2. WHAT IS JIT?
• A set of techniques to increase, productivity,
improve quality, and reduce cost of an
operations.
• A management philosophy to promote
elimination of waste and continuous
improvement of productivity.
3. Goal of JIT
The ultimate goal of JIT is aThe ultimate goal of JIT is a balanced systembalanced system.. ((Achieves aAchieves a
smooth, rapid flow of materials through the systemsmooth, rapid flow of materials through the system))
The supporting goals are:The supporting goals are:
Eliminate disruptionsEliminate disruptions
Make the system flexibleMake the system flexible
Eliminate waste, especially excess inventoryEliminate waste, especially excess inventory
4. Layout
JIT objective: Reduce movement of people and
material
Movement is waste!
JIT requires work-cells for product families (group
technology)
movable, changeable, flexible machinery
short distances
high level of workplace organization and neatness
reduced space for inventory
delivery directly to work areas
balanced workstation capacities
6. Three Elements of JIT con’t
• JIT manufacturing focuses on production
system to achieve value-added manufacturing.
• TQM is an integrated effort designed to improve
quality performance at every level.
• Respect for people rests on the philosophy that
human resources are an essential part of JIT
philosophy.
7. Elements of JIT Manufacturing
• JIT Manufacturing is a philosophy of value-
added manufacturing
• Achieved by focusing on these elements:
▫ Inventory reduction - exposes problems
▫ Kanbans & pull production systems
▫ Small lots & quick setups
▫ Uniform plant loading
▫ Flexible resources
▫ Efficient facility layouts
8. Role of Inventory Reduction
• Inventory = Lead Time (less is better)
• Inventory hides problems
9. How to find Number of Kanbans
Required?
N = number of containers
D = demand rate at the withdraw station
T = lead time from supply station
C = container size
S = safety stock
C
SDT +
=N
10. Q. Computing the Number of Kanbans: an aspirin manufacturer has
converted to JIT manufacturing using kanban containers. They must
determine the number of containers at the bottle filling operation
which fills at a rate of 200 per hour. Each container holds 25 bottles,
it takes 30 minutes to receive more bottles, safety stock is 10% of
demand during LT.
down?orupround:Question
containerskanban4.4
25
10(200)(.5)
C
SDT
N
bottles10.5)0.10(200)(d)(T)0.10(demanS
containerperbottles25C
hour.5minutes30T
hourperbottles200D
:Solution
=
+
=
+
=
===
=
==
=
11. Variations on Kanban Production
• Kanban boxes – space on factory floor for
storing supplies.
• Flags – used to indicate when supplies need to
be ordered.
• Supplier kanbans – brings filled containers to
point of usage in factory/picks up empty
containers.
13. Small Lot Sizes & Quick Setups
• Small lots mean less average inventory and shorten
manufacturing lead time
• Small lots with shorter setup times increase flexibility to
respond to demand changes
• Strive for single digit setups- < 10 minutes
• Setup reduction process is well-documented
▫ External tasks- do as much preparation while present job is
still running
▫ Internal tasks- simplify, eliminate, shorten steps involved with
location, clamping, & adjustments
• Ultimate goal is single unit lot sizes.
14. Flexible Resources
• Moveable, general purpose equipment:
▫ Portable equipment with plug in power/air
▫ Drills, lathes, printer-fax-copiers, etc.
▫ Capable of being setup to do many different things
with minimal setup time
• Multifunctional workers:
▫ Workers assume considerable responsibility
▫ Cross-trained to perform several different duties
▫ Trained to also be problem solvers
15. Effective Facility Layouts
• Workstations in close physical proximity to
reduce transport & movement
• Streamlined flow of material
• Often use:
▫ Cellular Manufacturing (instead of process focus)
▫ U-shaped lines: (allows material handler to quickly
drop off materials & pick up finished work)
16. Principles Of JIT Manufacturing
• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management
17. Principles Of JIT Manufacturing
• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management
18. Total Quality Management
• Seek long-term commitment to quality efforts
with continuous improvement
• Quality must be a higher priority than cost
• Minimizing waste
19. Total Quality Management
• Eliminate Quality Inspectors
• Quality is everyone’s responsibility
• Do it right the first time
20. Principles Of JIT Manufacturing
• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management
21. Production Management
• Pull System vs. Push System
▫ Pull = Made to order
▫ Push = Made for inventory
• Flexability of the system
• Design For Testability – In the process
▫ Poka-Yoke= Mistake-proofing
▫ Throughout entire process
22. Production Management
• Reduced lot sizes= Shorter cycle times
• Eliminate disruptions in the process
• Standardized Parts/ Simplicity
23. Production Management
• Communication Techniques
▫ Completion of task-Kanban
▫ Problem- Andon or siren/light
• Stopping the process if something goes wrong
=Jidoka
• Preventive Maintenance
24. Production Management at Toyota
Toyota uses a Kanban pull system throughout
the production process.
