Operations Management For Competitive Advantage ninth edition 1

CHAPTER 9
LEAN PRODUCTION SYSTEMS(JUST –
IN-TIME )

KAHSU MEBRAHTU(ASST. PROF)

MEKELLE UNIVERSITY
COLLEGE OF BUSINESSAND ECONOMICS
DEPARTMENT OF MANAGEMENT
POST GRADUATE PROGRAM(MBA)

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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 (e.g., parts arrive at the next
workstation “just in time”).

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Cont..
 It is an approach with the objective of producing :
the right part
in the right place
at the right time –hence called just
in time
 Hence the basic objectives of JIT are:
Elimination of all wastes and
Continuous improvement on productivity

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Lean Production
 Lean Production means doing more with less-
less inventory, fewer workers , less space
 Initially it was called as JIT
 It focuses on cutting waste , whilst ensuring
quality
 This approach can be applied to all aspects of
a business-from design to distribution.
 This approach cuts out all activities that do not
add value to the production process or to the
main purpose of a given organization.
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WASTE IN PRODUCTION
 Waste is any activity that adds cost without
adding value
Example :
 unnecessary movement of materials
 Accumulation of excess inventory
 Overproduction
 Waiting (for parts, machines, &downstream operations)
 Use of faulty production methods (which create rework,
downtime etc.)
 Talent(Underutilization of workers )
 Movement( searching for tools , parts , instruction, approval)

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Key Elements of JIT

1.Create a uniform load on all work centers
through constant daily production
2. Reduce setup time (through better
planning , process and product redesign)
3. Reduce lot sizes (manufacturing and
purchasing)- this requires close cooperation
with suppliers .
4. Reduce production and delivery lead times

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Cont..
 To reduce production lead time :
• Moving work stations closer

• Applying group technology

• Reducing queue length

• Improving coordination and cooperation
between successive processes

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Operations Management For Competitive Advantage ninth edition 8

CONT…
 To reduce delivery lead times :
• Maximize the cooperation with suppliers or

• Inducing suppliers to locate closer to the

factory

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Operations Management For Competitive Advantage ninth edition 9

Cont..
5. Preventive maintenance
6. Flexible workforce –who can perform
different tasks
7. Require supplier quality assurance and
implement a zero defect quality program

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Cont..
8. Small- lot (single unit) conveyance
convey parts between work stations in small
quantities ( ideally , one unit at a time )

 For this, a card (kanban) system can be

applied.

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Operations Management For Competitive Advantage ninth edition 11

9. Respect for People

 Level payrolls

 Cooperative employee unions

 Subcontractor networks

 Bottom-round management style

 Quality circles (Small group involvement

activities)
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THANK YOU VERY MUCH !!!

WISH YOU ALL THE BEST !!!

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