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2. Just-in-time
Introduction
JIT is an all-encompassing manufacturing and service management philosophy
that is founded on the concept of elimination of waste.
Definition
The term just-in-time stems from a primary form of waste elimination: reducing
inventories (in manufacturing) and waiting times (in services).
Many definitions have been put forward for just-in-time, and they have
evolved many time.
JIT means making only “what is needed, when it is needed, and in the amount needed.”
A useful common denominator running through this and other JIT definitions is a
broad philosophy of pursuing zero inventories, zero transactions, and zero
disturbances.
3. The Founder
Of Just-in-time
( JIT)
Founded by Taiichi Ohno (1912-1990)
A vice president of Toyota
Implemented in Toyota plant 1950
well established after 1970
Well known as Toyota Production System
Taiichi Ohno Quotes
Without standards, there can be no
improvement
Having no problems is the biggest problem of all
Ask ‘why’ five times about every
matter
Mutual help makes a better
company
4. Three Elements of JIT
01
02
03
Just-in-time manufacturing
Total quality management
Human resource management
Focuses on minimization of waste in all forms to
achieve value-added manufacturing. Based on
continuous improvement of processes and
procedures to increase productivity and efficiency.
An integrated process to continuously improve
quality performance at every level to keep the
company competitive and profitable.
JIT rests on the philosophy that equal respect to be
paid for all workers, and the trappings of status are
minimized; as it considers human resource as an
essential part of the organization.
5. The Philosophy of JIT
Often termed “Lean Systems”.01
02 All waste must be eliminated
03
Broad view that entire organization must focus on serving
customers
04
JIT is built on simplicity - The simpler The
better
05 Focuses on improving every operation. - Kaizen
06
Install simple visible control
systems.
07 Flexibility to produce different models/features.
6. Waste Elimination
Unnecessary
material handling
due to poorly
designed layouts
Scrap & rework
due to poor quality
Excessive
inventories
Time wasted due to
unsynchronized
production
Waste is anything that doesn’t add value
Like
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
Chairman of Toyota Motor
Corporation (1994-1999)
7. Production
Waste
Overproduction
Transportation
Waste
Moving parts over
a long distance
Motion Waste
Searching
for tools
Talent Waste
Unused expertise
or skills
Time Waste
Watching machine run
(idle time)
Machine breakdown
Sources of Waste
Processing
Waste
Taking unneeded
steps to process
Inventory
Waste
Unnecessary
supplies or stock
Defects
Waste
Faults, scrap or
bad quality
8. Elements of JIT Manufacturing
1Inventory reduction
Uniform plant
loading
Efficient facility
layouts
Kanban & pull systems
Small lots & quick
setups
Flexible resources
2
3
4
5
6
9. Inventory Reduction
Process
downtimeScrap
Setup
time
Late deliveries
Quality
problems
Inventory level
Shigeo Shingo, co. Developer of the Toyota JIT system, says, “Inventory is evil.” He is not far
from the truth. If inventory itself is not evil, it hides evil at great cost.
High levels of inventory hide problems
As we reduce inventory, problems are exposed
1
Process
downtimeScrap
Setup
time
Late deliveries
Quality
problems
Inventory level
10. Role of Inventory Reduction
Process
downtime
removed
No scrap
Setup
time
reduced
No late
deliveries
Quality
problems
removed
Ultimately there will be virtually no
inventory and no problems.
With JIT inventory, the exact
amount of goods arrives at the
moment it is needed, not a minute
before or after
The minimum inventory
necessary to keep a perfect system
running.
After reducing
inventory and removing
problems
Inventory level
11. Kanban
Toyota introduced and refined the use of
Kanban in a relay system to standardize t
he flow of parts in their JIT production
lines in the 1950s.
• Control the transfer of materials between stages of production.
• Used to trigger the movement or production of resources.
The ‘pull production’ system used by JIT and Lean uses a simple system of
signals (called Kanban) to pull the next product through the production system.