Each task in the process seems to take identical
length and work content, so everyone is working
at the same pace to reduce bottlenecks.
25. Principles Of JIT Manufacturing
• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management
26. Supplier Management
• Establish Long Term Relationships with few
suppliers.
• Delivery of Parts = 100% Defect Free
▫ Where they are needed
▫ When they are needed
▫ The exact quantity
• Work Together
27. Supplier Management
• Elimination inspection of parts
• Information Systems
▫ Eliminating barriers to information
• Communicate problems to suppliers in a positive
manner.
28. Supplier Relations at Toyota
Toyota communicates their damand for parts 20
days in advance to their suppliers, with the right
to change the forecast up to the 10th
day.
29. Principles Of JIT Manufacturing
• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management
30. Inventory Management
• Eliminate Safety Stock = Zero Inventory
• Reduce WIP
• JIT is not an inventory control system
• Reduction in inventory opens up space
32. Principles Of JIT Manufacturing
• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management
33. Human Resource Management
• Company-wide Involvement
▫ Motivation for continuous improvement
▫ Problem Solving
▫ High Employee Interaction
• Build Pride In Workmanship
34. Human Resource Management
• Self-Inspection of work
• Diversified Employees
▫ Absenteeism
▫ To eliminate boredom in process
• Management Support and Empowerment of
workforce
35. Human Resource Management at
Toyota
In 1986 from a labor force of 60,000 Toyota
received 2.6 million improvement proposals,
96% of which were implemented by either
management or the employees themselves.
37. COMPANIES THAT USE JIT
• There are so many companies that are using JIT
planning. Any car, motorbike or aircraft
manufacture uses JIT. This means that the
examples are countless. For example,
• Toyota
• Dell
• Harley Davidson
• Walmart
• McDonalds
38. ADVANTAGES OF JIT
• High quality
• Flexibility
• Reduced setup times
• Reduced need for indirect labor
• Less waste
• Low warehouse cost
• Synchronization between production scheduling and
work hour
39. DISADVANTAGES of JIT
Implementing thorough JIT procedures can
involve a major overhaul of business systems -it
may be difficult and expensive to introduce.
JIT manufacturing also opens businesses to a
number of risks, notably those associated with
the supply chain. With no stocks to fall back on,
a minor disruption in supplies to the business
from just one supplier could force production to
cease at very short notice.
Editor's Notes
Hello, my name is Matt Schmidt, I am from Penn State University and today I will be discussing Just-In-Time Manufacturing.
These are the 5 main principles of Jit Management: Total Quality Management, Production Management, Supplier Management, Inventory Management , and Human Resource Management.
The first principle that we will focus on today is Total Quality Management. JIT will not survive if there is not a strong emphasis on TQM.
There are countless points to emphasize when considering TQM, some of the stronger areas to concentrate on are as follows.
Seeking long-term commitment to quality efforts will ensure that the your efforts will be maintained throughout the life of the company.
Quality must be a higher priority than cost because in the market of today, quality is no longer an order winner, it is an order qualifier.
Minimizing Waste in production consists of more than minimizing losses of time and resources. Waste can be defined in production terms as &quot;everything not needed in production.&quot;
Eliminate Quality Inspectors, Make Quality everyone’s responsibility, and doing the job right the first time delegates the responsibility of quality across all levels of the organization.
The second principle of JIT Manufacturing is Production Management.
The principle of Production Management is important to sustain quality in the process.
JIT philosophy uses a Pull System as apposed to a Push System. Pull = Made to order, and Push = Made for inventory. This allows for demand to set the tone for production.
It is also important for the system to be flexible. This means that production levels must have the ability to change from day to day, working with the aspect of made to order.
