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Just In Time (JIT

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February 20, 2012

Just In Time (JIT)

Understanding Just In Time Manufacturing
This report talks about JIT Philosophy and its various elements. It shows how JIT can help organization become more efficient and profitable. By Pooja Raut MMS Finance Roll No 42 SIMSR Date: 2/20/2012

MMS Finance Roll No: 42

.........3 Origins of JIT............................................................................................................10 Indian companies using Just in Time MMS Finance Roll No: 42 ..........................................................................Just In Time (JIT) February 20...............................................................................6 c) Cellular Layout...........4 b) Quality at the Source..4 The Pillars of JIT.....................................................................................................9 Cons of Just-In-Time.....................................7 Cellular Layout......6 a) Level Production.......................................................................................4 a) Setup Time Reduction.............................10 Indian companies using Just in Time.............................................................................................................7 Cellular Manufacturing............................................... 2012 Table of Contents Introduction..............................................................................................................7 Quality at the Source....................................................................................................................................6 2........................................................................................................................8 Pros of Just-In-Time.......................................................... Implementation of Flow........ Implementation of Pull...................................................................6 c) Development of Supplier Networks..4 1..........................................3 JIT Objectives............................................................6 b) Kanban Technique..........................................................................................................................................................................................................................................................................................................................

from purchasing through distribution. Just-in-time and 2. By eliminating waste. The JIT philosophy has its roots after World War II when the Japanese were striving to compete with the U. quality. According to Ohno JIT rests on two pillars: 1. manufacturing system (also known as Mass Production). initiate the machine cycle.S. JIT focuses on continuous improvement and can improve a manufacturing organization's return on investment. such as the presence or absence of a part on a shelf. which seeks to eliminate the ultimate source of waste. Taichi Ohno was the founder of this philosophy in the 1940s when he began developing a system that would enable Toyota to compete with U. Kanban are usually 'tickets' but can be simple visual signals. in all of its forms throughout the producing processes.Just In Time (JIT) February 20.S. Autonomation or automation with human touch This term refers i. To meet JIT objectives. to the installation of one-touch automation so an operator will be able to place a part in a machine. To achieve continuous improvement key areas of focus could be flow. Just-in-time production method is also called the Toyota Production System. which tell production when to make the next part. automakers. Implemented correctly. employee involvement and quality. 2012 Just in Time (JIT) Introduction Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. and efficiency. JIT targets production with the minimum lead-time and at the lowest total cost. Origins of JIT JIT is a manufacturing philosophy. “Fool proofing” or “poke yoke” which is the incorporation of sensors in the machines to signal abnormal conditions and even automatically stop MMS Finance Roll No: 42 . the process relies on signals or Kanban between different points in the process. and move on and ii. Variability.

is prevented by a) Synchronizing all processing steps by using the Pull philosophy and the kanban technique and b) Organizing production in Cells 3. The success of the JIT also rests on the principle of “respect for humanity”. Waiting. in a predefined quality. so setups become simple and fast. at the lowest cost. so operators don’t need to watch machines during their cycle. JIT focuses on reducing seven commonly accepted wastes as follows: 1. Unnecessary movement of employees is prevented by organizing production in Cells 7. seeks to simplify and minimize the time required for the process of changeovers. This new method. 2012 machines if necessary. Rework processing. Flow is the idea of processing one single item at a time in a continuous way from MMS Finance Roll No: 42 . Production of defective parts is prevented by a) Applying quality at the source and b) Redesigning processes Central themes of JIT are Flow in Production and Pull of Production. called SingleMinute-Exchange-of. This is accomplished by reducing variability in all of its forms. Transport of materials. is prevented by a) Synchronizing all processing steps by using the Pull philosophy and the kanban technique and b) By reducing set-up times 2.Just In Time (JIT) February 20. Thus. Another contributor to JIT was Shigeo Shingo. According to Sugimori (1977).Dies (SMED) system. Unnecessary inventory is prevented by a) Synchronizing all processing steps by using the Pull philosophy and the kanban technique and b) By reducing setup times 6. JIT Objectives The goal of JIT is to create a production environment that enables the customer to purchase products needed at the required time and quantity needed. is prevented by a) Applying quality at the source and b) Redesigning processes 5. Overproduction. the Toyota Production System (TPS) makes full use of the workers’ capabilities and relies fully on them for the running and continuous improvement of the plant. is prevented by organizing production in Cells 4. who developed a new methodology for the reduction of setup time.