2
Production Kanban
authorizes production of goods
Withdrawal
Kanban
authorizes movement of goods
Kanban square
a marked area designated to hold items
Signal Kanban
Material Kanban
Supplier Kanban
rotates between factory and suppliers.
a triangular card represent production at the
previous workstation.
used to order material in advance of a process
Types of Kanban's
12. Kanban Card
Point of Manufacturing
Industrial automation
D MN Point of use
2055 5627
CMPT PAN
27STYLE
STORE
MN
Part Number
GBL
CA29
75
PCS
Standard Pack Container
Description
Standard Pack Quantity
Designated Storage Area
Kanban card shows all the required information needed to make the
part.
14. Small lots & Quick Setups
(SMED)Small-lot production requires less space and capital investment than
systems that incur large inventories.
• In the lean philosophy, the ideal lot size is one.
• Benefits of small lot size:
• Reduced in-process inventory
• Lower carrying costs.
• Less storage space.
• Inspection and rework costs are less when problems
with quality do occur.
• Permits greater flexibility in scheduling.
• Increased visibility of problems.
• Easier to balance operations.
• Small lots with shorter setup times increase
flexibility to respond to demand changes.
• Setup time reduction requires deliberate
improvement efforts.
Single-minute exchange of die (SMED)
• One of the many lean production methods for
reducing waste in a manufacturing process.
• Key to reducing production lot sizes and thereby
reducing uneven flow.
• The phrase "single minute" does not mean to do all
changeovers by one minute, but that should take
less than 10 minutes ("single-digit minute").
3
15. Low total cost requires Small Lot Sizes and Low Setup
Cost
The Impact of Reducing Lot
Size
New EOQ
New total Cost
Quantit
y
EOQ
Setup Cost
Holding Cost
Total Cost
0
$
New setup Cost
Ideal situation is to have lot sizes of one pulled from
one process to the next.
We can use EOQ analysis to calculate desired setup
time after Improve material handling.
16. • Changing over a process to produce a different product in the most efficient manner.
• Single Minute Exchange of Dies. Created by Shigeo Shingo.
15%
Proportion of time
50%
30%
5%
Preparation, after-process
adjustment, and checking of raw
materials, blades, dies, jigs, gauges,
etc.
Mounting and removing blades, etc.
Centering, dimensioning and setting
of conditions.
Trial runs and adjustments.
Quick Setups (SMED)
17. Uniform Plant Loading
(Scheduling)
Weekly Production Required
A 10 units
B 20 units
C 5 units
D 5 units
E 10 units
Traditional Production Plan
Sunday Monday Tuesday Wednesday Thursday
AAAAA
AAAAA
BBBBB
BBBBB
BBBBB
BBBBB
DDDDD
CCCCC
EEEEE
EEEEE
JIT Plan Level Scheduling
Sunday Monday Tuesday Wednesday Thursday
AABBBB
CDEE
AABBBB
CDEE
AABBBB
CDEE
AABBBB
CDEE
AABBBB
CDEE
A “level” schedule is developed so that
the same mix of products is made every
day in small quantities.
Leveling the schedule can have big
impact along whole supply chain.
JIT produces same amount in same
time if setup times are lowered.
Small lots also increase flexibility to
meet customer demands.
Communicating the schedule to
suppliers.
4
18. General purpose and moveable equipment:
• Portable equipment with plug in power/air.
• Drills, lathes, printer-fax- 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.
Flexible Resources5
A company that has a flexible resources, that it's mean it has the ability to make any
necessary changes to quickly adapt to different situations :
19. Effective Facility
Layouts
Worker 2Worker 1
Worker 3
Cell 4 Cell 5Cell 3
Cell 1 Cell 2
• Group dissimilar machines in manufacturing cell
to produce family of parts.
• Work flows in one direction through cell.
• Decreasing set-up times.
• Cycle time adjusted by changing worker paths.
6
Worker 1
Worker
3
Cell 1
Worker
2
Manufacturing Cell with Worker
Routes
20. OUT
Process Layout Work Cell
Saw
Lathe
Grinder
Heat
Treat
Lathe
Lathe
Lathe Saw
Heat
Treat
Grinder
Grinder
Press
Press 1
1
2
3
45
2
6
Saw
Press
Using work cells can reduce unnecessary material movement
IN OUT
IN
Work Cell & Process
Layout
2
21. Total quality management
01
02
03
04
05
Levels of Quality
System
Integrate quality into all processes.
