Just-in-Time (JIT) and Lean production aim to eliminate waste by producing only what is needed, when it is needed. Key elements of JIT include pull production systems using Kanban cards, small lot sizes, quick changeovers, and quality control at the source. JIT seeks to reduce inventory levels and lead times through continuous improvement efforts like Kaizen and total productive maintenance. The benefits of JIT include reduced costs, improved quality, and increased flexibility and productivity.

1. BA 320 Operations Management
Chapter 11Chapter 11
Just-In-Time andJust-In-Time and
Lean ProductionLean Production

2. BA 320 Operations Management
 Producing only what is needed,Producing only what is needed,
when it is neededwhen it is needed
 A philosophyA philosophy
 An integrated management systemAn integrated management system
 JIT’s mandate:JIT’s mandate:
Eliminate all wasteEliminate all waste
What is JIT ?What is JIT ?

3. BA 320 Operations Management
Basic Elements of JITBasic Elements of JIT
1.1. Flexible resourcesFlexible resources
2.2. Cellular layoutsCellular layouts
3.3. Pull production systemPull production system
4.4. Kanban production controlKanban production control
5.5. Small-lot productionSmall-lot production
6.6. Quick setupsQuick setups
7.7. Uniform production levelsUniform production levels
8.8. Quality at the sourceQuality at the source
9.9. Total productive maintenanceTotal productive maintenance
10.10. Supplier networksSupplier networks

4. BA 320 Operations Management
Figure 11.1Figure 11.1
Waste in OperationsWaste in Operations

5. BA 320 Operations Management
Figure 11.1Figure 11.1
Waste in OperationsWaste in Operations

6. BA 320 Operations Management
Figure 11.1Figure 11.1
Waste in OperationsWaste in Operations

7. BA 320 Operations Management
Flexible ResourcesFlexible Resources
 Multifunctional workersMultifunctional workers
 General purpose machinesGeneral purpose machines
 Study operators & improveStudy operators & improve
operationsoperations

8. BA 320 Operations Management
Standard Operating RoutineStandard Operating Routine
for a Workerfor a Worker
Standard Operating Routine
Sheet 1
Worker: Russell
Cycle Time: 2 min
Order of Operations time
Operations :10 :20 :30 :40 :50 1:00 1:10 1:20 1:30 1:40 1:50 2:00
Pick up
material
Unload/
load
machine 1
Unload/
load
machine 2
Unload/
load
machine 3
Inspect/
pack
Figure 11.2Figure 11.2

9. BA 320 Operations Management
Cellular LayoutsCellular Layouts
 Group dissimilar machines inGroup dissimilar machines in
manufacturing cell to producemanufacturing cell to produce
family of partsfamily of parts
 Work flows in one directionWork flows in one direction
through cellthrough cell
 Cycle time adjusted by changingCycle time adjusted by changing
worker pathsworker paths

10. BA 320 Operations Management
Manufacturing Cell withManufacturing Cell with
Worker RoutesWorker Routes
WorkerWorker
11
WorkerWorker
22
WorkerWorker
33
Cell 1Cell 1
Figure 11.3Figure 11.3

11. BA 320 Operations Management
Worker Routes LengthenedWorker Routes Lengthened
as Volume Decreasesas Volume Decreases
Cell 5Cell 5
WorkerWorker
22
Cell 2Cell 2
WorkerWorker
11
Cell 1Cell 1
WorkerWorker
33
Cell 3Cell 3 Cell 4Cell 4
Figure 11.4Figure 11.4

12. BA 320 Operations Management
The Pull SystemThe Pull System
 Material is pulled through theMaterial is pulled through the
system when neededsystem when needed
 Reversal of traditional push systemReversal of traditional push system
where material is pushed accordingwhere material is pushed according
to a scheduleto a schedule
 Forces cooperationForces cooperation
 Prevent over and underproductionPrevent over and underproduction

13. BA 320 Operations Management
Kanban ProductionKanban Production
Control SystemControl System
 Kanban card indicates standard quantityKanban card indicates standard quantity
of productionof production
 Derived from two-bin inventory systemDerived from two-bin inventory system
 Kanban maintains discipline of pullKanban maintains discipline of pull
productionproduction
 Production kanban authorizes productionProduction kanban authorizes production
 Withdrawal kanban authorizes movementWithdrawal kanban authorizes movement
of goodsof goods

