13-JIT

Just in Time System
Ronald S. Lau, Ph.D.

HKUST – ISOM
What are the key concepts of a JIT system?
2
Just in time in a nutshell
What it is? What it does?


 Management philosophy  Attacks waste
 “Pull” system though the plant  Exposes problems and bottlenecks
 Achieves streamlined production
What it requires? What it assumes?

 Employee participation
 Industrial engineering/basics
 Stable environment
 Continuing improvement
 Total quality control
 Small lot sizes
3
Just in time can be anywhere in the supply chain
 Just in time production /  Just in time delivery

manufacturing
 Also known as Toyota Production  Just in time supply chain
System (TPS) management
 Just in time inventory  Just in time service
 Just in time purchasing  …
4
Guiding principles and work practices of the Toyota
Production System (TPS)
 Elimination of waste
 Quality at the source
 JIT production
 Uniform plant loading (heijunka) to ensure a stable schedule
 Use of Kanban to coordinate work flow
 Minimize setup time to make small lot sizes economically feasible
 Respect for people

 Lifetime employment
 Cooperative relationship between labor and management
 Strong supplier relationship
 Continuous improvement
5
Success factors of TPS
6
How and why inventory hides problems?
By identifying defective items from

a vendor early in the production
Machine process the downstream work is
downtime
saved
Scrap Vendor
Work in delinquencies Change
orders
process
queues Engineering design Design
(banks) redundancies backlogs
By identifying defective work
Paperwork Inspection Decision by employees upstream, the
backlog backlogs backlogs downstream work is saved
7
Exposing the hidden problems as a way to reduce waste
Reducing the level of inventory (water) allows operations management (the ship) to
see the problems in the operation (the rocks) and work to reduce them.
8
What are the key elements to implement JIT?
9
JIT implementation requirements
 Redesign the flow process  Stabilize production schedules

 Link operations  Level schedule
 Balance workstation capacities  Underutilize capacity
 Redesign layout for better flow  Establish freeze windows (i.e., no
 Emphasize preventive maintenance change for a period of time)
 Improve the process quality  Improve vendor relationship

 Worker empowerment  Reduce lead time
 Statistical quality control techniques  Frequent deliveries
 Use fail-safe methods (poka-yoke)  Information sharing
 Automatic inspection
 Implement a pull system
 Kanban
10
Kanban production control system
 Kanban (看板): card, sign, instruction card, etc.
 Demand pull
 Push system: Execution is initiated in anticipation of customer orders (i.e., based on
forecasts)
 Pull system: Execution is initiated in response to actual customer orders
 Inventory level is control by

the number of Kanban cards
 Production of small lot sizes
11
Kanban system can coordinate the work flow for the entire
plant and the delivery from suppliers
Fab-1
Sub-1
Customers FAS Suppliers

Fab-2
Sub-2
Fab-3
12
How does kanban work at Toyota?
https://global.toyota/en/ 13
JIT implementation requirements (continued)
 Improve product design
 Standard product configuration (modular design)
 Standardize and reduce number of parts
 Integrated product and process design (concurrent engineering approach)
 Robust design for quality
 Reduce inventory level

 Reduce lot sizes
 Reduce setup/changeover time
14
JIT production: Small batch sizes as a way to reduce WIP
inventory and stabilize work schedules
Capacity = 250 per day
150 A 150 A 150 A 150 A 150 A 150 A 150 A 150 A

50 B 50 B 50 B 50 B 50 B 50 B 50 B 50 B
50 C 50 C 50 C 50 C 50 C 50 C 50 C 50 C
15
JIT delivery: Level delivery schedule as a way to reduce
finished goods inventory
Level production or delivery schedules require

no significant loss of capacity or added cost.
16
JIT production is only feasible with small lot size and
minimum setup/changeover time
A comparison of setup time of hood and fender press machines
Toyota USA Sweden Germany

Setup time 10 minutes 6 hours 4 hours 4 hours
Setups/day 3 1 - ½
Lot size 1 day* 10 days 1 month -
* For low-demand items (< 1000 per month), as large as seven days.
How could they do that?
17
JIT goal and building blocks: A common way to achieving
lean synchronization
Ultimate Goal
A
balanced
rapid flow
Reduce setup
and lead times Supporting
Eliminate disruptions Eliminate waste Goals
Make the system flexible Minimize inventories
Product Process Personnel Planning Building

Design Design Elements and Control Blocks
18
Concluding remarks
19
How has business become so “unusual?”
The trade war is just a

disguise of the war of
technology leadership?
…and also lead to the
currency war and
control of the global
financial systems?
20
Is JIT not working anymore? Significant challenges across
the supply chain after the covid-19 pandemic
21
How can a supply chain become more resilient?
22
https://www.gartner.com/smarterwithgartner/6-strategies-for-a-more-resilient-supply-chain/
Developing a supply chain resilience strategy in JIT
environment
Implications
Source: Melnyk Steven A. et. Al. (2014), Understanding supply chain resilience, Supply Chain Management Review, pp. 34-41.
23
Challenges to businesses amid geopolitical uncertainties…
Image from https://mapmygenome.in/blog/charles-

darwins-survival-of-the-fittest
24

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Just in Time System

Ronald S. Lau, Ph.D.

What it is? What it does?

What it requires? What it assumes?

 Just in time production /  Just in time delivery

 Just in time inventory  Just in time service

 Just in time purchasing  …

 Respect for people

By identifying defective items from

 Redesign the flow process  Stabilize production schedules

 Improve the process quality  Improve vendor relationship

 Inventory level is control by

 Production of small lot sizes

Customers FAS Suppliers

 Reduce inventory level

Capacity = 250 per day

150 A 150 A 150 A 150 A 150 A 150 A 150 A 150 A

Level production or delivery schedules require

Toyota USA Sweden Germany

Lot size 1 day* 10 days 1 month -

How could they do that?

Product Process Personnel Planning Building

The trade war is just a

Image from https://mapmygenome.in/blog/charles-

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