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Chapter2.

Just In Time (JIT)/Lean Philosophy


2.1 Introduction

This lesson sets out to introduce and examine the


approach called Just In Time (JIT) or Lean by
considering the philosophy which underpins this
approach.
Upon completion of this lesson, you should be able
to:
• Differentiate the difference between the traditional and JIT
approaches to manufacturing
• Explain the relationship between Lean and JIT
• Explain the concept of waste with respect to manufacturing
operations
2.1 Introduction
Just in Time (JIT)
• Simply means producing goods and services exactly when
they are needed; NOT BEFORE they are needed so that
they wait as inventory, NOR AFTER they are needed so
that customers who have to wait.
• In addition, this “time-based” element of JIT emphasize on
quality and efficiency. Thus, Lean and JIT complement each
other.

Lean Operations
• Can be define as moving towards the elimination of all
waste in order to develop an operation that is faster, more
dependable, produces higher quality products & services
and operates at low cost.
2.2 JIT definitions

Just in Time (JIT) aims to meet demand instantly, with


perfect quality and no waste
More specifically, the objectives of JIT are:

• Improved overall productivity and elimination of waste


• Ensure cost-effective production and delivery of only the
necessary quantity of parts at the right quality, at the right
time and place, while using a minimum amount of facilities,
equipment, materials and human resources
• JIT is dependent on the balance between the supplier’s
flexibility and the user’s flexibility
• It is accomplished through the application of elements which
require total employee involvement and team-work
• A key philosophy of JIT is simplification
2.2 JIT definitions

Just in Time (JIT) aims to meet demand instantly, with


perfect quality and no waste
More specifically, the objectives of JIT are:

• Improved overall productivity and elimination of waste


• Ensure cost-effective production and delivery of only the
necessary quantity of parts at the right quality, at the right
time and place, while using a minimum amount of facilities,
equipment, materials and human resources
• JIT is dependent on the balance between the supplier’s
flexibility and the user’s flexibility
• It is accomplished through the application of elements which
require total employee involvement and team-work
• A key philosophy of JIT is simplification
2.3 Comparison between tradition approach
and JIT approach to manufacturing

Fig.2: Traditional and JIT flow between stages


2.3.1 Tradition approach

• Assumes each stage will place parts in an


inventory which “buffers” that stage from the next
one downstream the process.
• The buffers which act as an insulator make each
stage relatively independent. For example, if stage
A stop production (say machine breakdown, etc.),
Stage B can go on working for some time until
the inventory level runs low. Likewise, it will not
affect Stage C and so on.
• A disadvantage is that this insulation has to be
paid for in terms of inventory
2.3.1 Tradition approach

• (working capital) and slow throughput times


(slow customer response).
• The advantage is each stage can operate in an
uninterrupted, and therefore efficient, manner
• Another disadvantage is that since each stage
is independent, problem in one stage is not a
problem for other stages and thus will not be
apparent in the manufacturing line. In other
words, there is poor communications between
stages until it is too late e.g. plant shutdown!
2.3.2 JIT approach

• Here parts are produced as the orders come in


and delivers to the next stage
• ‘just-in-time’ for them to processed.
• JIT eliminates large inventory or buffers!
• Each stages are dependent on each other for
smooth operation.
• If stage A stops production, stage B will notice
immediately and stage C very soon after.
2.3.2 JIT approach

• Stage A’s problem is quickly exposed to the


system and the whole system is affected by the
problem. The advantage is that all other stages
will work together to solve the problem in Stage
A.
• In order words, by preventing inventory from
accumulating between stages, the operation has
increased the chances of the intrinsic efficiency of
the plant being improved.
2.3.2 JIT approach

• JIT sees inventory as a “blanket of obscurity”


which lies over the production system and
prevents problems being noticed.
• The “rocks in water” analogy outlines the JIT
approach to inventory and problem exposure:

Fig.3
2.3.2 JIT approach

Fig.3:
The many problems of operation are shown as rocks
in the river bed which cannot be seen because of the
depth of water (excess inventory), as in the traditional
approach. Yet, even through the rocks cannot be seen,
they slow the progress of the water (inventory) flow
and cause turbulence.
If the level of inventory (water) is reduced, the
problem (rocks) are exposed and can be resolved. The
key message is that high inventories are costly and
hide the problems, which are impeding product flow,
which in turn requires high inventory levels
2.4 JIT and Capacity Utilization

