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Bangladesh University of
Business and Technology
 Jotish roy
 8th
Intake
 12132107059
 B.Sc in Textile Engineering
Chapter 7 – Just-in-Time
and
Lean Systems
Operations Management
by
R. Dan Reid & Nada R. Sander
Just-In-Time (JIT)
 JIT is an all-encompassing
manufacturing and service
management philosophy that is founded
on the concept of elimination of waste.
 The term just-in-time stems from a
primary form of waste elimination:
reducing inventories (in manufacturing)
and waiting times (in services).
Waste Elimination
 Waste is anything that doesn’t add
value. Examples:
 Time wasted due to unsynchronized
production
 Excessive inventories
 Unnecessary material handling due to
poorly designed layouts
 Scrap & rework due to poor quality
Three Elements of JIT
The Philosophy of JIT
 Often termed “Lean Systems”
 All waste must be eliminated
 Broad view that entire organization must focus on
serving customers
 JIT is built on simplicity- the simpler the better
 Focuses on improving every operation- Kaizen
 Install simple visible control systems
 Flexibility to produce different models/features
Elements of JIT Manufacturing
 Inventory reduction exposes problems
 Kanbans & pull production systems
 Small lots & quick setups
 Uniform plant loading
 Flexible resources
 Efficient facility layouts
Role of Inventory Reduction
Inventory reduction exposes problems
The Pull System
Small Lot Sizes & Quick
Setups
 Small lots mean less average inventory and
shorten manufacturing lead time
 Small lots with shorter setup times increase
flexibility to respond to demand changes
 Strive for single digit setups- < 10 minutes
 Setup reduction process is well-documented
 External tasks- do as much preparation while
present job is still running
 Internal tasks- simplify, eliminate, shorten steps
involved with location, clamping, & adjustments
Uniform Plant Loading
 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
Monday Tuesday Wednesday Thursday Friday
AAAAA BBBBB BBBBB DDDDD EEEEE
AAAAA BBBBB BBBBB CCCCC EEEEE
Monday Tuesday Wednesday Thursday Friday
AABBBB AABBBB AABBBB AABBBB AABBBB
CDEE CDEE CDEE CDEE CDEE
5 units
5 units
10 units
Weekly Production Required
Traditional Production Plan
JIT Plan with Level Scheduling
A
B
C
D
E
10 units
20 units
Flexible Resources
 Moveable, general purpose equipment:
 Portable equipment with plug in power/air
 E.g.: drills, lathes, printer-fax-copiers, 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
Effective Facility Layouts
 Workstations in close physical proximity to
reduce transport & movement
 Streamlined flow of material
 Often use:
 Cellular Manufacturing (instead of process
focus)
 U-shaped lines: (allows material handler to
quickly drop off materials & pick up finished work)
Traditional Process Focused Layout
 Jumbled flows, long cycles, difficult to schedule
JIT Cellular Manufacturing
 Product focused cells, flexible equipment, high
visibility, easy to schedule, short cycles
JIT and TQM- Partners
 Build quality into all processes
 Focus on continuous improvement - Kaizen
 Quality at the source- sequential inspection
 Jidoka (authority to stop line)
 Poka-yoke (fail-safe all processes)
 Preventive maintenance- scheduled
 Work environment- everything in its place, a
place for everything
Respect for People: The Role of
Employees
 Genuine and meaningful respect for associates
 Willingness to develop cross-functional skills
 Actively engage in problem-solving (quality circles)
 Everyone is empowered
 Everyone is responsible for quality: understand both
internal and external customer needs
 Associates gather performance data
 Team approaches used for problem-solving
 Decisions made from bottom-up
 Everyone is responsible for preventive maintenance
The Role of Management
 Responsible for culture of mutual trust
 Serve as coaches & facilitators
 Support culture with appropriate incentive
system including non-monetary
 Responsible for developing workers
 Provide multi-functional training
 Facilitate teamwork
Supplier Relationships and JIT
 Use single-source suppliers when possible
 Build long-term relationships
 Work together to certify processes
 Co-locate facilities to reduce transport if possible
 Stabilize delivery schedules
 Share cost & other information
 Early involvement during new product designs
Benefits of JIT
 Smaller inventories
 Shorter lead times
 Improved quality
 Reduced space requirements
 Lower production costs
 Increased productivity
 Greater flexibility
JIT in Services
 Most of the JIT concepts apply equally to
Service companies
 Cellular layouts, product focused, & flexible
employees shorten response times
 Service inventory, “paperwork”, should be
eliminated, simplified, examined for “waste”
 “Fail-safe” all processes from Orders-
Payment
 Team based organizations

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Just In Time(JIT)

  • 1. Bangladesh University of Business and Technology  Jotish roy  8th Intake  12132107059  B.Sc in Textile Engineering
  • 2. Chapter 7 – Just-in-Time and Lean Systems Operations Management by R. Dan Reid & Nada R. Sander
  • 3. Just-In-Time (JIT)  JIT is an all-encompassing manufacturing and service management philosophy that is founded on the concept of elimination of waste.  The term just-in-time stems from a primary form of waste elimination: reducing inventories (in manufacturing) and waiting times (in services).
