2. Topics to be Covered
Review of JIT & Waste
Objectives of JIT
JIT Principles
JIT and Variance
JIT Tools and Procedures
3. JIT: Definitions?
JIT Head JIT Planes
Chicken JIT Bull JIT
Oh JIT (O´JIT) Le JIT
Tough JIT JIT Lag
Strate JITs When the JIT hits
the fan.
4. What is JIT?
a corporate system designed to produce
output within the minimum lead time and at
the lowest total cost by continuously
identifying and eliminating all forms of
corporate waste and variance.
a corporate strategy
a philosophy
Focus of JIT:
• variance & waste
6. Seven Basic Types of Waste
Transportation waste
Process Waste
Inventory Waste
Waste of motion
Waste from product defects
Waiting time
Overproduction
7. Common Causes of Waste
Layout (distance) Inconsistent
Long setup time performance
measures
Incapable processes Ineffective
Poor maintenance production planning
Poor work methods Lack of workplace
Lack of training organization
Poor supply
quality/reliability
8. Objective of JIT
Produce only the products the customer
wants.
Produce products only at the rate that
the customer wants them.
Produce with perfect quality
Produce with minimum lead time.
Produce products with only those
features the customer wants.
9. Objectives
Produce with no waste of labor,
material or equipment -- every
movement must have a purpose so that
there is zero idle inventory.
Produce with methods that allow for the
development of people
10. JIT Principles
Create flow production
• one piece flow
• machines in order of processes
• small and inexpensive equipment
• U cell layout, counter clockwise
• multi-process handling workers
• easy moving/standing operations
• standard operations defined
11. JIT Principles - Slide 2
Establish “TAKT” time
• rate at which the customer buys a
product
Build Pull Product
• use of kanban system
12. JIT Tactics
Single Minute Visual control
Exchange of Dies Flexible workers
(SMED)
Statistical Process Tools at the point of
Control need
Use of standard Product redesign
containers Group Technology
Doable stable schedules Total Productive
with adequate visibility Maintenance
TAKT-Time
5-S Program
Kaizen Event
13. Balanced Production
Three elements
• TAKT time
• Work sequence
• Standard WIP
Objective
• Build at rate that the customer wants work
• Balance the system to maximize
efficiency at this rate
14. TAKT Time Example
Net Available Operating Time
• Time per shift 480´ (minutes)
• Breaks (2 @ 10´) - 20´
• Clean-up - 20’
• Lunch - 30’
• NAOT/shift 410´
Customer Requirements
• Monthly 26,000 units/month
• No. Working Days 20 days/month
• CR/Day 1,300 units/day
TAKT Time
• 410’ x 60” x 3 shifts (73,800) divided by 1,300
• 57.769 seconds per part or 57quot;
15. TAKT Time
TAKT
• the beat
• (Net Available Operating Time) /
Customer Requirements
• time periods must be consistent
Example of calculation
16. SMED
Setup reduction
Elements
• Internal Setup
• setup while machine idle
• External Setup
• setup while machine busy
• Adjustment
• run-ins, calibration
17. SMED Process
Study current process
• “as is”
• video tape
• Who owns the video tape?
Convert internal to external setup
Eliminate the need for Adjustment
Eliminate need for fastening
Goal
• setup time < 10 minutes
18. Push Vs. Pull Scheduling
Push Scheduling
• traditional approach
• “move the job on when finished”
• problems - creates excessive inventory
Pull scheduling
• coordinated production
• driven by demand (pulled through system)
• extensive use of visual triggers
(production/withdrawal kanbans)
19. Visual Control
A system for making problems obvious
without the need for sophisticated monitoring
computer systems
• Andon light system
• Kanbans
Create a sense of urgency
Clearly identify where the problems are
located
20. Supplier Partnerships
Reliance on suppliers for
• problem solving expertise
• quality at the source
• timely communication
• participants in cost reduction
programs
Increased reliance on supplier
certification
21. Standardization/Simplification
Eliminate inherent sources of variance
eliminate opportunity for human discretion
error
Examples
• Container sizes
• MacDonalds with interaction with
customers
Consistent with Deming Wheel
• Standarize expose problems solve
problems implement new methods
22. Other Techniques
Milk runs
Poka-Yoke Systems
Continuous Improvement Programs
(CIP)
25. JIT & Lean Manufacturing
Lean Manufacturing
• Doing more with less
• Less of:
• materials, time, resources
• overhead, people
• waste
• money
JIT is a subset of Lean Manufacturing
Now seen as most applicable to mass
production settings
26. Kaizen Event
A relatively new concept
• Kaizen Blitz, Gemba Kaizen
Process focused
Operates at two levels
• on-going process of identifying opportunities for
improvement
• strategic, top management
•short-term project lasting 1-4 days
• training, documentation of process “as is”, identification of
potential improvements, implementation, presentation, action
list
27. Kaizen Events - Key Traits
Very short-term, finite in life
Highly focused
Creativity before capital
Team-oriented
Action-Oriented
Verifiable Metrics
Repetitive
28. Kaizen Event Process
Top management buy-in
• Public Kaizen Events
Assessment of current processes
• top management
• Target Processes
• training
• documentation - “as is”
• opportunities
• change
• presentation/action list
29. Typical Metrics
Floor space occupied by process being
assessed
Operators required per day
Distance traveled by an order within the
process
WIP Inventory
Setup (measured in minutes)
Quality recommendations generated
Safety Improvements implemented