• In JIT the main sacrifice is capacity utilization


• In the traditional approach, when one stage stop
production, the buffers allow other stages to carry
on working and thus achieve high capacity
utilization. This however does not ensure more
products reach the customer as the parts produced
will normally ended up in buffer inventories.
• It should be mentioned that there is no point
producing products unless they are needed, so
achieving higher utilizations through this tactic is
a worthless exercise.
2.4 JIT and Capacity Utilization

• In the JIT approach, any stoppage will normally


stop the whole system and this leads to lower
capacity utilization, however as the problems are
solved, over time the utilization will improve.
• In general, for a given level of demand, capacity
requirements are often lower under JIT
conditions.
2.4 JIT and Capacity Utilization

• Fig.3 shows the two approaches to capacity


utilization.
2.5 JIT and Traditional approach

• From product flow point of view, both approaches


seek to obtain high efficiency in the operation, but in
different ways.
• The traditional approach seeks to do this by the use
of buffer stock between stages to protect each part
of the operation from disruption. In this scenario
long production runs are preferred.
• Within the JIT approach the buffers are dramatically
reduced or removed and this ensures that the system
has to react to problems which occur quickly or
production will stop completely.
2.6 The lean philosophy of operation

• The three key issues that define Lean philosophy that underpins the
techniques of
• JIT are: (1) Elimination of waste, (2) Involvement of everybody
and (3) the drive for continuous improvement.
• As shown below, the JIT techniques (i.e. managing operations &
planning and control) support and allow the key principles of Lean
to be achieved, particularly waste reduction.
2.6 The lean philosophy of operation

• The JIT approach to operations management is


sometimes known as the high dependency theory.
• It derives partly from the logic which explains the
benefits of low buffer inventories. With high
inventories insulating each stage in the production
process (as seen in the earlier slide) the dependency
of the stages on one another was low. Take away the
inventory and their mutual dependency increases.
2.6 The lean philosophy of operation

Eliminate Waste
• Waste can be defined as any activities which does not add
value.
• Toyota identified 7 types of generic waste that can be found in
any manufacturing operations:
(1) Over-production
Is considered the greatest source of waste
(2) Waiting time
Machine efficiency and labour efficiency are two main measures of
waiting time.
(3) Transport
Moving materials around the plant does not add any value.
Layout changes which bring processes closer together, improvements
in transport methods and workplace organization can all reduce waste.
2.6 The lean philosophy of operation

(4) Process
Some operations may only exist because of poor component design, or
poor maintenance, and so could be eliminated.
(5) Inventory
Should be kept to minimum or complete elimination.
Tackling the root cause of inventory can eliminate inventory
(6) Motion
An operator may look busy but sometime no value is being added by
the work.
Simplification of work is a rich source of reduction in the waste of
motion
(7) Defective goods
Cost money and therefore the cause of poor quality must be tackled.
2.6 The lean philosophy of operation

The Involvement of Everyone


• Lean philosophy is seen as a “total” system. Its aim is to
provide guidelines that embrace everyone and every process in
the organization.
• It encourages:
team-based problem solving
job enrichment (by including maintenance and setup tasks
in operators jobs)
job rotation
multi-skilling
• The intention is to encourage a high degree of personal
responsibility, engagement and ownership of the job.
2.6 The lean philosophy of operation

Continuous Improvement
• Lean philosophy believes that the way to reach perfection is
through continuous improvement.

• Its aim is to set high organizational goals which the


organization may never fully achieve, then the emphasis must
be on the way in which an organization moves closer to the
ideal state.