  • 4. Waste Elimination  Waste is anything that doesn’t add value. Examples:  Time wasted due to unsynchronized production  Excessive inventories  Unnecessary material handling due to poorly designed layouts  Scrap & rework due to poor quality
  • 6. The Philosophy of JIT  Often termed “Lean Systems”  All waste must be eliminated  Broad view that entire organization must focus on serving customers  JIT is built on simplicity- the simpler the better  Focuses on improving every operation- Kaizen  Install simple visible control systems  Flexibility to produce different models/features
  • 7. Elements of JIT Manufacturing  Inventory reduction exposes problems  Kanbans & pull production systems  Small lots & quick setups  Uniform plant loading  Flexible resources  Efficient facility layouts
  • 8. Role of Inventory Reduction Inventory reduction exposes problems
  • 10. Small Lot Sizes & Quick Setups  Small lots mean less average inventory and shorten manufacturing lead time  Small lots with shorter setup times increase flexibility to respond to demand changes  Strive for single digit setups- < 10 minutes  Setup reduction process is well-documented  External tasks- do as much preparation while present job is still running  Internal tasks- simplify, eliminate, shorten steps involved with location, clamping, & adjustments
  • 11. Uniform Plant Loading  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 Monday Tuesday Wednesday Thursday Friday AAAAA BBBBB BBBBB DDDDD EEEEE AAAAA BBBBB BBBBB CCCCC EEEEE Monday Tuesday Wednesday Thursday Friday AABBBB AABBBB AABBBB AABBBB AABBBB CDEE CDEE CDEE CDEE CDEE 5 units 5 units 10 units Weekly Production Required Traditional Production Plan JIT Plan with Level Scheduling A B C D E 10 units 20 units
  • 12. Flexible Resources  Moveable, general purpose equipment:  Portable equipment with plug in power/air  E.g.: drills, lathes, printer-fax-copiers, 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
  • 13. Effective Facility Layouts  Workstations in close physical proximity to reduce transport & movement  Streamlined flow of material  Often use:  Cellular Manufacturing (instead of process focus)  U-shaped lines: (allows material handler to quickly drop off materials & pick up finished work)
  • 14. Traditional Process Focused Layout  Jumbled flows, long cycles, difficult to schedule
  • 15. JIT Cellular Manufacturing  Product focused cells, flexible equipment, high visibility, easy to schedule, short cycles
  • 16. JIT and TQM- Partners  Build quality into all processes  Focus on continuous improvement - Kaizen  Quality at the source- sequential inspection  Jidoka (authority to stop line)  Poka-yoke (fail-safe all processes)  Preventive maintenance- scheduled  Work environment- everything in its place, a place for everything
  • 17. Respect for People: The Role of Employees  Genuine and meaningful respect for associates  Willingness to develop cross-functional skills  Actively engage in problem-solving (quality circles)  Everyone is empowered  Everyone is responsible for quality: understand both internal and external customer needs  Associates gather performance data  Team approaches used for problem-solving  Decisions made from bottom-up  Everyone is responsible for preventive maintenance
  • 18. The Role of Management  Responsible for culture of mutual trust  Serve as coaches & facilitators  Support culture with appropriate incentive system including non-monetary  Responsible for developing workers  Provide multi-functional training  Facilitate teamwork
  • 19. Supplier Relationships and JIT  Use single-source suppliers when possible  Build long-term relationships  Work together to certify processes  Co-locate facilities to reduce transport if possible  Stabilize delivery schedules  Share cost & other information  Early involvement during new product designs
  • 20. Benefits of JIT  Smaller inventories  Shorter lead times  Improved quality  Reduced space requirements  Lower production costs  Increased productivity  Greater flexibility
  • 21. JIT in Services  Most of the JIT concepts apply equally to Service companies  Cellular layouts, product focused, & flexible employees shorten response times  Service inventory, “paperwork”, should be eliminated, simplified, examined for “waste”  “Fail-safe” all processes from Orders- Payment  Team based organizations