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15

JIT and
Lean Operations

McGraw-Hill/Irwin

Copyright 2007 by The McGraw-Hill Companies, Inc. All

Learning Objectives

Explain what is meant by the term lean operations


system.
List each of the goals of JIT and explain its
importance.
List and briefly describe the building blocks of JIT.
List the benefits of the JIT system.
Outline the considerations important in converting
a traditional mode of operations to a JIT system.
List some of the obstacles that might be
encountered when converting to a JIT system.
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JIT/Lean Production
Just-in-time (JIT): A highly
coordinated processing system in which
goods move through the system, and
services are performed, just as they are
needed,

JIT lean production


JIT pull (demand) system
JIT operates with very little fat
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Goal of JIT
The ultimate goal of JIT is a balanced
system.
Achieves a smooth, rapid flow of
materials through the system

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Summary JIT Goals and Building


Blocks
Figure 15.1
Ultimate
A
Goal balanced
rapid flow
Supporting
Goals

Eliminate disruptions

Make the system flexible

Product
Design

Process
Design

Eliminate waste

Personnel
Elements

Manufacturing Planning

Building
Blocks

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Supporting Goals
Eliminate disruptions
Make system flexible
Eliminate waste, especially excess
inventory

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Sources of Waste
Overproduction
Waiting time
Unnecessary transportation
Processing waste
Inefficient work methods
Product defects

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Kaizen Philosophy
Waste is the enemy
Improvement should be done gradually and
continuously
Everyone should be involved
Built on a cheap strategy
Can be applied anywhere

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Kaizen Philosophy (contd)


Supported by a visual system
Focuses attention where value is created
Process oriented
Stresses main effort of improvement should
come from new thinking and work style
The essence of organizational learning is to
learn while doing

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Big vs. Little JIT


Big JIT broad focus

Vendor relations
Human relations
Technology management
Materials and inventory management

Little JIT narrow focus


Scheduling materials
Scheduling services of production

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JIT Building Blocks


Product design
Process design
Personnel/organizational
elements
Manufacturing
planning and control

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Product Design
Standard parts
Modular design
Highly capable production systems
Concurrent
engineering

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Process Design
Small lot sizes
Setup time reduction
Manufacturing cells
Limited work in process
Quality improvement
Production flexibility
Balanced system
Little inventory storage
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Benefits of Small Lot Sizes


Reduces inventory
Less rework
Less storage space
Problems are more apparent
Increases product flexibility
Easier to balance operations

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Single-Minute Exchange
Single-minute exchange of die (SMED): A
system for reducing changeover time
Categorize changeover activities
Internal activities that can only be done while
machine is stopped
External activities that do not require stopping
the machine

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Production Flexibility
Reduce downtime by reducing
changeover time
Use preventive maintenance to
reduce breakdowns
Cross-train workers to help clear
bottlenecks

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Production Flexibility (contd)


Use many small units of capacity
Use off-line buffers
Reserve capacity for important customers

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Quality Improvement
Autonomation
Automatic detection of defects during
production

Jidoka
Japanese term for autonomation

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Production Flexibility
Balance system: Distributing the workload
evenly among work stations
Work assigned to each work station must be
less than or equal to the cycle time
Cycle time is set equal to the takt time
Takt time is the cycle time needed to match
customer demand for final product

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Personnel/Organizational
Elements
Workers as assets
Cross-trained
workers
Continuous
improvement
Cost accounting
Leadership/project
management
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Manufacturing Planning and


Control
Level loading
Pull systems
Visual systems
Close vendor relationships
Reduced transaction
processing
Preventive maintenance
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Pull/Push Systems
Pull system: System for moving work
where a workstation pulls output from
the preceding station as needed. (e.g.
Kanban)
Push system: System for moving work
where output is pushed to the next
station as it is completed

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Kanban Production Control


System
Kanban: Card or other device that
communicates demand for work or
materials from the preceding station
Kanban is the Japanese word meaning
signal or visible record
Paperless production control system
Authority to pull, or produce comes
from a downstream process.
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Kanban Formula
N

DT(1+X)
C

N = Total number of containers


D = Planned usage rate of using work center
T = Average waiting time for replenishment of parts
plus average production time for a
container of parts
X = Policy variable set by management
- possible inefficiency in the system
C = Capacity of a standard container
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Limited Work in Process


Benefits

Lower carrying costs


Increased flexibility
Aids scheduling
Saves cost of rework and scrap

Two general approaches


Kanban focuses on individual work stations
Constant work in process (CONWIP) focuses
on the system as a whole
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Traditional Supplier Network


Figure 15.4a

Buyer
Buyer
Supplier
Supplier

Supplier
Supplier
Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

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Tiered Supplier Network


Figure 15.4b

Buyer
Buyer
First Tier Supplier
Second Tier Supplier

Third Tier Supplier

Supplier
Supplier
Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

Supplier
Supplier

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Preventive Maintenance and


Housekeeping
Preventative maintenance: Maintaining
equipment in good condition and replacing
parts that have a tendency to fail before they
actually fail.
Housekeeping: Maintaining a workplace that
is clean and free of unnecessary materials.

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Housekeeping Five Ss
1.
2.
3.
4.
5.

Sort
Straighten
Sweep
Standardize
Self-discipline

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Table 15.3

Comparison of JIT and


Traditional

Factor

Traditional

JIT

Inventory

Much to offset forecast


errors, late deliveries

Minimal necessary to operate

Deliveries

Few, large

Many, small

Lot sizes

Large

Small

Setup; runs

Few, long runs

Many, short runs

Vendors

Long-term relationships
are unusual

Partners

Workers

Necessary to do the work Assets

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Transitioning to a JIT System


Get top management commitment
Decide which parts need most effort
Obtain support of workers
Start by trying to reduce setup times
Gradually convert operations
Convert suppliers to JIT
Prepare for obstacles
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Obstacles to Conversion
Management may not be committed
Workers/management may not be
cooperative
Difficult to change company culture
Suppliers may
resist
Why?

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Suppliers May Resist JIT

Unwilling to commit resources


Uneasy about long-term commitments
Frequent, small deliveries may be difficult
Burden of quality control shifts to supplier
Frequent engineering changes may cause
JIT changes

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JIT in Services
The basic goal of the demand flow technology in
the service organization is to provide optimum
response to the customer with the highest
quality service and lowest possible cost.

Eliminate disruptions
Make system flexible
Reduce setup and lead times
Eliminate waste
Minimize WIP
Simplify the process

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JIT II
JIT II: a supplier representative works
right in the companys plant, making
sure there is an appropriate supply on
hand.

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Benefits of JIT Systems


Reduced inventory levels
High quality
Flexibility
Reduced lead times
Increased productivity

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Benefits of JIT Systems (contd)


Increased equipment utilization
Reduced scrap and rework
Reduced space requirements
Pressure for good vendor relationships
Reduced need for indirect labor

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Table 15.4

Elements of JIT

Smooth flow of work (the ultimate goal)


Elimination of waste
Continuous improvement
Eliminating anything that does not add
value
Simple systems that are easy to manage
Use of product layouts to minimize
moving materials and parts
Quality at the source

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Table 15.4

Elements of JIT (contd)

Poka-yoke fail safe tools and methods


Preventative maintenance
Good housekeeping
Set-up time reduction

Cross-trained employees
A pull system

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Video: Made for you

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Video: New system

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Video: McDonalds Process

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Video: Layout Gortrac

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