Big vs.

Little JIT
Just-in-time (JIT) manufacturing,
just-in-time production
 Big vs. Little JIT

Big JIT – broad focus

• Vendor relations
• Human relations
• Technology management
• Materials and inventory management

Little JIT – narrow focus

• Scheduling materials
• Scheduling services of production
 HEIJUNKA
Production planning method in which the sequence of items to be
produced during a given day are determined based on process load,
capacities and external demand

Established the production sequence at the start of the first operation

Maintained the sequence throughout the remainder of the flow-

oriented production process

A mixed production system, where various and changeable sequences

of mixed models are produced on the same assembly line.
 HEIJUNKA

Incorporates with Leveling Concept:

• balance the work load to be performed to the capacity or capability of the

process (machines and operators) to complete the work.

Incorporates with Line Balancing

• attempt to equate (balance) work loads (production rates) at each process to

each other
• constraint: little/no finished-goods stock

Objectives:

• The reduction in inventories due to very small batch, mixed production

• The associated ability to equate work loads in each production process to
each other and to capacity
 The Requisites of Heijunka Implementation

Minimum set up time

• simple and quick change over
• use common jigs and fixtures
• use simple techniques: one minutes and one touch set
up changes (SMED)

Cross-trained and flexible employees

• flexible machinery and equipment
• rotation through several job over the course of
production shift
• the same employee’s work load
 The Requisites of Heijunka Implementation

The implementation of poka-yoke

• A poka-yoke is any mechanism in a lean
manufacturing process that helps an equipment
operator avoid (yokeru) mistakes (poka).
• Its purpose is to eliminate product defects by
preventing, correcting, or drawing attention to
human errors as they occur.

Supply parts in very small lots without delays

•use Kanban
 Advantages of Heijunka

Reduction in overall inventories

• minimized inventory levels
• minimizes inventory carrying cost

Reduction of required productive capacity

• machines, personnel, material

Reduction of lead times to the customer

Resulting effects on Kaizen effort

 Summary JIT Goals and Building Blocks
Ultimate A
Goal balanced
rapid flow

Supporting Reduce setup

Goals and lead times

Eliminate disruptions Eliminate waste

Make the system flexible Minimize inventories

Product Process Personnel Manufactur- Building

Design Design Elements ing Planning Blocks
 Product Design

• Standard parts
• Modular design
• Highly capable
production
systems
 Process Design

• Small lot sizes

• Setup time reduction
• Manufacturing cells
• Limited work in process
• Quality improvement
• Production flexibility
• Little inventory storage
Personnel/Organizational Elements
• Workers as assets
• Cross-trained workers
• Continuous improvement
• Cost accounting
• Leadership/project
management
Manufacturing Planning and Control
• Level loading
• Pull systems
• Visual systems
• Close vendor relationships
• Reduced transaction
processing
• Preventive maintenance
 Benefits of Small Lot Sizes
Reduces inventory
Less rework
Less storage space
Problems are more apparent
Increases product flexibility
Easier to balance operations
 Production Flexibility

Reduce downtime by reducing changeover

time
Use preventive maintenance to reduce
breakdowns
Cross-train workers to help clear bottlenecks
Reserve capacity for important customers
 Reducing Lot Sizes Increases the Number of Lots

Customer Lot size = 5

orders 10 Lot 1 Lot 2

Lot size = 2
Lot 1 Lot 2 Lot 3 Lot 4 Lot 5
Effect of Process Batch Size
Effect of Transfer Batch Size
 …Which Increases
total Costs
Cost

Setup Cost

Smaller Optimal Lot Size

Lot Size Lot Size
Unless Setup Costs are Reduced

Cost

Setup Cost
Original
optimal Lot Size
New optimal lot size lot size
 Steps to Reduce Setup Time
90 min
Initial Setup Time

Separate setup into preparation, and actual setup,

Step 1 doing as much as possible while the
machine/process is running (save 30 minutes) 60 min
Move material closer and improve
Step 2
material handling (save 20 minutes)
45 min
Standardize and
Step 3 improve tooling
(save 15 minutes) 25 min
Step44
Step Use one-touch system to eliminate 15 min
adjustments (save 10 minutes) 13 min
Step 5 Training operators and
standardizing work procedures (save 2 minutes)
 JIT Scheduling Tactics

• Communicate the schedule to suppliers

• Make level schedules
• Perform to schedule
• Seek one-piece-make and one-piece-move
• Eliminate waste
• Produce in small lots
• Use kanbans
• Make each operation produce a perfect part
 Level Schedules
• Build same mix of products every day
– Monthly demand of item A = 40, item B = 60
– 1 month = 20 working days
– Item Monthly Quantity Daily Quantity
A 40 2