From a production management standpoint designing for testability is essential in the process, to aid in the quest for ZERO DEFECTS. One tool used to aid in this quest is the Poka-Yoke device, also known as a mistake proofing device. This device will prevent mistakes from happening, or display obvious problems at a glance.
It is also important to test throughout the entire process to ensure Zero defects.
Reduction of lot sizes will shorten the cycle times, and as a result this reduction will free up capital that was otherwise tied up in Inventory.
JIT should eliminate any disruptions in the process, to maximize productivity, while eliminating any bottlenecks.
Standardized parts should be used to increase simplicity in a process, and as a result defective products will be reduced and eventually eliminated.
The JIT philosophy uses multiple communication techniques to aid in the production process, two of which are the use of a Kanban system and an Andon.
Kanban is Japanese for the word Card. Kanban is used to control the flow of inventory throughout the process in a pull system utilizing a card to signal demand.
An Andon is a light or signal in the process throughout the work stations that will alarm the workers that there is a problem in the process, and there is a collaborative effort to correct and prevent the problem from happening again.
Stopping the process in this manner is referred to in Japanese as Jidoka, or a halt of the line.
Preventive maintenance is necessary to eliminate any down time for machinery failure in a process.
Throughout my research Toyota was the predominant example in each book. So I will continue to refer to Toyota in my examples.
Toyota uses a Kanban pull system throughout the production process. Each task in the process seems to take identical length and work content, so everyone is working at the same pace to reduce bottlenecks.
The next principle in JIT Manufacturing is supplier management.
The main focus of supplier management is to establish long term relationships with few firms. By doing this, you can grow with your supplier. Jit considers inventory to be wasteful, so therefore it is eliminated. When inventory is eliminated, parts need to be delivered exactally when they are needed, where they are needed, in the exact quantity, and in addition need to be 100% DEFECT FREE.
This is why it is important to work together as a team with your supplier
Establishing this relationship will also allow for the elimination of high levels of inventory being inspected for use in the production process.
Communication is vital Supplier Management, therefore efficient Information systems will open new line of communication with these suppliers. Eliminating barriers to information will increase the efficiency.
Communicate problems to your suppliers in a positive manner. Don’t assign the blame, work together to overcome the problem to prevent it from happening in the future.
Toyota communicates their damand for parts 20 days in advance to their suppliers, with the right to change the forecast up to the 10th day.
The next principle in JIT Manufacturing is Inventory Management.
A main emphasis in JIT manufacturing is the goal of Zero Inventory, to achieve this goal you must Eliminate safety stock.
A reduction in WIP will reduce the number of defects in the event of a problem.
Jit is not an inventory control system, it is a philosophy for continuous improvement of quailty that puts emphasis on prevention rather than correction.
Reduction of Inventory will also open up more space in your factory.
.
Next is an analogy of how reducing inventory will aid in overall performance.
Inventory hides problems in a process, if you reduce it, then problems in the system become more clear.
Look at the above pictures. In the first picture the boat in clearly above all rocks in the water, and no problems clearly exist. In the second picture the water level lower and the rocks have now become a problem for the boat.
The water level represents inventory, the rocks represent problems in the system, and the boat represents the company’s operations.
If inventory is reduced, problems in the system become more clear from the operations standpoint.
The last principle in JIT manufacturing is Human resource management.
To be successful in a Jit manufacturing, or quality based process the need for Human resource management is essential. You need company wide involvement across all departments.
Motivation is needed from a managerial standpoint to maintain continuous improvement. Problem solving skills are needed to maintain speed of the line in the event of of a halt.
High employee interaction is essential for employees to work together to change the process for the better.
Build Pride In Workmanship to increase the level of quality.
Self Inspection of work is needed to keep the process flowing smoothly.
The moving around of employees to different work stations throughout the day is needed in the event of absenteeism, and a technique to break up the routine task of the process.
Management support and empowerment of the work force is needed, so that employees are not afraid of stopping the process in the event of a problem.
In 1986 from a labor force of 60,000 Toyota received 2.6 million improvement proposals, 96% of which were implemented by either management or the employees themselves.
It is crucial to Implement these JIT principles correctly. Worker co-operation is the most important aspect of JIT. Managers often overlook the importance of the support from the workforce, as well as looking over the amount of work and dedication needed to strive for continuous improvement.
Overlooking these implementation Problems is a time bomb waiting to explode.