• The Japanese word for continuous improvement is kaizen,


and it is a key part of the Lean philosophy.
Lesson Summary
• In this lesson, you have been introduced to the Lean/JIT approach to
manufacturing.
• Lean and JIT are terms often used interchangeably. However we have
seen that the Lean philosophy (continuous improvement, elimination of
waste and involvement of everyone to meet demands instantaneously with
no waste) depends very much on a range of JIT operations and control
techniques.
• Traditional approaches to manufacturing rely on high levels of buffer
inventories between work-stations to isolate them from stoppages. This
inventory hides the problems which undermine JIT operations. On the
other hand, JIT seeks to remove the protection of inventory and expose
the problems so that they can be resolved immediately. This in turn allows
demand to be met without high levels of inventory.

• There are 7 wastes within any manufacturing operations which add no


value to the product being produced and should be the focus of
elimination strategies.
Homework-I

Question-1:

a) a) Explain the “lean” approach to manufacturing


and outline its relationship with JIT.
b) Explain how JIT operations differ from traditional
operations by considering product flow.
c) Explain the “rock in the water” analogy outlines the
JIT approach to inventory and problem exposure.
Homework-I

Question-2:

a) Outline and discuss the 7 wastes which the lean


approach demands to be removed or minimized
from manufacturing operations.
b) Briefly describe the high dependency theory.
Homework-I

Question-3:

JIT/Lean is a modern manufacturing philosophy used


by many organizations to improve their operational
performance.
A. What are the key principles of the “JIT” or “Lean
philosophy”?
B. Explain the different views related to capacity
utilization held by the “JIT” and “Traditional”
approaches. Explain why inventory levels are
important.
Chapter2-cont’

JIT Techniques
2.7 JIT Techniques

Continuous Improvement

This lesson sets out to examine JIT techniques which


are considered as key to implementing Lean
philosophy.
Upon completion of this lesson, you should be able to:
– Describe the key JIT techniques
– Explain the specific contribution each technique makes to
the achievement of Lean operations
2.7 JIT Techniques

There are many techniques which could be termed JIT


techniques and they follow on naturally and logically from the
overall Lean philosophy.

Some of the JIT techniques that are of importance include:


• Adopt basic working practices
• Design for ease of processing
• Emphasize operations focus
• Use small simple machines
• Layout for smooth flow
• Adopt total productive maintenance (TPM)
• Reduce set-up times
• Ensure visibility
• Adopt JIT through the supply chain
2.7 JIT Techniques

(1) Adopt basic working practices


• Basic working practices is considered as the method of
operationalizing the “involvement of everyone” Lean
principle.
• This is achieve by equipping staff with the skills to undertake
the role expected and to make sure the role is clearly defined.
• In addition to encourage autonomy of thinking so staff can
make decisions relating to their role and are able to flag up
problems as they identify them. It contributes to JIT
operations by ensuring that the staff take on much more
responsibility to use their abilities to the benefit of the
company as a whole. This leads to a more efficient
production environment.
2.7 JIT Techniques

They include the following:


• Discipline: Work standard that are critical for the safety of
the staffs, quality of the product and the environment must be
followed by everyone at all time.
• Flexibility: Responsibilities should be expanded to make
staffs more flexible. Barriers to flexibility such as grading
structures and restrictive practices should be removed.
• Equality: Unfair and divisive personnel policies should be
discarded.
• Autonomy: Delegate staff involved in direct activities with
responsibilities to make decision such as for stopping
processes in the event of problems, scheduling work, and
materials arrival, general problem solving, etc.
2.7 JIT Techniques

• Development of personnel: Over time, the aim is to create


more staffs who can support the rigors of being competitive.
• Quality of Working Life (QWL): e.g. involvement in
decision making, security of employment, enjoyment and
work area facilities.
• Creativity: Staffs should not only do the job satisfactory,
they should also be motivated to improvise themselves.
• Total People Involvement: Staffs are expected to participate
fully in company wide activities such as the selection of new
recruits, dealing with suppliers, and customers over
schedules, dealing with quality issues, spending improvement
budgets, handling meetings, etc.
2.7 JIT Techniques

