What is Just-in-Time?

 Management philosophy of continuous

and forced problem solving
 Supplies and components are ‘pulled’
through system to arrive where they are
needed when they are needed.

Slide 14.1
 What Does Just-in-Time
Do?
 Attacks waste
 Anything not adding value to the product
 Customer’s perspective

 Exposes problems and bottlenecks

 Caused by variability
 Deviation from optimum

 Achieves streamlined production

 By reducing inventory

Slide 14.2
 Types of Waste
 Waiting
 Overproduction
 Transportation
 Inefficient
processing
 Inventory
 Unnecessary motion
 Product defects

Slide 14.3
 JIT Reduced Waste
at Conestoga College
Waste Reduction (%)
Setup Time 20%
Scrap 30%
Finished Goods
Inventory
30%
Space 40%
Lead Time 50%
Raw Material
Inventory 50%
Work-in-Process
Inventory 82%
0% 20% 40% 60% 80% 100%

Slide 14.4
 Variability Occurs
Because
 Employees, machines, and suppliers produce
units that do not conform to standards, are
late, or are not the proper quantity
 Engineering drawings or specifications are
inaccurate
 Production personnel try to produce before
drawings or specifications are complete
 Customer demands are unknown

Slide 14.5
 Push versus Pull

 Push system: material is pushed into

downstream workstations regardless of
whether resources are available

 Pull system: material is pulled to a

workstation just as it is needed

Slide 14.6
 JIT Contribution to
Competitive Advantage
 Suppliers
 reduced number of vendors
 supportive supplier relationships
 quality deliveries on time

Slide 14.7
 JIT Contribution to Competitive
Advantage - continued

 Layout
 work-cell layouts with testing at each step of
the process
 group technology
 movable, changeable, flexible machinery
 high level of workplace organization and
neatness
 reduced space for inventory
 delivery direct to work areas

Slide 14.8
 JIT Contribution to Competitive
Advantage - continued

 Inventory
 small lot sizes
 low setup times
 specialized bins for holding set number of parts
 Scheduling
 zero deviation from schedules
 level schedules
 suppliers informed of schedules
 Kanban techniques

Slide 14.9
 JIT Contribution to Competitive
Advantage - continued

 Preventive Maintenance
 scheduled
 daily routine
 operator involvement
 Quality Production
 statistical process control
 quality by suppliers
 quality within firm

Slide 14.10
 JIT Contribution to Competitive
Advantage - continued

 Employee Empowerment
 empowered and cross-trained employees
 few job classifications to ensure flexibility
of employees
 training support
 Commitment
 support of management, employees, and
suppliers

Slide 14.11
 Results

 Queue and delay reduction, speeds throughput,

frees assets, and wins orders
 Quality improvement, reduces waste and wins
orders
 Cost reductions, increases margin or reduces
selling price
 Variability reductions in the workplace, reduces
waste and wins orders
 Rework reduction, reduces waste and wins
orders

Slide 14.12
 Just-in-time systems attempt to
increase flexibility and
responsiveness between suppliers
and customers in order to
eliminate waste, improve customer
satisfaction, and improve overall
competitiveness

Slide 14.13
 Motivation for implementing JIT:
 reduction in raw material, purchased parts,
work-in-process, and finished goods
inventory
 increased direct labor productivity
 improved equipment utilization
 defect-free production of well-designed
products
 improved responsiveness to changing
markets and customer requirements
Slide 14.14
 Misunderstandings about JIT:
 thinking of JIT as a physical system to
be implemented rather than a
management philosophy to be adopted
 thinking of JIT as simply an inventory
control system
 thinking of JIT as strictly a
manufacturing oriented management
approach

Slide 14.15
 Suppliers
 Incoming material and
finished goods involve
waste
 Buyer and supplier form
JIT partnerships
 JIT partnerships
eliminate
 Unnecessary activities
 In-plant inventory
 In-transit inventory
 Poor suppliers

Slide 14.16
 Supplier Worries
 Diversification
 Poor customer
scheduling
 Frequent
engineering
changes
 Quality assurance
 Small lot sizes
 Physical proximity

Slide 14.17
 Streamlined Production
Production Process
Traditional Flow (stream of water)

Suppliers Customers
Inventory (stagnant
Flow with JIT ponds) Material
(water in
stream)
Suppliers

Customers

Slide 14.18
 Layout

 JIT objective: Reduce movement of people

and material
 Movement is waste!
 JIT requires
 Work cells for product families
 Moveable or changeable machines
 Short distances
 Little space for inventory
 Delivery directly to work areas

Slide 14.19
 Work Cell versus
Process Layout
1
Lathe Saw 2
Lathe Saw Saw Press

5 4 Heat Lathe Lathe

Treat 2
Grinder
3
Press Grinder 1
Heat

Press 6 Grinder

Process Layout Work Cell

Slide 14.20
 Kanban

 Japanese word for card

 Pronounced ‘kahn-bahn’ (not ‘can-ban’)
 Authorizes production from downstream
operations
 ‘Pulls’ material through plant
 May be a card, flag, verbal signal etc.
 Used often with fixed-size containers
 Add or remove containers to change production
rate

Slide 14.21