Just-in-Time

Presented By:
Azwer Khan
2016-MSE-IMHafiz Umar
2016-MSE-IM-08

Objectives
Explain the core beliefs of the JIT philosophy
Describe the meaning of waste in JIT
Explain the differences between push and pull

systems
Explain the key elements of JIT manufacturing
Explain the elements of TQM and their role in JIT
Describe the role of people in JIT and why respect
for people is so important
Understand impact of JIT on service and
manufacturing
Understand functional impact of JIT on all areas
Case Studies

Just-in-Time
JIT philosophy means getting the right

quantity of goods at the right place and the

right time
JIT exceeds the concept of inventory
reduction; it is an all-encompassing philosophy
geared to eliminate waste, anything that does
not add value
A broad JIT view or lean production/lean
systems - is one that encompasses the entire
organization
4

Philosophy of Just-in-Time
JIT originated in Japan at Toyota Motor Co,

fueled by a need to survive the

devastation post WWII
JIT gained worldwide prominence in the
1970s
Often termed Lean Production or Lean
Systems
Broad view that entire organization has
the same goal - to serve customers
5

The Philosophy of JIT cont

JIT is built on simplicity - simpler is better
Continuous improvement
Visibility all waste must be visible to be

identified and eliminated

Flexibility - to adapt to changes in
environment

Three Elements of JIT

Three Elements of JIT cont

JIT manufacturing focuses on production

system to achieve value-added

manufacturing
TQM is an integrated effort designed to
improve quality performance at every
level
Respect for people rests on the
philosophy that human resources are an
essential part of JIT philosophy
8

Elements of JIT
Manufacturing

JIT Manufacturing is a philosophy of

value-added manufacturing
Achieved by focusing on these
elements:
Inventory reduction - exposes problems
Pull production systems
Small lots & quick setups
Uniform plant loading
Flexible resources
Efficient facility layouts
9

Role of Inventory Reduction

Inventory = Lead Time (less is better)
Inventory hides problems

10

JIT Manufacturing:
The Pull System
Traditional manufacturing systems use push production; JIT uses
pull production. Push systems anticipate future demand and
produce in advance in order to have products in place when
demand occurs. Pull systems work backwards. The last
workstation in the production line requests the precise amounts of
materials required.

11

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

Ultimate goal is single unit lot sizes

12

Wiley 2010

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
Weekly Production Required
A
B
C
D
E
Traditional Production Plan
Monday
Tuesday
AAAAA
BBBBB
AAAAA
BBBBB
JIT Plan with Level Scheduling
Monday
Tuesday
AABBBB
AABBBB
CDEE
CDEE

13

10 units
20 units
5 units
5 units
10 units
Wednesday
BBBBB
BBBBB

Thursday
DDDDD
CCCCC

Friday
EEEEE
EEEEE

Wednesday
AABBBB
CDEE

Thursday
AABBBB
CDEE

Friday
AABBBB
CDEE

Flexible Resources
Moveable, general purpose

equipment:
Portable equipment with plug in power/air
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
14

Wiley 2010

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)

15

Respect for People:

The Role of Employees

Associates gather performance

data
Team approaches used for
problem-solving
Decisions made from bottom-up
Everyone is responsible for
preventive maintenance
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Respect for People

The Role of Employees:
Genuine and meaningful respect for

associates
Willingness to develop cross-functional skills
Bottom-round management consensus
management by committees or teams
Quality circles small volunteer teams that
solve quality problems

17

Respect for People

Lifetime Employment:
Everyone feels

secure/is

empowered
Everyone is responsible for
quality: understand both internal
and external customer needs

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Respect for People

The Role of Management:
Responsible for culture of mutual trust
Serve as coaches & facilitators
Responsible for developing workers
Provide multi-functional training
Facilitate teamwork

Support culture with appropriate incentive

system including non-monetary

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Respect for People

Supplier Relationships
Single-source suppliers
Can supply entire family of parts

Build long-term relationships with small

number of suppliers
Fewer contracts
Cost and information sharing
Work together to certify processes
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Benefits of JIT
Reduction in inventories
Improved quality
Reduced space requirements
Shorter lead times
Lower production costs
Increased productivity
Increased machine utilization
Greater flexibility

21

Wiley 2010

Implementing JIT
Starts with a company shared vision of

where it is and where it wants to go

Management needs to create the right
atmosphere
Implementation needs a designated
Champion

22

Wiley 2010

Implementing JIT cont

Implement the sequence of seven steps:

1.
2.
3.
4.
5.
6.
7.