Focus on continuous improvement – Kaizen.
Jidoka is authority to stop production line.
Andon lights signal quality problems.
Poka-yoke prevents defects.
Inspection by
independent
inspectors
06 Preventive maintenance – scheduled.
Work environment - everything in its place,
a place for everything.
07
Self-Inspection
By operators
Successive-
Inspection
(at next process)
Source Inspection
Upstream
Process Control
1
2
3
4
5
22. Human resource management
The Role of Management:
1
2
3
4
Facilitate teamwork.
Serve as coaches & facilitators.
Provide multi-functional training.
6
5
Responsible for developing workers.
Support culture with appropriate incentive system including non-
monetary.
Responsible for culture of mutual trust.
23. Human resource management
The Role of Employees:
1
2
3
4
Genuine and meaningful respect for associates.
Willingness to develop cross-functional skills.
Bottom-round management – consensus management by committees or
teams.
1
2
3
Quality circles – small volunteer teams that solve quality problems.
Lifetime
Employment:
Everyone feels secure, is empowered.
Everyone is responsible for quality.
Understand both internal and external customer needs.
24. Human resource management
1
2 Single-source suppliers.
3
Cost and information
sharing.
4
Can supply entire family of
parts.
5 Work together to certify processes.
6
Build long-term relationships with small number of
suppliers.
Fewer contracts.
Supplier Relationships:
25. Summary: Just-In-Time
WHAT IT DOES
WHAT IT
ASSUMES
WHAT IT IS
- Management philosophy.
- Pull system though the plant.
- Attacks waste.
- Exposes problems and bottlenecks.
- Achieves streamlined production.
WHAT IT
REQUIRES
- Employee participation.
- Industrial engineering/basics.
- Continuing improvement.
- Total quality control.
- Small lot sizes.
- Stable environment.
26. Factor Traditional JIT
Inventory
Much to offset forecast errors, late
deliveries
Minimal necessary to operate
Deliveries Few, large Many, small
Lot sizes Large Small
Setup: runs Few, long runs Many, short runs
Vendors Long-term relationships are unusual Partners
Workers Necessary to do the work Assets
Comparison of JIT and Traditional
Systems
27. Benefits of JIT
- Reduced inventory
- Improved quality
- Lower costs
- Reduced space requirements
- Shorter lead time
- Increased productivity
- Greater flexibility
- Reduced scrap and rework
- Better relations with suppliers
- Increased capacity
- Increased equipment utilization
- Better use of human resources
- More product variety
- Simplified scheduling and control activities
28. Just-In-Time and Lean
Production
Lean Production
- Different from JIT in that it is externally focused on the customer.
- Often called the Toyota Production System (TPS).
- In practice, JIT, Lean Systems, and TPS are often essentially the same.
- Use JIT techniques.
- Build systems that help employees produce perfect parts.
- 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.
JIT is a philosophy of continuous and forced problem solving that supports lean
production.
29. JIT in Services
Many JIT concepts also apply to Service companies
- Improved quality such as timeliness, service consistency, and courtesy
- Uniform facility loading to provide better service responsiveness
- Use of multifunction workers
- Reduction in cycle time
- Minimizing setup times and parallel processing
- Workplace organization
30. Examples of successful JIT in
action
McDonald's
McDonald's doesn't begin to cook its orders until a customer
has placed a specific order. It has a sophisticated technology
to making burger.
including a breaking record for bun toaster.
McDonald's is able to make food fast enough to wait until
it's been ordered.
Xiaomi
Similar to Apple, Xiaomi manages a small
inventory by releasing limited quantities of its
mobile phones per week. Xiaomi benefits from
keeping costs down and eliminating wastage.
Zara
Zara epitomizes “fast fashion” by being able to bring items to
market very quickly.
Zara reacts quickly by designing new styles and getting them
into stores while the trend is still peaking, satisfying seasonal
demand and satisfying changing customer preferences.
The brand believes that inventory = death.
This electronics giant keeps as little inventory on
hand as possible. By lowering the amount of
stock on hand. As explained by Tim Cook, CEO of
Apple: “Inventory is fundamentally evil“.
Apple
JIT management is used today by businesses in industries ranging from
retail to fast food to tech:
