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The Just-In-Time Revolution

roots in Japanese cultural, geographic, and economic history space and resource limitations conservation as opposed to throw-away throwsystems-oriented as opposed to the systemsreductionist scientific roots Toyota Motor Company

In the beginning, there was need.

Kiichiro Toyoda, August 15, 1945 then president of the TMC catch up with America in three years. otherwise, the automobile industry of Japan will not survive. Taiichi Ohno we had to know America and learn American ways productivity ratio: 1-to-9 ==> surely, Japanese people 1-towere wasting something The Oil Crisis, 1973 fall Japans economy collapsed to a state of zero growth at Toyota, greater earnings were sustained although profits suffered when rapid growth stopped, people became interested in TPS

Process of Waste Elimination

Figure 1.1. Figure 1.2.

Two Pillars of the TPS

Autonomation refers to machines that are both automated, so automated, that one worker can operate many machines, and foolproofed, so that they automatically foolproofed, detect problems. Just-in-time Just- inthe right parts needed in assembly reach the assembly line at the time they are needed and only in the amount needed.

taken from the ideas and practice of Sakichi Toyoda applying human intelligence to machines was the only way to make machines work for people
habit of watching:
The textile industry at that time was not as large as todays. Mostly, older women wove at home by hand. In my village, every family farmed and each house has a hand-weaving machine. Influenced by handmy environment, I gradually began thinking about this hand-weaving handmachine. Sometimes, I would spend all day watching he grandmother grandmother next door weaving. I came to understand the way the weaving machine worked. The woven cotton fabric was wound into a thicker thicker and thicker roll. The more I watched, the more interested I became. became. (1888 spring, Sakichi at the age of 20)


Examples of Autonomation
contact method limit switches or electric eyes used to detect differences in the size of shape of the product to check for the presence of specific types of defects (..figure..) altogether method unless all of the beams have been interrupted, the stopper will not release the box (..figure..)

came from Kiiciro Toyoda Sakichi Toyoda visited America for the first time in 1910 Ford Production System Supermarkets Sakichis wishes to go into the business of cars

The Goals of JIT

Zero defects Zero (excess) lot size Zero setups Zero breakdowns Zero handling Zero lead time Zero surging

The Environment as a Control

as opposed to reacting to machine setup times, vendor deliveries, quality problems, production schedules, etc. they have made the manufacturing systems easier to manage eliminate or reduce the setups regard due dates negotiable with customers set up long-term agreements with a few vendors longto make frequent deliveries feasible quality management concurrent engineering

Implementing JIT
Kanban is a tool for realizing just-in-time. For this tool to just-inwork fairly well, the production process must be managed to flow as much as possible. Other important conditions are leveling production as much as possible and always working in accordance with standard work methods. A. Production smoothing B. Capacity buffers C. Setup reduction D. Cross training and plant layout E. Total quality management

A. Production Smoothing
JIT requires a relatively smooth production plan the sequence in which products are manufactured need not match the sequence in which they will be purchased by customers developing a level FAS (final assembly schedule) smoothing aggregate production requirements sequencing final assembly

Smoothing example
Monthly production = 10,000 units 20 working days / month FAS (final assembly schedule) = 500 units/day if there are 2 shifts: 250 units/shift if 1 shift = 480 minutes, the average time between outputs = 480/250 = 1.92 min/unit ==> repetitive manufacturing environment

example (continued)
Product A: 5,000 units Product B: 2,500 units Product C: 2,500 units A-B-A-C-A-B-A-C-A-B-A-C-.. Such mixed model production is not possible with large setup time TAKT time for A = 2 x 1.92 = 3.84 min TAKT time for B and C = 4 x 1.92 = 7.68 min

B. Capacity Buffers
schedule the facility to less than 24 hours per day two shifting - separated by a down period (4-8-4-8) (4an alternative to the WIP buffers

C. Setup Reduction
Single minute exchange of dies (SMED) (SMED) Internal setup vs. External setup Four basic concepts for setup reduction: Separate the internal setup from the external setup. Convert as much as possible of the internal setup to the external setup. Eliminate the adjustment process. Abolish the setup itself.

D. Cross Training
Multiskilled workforce increases a JIT systems ability to cope with product mix changes other exceptional circumstances Daily rotations to keep multiple skills sharp. to reduce boredom and fatigue on the part of the workers. to foster an appreciation for the overall picture on the part of everyone. to increase the potential for new idea generation with involvement of more people.

U-shaped lines one worker can see and attend all of the machines with a minimum of walking. flexibility in the number of workers leads to easy adjustments to respond to changes in production requirements. a single worker can monitor work entering and leaving the cell, thereby facilitating JIT flow. workers can conveniently cooperate to smooth out unbalanced operations and address other problems as they surface. Cellular layout

Plant Layout

U-shaped manufacturing cell

E. Total Quality Management

Process control Easy-to-see quality Easy- toInsistence on compliance Line stop Correcting ones own errors 100 percent check Continual improvement (..figures..)

Inbound Stock

Outbound Stock

comparison of MRP and kanban two-card kanban system twoone-card kanban system one(..figures..)

Kanban Rules
1. The subsequent process should withdraw the necessary products from the preceding process in the necessary quantities at the necessary point in time. 2. The preceding process should produce its products in the quantities withdrawn by the subsequent process. 3. Defective products should never be convened to the subsequent process. 4. The number of Kanbans should be minimized. 5. Kanban should be used to adapt to small fluctuations in demand (fine-tuning of production by Kanban). (fineKanban).

The Lessons of JIT

The production environment itself is a control. Operational details matter strategically. Controlling WIP is important. Flexibility is an asset. Quality can come first. Continual improvement is a condition for survival.

Are Scientific Methods and Models useless ?

EOQ suggests that total cost depends on the cost per setup total cost vs. setup cost in EOQ model this insight show that there are benefits to be had from reducing the cost per setup. while the insight was there, the sense of its global importance is not serious setup reduction methodologies were evolved in Japan where a holistic, systems view was taken

Trouble with JIT (i)

JIT represents both a system of beliefs a collection of methods romantic JIT vs. pragmatic JIT the ideals stress multiple, sometimes conflicting objectives: throughput, quality, regularity of flow,
flexibility, worker involvement, etc.

the Japanese originators of JIT did balance these tradeoffs - but subtly, artfully, and in the context of their specific manufacturing environment.

Trouble with JIT (ii)

inventory as the root of all evil ? inventory as the flower ? high levels of inventory are a consequence of other problems putting together a coherent JIT system is a daunting task (often relied on outside consultants) toy analogy

What will we learn?

There is no easy solution. Manufacturing is complex, large scale, multimultiobjective, rapidly changing, and highly competitive. There cannot be a simple, uniform solution applicable to the broad spectrum of manufacturing environments. Each firm should develop its own manufacturing strategies, policies and procedures. Continuous improvement