problems arise
 JIT objective: eliminate inventory
 JIT requires
 Small lot sizes
 Low setup time
 Containers for fixed number of parts
 JIT inventory: Minimum inventory to keep system

running
JIT Inventory Tactics
 Use a pull system to move inventory
 Reduce lot size
 Reduce setup time
 Develop Just-in-Time delivery systems with
suppliers
 Deliver directly to point of use
 Perform-to-schedule
 Reduce setup time
 Use group technology
Inventory level
Process
downtime
Scrap
Setup Quality
time problems
Late deliveries
Figure 16.1
Inventory
level
Process
downtime
Scrap
Setup Quality
time problems
Late deliveries
Figure 16.1
Reduce Lot Sizes
Q1 When average order size = 200

average inventory is 100
200 –
Inventory
Q2 When average order size = 100

average inventory is 50
100 –
Time
Figure 16.2
Scheduling
 Involves timing of operations

 JIT requires
 Communicating schedules to suppliers
 Level schedules
 Freezing part of schedule nearest due date
 Small lots
 Kanban techniques
JIT Scheduling Tactics
 Communicate the schedule to suppliers
 Make level schedules
 Freeze part of the schedule
 Perform to schedule
 Seek one-piece-make and one-piece-move
 Eliminate waste
 Produce in small lots
 Use kanbans
 Make each operation produce a perfect part
Kanban
 Japanese word for card
 Pronounced ‘kahn-bahn’ (not ‘can-ban’)
 Authorizes production from downstream operations
 ‘Pulls’ material through plant
 May be a card, flag, verbal signal etc.
 Used often with fixed-size containers
 Add or remove containers to change production rate
Diagram of Outbound Stockpoint
with Warning-Signal Marker
Scheduling Small Lots
JIT Level Material-Use Approach
A A B B B C A A B B B C
Large-Lot Approach
A A A A A A B B B B B B B B B C C C
Time
Figure 16.5
Kanban Signals “Pull” Material
Through the Process
Quality
 Strong relationship
 JIT cuts the cost of obtaining good
quality because JIT exposes poor
quality
 Because lead times are shorter,
quality problems are exposed
sooner
 Better quality means fewer buffers
and allows simpler JIT systems to
be used
JIT Quality Tactics
Use statistical process control

Empower employees
Build fail-safe methods (poka-
yoke, checklists, etc.)
Expose poor quality with small
lot JIT
Provide immediate feedback
Table 16.6
Quality
 JIT exposes quality problems by reducing
inventory
 JIT limits number defects with small lots
 JIT requires TQM
 Statistical process control
 Worker involvement
 Inspect own work
 Quality circles
 Immediate feedback
Employee Empowerment
 Get employees involved in product & process

improvements
 Employees know job best!
 JIT requires © 1995 Corel Corp.
 Empowerment
 Cross-training
 Training support
 Few job classifications
Lean Production
 Different from JIT in that it is

externally focused on the customer
 Often called the Toyota Production
System (TPS)
 In practice, JIT, Lean Systems, and
TPS are often essentially the same

4f - JIT & LPS

Uploaded by

Copyright:

Available Formats

4f - JIT & LPS

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

4f - JIT & LPS

Uploaded by

Copyright:

Available Formats

Production Planning &

Waste is ‘anything other than the

 Management philosophy of continuous and forced

 Lean Production supplies customers with exactly

 Exposes problems and bottlenecks caused by

 Push system: material is pushed into

 Pull system: material is pulled to a workstation

 JIT inventory: Minimum inventory to keep system

Q1 When average order size = 200

Q2 When average order size = 100

 Involves timing of operations

Use statistical process control

 Get employees involved in product & process

 Different from JIT in that it is

You might also like