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Make quality improvements

Reorganize workplace
Reduce setup times
Reduce lot sizes & lead times
Implement layout changes
Switch to pull production
Develop relationship with suppliers

Wiley 2010

JIT in Services
Many JIT concepts also apply to Service
companies
Improved quality such as timeliness, service

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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

Case Study:Toyota Production System (TPS)

JIT is a philosophy that was developed by the

Toyota Motor Company in the mid-1970s by

Taiichi Ohno. It has become the standard for
many industries by focusing on simplicity,
eliminating waste, taking a broad view of
operations, visibility, and flexibility..
Four tool used in TPS
Heijunka
Muda
Takt time
Kanban
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Continue..
Heijunka (Leveling the Flow)
Heijunkais a key part of just-in-time processes. With just-intime inventory costs are minimized by having the required
parts delivered only when they are needed.
Muda (Waste)
Waste (muda) is defined as anything that does not add value.
This includes areas that might not normally be considered as
waste, such as overproduction, holding too great an inventory,
and all unnecessary movement, processing and waiting.
Takt time (Heartbeat of Production)
Time managementis central to the Toyota Production

System.Takt is the rate of customer demand. Takt time is

the term given to a work-cycle that fulfils each customer's
demand.

Kanban (Visual Card)

Thekanban cardis a simple, highly visible device that the
Toyota Production System uses to call-up components as
they are required, meaning only a minimal stock of
components is held in the assembly area. Before stocks
need replenishing a kanban card instruction from the
operator ensures a just-in-time delivery.

TOYOTAS SIX RULES

Do not send defective products to the

subsequent process
The subsequent process comes to withdraw
only what is needed
Produce only the exact quantity withdrawn by
the subsequent process
Level the production
Kanban is a means to fine tuning
Stabilize and rationalize the process

Process Flow Chart

Operational Achievement
Improvement in Production
Better managed inventory levels
Smoother manufacturing flow
Overproduction elimination.
Reduced risk of Inventory obsolescence

Toyota Overall Achievement

Toyota is considered by many to be the poster child for

JIT success.
The Toyota production strategy is highlighted by the fact
that raw materials are not brought to the production
floor until an order is received and this product is ready
to be built.
No parts are allowed at a node unless they are required
for the next node, or they are part of an assembly for
the next node.
This philosophy has allowed Toyota to keep a minimum
amount of inventory which means lower costs. T
his also means that Toyota can adapt quickly to changes
in demand without having to worry about disposing of
expensive inventory.

Toyota Factory Plan..

Case Study (McDonalds)

McDonalds is one of the most popular fast food

chains with a worldwide presence. It can be

found in 119 countries and has about 31,000
restaurants. It employs about 1.5 million
people and is one of the largest fast food
chains, serving 47 million customers daily.
Materials such as frozen food needs special
storage facilities in order to keep them fresh,
therefore companies need to invest more
capital on its equipment.

Continue.
High demand-huge inventory cause higher

price to cover up for the losses in scrapping

unsold food
McDonald uses different strategy like
McDonald's doesn't begin to cook until a customer has

placed a specific order.

Use of digital Computer Weblog creates a proposal
every day for managers to analyze and adjust and
calculate the opening and closing stock, key in the
details and the central planner.

Continue..
Maximizing employee efficiency
Improved quality of food
Better customer service
Reduced costs
Better Raw Material handling

Case Study (Dell)

In 1983, 18-year-old Michael Dell left college to

work full-time for the company he founded as a

freshman, providing hard-drive upgrades to
corporate customers. Dells venture had $6
million in annual sales.
In 1985, Dell changed his strategy to begin
offering built-to-order computers. That year,
the company generated $70 million in sales.
Five years later, revenues had climbed to $500
million, and by the end of 2000, Dells
revenues had topped an astounding $25 billion.

Continue..
No more middleman:Dell started out as a direct seller,

first using a mail-order system, and then taking

advantage of the Internet to develop an
onlinesalesplatform.
By 1997, Dells Internet sales had reached an average of
$4 millionper day.
Virtual integration:On the manufacturing side, the
company pursued an aggressive strategy of virtual
integration.
Dell required a highly reliable supply of top-quality PC
components, but management did not want to integrate
backward to become its own parts manufacturer.
the company sought to develop long-term relationships
with select, name-brand PC component manufacturers.

Continue..
Innovation on the assembly floor:In 1997, Dell

reorganized its assembly processes. Rather than having

long assembly lines with each worker repeatedly performing
a single task.
Dell instituted manufacturing cells. These cells grouped
workers together around a workstation where they
assembled entire PCs according to customer specifications.
Cell manufacturing doubled the companys manufacturing
productivity per square foot of assembly space, and reduced
assembly times by 75%.
Dell combined operational and process innovation with a
revolutionary distribution model to generate tremendous
cost-savings and unprecedentedcustomer valuein the PC
market.