14. BA 320 Operations Management
A Sample KanbanA Sample Kanban

15. BA 320 Operations Management
The Origin of KanbanThe Origin of Kanban
a) Two-bin inventory systema) Two-bin inventory system b) Kanban inventory systemb) Kanban inventory system
ReorderReorder
cardcard
Bin 1Bin 1
Bin 2Bin 2
Q - R
KanbanKanban
RR
QQ = order quantity= order quantity
RR = reorder point - demand during lead time= reorder point - demand during lead time
Figure 11.5Figure 11.5

16. BA 320 Operations Management
Types of KanbansTypes of Kanbans
Figure 11.6Figure 11.6

17. BA 320 Operations Management
Types of KanbansTypes of Kanbans
Figure 11.6Figure 11.6

18. BA 320 Operations Management
Types of KanbansTypes of Kanbans
Figure 11.6Figure 11.6

19. BA 320 Operations Management
Types of KanbansTypes of Kanbans
 Kanban SquareKanban Square
Marked area designed to hold itemsMarked area designed to hold items
 Signal KanbanSignal Kanban
Triangular kanban used to signalTriangular kanban used to signal
production at the previous workstationproduction at the previous workstation
 Material KanbanMaterial Kanban
Used to order material in advance of aUsed to order material in advance of a
processprocess
 Supplier KanbansSupplier Kanbans
Rotate between the factory and suppliersRotate between the factory and suppliers

20. BA 320 Operations Management
Determining Number ofDetermining Number of
KanbansKanbans
wherewhere
NN = number of kanbans or containers= number of kanbans or containers
dd = average demand over some time period= average demand over some time period
LL = lead time to replenish an order= lead time to replenish an order
SS = safety stock= safety stock
CC = container size= container size
No. of Kanbans =No. of Kanbans =
average demand during lead time + safety stockaverage demand during lead time + safety stock
container sizecontainer size
NN ==
dLdL ++ SS
CC

21. BA 320 Operations Management
Determining the NumberDetermining the Number
of Kanbansof Kanbans
dd = 150 bottles per hour= 150 bottles per hour
LL = 30 minutes = 0.5 hours= 30 minutes = 0.5 hours
SS = 0.10(150 x 0.5) = 7.5= 0.10(150 x 0.5) = 7.5
CC = 25 bottles= 25 bottles
Round up to 4 (to allow some slack) orRound up to 4 (to allow some slack) or
down to 3 (to force improvement)down to 3 (to force improvement)
NN = == =
= = 3.3 kanbans or containers= = 3.3 kanbans or containers
dLdL ++ SS
CC
(150 x 0.5) + 7.5(150 x 0.5) + 7.5
2525
75 + 7.575 + 7.5
2525
Example 11.1Example 11.1

22. BA 320 Operations Management
Small-Lot ProductionSmall-Lot Production
 Requires less space & capitalRequires less space & capital
investmentinvestment
 Moves processes closer togetherMoves processes closer together
 Makes quality problems easier toMakes quality problems easier to
detectdetect
 Makes processes more dependentMakes processes more dependent
on each otheron each other

23. BA 320 Operations Management
Inventory Hides ProblemsInventory Hides Problems

24. BA 320 Operations Management
Lower Levels of InventoryLower Levels of Inventory
Expose ProblemsExpose Problems

25. BA 320 Operations Management
Components of Lead TimeComponents of Lead Time
 Processing timeProcessing time
 Reduce number of items or improveReduce number of items or improve
efficiencyefficiency
 Move timeMove time
 Reduce distances, simplifyReduce distances, simplify
movements, standardizemovements, standardize routingsroutings
 Waiting timeWaiting time
 Better scheduling, sufficient capacityBetter scheduling, sufficient capacity
 Setup timeSetup time
 Generally the biggest bottleneckGenerally the biggest bottleneck

26. BA 320 Operations Management
SMED PrinciplesSMED Principles
1.1. Separate internal setup fromSeparate internal setup from
external setupexternal setup
2.2. Convert internal setup to externalConvert internal setup to external
setupsetup
3.3. Streamline all aspects of setupStreamline all aspects of setup
4.4. Perform setup activities inPerform setup activities in
parallel or eliminate them entirelyparallel or eliminate them entirely

27. BA 320 Operations Management
Common Techniques forCommon Techniques for
Reducing Setup TimeReducing Setup Time
Figure 11.8Figure 11.8

28. BA 320 Operations Management
Common Techniques forCommon Techniques for
Reducing Setup TimeReducing Setup Time
Figure 11.8Figure 11.8

29. BA 320 Operations Management
Common Techniques forCommon Techniques for
Reducing Setup TimeReducing Setup Time
Figure 11.8Figure 11.8

