Lecture 11

Just-In-Time Systems

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 JIT/Lean Production

• JIT is a very popular system that is most appropriate in high-volume

repetitive manufacturing
• Just-in-time: Repetitive production system in which processing and movement of
materials and goods occur just as they are needed, usually in small batches
• JIT is characteristic of lean production systems
• JIT operates with very little WIP
• The JIT system was first introduced by the Toyota Motor Corporation. JIT is
one of the primary
• pillars of a total manufacturing system often called the Toyota Production
System (TPS), “lean manufacturing,” or more simply “lean”.
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JIT Goals

• Eliminate disruptions
• Make system flexible by reduce setup and
lead times
• Eliminate waste, especially excess inventory

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Sources of Waste

• Overproduction
• Waiting time
• Unnecessary transportation
• Processing waste
• Inefficient work methods
• Product defects

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 JIT systematic steps
1. The need for high levels of quality (both in-house and with suppliers) is given extreme
emphasis.
2. Setup or changeover times are reduced as much as possible.
3. Lead times are reduced as much as possible.
4. Lot sizes are reduced as much as possible and standardized. Very low setup times
permit the economical production of small lot sizes and increase the utilization of
equipment.
5. Work-in-process (WIP) inventory is removed from the stockroom and put on the
factory floor, where it is visible. Therefore, WIP levels are immediately evident, and
can be counted quickly.
6. Once the plant is in reasonable balance (in terms of stable, roughly equal workloads at
the different work centers), inventory is systematically reduced.§ Each reduction
usually leads to the identification of a problem (bottleneck) area. When the problem is
discovered, inventory is temporarily increased so that production will continue
smoothly until the problem is solved.
7. The problem is resolved in a cost-effective fashion (e.g., by procedural changes and
equipment adjustments).
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 Kanban Production Control System
• Kanban: Card or other device that communicates demand for work or
materials from the preceding station
• Kanban is the Japanese word meaning “signal” or “visible record”
• Paperless production control system
• Authority to pull or produce comes from a downstream process.

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Kanban Control System
• Each feeding work center produces only what its following (or consuming)
work center uses to satisfy the assembly schedule. The associated manual
information system is known as Kanban (the Japanese word for a card or
signboard).
• Kanban therefore operates in a pull mode, whereas MRP operates in a push
mode.
• “Pull” implies that production is initiated at a given work center only when
its output is needed (pulled) by the next stage of production. If the next
stage is slow for some reason, the upstream center does not produce.
• “Push,” on the other hand, implies that the work center produces to a
forecast, regardless of whether the parts are needed immediately or not

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Pull/Push Systems
• Pull system: System for moving work where a workstation pulls output
from the preceding station as needed. (e.g. Kanban)
• Push system: System for moving work where output is pushed to the next
station as it is completed

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Requirements for Kanban Control
1. Employee motivation, and mutual trust between workers and management.
2. A multiskilled work force, to provide flexibility in scheduling.
3. Good relationships with suppliers, so that joint improvement efforts are possible.
4. Extremely high levels of quality, so that production will not be interrupted due to parts
with poor quality.
5. Low setup times, and therefore small batch sizes. Without low setup times, any effort
to reduce batch sizes will be doomed because too much capacity will be lost in setups.
6. Highly reliable equipment, so that a low inventory system will not be forced to shut
down while repairs are made.
7. A stable master production schedule, so that a daily production rate can be set and
followed.
8. High-volume, repetitive manufacturing because this environment is likely to be
conducive to the previous seven requirements.
9. Excess capacity so that variability can be met without constantly injecting more
Kanban (inventory) into the system.

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Description of the Kanban Control System
Two types of cards are used:
1. Move cards.
• These authorize the transfer of one standard container of a specific part from the
outbound stockpoint of the work center where it is produced to the inbound
stockpoint of the center where it is to be used.
• A set of move cards is issued for the exclusive use of a single SKU between a specific
pair of work centers.
• Move cards are often called “withdrawal cards.”
2. Production cards.
• These authorize the production of one standard container of a specific part at a
particular work center in order to replace a container just taken from the outbound
stockpoint of that center.
• A set of production cards is issued exclusively for the production of a specific SKU at
a particular work center.

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Content of a Kanban
1. The Kanban number (the identification of the specific card)
2. The part number
3. The name and description of the part
4. The place where the card is used (the two associated centers in the
case of a move card; a single center for a production card)
5. The number of units in the standard container

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Big vs. Little JIT

• Big JIT – broad focus

• Vendor relations
• Human relations
• Technology management
• Materials and inventory management
• Little JIT – narrow focus
• Scheduling materials
• Scheduling services of production

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JIT Building Blocks
1. Product design 3. Personnel/organizational elements
• Standard parts • Workers as assets
• Modular design • Cross-trained workers
• Highly capable production systems • Continuous improvement
• Cost accounting
• Leadership/project management
2. Process design 4. Manufacturing planning and control
• Small lot sizes • Level loading
• Setup time reduction
• Pull systems
• Manufacturing cells
• Limited work in process • Visual systems
• Quality improvement • Close vendor relationships
• Production flexibility • Reduced transaction processing
• Little inventory storage
• Preventive maintenance
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 Summary JIT Goals and Building Blocks

Ultimate A
Goal balanced
rapid flow

Supporting Reduce setup

Goals and lead times
Eliminate disruptions Eliminate waste
Make the system flexible Minimize inventories

Product Process Personnel Manufactur- Building

Design Design Elements ing Planning Blocks

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 Converting to a JIT System
• Get top management commitment
• Decide which parts need most effort
• Obtain support of workers
• Start by trying to reduce setup times
• Gradually convert operations
• Convert suppliers to JIT
• Prepare for Obstacles to Conversion
• Management may not be committed
• Workers/management may not be cooperative
• Suppliers may resist
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 JIT in Service
The basic goal of the demand flow technology in the service organization
is to provide optimum response to the customer with the highest quality
service and lowest possible cost.
• Eliminate disruptions
• Make system flexible
• Reduce setup and lead times
• Eliminate waste
• Minimize WIP
• Simplify the process

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 JIT Purchasing

• New challenges
• Meeting manufacturing requirements
• Changing from traditional thinking and practices – frequent on-
time delivery of small quantities
• Long term relationships with suppliers as partners

• How about Exchange purchasing: Auctions?

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JIT II
• JIT II: the practice of allowing vendors to manage
some aspects of buying their products or services
for the buyer

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Benefits of JIT Systems
• Reduced inventory levels
• High quality
• Flexibility
• Reduced lead times
• Increased productivity

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Benefits of JIT Systems (cont’d)

• Increased equipment utilization

• Reduced scrap and rework
• Reduced space requirements
• Pressure for good vendor relationships
• Reduced need for indirect labor

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Elements of JIT
• Smooth flow of work (the ultimate goal)
• Elimination of waste
• Continuous improvement
• Eliminating anything that does not add value
• Simple systems that are easy to manage
• Use of product layouts to minimize moving
materials and parts
• Quality at the source

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Elements of JIT (cont’d)

• Poka-yoke – fail safe tools and methods

• Preventative maintenance
• Good housekeeping
• Set-up time reduction
• Cross-trained employees
• A pull system

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