Just In Time (JIT) February 20. Implementation of Pull. It shows as is already mentioned above that JIT is founded on the pillars of: 1. three preconditions must exist. the system overloads are avoided. In this manner. The Pillars of JIT Figure 1 summarizes the results of an extensive literature research regarding JIT implementation in manufacturing. 2012 raw material to finished product without interruptions. Pull as the concept of responding to customer demand by delivering parts to assembly. the levels of WIP between the workstations are explicitly limited and as a result. Implementation of Flow In order to establish flow in a system. defects or breakdowns. Implementation of Flow. delays. The number of orders that are provided to the system is strictly determined by the system’s capacity. which are discussed below: a) Setup Time Reduction The method of Setup time reduction or Single-Minute-Exchange-of-Dies (SMED) comprises five steps: Figure 1: Elements of JIT MMS Finance Roll No: 42 . Further analysis of these pillars is presented below: 1. and 2. and finished products to customers in a “Just-inTime” fashion.

MMS Finance Roll No: 42 . etc. waiting time for instructions. fixtures. The notion here is to convert as many internal elements as possible to external. 2012 1. Separate internal elements from External and convert them to External. Chief among internal elements that can be converted to external are searching time looking for the correct die. A typical cause of setup problems is poor housekeeping.Just In Time (JIT) February 20. Proper maintenance. organization. etc. and Housekeeping. Organization. Maintenance. tools. 2. carts etc. while external (or offline) elements are the processes that can be worked out while the machine is operating. and setting times for setting dies. carts. poor equipment maintenance and incorrect organization of tools. Internal (or mainline) elements are the processes that occur when the machine is not working. and housekeeping are easy to be enforced and result in significant benefits.

Information flows in the reverse direction from product flow to signal production by the upstream cell or manufacturing process”. as it was shown earlier. These techniques are described below: MMS Finance Roll No: 42 . predictive maintenance. c) Cellular Layout Cellular Layout is the organization of the manufacturing facility (people. machines. 5. In order to implement pull. Examine of each element and try to find methods of eliminating waste. Eliminate Adjustments. When the standard WIP is below the set point. the sequential pull system in which the production rate is regulated according to the demand with the pacemaker to be usually established in the first process step at the beginning of the value stream map. materials. dedicated or semi-dedicated in product families. Abolish Setup. this condition signals the need to replenish. b) Quality at the Source Quality at the Source according to JIT constitutes of two main principles: Total Productive Maintenance (TPM). which is the combination of the replenishment and the sequential pull systems. Improve Elements. poke yoke. and kaizen. Implementation of Pull The pull production system is defined as “a two subsystem linkage in a supply chain. After that a series of three additional techniques can be applied in order to realize pull production. so the same parts are required for various products or producing various parts in parallel at the same time. and Total Quality Management (TQM). improvement maintenance.Just In Time (JIT) February 20. and the mixed pull system. Three main types of pull systems exist: the replenishment pull system in which production is triggered when the stored end items are consumed. TPM includes the techniques of preventive maintenance. This composes the ultimate goal of the SMED method and it could be achieved by either redesigning the products and make them uniform. and 5Ss maintenance while TQM include standardized work. A short period of time is required to enforce a new adjustment but a long period of time is required to make this adjustment to function properly. The producing operation does not produce until the standard Work-In-Process (WIP) between the two sub-systems is less than the set point. 2012 3. visual control. and design) in cells. 4. Pull represents a production system that explicitly limits the level of WIP in contrast to the push production system. Flow must be established. 2.

etc. Empty product containers are a signal (upstream flow of information) for replenishment. In general. It represents a scheduling technique for balancing a production line by changing a) the production volume. either internal or external. and it comprises a significant method of production control and controlling levels of WIP. i. The rule here is to create single sourcing supplies for each component or subassembly by certifying the related suppliers. The integration of suppliers seeks to transfer the technological knowledge from the customer to the supplier and convert the latter to a lean manufacturer. according to the literature of JIT. 2012 a) Level Production Level or Smoothing Production attempts to eliminate fluctuation in final assembly by eliminating variation or fluctuation in feeder processes. the kanban method functions as described in the following paragraph: The downstream customer. supplier networks must be developed. Cellular Manufacturing The cellular system also known as lean shop with linked-cell design is considered to be a basic component of the lean-production philosophy. signal cards. The above is accomplished by using different kinds of kanban cards. such as production cards. it is a method of controlling the flow of information between the workstations while eliminating the WIP levels.e. suppliers evolve into remote cells in the linked-cell manufacturing system and deliveries are becoming synchronized with the buyer’s production schedule. and b) the production sequence of parts. parts are produced one single-piece at a time. Therefore. pulls parts (downstream flow of parts) from the upstream supplier (internal or external) as needed. c) Development of Supplier Networks Finally. move or withdrawal cards.Just In Time (JIT) February 20. Kanban cards represent a visual control tool that regulates the flow of materials between cells and aim to respond to demand by delivering parts and products Just-in-Time. Nevertheless. alternative types of manufacturing systems also exist depending on the product characteristics and mix. The existing layout types are divided mainly into four categories: MMS Finance Roll No: 42 . etc. The supplier networks must consist of fewer and better suppliers and the contracts should be long-term and mutually beneficial. the type of manufacturing philosophy. As a consequence. b) Kanban Technique The lean method of production and inventory control is a pull system widely known as the kanban system (kan means signal and ban means card in Japanese).