30. BA 320 Operations Management
Uniform ProductionUniform Production
 Results from smoothing productionResults from smoothing production
requirementsrequirements
 Kanban systems can handle +/- 10%Kanban systems can handle +/- 10%
demand changesdemand changes
 Smooths demand across planningSmooths demand across planning
horizonhorizon
 Mixed-model assembly steadiesMixed-model assembly steadies
component productioncomponent production

31. BA 320 Operations Management
Mixed-Model SequencingMixed-Model Sequencing
Example 11.2Example 11.2

32. BA 320 Operations Management
Quality at the SourceQuality at the Source
 Jidoka is authority to stop productionJidoka is authority to stop production
lineline
 Andon lights signal quality problemsAndon lights signal quality problems
 Undercapacity scheduling allows forUndercapacity scheduling allows for
planning, problem solving &planning, problem solving &
maintenancemaintenance
 Visual control makes problems visibleVisual control makes problems visible
 Poka-yoke prevents defectsPoka-yoke prevents defects

33. BA 320 Operations Management
Visual ControlVisual Control
Figure 11.9Figure 11.9

34. BA 320 Operations Management
Visual ControlVisual Control
Figure 11.9Figure 11.9

35. BA 320 Operations Management
Visual ControlVisual Control
Figure 11.9Figure 11.9

36. BA 320 Operations Management
KaizenKaizen
 Continuous improvementContinuous improvement
 Requires total employmentRequires total employment
involvementinvolvement
 Essence of JIT is willingness ofEssence of JIT is willingness of
workers toworkers to
Spot quality problemsSpot quality problems
Halt production when necessaryHalt production when necessary
Generate ideas for improvementGenerate ideas for improvement
Analyze problemsAnalyze problems
Perform different functionsPerform different functions

37. BA 320 Operations Management
Total ProductiveTotal Productive
Maintenance (TPM)Maintenance (TPM)
 Breakdown maintenanceBreakdown maintenance
 Repairs to make failed machine operationalRepairs to make failed machine operational
 Preventive maintenancePreventive maintenance
 System of periodic inspection & maintenanceSystem of periodic inspection & maintenance
to keep machines operatingto keep machines operating
 TPM combines preventive maintenance &TPM combines preventive maintenance &
total quality conceptstotal quality concepts

38. BA 320 Operations Management
TPM RequiresTPM Requires
Management to:Management to:
 Design products that can be easily producedDesign products that can be easily produced
on existing machineson existing machines
 Design machines for easier operation,Design machines for easier operation,
changeover, maintenancechangeover, maintenance
 Train & retrain workers to operate machinesTrain & retrain workers to operate machines
 Purchase machines that maximizePurchase machines that maximize
productive potentialproductive potential
 Design preventive maintenance planDesign preventive maintenance plan
spanning life of machinespanning life of machine

39. BA 320 Operations Management
Supplier PoliciesSupplier Policies
1. Locate near to the customer
2. Use small, side loaded trucks and ship
mixed loads
3. Consider establishing small warehouses
near to the customer or consolidating
warehouses with other suppliers
4. Use standardized containers and make
deliveries according to a precise delivery
schedule
5. Become a certified supplier and accept
payment at regular intervals rather than
upon delivery

40. BA 320 Operations Management
Benefits of JITBenefits of JIT
1.1. ReducedReduced
inventoryinventory
2.2. Improved qualityImproved quality
3.3. Lower costsLower costs
4.4. Reduced spaceReduced space
requirementsrequirements
5.5. Shorter lead timeShorter lead time
6.6. IncreasedIncreased
productivityproductivity
7.7. Greater flexibilityGreater flexibility
8.8. Better relationsBetter relations
with supplierswith suppliers
9.9. SimplifiedSimplified
scheduling andscheduling and
control activitiescontrol activities
10.10. Increased capacityIncreased capacity
11.11. Better use ofBetter use of
human resourceshuman resources
12.12. More productMore product
varietyvariety

41. BA 320 Operations Management
 Use JIT to finely tune anUse JIT to finely tune an
operating systemoperating system
 Somewhat different inSomewhat different in
USA than JapanUSA than Japan
 JIT is still evolvingJIT is still evolving
 JIT isn’t for everyoneJIT isn’t for everyone
JIT ImplementationJIT Implementation

42. BA 320 Operations Management
JIT In ServicesJIT In Services
 Competition on speed & qualityCompetition on speed & quality
 Multifunctional department storeMultifunctional department store
workersworkers
 Work cells at fast-food restaurantsWork cells at fast-food restaurants
 Just-in-time publishing forJust-in-time publishing for
textbookstextbooks
 Construction firms receivingConstruction firms receiving
material just as neededmaterial just as needed