Just-In-Time q1

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8/l -1/2003

Overview

A. The Just-in-Time Manufacturing

Philosophy
B. Elements of JIT Manufacturing
C. Benefits of JIT Manufacturing
D. Successfull Implementation of JIT
Manufacturing
E. Lesson Learn of JIT Manufacturing

8/t 3/2003 prepared by- Agung Hananto

 JIT production .. .. and its aliases
. ZIPS (Zero lnventory Production System) -- Omark industries
. MAN (Materiai As Needed) -- Harley Davidson (Also: ..euality
Machine Through Jelly-Beans," where jelly beans refers to running
one-piece lots, or mixed models, in final motorcycle assembly)
. MIPS (Minimum Inventory Production System) -- Westinghouse
. Stockless Production -- Hewlett Packard, Greeley Div.
. Continuous Flow Manufacturing (CFM) -- IBM
. Kanban -- Many companies both in North America and Japan,
Toyota System -- Many companies in Japan
'. Ohno System (after Taiichi Ohno, a Toyota vice president and
master-mind of the system) -- Many companies in Japan
. Just-ln-Time (JIT) Production -- Most popular term both in North
America and Japan
. Lean Manufacturing* -- The most recent terrn
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APICS Definition of JIT

"A philosophy of mandacturing based on

planned elimination of waste and
improv ement of pr o d uct iv iQ
':.:.'.':""us

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 "Little JIT" (JIT Production)
- Focuses more narrowly on scheduling goods
inventories and providing service resources
where and when needed ....

"Big JIT" (Lean Production)

- Philosophical focus on elimination of all
sources of waste.

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The first fundamental is using a non-cost

principle. TPS uses a principle of selling
price minus cost equals profit. It
understands that the market determines the
price, not the seller.
Shigeo Shingo

prepared by Agung Hartanto

 Just-In- Time M anufacturin g

. . Attacks waste
Management philosophy .
. Pull system through the plant .
Exposes problems and bottlenecks
Achieves streamlined production

. Employee participation
. Industrial engineering/basics . Stable environmenl
. Continuing improvement
. Total quality control
. Small lot sizes
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Goals:
Improve return on investment by:
f . increasing revenues through quality,delivery,
and flexibility improvements
2. decreasing costs and investments required,
while being responsive to the customers
voices.
Tactics:
Eliminate all sources of waste or an).thing that
does not add value.

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 Waste vs. Value Added
Value added is:
- The conversion processes that change raw
materials into finished products

Waste is:
-Anything other than the minimum amount of
equipment, materials, parts, space, and time which
are absolutely essential to add value to the product

8^3t2001 prepared by Agung Hartanto

Value-added Focus
1. Do Value Stream Mapping.
2. Do Value Stream Analysis by distinguishing
necessary and unnecessary activities.
3. Improve the necessary ones, eliminate the
unnecessary ones.
Note:
It is easy to find out what and where waste
comes from, but it's not easy how to
eliminate.

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 Waste in Operations
Toyota's Seven Wastes Canon's Nine Wastes
1. Producing defects 1. Work-in-process
2. Transportation 2. Defects
3. Inventory 3. Equipment
4. Overproduction 4. Expense
5. Waiting time 5. Indirect Labour
6. Processing 6. Planning
7. Human resources
1. Motion
8. Operations
9. Startup
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The Seven Zercs:

identification of waste reduction targets

. 7 ero Defects: Quality at the source

. Zero Lot Size: To avoid batching delays

. Zero Setups: To minimize setup delay and allow production in
small lots
. Zero Breakdowns: To avoid stopping tightly coupled line
. Zero Handling: To promote flow of parts
. Zero Lead Time: To ensure rapid replenishment of parts
. Zero Surging: Necessary in system without WIP buffers.

8/1 3/2003 prepared by Agung Hartanto

 Toyota Production System and
House Of Toyota (HOT)

Leveling
Sequencing

Stop @ Abnormaility Autonomation

8/t.l/2003 prepared bv Agung Hananto
(Modified from Co. Workshop 2003)

Putting A11 Together

Kaizen, Eliminating Waste

Takt Time Production ; Stop @ Abmormality

I Andon
1...
Visual Control
Produclion Control Board

Autonomalion
One-Prece Flow Flow Production, 0C Circle
Small Lot Production Multi-Process Handling, i SPC
lmprovement of Operation, i Kaizen
Equipment, and Layout r Poka-Yoke

lMdified from
Suzaki 1987)
 B. Elements of Just In Time System
Stabilized and Leveled Master Schedule
Kanban System
Small Lot Size
Setup Reduction
Multi-fanctional Worker
JIT Layout and Equipment
Perfect Quality and Autonomation
Supplier Relations

8/i 3/2001 prepared by Agung Hananto

Bl.Stabilized and Leveled Master Schedule

To use JIT, the master schedule must be sta-

bilized and leveled. This requires constant
daily production, within the time frame of
the schedule and mixed model assembly.

As a result, the demand on preceding work

center is nearly constant.

