This document discusses just-in-time (JIT) scheduling, KANBAN systems, and applications of JIT in services. JIT scheduling aims to reduce inventory levels by communicating schedules inside and outside companies and ordering materials in smaller batches. KANBAN systems use authorization cards to pull materials only as needed in small lot sizes. Different signals like cards, flags, or empty spaces are used to authorize production in a pull system rather than a push system. KANBAN works to move inventory only as required to reduce waste. JIT techniques can also be applied in services like restaurants to deal with suppliers on a JIT basis, optimize layouts, prepare inventory only as ordered, and schedule based on

1. JIT Scheduling,
KANBAN,
JIT Services
Przemyslaw Nawrot, Louis Schmidt

2. JIT Scheduling
● Schedules have to be
communicated
inside and outside of
a company
● Inventory is low
● Reduction of work
● Ordering big amount makes your costs lower

3. Lower Setup costs → Lower Total costs

5. ● JIT exists only when a
supplier and purchaser
work together
● prefer small batches than a large batch

6. “Jelly bean” scheduling
● exactly schedule can improve performance

7. KANBAN
● Japanese word = Card
● authorization for next container of material
● small lot sizes → move inventory only as needed
● rather than pushing it whether the next workstation is
ready for it or not

8. ● Different sorts of signals are used, but the system is still
called Kanban (CARD)
 cards
 flags
 empty positions on the floor
● important = authorization of the card → pulled from the
producing department/ supplier

9. KANBAN - no visual contact / visual contact
signal marker
Part numbers
mark collection
no visual contact visual contact
- cards
- electronic signals (computer, lights,
internet)
- empty positions on the floor
- flags

10. ● move when it’s needed = PULL-SYSTEM

11. ● arrivals in work center to match processing time
● reduce inventory → pull only when needed

12. how kanban works, pulling units as needed from production.
e.g. similar to the resupply that occurs in your neighborhood supermarket

13. Kanban - more information
● each card = responsible specific parts or
quantity
● possible that a multiple card system is used
● Kanban system limit on the amount of work-
in-process between cells
● Kanban doesn’t has to be FORMAL.

14. Example of KANBAN + JIT(fast-food restaurant)
1. KANBAN:
6 cars in line
→ informal kanban signal is
5 will order french fries and
3 Big Mac
→ chef should start cooking

15. 2. JIT
Cooking french fries and BigMac’s in a JIT -
way!
Example of JIT McD's

16. Number of Kanban Containers
- information needed:
- lead time to produce a container of parts
- amount of safety stock needed

17. Number of Kanbans
Daily demand
Production lead time
(Wait time + Material
handling time +
Processing time)
Safety stock
Container size
= 500 cakes
= 2 days
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= ½ day demand
= 250 cakes
Demand during lead time = 2 days x 500 cakes = 1.000
Number of Kanbans = (1.000 + 250)/250 = 5

18. Advantages of Kanban
● Reduced amount of faulty or delayed
material
● problems are immediately evident
● Puts downward pressure on bad aspects of
inventory
● standardized containers reduce weight,
disposal costs, wasted space + labor

19. Kanban final statement
→ MRP system JIT schedule as a ‘build’
authorization and the kanban as a type of
‘pull’ system that initiatives the actual
production

20. JIT in services
JIT techniques used in services:
● suppliers
● layout
● inventory
● scheduling

21. Suppliers
● restaurant deals
with supplier on
JIT basis
● otherwise
problems with
customers occur

22. Layout
● conditions must be adapted
to needs - e.g. McDrive
● new selling channels
and faster process

23. Inventory
● stockbrokers driving
down inventory =
occurs at
McDonald’s
● preparing only the
food, which is
already ordered

24. Scheduling
● based on forecasted demand
different Examples:
- Airline ticket Counter
(consider flights)
- McDonald (5 min)
- Salon (elaborate,
seasonal, weekly)

25. Exercise
Company SuperCar is trying to reduce
inventory and wants to install a kanban system
for compressors on one of its assembly lines.
Determine the number of kanbans (containers)
needed.

26. Given
Setup cost = $10
Annual holding cost per compressor = $100
Annual usage = 25.000 (50 weeks x 5 days each x
daily usage of 100 compressors)
Size of one Container = 100
Lead time = 3 days
Safety stock = ½ day’s production of compressors

27. Determination the number of kanbans
Demand during lead time = 300 ( =3 days x daily
usage 100)
Safety stock = 100 (= ½ x daily production of 200)

29. Quiz 1
What are the positive aspects of JIT-
Scheduling ?
a) The ability to meet customer orders
b) Drives down inventory by allowing smaller lot sizes
c) Reduces work-in-process
d) All of them above

30. Quiz 2
What kind of System is the KANBAN - System?
a) Push-System
b) Pull-System
c) Horizontal - System
d) Vertical - System

31. Quiz 3
Where does the Kanban come from?
a) Germany
b) China
c) Japan
d) US

32. True or False?
Inventory has only one positive aspect, which is
availability; inventory has several negatives,
including increased material handling, obsolescence,
and damage.