B 60 3
– A BA B B
 Small versus Large Lots
JIT produces same amount
in same time if setup times
JIT Small Lots are lowered

A A B B B C A A B B B C

Time
Small lots also increase flexibility to meet
customer demands
Large-Lot Approach

A A A A B B B B B B C C

Time
 Mixed Model Sequencing
Model Daily Quantity Unit per cycle
A 10 10/5=2
B 15 15/5=3
C 5 5/5=1

Cycle 1 2 3 4 5
Pattern AABBBC AABBBC AABBBC AABBBC AABBBC

Using 5 Cycles
 Sequence: A B C
Model Daily Quantity Unit per cycle
A 7 7/5=1 excess 2
B 16 16/5=3 excess 1
C 5 5/5=1

Cycle 1 2 3 4 5
Pattern A B(3) C A(2)B(3)C AB(4)C A(2)B(3)C AB(3)C
Extra A B A
Unit (s)
 Sequence: A B C
Model Daily Quantity Unit per cycle
A 8 8/5=1 excess 3
B 16 16/5=3 excess 1
C 5 5/5=1

Cycle 1 2 3 4 5
Pattern A(2)B(3)C AB(3)C A(2)B(4)C AB(3)C A(2)B(3)C
Extra A AB A
Unit (s)
 Sequence: A B C D ?

Model Weekly Quantity

A 20
B 40
C 30
D 15

1 week = 5 days
 Sequence: A B C D
Model Weekly Unit per day Units Short
Quantity Using 3 Cycles

A 20 20/5 = 4 4/3 = 1 (1)

B 40 40/5=8 8/3 = 2 (2)
C 30 30/5=6 6/3 = 2 (-)
D 15 15/5=3 3/3 = 1 (-)
Cycle 1 2 3
Pattern AB(3)C(2)D AB(3)C(2)D A(2)B(2)C(2)D
Extra Unit (s) B B A
 Mixed-Model Sequencing
Determining Production Sequence
Monthly Daily
Product Demand Requirements
A 800  20  40
B 800  20  40
C 200  20  10
Largest integer that divides into all daily requirements evenly is 10
Product Daily Requirements Divided by 10
A 4010 4
B 4010 4
C 1010 1
Mixed-model sequence
A-B-A-B-A-B-A-B-C Repeat 10 times per day
 Cycle Times
Working time per day = 480 minutes
The system cycle time = 480/(40+40+10) = 5.33 min/unit

Product Requirements Cycle Time

A 40 480 4012
B 40 480 4012
C 10 48010 48
 Latihan Soal 1
• Calculate the number of kanbas needed at
the ABC Company for the following two
products, produced in a factory that works
eight hours per day, five days per week:
Product 1 Product 2
Usage 300/week 150/day
Lead Time 1 week 2 week
Container size 20 units 30 units
Safety stock 15 percent 0

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 Soal 2
• Calculate the number of kanban required
for the following four components at the
ABC company in problem 1.
Component
W X Y Z
Daily usage 900 250 1,200 350
Lead Time 2 hours 5 hours 1 hour 3 hour
Container size 25 units 40 units 50 units 20 units
Safety stock 25 percent 20 percent 15 percent 10 percent

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 Soal 3
• The BCD Company has successfully implemented JIT internally, and
now wishes to convert one of its main suppliers to JIT as well. As a
test of feasibility, the firms have selected one item made by this
supplier for BCD. The supplier currently manufactures and delivers
this item in batches of 6,000 with a lead time of two weeks. The
current price paid is $150/unit, and the average usage rate at BCD is
250 units per day. Under JIT, the kanban container size would be 100
units, 10 percent safety stock, and lead time of two weeks (10 days).
• A. what is the current investment in work in process inventory for this
item at BCD (assume average inventory is Q/2)?
• B. what is the change in investment if the proposed JIT system is
implemented?
• C. A consulting study indicates that for an additional $100,000
investment, lead time could be reduced from two weeks to one week.
Evaluate the feasibility of this investment.

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 Soal 4
• The DEF Company produces three products using a mixed model assembly line, which is
operated 16 hours per day (two shifts of eight hours each) for 250 days per year.
• The annual demand forecast for the products are as follows:

products Forecast
1 20,000
2 10,000
3 5,000

• A. Determine a mixed model master production schedule for a daily batch, based on the
minimum batch size for each product.
• B. Prepare a daily schedule indicating the number of each product to be produced each
day.
• C. Product 1 requires two units of component A and one unit of component B. If
component A is manufactured internally at DEF, how many kanbans would be required
for this component if the lead time is two days, the safety factor is 15 percent, and the
container size is 25 units?

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