Just-In-Time Manufacturing

Matt Schmidt
Penn State University
OISM 470W
Just-In-Time Manufacturing?
❂ What is JIT Manufacturing?

❂ Where did it come from?

❂ What are the main principles?

❂ Is it easy to Implement?

❂ What phrase best describes JIT?

Just-In Time Manufacturing
❂ JIT- A philosophy of continuous improvement
that puts emphasis on prevention rather than
correction, and demands a company wide focus
on quality.

❂ JIT- operational management approach to

achieve world class manufacturing.

❂ JIT- production is based on demand

History of JIT Manufacturing
❂ Evolved in Japan after World War II, as a result of
their diminishing market share in the auto
industry.

❂ Toyota Motor Company- Birthplace of the JIT

Philosophy Under Taiichi Ohno.
• W. Edwards Deming
• 14 points for Management

❂ JIT is now on the rise in American Industries.

Principles Of JIT Manufacturing
❂ Total Quality Management

❂ Production Management

❂ Supplier Management

❂ Inventory Management

❂ Human Resource Management

Principles Of JIT Manufacturing
❂ Total Quality Management

❂ Production Management

❂ Supplier Management

❂ Inventory Management

❂ Human Resource Management

Total Quality Management

❂ Seek long-term commitment to quality

efforts with continuous improvement

❂ Quality must be a higher priority than cost

❂ Minimizing waste
Total Quality Management
❂ Eliminate Quality Inspectors

❂ Quality is everyone’s responsibility

❂ Do it right the first time

Principles Of JIT Manufacturing
❂ Total Quality Management

❂ Production Management

❂ Supplier Management

❂ Inventory Management

❂ Human Resource Management

Production Management
❂ Pull System vs. Push System
• Pull = Made to order
• Push = Made for inventory

❂ Flexability of the system

❂ Design For Testability – In the process

• Poka-Yoke= Mistake-proofing
• Throughout entire process
Production Management

❂ Reduced lot sizes= Shorter cycle times

❂ Eliminate disruptions in the process

❂ Standardized Parts/ Simplicity

Production Management
❂ Communication Techniques
• Completion of task-Kanban
• Problem- Andon or siren/light

❂ Stopping the process if something goes

wrong =Jidoka

❂ Preventive Maintenance
Production Management at
Toyota
 Toyota uses a Kanban pull system
throughout the production process.

 Each task in the process seems to take

identical length and work content, so
everyone is working at the same pace to
reduce bottlenecks.
Principles Of JIT Manufacturing
❂ Total Quality Management

❂ Production Management

❂ Supplier Management

❂ Inventory Management

❂ Human Resource Management

Supplier Management
❂ Establish Long Term Relationships with few
suppliers.

❂ Delivery of Parts = 100% Defect Free

• Where they are needed
• When they are needed
• The exact quantity

❂ Work Together
Supplier Management
❂ Elimination inspection of parts

❂ Information Systems
• Eliminating barriers to information

❂ Communicate problems to suppliers in a

positive manner.
Supplier Relations at Toyota
 Toyota communicates their damand for
parts 20 days in advance to their suppliers,
with the right to change the forecast up to
the 10th day.
Principles Of JIT Manufacturing
❂ Total Quality Management

❂ Production Management

❂ Supplier Management

❂ Inventory Management

❂ Human Resource Management

Inventory Management
❂ Eliminate Safety Stock = Zero Inventory

❂ Reduce WIP

❂ JIT is not an inventory control system

❂ Reduction in inventory opens up space

Inventory hides problems in a
process.

Water Level = Inventory

Rocks = Problems in the system
Boat = Company Operations
Principles Of JIT Manufacturing
❂ Total Quality Management

❂ Production Management

❂ Supplier Management

❂ Inventory Management

❂ Human Resource Management

Human Resource Management
❂ Company-wide Involvement
• Motivation for continuous improvement
• Problem Solving
• High Employee Interaction

❂ Build Pride In Workmanship

Human Resource Management

❂ Self-Inspection of work

❂ Diversified Employees
• Absenteeism
• To eliminate boredom in process

❂ Management Support and Empowerment of

workforce
Human Resource Management at
Toyota

 In 1986 from a labor force of 60,000 Toyota

received 2.6 million improvement
proposals, 96% of which were
implemented by either management or the
employees themselves.
WIP Example
Implementation Problems

❂ Worker resistance

❂ Lack of top management support

❂ Lack of communication

❂ Lack of formal training

Most Important Question
❂ What phrase best describes the
Just-In-Time philosophy?

Continuous Improvement
Summary
JIT- A philosophy of continuous improvement
that puts emphasis on prevention rather
than correction, and demands a company
wide focus on quality.
References

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