This document discusses Just-in-Time (JIT) systems and Lean production. JIT operates with very little inventory and is responsive to customers by producing goods just as they are needed in small batches. It aims to eliminate waste through a focus on customer value. JIT uses a pull system where components are pulled through production as needed rather than being pushed. Key aspects of JIT include attacking waste, exposing problems, streamlining production through reduced inventory and simplified execution. JIT characteristics include a steady production rate, low inventories, small lot sizes, quick changeovers, and empowered flexible workers. The goal is a balanced rapid flow through the production system.

1. Production &
Operations
Management
Just-in-Time Systems

2. JIT Production
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
Is characteristic of lean production
systems
Lean Production: A way to eliminate Waste
through a focus on exactly what the customer
wants.
Operates with very little material
Is very responsive to customers

3. JIT vs. MRP II
Similar goals
Right products, right place, right time
MRP II
Computer-based, manages complexity
JIT
Manual systems, simplicity/execution

4. Just-In-Time Concepts
jit - Inventory/production control system
Supplies and components are ‘pulled’ through
system to arrive where they are needed when
they are needed.
Pull System: A JIT concept that results in
material being produced only when requested
and moved to where it is needed just as it is
needed.
JIT - Management philosophy of continuous
improvement and forced problem solving

5. Multi-aspect approach
 High quality, quick response, flexibility
Attacks waste
 Anything not adding value to product (customer view)
Exposes problems and bottlenecks caused by
variability
 Any deviation from the optimum process
Achieves streamlined production (pull system)
 Reduced inventory
 Simplified Execution
What Does Just-in-Time Do?

6. Waste is ‘anything other than
the minimum amount of
equipment, materials, parts,
space, and worker’s time,
which are absolutely
essential to add value to the
product.’
— Shoichiro Toyoda
President, Toyota © 1995 Corel Corp.
Waste

7. Variability
Employees, machines, and suppliers
produce units that do not conform to
standards, are late, or are not the proper
quantity
Engineering drawings or specifications are
inaccurate
Production personnel try to produce before
drawings or specifications are complete
Customer demands are unknown

8. Push versus Pull
Push system: material is pushed into
downstream workstations regardless of
whether resources are available
Pull system: material is pulled to a
workstation just as it is needed

9. JIT Characteristics
A Fixed, Steady Rate of Production
Uniform flow/communicated to vendors
Low Inventories
Less space, investment
Uncover defects
Small Lot Sizes
Less Work in process
Fast feedback
Quick, Low Cost Setups
Preventive Maintenance & Repair

10. JIT Characteristics
Empowered Workers
Multifunctional/Cooperative (Guerilla squad)
Flexible capacity
High Quality Levels
On-going production
Small/frequent deliveries
Product simplification
Standardization
Fewer part numbers/drawings

11. JIT Characteristics
Reliable Suppliers
Dock-to-stock
Much fewer in number
Long-term relationships
A Pull System of Moving Goods
Request-based
Commitment to Problem Solving/ Continuous
Improvement

12. JIT Building Blocks
Product
Design
Process
Design
Personnel
Elements
Manufactur-
ing Planning
Eliminate disruptions
Make the system flexible
Reduce setup
and lead times
Eliminate waste
Minimize inventories
A
balanced
rapid flow
Ultimate
Goal
Supporting
Goals
Building
Blocks

13. JIT in Services
All the techniques
used in
manufacturing are
used in services
SuppliersSuppliers
LayoutsLayouts
InventoryInventory
SchedulingScheduling

14. Converting to a JIT System
Top management commitment
Prioritize efforts
Worker support
Start by reducing setup times
Gradually convert operations
Convert suppliers to JIT
Prepare for obstacles

15. Obstacles to Conversion
Management not committed
Workers not cooperative
Suppliers may
resist

16. JIT & Operations Planning
and Control
MRP as planning tool
Pull systems
Closer relationships with fewer vendors
Reduced transaction processing

17. Attributes of Lean/JIT
Producers
build systems to help employees produce a perfect part every
time
reduce space requirements
develop close relationships with suppliers
educate suppliers
eliminate all but value-added activities
develop the workforce
make jobs more challenging
reduce the number of job classes and build worker flexibility