30. Application of Kaizen Events
Shop floor
Finance
• 401 K plan
Purchasing
Health Care
Services
31. Example of Impact of Kaizen
Event
Impact of Kaizen Events - Overall Benefits
(January 1, 1996 through December 31, 1996
Improvement M________ Before Kaizen Achievement Improvement
Floor Space ( ) 56,000 39,000 30%
Operators/Day 165 125 24%
Distance Traveled 91,000 ft. 15,000 ft. 34%
Inventory (WIP pieces) 4,760,000 2,570,000 46%
Setup Time Reduction 1,660 _______ 1,660 _________ 72%
Safety Improvements 200 improvements implement
32. JIT 11
Based on system developed by Bose of
Framingham, MA
Integration of JIT principles and
practices into the supply chain
JIT II
• long term collaborative relationships with
suppliers present
• suppliers to place personnel in plants of
the buying organization
33. Limitations of JIT
Preconditions to JIT
• trust must be present
• labor/management
• suppliers/consumers
• recognition of processes
• familiarity with problem solving
• quality at the source
• agreement over value and waste
34. Limitations of JIT
Right Settings
• applicable in growth to maturity phases of
Product Life Cycle
• standard product
• Steinway and JIT
• standard/fixed pay-rate
• problems with piece-rate scheme
Universal agreement that change
needed
35. Theoretical Benefits of JIT
Unpleasant surprises Less pressure on receiving
eliminated docks and incoming
Less computerization inspection areas
• visual control Lower costs
Improved quality Change in attitude
WIP reduced • Defects are treasures
Better
communications
36. Dealing with Variance
Four major stances:
• Buffer against it
• Ignore it
• Manage it
• Eliminate it
All forms of variance create cost
37. JIT & Variance
Variance a fact of life
Comes from many sources
• internal
scheduling changes, scheduling practices,
manufacturing planning & control systems,
absenteeism, process variability
• external
changes in forecasts, actual demand, customer
requested changes, government, competition,
vendors
38. Cycle Times
Operator Cycle Time
• total time required for a worker to
complete one cycle of an operation
Machine Cycle Time
• total time for a machine to finish
one
complete cycle
• includes loading and unloading
39. Some Interesting Calculations
• No. of Operators
• Sum OCT/(TAKT TIME)
• Example
• OCT for Operator 1= 13quot;
• OCT for Operator 2= 9quot;
• OCT for Operator 3= 11quot;
• OCT for Operator 4= 10quot;
• Total 43quot;
• TAKT Time 16.5quot;
• Number of Operators
• 43/16.5 = 2.606 or 3 operators
40. The 5-S Program
Seiri
• segregate and discard
• get rid of what is not needed
Seiton
• arrange and identify for ease of use
• a place for everything and everything in its
place
Seiso
• Clean Daily
• clean work place enhances quality
41. The 5-S Program
Seiketsu
• Revisit frequently
• revisit the first 3 steps to maintain
workplace safety and effectiveness
Shitsuki
• Motivate to sustain
• promote adherence through visual
performance measurement tools
42. Next Day
JIT in Service Sectors
New developments in JIT
• Lean Manufacturing
• Agile Enterprise
• JIT II
• Gemba Kaizen
• Quick Response Systems
43. Topics to be Covered
JIT and Lean Manufacturing
JIT in Services
Kaizen Events
JIT II
Gemba Kaizen
Agile Enterprise
Limitations of JIT
44. JIT in Services
Service Traits
• strong emphasis on process
• avoidance of inventory
• emphasis on people and their importance
to process
• recognition of need for continuous
improvement
• “defects are treasures”
45. JIT in Services
Elements of JIT most applicable
• Synchronization and balance of
information and work flows
• Total visibility of all components of the
process
• Continuous improvement of the process
• Holistic approach to the elimination of
waste
• Flexibility in use of resources
• Respect for people
46. JIT in Services
Key Issues
• Equipment/people focus
• Customer contact per transaction
• Degree of discretion
• Degree of customization
• Location of value-added processes
• Product/process focus
47. Gemba Kaizen
Waste reduction through the execution
system
Gemba
• heart of the system
Essence of Gemba Kaizen
• to eliminate waste, you must have
contact with the system that you are
managing
• the contact must be real and not through
computers
48. Agile Enterprise
New development
Associated with Iaccoca Institute of
LeHigh University
Merging flexibility with JIT
Much broader than Lean Enterprise
Recognition that the environment
• always changing
• unpredictably undergoing change
49. Agile Enterprise - Traits
Rapidly bring to market products that are
variable combinations of hardware,
information and services.
Design products that are easily configurable
and ungradable.
Produce to individual customer orders in
arbitrary order quantities.
Bring out a continuously changing array of
models within longer-lived product families
50. Agile Enterprise - Traits
Fragment mass markets into niche markets.
Maintain and foster continuous, rather than
single-instance, sales relationships by
continually adding value to current customers.
Cooperate intensively with other companies,
including competitors, to create global
product resources.
51. Agile Enterprise
Attempt to bring together a number of
different trends
• greater focus on product development
• greater reliance on suppliers
• greater concern with speed
• more emphasis on effective and intelligent
integration
• greater use of technology
• information
52. Other Tactics
Kaizen/Continuous Improvement
Manufacturing Cells
Business Process Reengineering
Milk run logistics
Supplier certification
Direct delivery to point of use