(2) Design for ease of processing

• This attempts aim to reduce the amount of non-value added


activities such as “motion” and “defective goods” in the
design process without affecting the needs of production.
• Design improvements can dramatically reduce product cost
through the reduction in the number of components and sub-
assemblies, and better use of materials and processing
techniques. This leads to more efficient production processes.
2.7 JIT Techniques
(3) Emphasize operations focus
• This technique is all about focus, i.e. the focus of processes
and supporting services on a limited and manageable range of
products.
• This focus helps to give clarity and cohesiveness to
operations and the personnel who work within them.
(4) Use small simple machines
• This technique is about the use of smaller machines rather
than larger ones.
• Some clear benefits of using small, simple machines are (a)
increase the flexibility of layouts, (b) improve flow of
products due to the increased number of smaller resources
and (c) the reduction in investment risks.
2.7 JIT Techniques
The explanation:

One large machine produces a batch of component A, followed


by a batch of component B, followed by a batch of component
C. However, if 3 smaller machines are used, they can each
produce A, B or C simultaneously. The system is also more
robust. If one large machine breaks down, the whole system
ceases to operate. In contrast, if one smaller machine breaks
down, it is still operating at two-thirds effectiveness. Small
machines are also easily moved, so that layout flexibility is
enhanced, and the risks of making errors in investment decisions
are reduced because small machines usually require lower
investment.
2.7 JIT Techniques
(5) Layout for smooth flow

• This technique is about redesign of the layout to achieve a


cell-based layout i.e. by placing workstations close together
in such a way that all those who contribute to a common
activity are in sight of each other.

• The advantages of having improved layout include improved


visibility and control, no inventory buildup, a reduction in
transport and delay activities and increased throughput time
of products.
2.7 JIT Techniques
(6) Adopt TPM

• This technique aims to eliminate the variability in operations


processes caused by the effect of unplanned breakdowns.

• TPM seeks to involve everyone in maintenance and some of


the lower activities are taken on by the operators. This action
allows key maintenance personnel to take on a more
proactive role to improved maintenance systems, thereby
reducing the chances of breakdowns.
2.7 JIT Techniques
(7) Reduce set-up times
• A reduction in the set-up times allows the process to be more
efficient and therefore changeovers from one product to
another can be achieved efficiently.
• This reduces the wastes associated with delays and makes the
system more responsive to customer needs.
• Set-up time reduction is also called single minute exchange
of dies (SMED) because this was the objective in some
manufacturing operations.
2.7 JIT Techniques
(8) Ensure visibility

• This technique simply seeks to make operation transparent


for all staff to share in its management and improvement.
• This is achieve by a variety of methods (e.g. stoppage lights,
performance measures, control systems, etc.) to make an
operation and its problems more easily detected. This
information allows quicker more effective monitoring and
control, and allows problems to be identified and solved
faster and efficiently.
2.7 JIT Techniques
(8) Ensure visibility (Cont’)

• An important technique used to ensure visibility of quality


problems is the use of visual signals to indicate when a
problem occurs and usually stop the process. For example, on
an assembly line. If an operator detects some kind of quality
problem, he/she could activate a signal that illuminates a light
called an Andon light above the workstation and stop the line.

• Although this may seem to reduce efficiency of the line, the


idea is that this loss of efficiency in the short term is less than
the accumulated losses of allowing defects to continue on in
the process.
2.7 JIT Techniques
(9) Adopt JIT through the supply chain
• An approach to not just limit the implementation of JIT
within one organization but to apply the same principles in
key suppliers within the supply chain.
• This can remove a number of wasteful activities and practices
in the supply chain thus leading to more efficient operations
and cost reduction.
• Professor Lamming of Bath University UK has proposed a
model of customer-supplier relationships that he calls “lean
supply”.
Lesson summery

• A number of JIT techniques are required to be implemented if


Lean philosophy (continuous improvement, elimination of
waste and involvement of everyone to meet demands
instantaneously with no waste) are to be successful.
• JIT techniques do not just involve the production department
but affect all aspects of operations, ranging from human
resource management, the design of products, facility layout,
maintenance and set-up strategies.
• For an organization to consider itself as a “JIT” operation it
needs to have considered how these broad principles could be
applied to their particular context and to have successfully
implemented these techniques.
Assignment-1
Question-4
a) Select 5 of the JIT techniques and briefly describe their key
purpose and how they contribute to JIT operations.
Assignment-1
Case study-1

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