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 Finished Goods lnventory Helps
Smooth Production Activities
Fabrication Subassembly Final Assembly ,Warehouse r Market

*
Fabrication,Subassembly nal Assembly

AAA Finished
Goods
- lnventory

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Leveling Production (Heij unka)

. Suppose a factory should produce the following
products (20 dayslmonth, 8 hours/day) :
F Product A: 1000 pcs ) 50 pcs / Day
F Product B: 600 pcs ) 30 pcs / Day
F Product C: 400 pcs ) 20 pcs / Day
. If there are 8 hours X 60 minutes :480 minutes in
a day, so:
F Product A: 480 / 50 : 9.8 minutes / pce
F Product B : 480 I 30: 16 minutes / pce
F Product C: 480 I 20 :24 minutes / pce
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. Total production in a day is (50+30+20) pcs
: 100 pcs.
Takt Time (the time it takes to produce one
piece of products) : 480 minutes / 100
pcs.: 4.8 minutes.
Product A: 5 pcs; Product B: 3 pcs;
Product C: 2 pcs )
10 pcs / 48 minutes.
Sequencingis A-B-A-C-A-B-A-C-A-B
)repeatedly in 480 mintes / 48 mintes : l0
times in a day.

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82. Kanban System / Pull System

Definition: A *kanban" is a sign-board or
card in Japanese and is the name of the flow
control system developed by Toyota.
Role:
Kanban is a tool for realizing just-in-time. For
this tool to workfairly well, the production
probess must be managed to flow as much as
possible. This is really the bqsic condition.
Other important conditions are leveling
production as much as possible and always
working in accordance with standard work
methods.
prepared by Agung Hartanto
. - Ohno 1988
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 JIT: A Pull System
. In a push system of production planning and
control, such as an MRP system, we look at the
schedule to determine what to produce next. Push
systems schedule releases
' In a pull slzstem, such as JIT, we look only at the
next stage of production and determine what is
needed there, and then we produce only that. Pull
systems uuthorize releases
. As Robert Hall states, "You don't never make
nothin' and send it no place. Somebody has got to
come and get it".

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Kanban Function

1. Visibiliqv F unction:
information and material synchron izely
flow, while Kanban moves.
2. Production Function:
as a production instruction and control.
3. Inventory Function:
inventory control by controlling Kanban
quantities.

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 Kanbans and Other Signals

. There are two types of Kanban cards:

- a conveyance card (C-Kanban)

- a production card (P-Kanban)

. Signals come in many forms other than
cards, including:
- an empty crate
- an empty designated location on the floor

prepared br. Agung Hananto

Kanban Advantages

Following advantages of Kanban over the traditional push

system:
I A simple and understandable process
2 Provides quick and precise information
3 Low costs associated with the transfer of information
4 Provides quick response to changes
5 Limit of over-capacity in processes
6 Avoids overproduction
7 Is minimizing waste
8 Control can be maintained
9 Delegates responsibility to line workers

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 Kanban Operating Rules

1. Each container must have a card

1 Assembly line withdraws materials from a cell
(pull method)
3. Containers of parts are removed from the storage
area always with a card
4. Containers always have the same number of
parts
5. Total production should not exceed the total
amount authorized on the kanbans in the system

prepared b1' Agung Hananto

One-Card Kanban
Outbound Outbound
Completed parts with cards stockpoint
stockpoint enter outbound stockpoint.

f1 fl-o1 fFol
otr_-Qtr Offi
Production r -Lr When stock is ;i fi
cards I lJl remoucd. place ;eroouction.
card authonzes
production card start of work.
in hold box. -

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 Two-Card Kanban
Inbound outbound Move stock to
stockpoint stocKpolnt inbound stock poinr.

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How many containers

The nurnber of containers determines the amount of authorized
inventory.
- Determine the number of units to be held by each container
(EOQ) ) Quantity per Kanban.
* Detennine the number of containers flowing back and forth
between supplier and user stations.

. The number of containers flowing back and forth between

statiorrs directly affects the quantities of WIP and safety stock
inventories. Need to measure average lead time needed to
produce a container of parts. The lead time is a function of the
processing timer per container at the supply station, the wait
tirne during productiott, and time required for materials
hand li ng.

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 HowJnanlz containers
The nurnber of containers equals the average demand during lead tirne
plus some safety stock to account for unexpected circumstances
divided by the number of number of units in one container.

d(ttt +p)(1+a)
k=
'"vhere:
k = nutnberof containersfor a parl
d = expecteddailydernand,in units
W= averagewaiting time duringproductioq plLrs
nraterialshand I ingtirne, in fractionsof a day
p = averageprocessingtirne per container'irt
fractionsof a day

c= qLrantifyin a standardcontainer
a = reflectsefficiencyof workstatbn
prepared by Agung Ilafianto

8.2.1" Kanban Calculation for Raw Material

" Kanban required : Kl or K2 ( whichever is

greater )
' Re-order point : K I

" Kl : E,U (OLT + SS) / PW K2: MOQ / PW

. Where, EU : E,stimated Usage/month in tonnes
OLT : OrderingLead Time in months
SS : Safety Stock in tonnes
MOQ : Minimum Order Quantity
PW : Packing Weight in tonnes
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8.2.2 Kanban Calculation for Press Part

. Lot size : Batch run size / Container Quantity

. Re-make point: Usage / day X No.Operations

Container Quantity

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8.2.3 Calculation of Individual Kanban

. Production Quantity (Y1) = D ( Tw + Tp )
a
. Saf'ety Stock (Y2) : D (Ts)
a
. Total Kanban Quantity Required = Yl + Y2
D = Part Usage/Unit time
Tw: Waiting Time-Time Between each Kanban pick-up
Tp : Processing Time -Time Between Kanban pick-up
and return
Ts: Safety Stock time - Time for safety stock exhaustion
s : Quantity per Container
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