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Chapter 13

JIT/Lean
Production

Lean Production: Kiichiro und Eiji

Toyoda, Taiichi Ohno

Fotos: Wikipedia, Toyota Motor Corp.

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Lean Production: Key Elements

Optimization of demand for time, human resources, capital, assets: high
productivity and avoiding waste (Muda)
• Kanban (Just-in-Time)
• Outsourcing, cooperation with suppliers
• Kaizen: continuous improvement
• Zero defect principle (Jidoka) and avoidance of defects (Poka Yoke)
• Smoothing of capacity demand (Heijunka) without overload (Muri) and
imbalance (Mura)
• 5-S Order and cleanliness at the workplace
• Improvement of products and service – seen from the customer
perspective
Principles of mass and individual production are combined

Eight commonly recognized

sources of waste (Muda)
 Overproduction
 Waiting
 Unnecessary transportation
 Inappropriate process
 Unnecessary inventory
 Unnecessary/excess motion
 Defects
 Underutilization of employees
Waste: Any activity that does not add value to the good or service in the eyes
of the consumer. (APICS Dictionary 2013)

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TPS: The Five „Fünf S“

5-S: Proper and efficient workplaces

seiri (整理),
seiton (整頓),
seisō (清掃),
seiketsu (清潔),
and shitsuke (躾)

Introduction

The Performance Advantage of a JIT Plant, Circa 1986

Figure
13.1

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The Lean Perspective on Inventory

 Triangles represent inventory between work centers A, B, and C.
 The buildup of inventory hides the problems that may occur but at a cost.

Inventory Positioned throughout a Supply Chain

Figure
13.2

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The Lean Perspective on Inventory

 After a successful Lean program has been put in place, wasted movement and
space are eliminated and work centers are moved closer together.
 Inventory levels are reduced dramatically and work centers make only what is
needed when it is needed.

Supply Chain after the Elimination of Excess Inventories

Figure
13.3

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The Lean Perspective on

Inventory
How Inventory Hides Problems

Figure
13.4

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Just in Time-Production I
Drivers:
Shortened: product life cycles and lead times
Increased: product variety

Necessary conditions:
• Limited demand variations
• Process orientation of production
• Capacity harmonization
• Autonomous work teams
• Absolute quality assurance
• Short throughput time,
• Short set up times

Prof. Dr. V. Wollny M+L 4 -19

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Just in Time-Production:
2 Concepts
„Produce tommorrows „ Produce yesterdays
demand“ demand“
• Push principle (Kanban)
• Long term planning • Pull principle (demand
orientation)
• central steering and
control • decentral steering and
control
• „Kanban ability?“

Prof. Dr. V. Wollny M+L 4 -19

Kanban Systems
 Kanban system – A production control approach that
uses containers, cards, or visual cues to control the
production and movement of goods through the supply
chain.
 Key characteristics:
 Uses simple signaling mechanisms to indicate when specific
items should be produced or moved.
 Can be used to synchronize activities either within a plant or
between different supply chain partners.
 Are not considered planning tools, but rather control
mechanisms that are designed to pull parts or goods through
the supply chain based on downstream demand.
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Kanban I: Function

20

Pull
0
15

0
Four Boxes System: Parts and quantity

Prof. Dr. V. Wollny M+L 4 -19

Kanban II: Function

20

10 20

20
Four Boxes System: Parts and quantity

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Kanban Systems
• Controlling Inventory Levels using Kanbans

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Example 13.2 –
Marsica Industries, Part 1
At Marsica Industries, work cell H provides
subassemblies directly to final assembly.
Determine the number of production cards needed
using the following information:

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Marsica Industries, Part 1

The number of production cards needed is:

Convert the number of kanbans into the

number of subassemblies and hours of work:

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Marsica Industries, Part 2 –

Empirical Optimization
 After nearly a year of continuous improvement
efforts in work cell H, the following improvements,
were made:
 Production lead time has been cut from 2.6 hours to a
constant 1.6 hours.
 Demand from final assembly has been stabilized at 300
subassemblies per hour.
 Smaller, standardized containers that hold just 25
subassemblies are now being used.

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Marsica Industries, Part 2

 If the safety factor is reduced to 4%

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Kanban Systems
 Synchronizing the Supply Chain Using Kanbans
 For a kanban system to work properly, there must be a
smooth, consistent flow of material through the links.

Figure
13.9

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Marsica Industries, Part 3

• Combine the planning capabilities of MRP with the
control capabilities of Kanban
MRP Record for Work Cell H’s Subassembly

• To increase flexibility Demand Driven MRP has been

developed: small buffer inventories steer following the
Kanban approach the production and supplier orders

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Marsica Industries, Part 3

 New MRP record:
 There is no projected ending inventory.
 This is consistent with Lean philosophy of having no more inventory in the
system than is needed.

 Planned orders all occur in the same week as the

planned receipts.
 Because planning lead time is just 1.6 hours, orders released in a week
should be completed in that week.

 Planned order quantities can be used to calculate the

demand rates and production cards for the various
weeks – the Kanban system becomes more flexible.

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Example 13.4 –
Marsica Industries, Part 3

Calculate
D values

Calculate the
number of
production
cards

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JIT/Lean Production Case Study

• Supply Chain Challenges in Post-

Earthquake Japan

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