The production is conducted in batches and identical workstations are combined into departments. loading and unloading them with parts. Within the area required for staging the product. following the shortest walk distance with the least possible obstacles. A typical characteristic of this facility layout is that workstations are brought to the material since the referred product is usually very large and bulky. (Multifunctional means a worker that can perform various tasks such as setup reduction. Equipment is dedicated or semi-dedicated to manufacturing each family. The Product Layout and the Group Family Product Layout are the two types that mostly fit the lean philosophy. 2012 The Fixed Product Layout is best applied in low volume production processes with low standardization and stable demand. in order to fully exploit the benefits of cellular manufacturing certain conditions must hold: a) Cells must be staffed with multifunctional workers. The workstations within a cell are typically arranged in a U-shape for flexibility. The workstations that perform successive operations are located close to each other. The Process Layout is more practical in low volume production with low process standardization. It is the method of combining all workstations required to produce one product with continuous flow processing. The Product Layout is best applied in high volume production processes with high standardization and stable demand. The Group Family Product Layout (Assembly Line) is best implemented in medium volume production with medium process standardization. However. Thus. the demand is usually unstable. Cellular Layout Lean-production cells are designed to operate at less-than-full-capacity. It is the method of combining all workstations required to produce one product such as an aircraft. so that workers may move from machine to machine. few products are produced at the same time under varying demand. In this case. In this case. Therefore. the processing sequence is linear with the products flowing from one workstation to another. MMS Finance Roll No: 42 . In this case what determine the layout is the process and not the product.Just In Time (JIT) February 20. Moreover. so that products and parts can flow easily from one to another. this kind of layout supports flexibility in the number of workers since one worker may operate more than one (and possible all) workstations within the cell. the number of workers can be easily adjusted to the demand and to the calculated cycle time. ship etc. The products are grouped into families and each family is treated as a pseudo product.

As referred previously. and b) Automation should be an integral part of all workers and other resources within the cell. Seiton. Quality at the Source rests on two principles: a) the Total Productive Maintenance (TPM). Predictive Maintenance which is the prediction of pending machine breakdowns. organized in teams) . implementing preventive maintenance and continuous improvement etc. Below are described the tools of TPM and TQM.Just In Time (JIT) February 20. There are many methods of cell formation. In order to organize the available machines properly in manufacturing cells one has to fully analyze the product (and part) characteristics and form appropriate part families. and Shitsuke. Improvement Maintenance which is the upgrading of a workstation to prevent a problem before its reappearance. The techniques of achieving TPM focus on: Preventive Maintenance which is the scheduled maintenance to avoid breakdowns. 2012 operating properly the machines. Figure 2: A U-shaped Cellular Layout Quality at the Source The implementation of Quality at the Source techniques aim to reduce significantly manufacturing costs while upgrading the quality of the products at the same time. 5 Ss maintenance: the Seiri. Seiso. and b) Total Quality Management which focuses on qualitative management by fostering an overall environment supportive of quality improvement. Seiri is the segregation of MMS Finance Roll No: 42 . Seiketsu. and appropriate intervention to prevent them. which aims to preserve and enhance equipment reliability.

In this manner. Time studies and work methods techniques are used to determine the minimum amount of work needed to perform a task. Seiso is the process of daily cleanliness. inherent sources of variation are eliminated. unnecessary transport of materials. The kaizen technique aims in reducing non-value added activities such as setup times.Just In Time (JIT) February 20. This is accomplished by defining the sequence of the processes and tasks. a bunch of small devices that are used to either detect or prevent defects from occurring in the first place. visual means of control should be designed in order for each worker to assume actions for maintaining the control of the production system. The techniques of TQM focus on the following: Standardized Work is attained by applying the cycle time to the final assembly. Seiketsu is the frequent revisiting and the standardization of the above three steps. Kaizen (or Kaizen Event (Blitz)) is a Japanese term meaning continuous and unending improvement in the processes in order to eliminate waste and to enhance value. In particular. designing properly the cell and establishing the minimum number of pieces (stock-on-hand) needed to maintain a smooth flow of work so that the cycle time to be equal or slightly less than the cycle time. etc. 2012 unnecessary tools from the necessary and the elimination of what is not needed. Visual Control is referred to the design of a production system that controls itself by clearly identifying where the problems are. Seiton is the process of arranging the tools in the production space in a way that simplifies access and use. Kaizen operates mainly in two levels: a) In an on-going process of identifying opportunities for improvement and b) In short-term projects (Kaizen Event). which enhances the quality level. Pros of Just-In-Time Goals of JIT can vary. but there are a few that should be constant in any JIT system: MMS Finance Roll No: 42 . and by creating a sense of urgency wherever is necessary. Poka Yoke (or mistake proofing) is a device or a process for defect prevention that aims to avoid errors in the receiving of orders or in the manufacturing process. The whole idea is to produce zero defective products by using the poka yoke. Process standardization is applied to expose problems and motivate their solution by implementing new methods. Shitsuke is the motivation to sustain and the promotion of adherence through visual performance measurement tools.

There are some cultures that tie to JIT’s success. and delivery system. adopt the idea of continuous improvement. A good and long-term relationship between an organization and its suppliers helps to manage a more efficient process in inventory management. 2012 1. Customers’ needs and wants should be the most important focus for business today. it will eliminate a huge amount of resources and effort in inspecting. MMS Finance Roll No: 42 . in the sense that due to the shorter cycle time. 5. Another important goal should be to develop a reliable relationship between the suppliers. 2. the optimal quality and cost relationship is also important. 2. If committed to a long term continuous improvement idea. lots of pressure and stress is added on the workers. Also manufacturers that use the traditional approach which relies on storing up large amounts of inventory for backing up during bad times may have problems with getting use to the JIT system. it has its limitations: 1. they cannot use their own method of fixing the problem. Although itseems to be unrealistic in the long run. but use methods that have been previously defined. and what is required of production. The organization should focus on zero-defect production process. Also JIT is quite different for workers.6. It will also assure that the supply is stable and available when needed. The competitiveness of the firms is increased by the use of JIT manufacturing process as they can develop a more optimal process for their firms. Moreover.Moreover. 3. and reworking defected goods. material management. Increasing the organization’s ability to compete with others and remaincompetiti ve over the long run is very important. Also the JIT system throws workers off in the sense that if a problem occurs. 3. 4. but it is difficult for an organization to change its cultures within a short time. This objective will help the firm on what is demanded from customers. 4. Cultural differences: The organizations cultures vary from firm to firm. The key is to identify and respond to consumers needs. Cons of Just-In-Time Regardless of the great benefits of JIT.Just In Time (JIT) February 20. it will help the organization to remain competitive in the future.

By the implementation of this system componentsfrom its suppliers are delivered on a pull basis with First in First out concept supported by simple visual controls and supplied to the line on an hourly basis with Kanban system. Tokyo (2001 & 2004) ii. Process Capability Improvements age n India In its continuous pursuit of both technological as well as methodological excellence. JIT Innovation Award from JIT Management Lab. Tokyo (2002.Just In Time (JIT) February 20. Tata Motors. Lucas-TVS: To deliver the quality product to the customer at the minimum cost Lucas . Following is the list of awards won by the company in JIT i. thus leaving a question to whether it might work for low volume companies. Lucas-TVS has adopted the Cellular Manufacturing System / Just in Time and also extending the same to its Suppliers. Gontermann-Peipers (India) Limited (GPI). Indian companies using Just in Time The list of some of the companies which are using Just In Time techniques includes: Lukas-TVS. Volkswagen India and others. 2005 & 2006) iii. Quality Assurancem ethods like Advanced Product Quality Planning. JIT Grand Prix Award from JIT Management Lab.TVS employed techniques like Total Quality Management (TQM). Effective Tool Management System. Moreover. Statistical Process ControlTechni ques. 2012 5. the JIT system only works best for medium to high range of production volume manufacturers. Deming Application Prize 2004 ***** MMS Finance Roll No: 42 .