Chapter 11

Just-In-Time and
Lean Production
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 JIT: Definitions?
• JIT Head • JIT Planes
• Chicken JIT • Bull JIT
• • Le JIT
Oh JIT (O´JIT)
• JIT Lag
• Tough JIT
• When the JIT hits
• Strate JITs the fan.

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 What is JIT ?
 Producing only what is needed,
when it is needed
 A philosophy
 An integrated management system
 JIT’s mandate:
Eliminate all waste

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 What is JIT?
• a corporate system designed to produce
output within the minimum lead time and at
the lowest total cost by continuously
identifying and eliminating all forms of
corporate waste and variance.
• a corporate strategy
• a philosophy
• Focus of JIT:
• variance & waste

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 Seven Basic Types of
Waste
• Waste from overproduction
• Waste from waiting times
• Transportation waste
• Process Waste
• Inventory Waste
• Waste of motion
• Waste from product defects

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 Waste in Operations

Figure 11.1

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 Waste in Operations

Figure 11.1

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 Waste in Operations

Figure 11.1

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 Common Causes of
Waste
• Layout (distance) • Inconsistent
performance
• Long setup time measures
• Incapable processes • Ineffective
production
• Poor maintenance planning
• Poor work methods • Lack of workplace
organization
• Lack of training
• Poor supply
quality/reliability

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 Objectives of JIT
• Produce only the products the customer wants.
• Produce products only at the rate that the customer
wants them.
• Produce with perfect quality
• Produce with minimum lead time.
• Produce products with only those features the customer
wants.
• Produce with no waste of labor, material or equipment --
every movement must have a purpose so that there is
zero idle inventory.
• Produce with methods that allow for the development of
people

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Basic Elements of JIT
1. Flexible resources
2. Cellular layouts
3. Pull production system
4. Kanban production control
5. Small-lot production
6. Quick setups
7. Uniform production levels
8. Quality at the source
9. Total productive maintenance
10. Supplier networks
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 Flexible Resources
 Multifunctional workers
 General purpose machines
 Study operators & improve
operations

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 Standard Operating Routine
for a Worker
Standard Operating Routine Worker: Russell
Sheet 1 Cycle Time: 2 min
Order of Operations time
Operations :10 :20 :30 :40 :50 1:00 1:10 1:20 1:30 1:40 1:50 2:00

Pick up
material

Unload/
load
machine 1

Unload/
load
machine 2

Unload/
load
machine 3

Inspect/
pack

Figure 11.2
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 Cellular Layouts
 Group dissimilar machines in
manufacturing cell to produce
family of parts
 Work flows in one direction
through cell
 Cycle time adjusted by changing
worker paths

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 Manufacturing Cell with
Worker Routes
Cell 1

Worker
1
Worker
2
Worker
3

Figure 11.3
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 Worker Routes Lengthened
as Volume Decreases
Cell 1 Cell 2

Worker Worker
1 2

Worker
3

Cell 3 Cell 4 Cell 5

Figure 11.4 To Accompany Russell and Taylor, Operations Management, 4th Edition ,  2003 Prentice-Hall, Inc. All rights reserved.
 JIT Principles
• Create flow production
• one piece flow
• machines in order of processes
• small and inexpensive equipment
• U cell layout, counter clockwise
• multi-process handling workers
• easy moving/standing operations
• standard operations defined

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 Balanced Production
• TAKT time

• Objective -- Build at rate that the

customer wants work

• Balance the system to maximize

efficiency at this rate

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 TAKT Time
• TAKT
• the beat
• (Net Available Operating Time) /
Customer Requirements
• time periods must be consistent
• Example of calculation

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 TAKT Time Example
• Net Available Operating Time
• Time per shift 480´
• Breaks (2 @ 10´) - 20´
• Clean-up - 20
• Lunch - 30
• NAOT/shift 410´
• Customer Requirements
• Monthly 26,000
• No. Working Days 20
• CR/Day 1,300
• T/T
• 410´/shift*60"/min*3 shifts/1,300
• 56.769" per part or 57"

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 The Pull System
 Material is pulled through the system
when needed
 Reversal of traditional push system
where material is pushed according
to a schedule
 Forces cooperation
 Prevent over and underproduction

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 Kanban Production
Control System
 Kanban card indicates standard quantity
of production
 Derived from two-bin inventory system
 Kanban maintains discipline of pull
production
 Production kanban authorizes production
 Withdrawal kanban authorizes movement
of goods

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A Sample Kanban

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 The Origin of Kanban
a) Two-bin inventory system b) Kanban inventory system

Bin 1
Kanban
Bin 2
Reorder
card Q-R
R R

Q = order quantity
R = reorder point - demand during lead time

Figure 11.5
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 Types of Kanbans

Figure 11.6
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 Types of Kanbans

Figure 11.6
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 Types of Kanbans

Figure 11.6
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 Types of Kanbans
 Kanban Square
 Marked area designed to hold items
 Signal Kanban
 Triangular kanban used to signal
production at the previous workstation
 Material Kanban
 Used to order material in advance of a
process
 Supplier Kanbans
 Rotate between the factory and suppliers

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 Determining Number of
Kanbans
average demand during lead time + safety stock
No. of Kanbans =
container size

dL + S
N =
C
where

N = number of kanbans or containers

d = average demand over some time period
L = lead time to replenish an order
S = safety stock
C = container size
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 Determining the Number
of Kanbans
d = 150 bottles per hour
L = 30 minutes = 0.5 hours
S = 0.10(150 x 0.5) = 7.5
C = 25 bottles

dL + S (150 x 0.5) + 7.5

N= =
C 25
75 + 7.5
= = 3.3 kanbans or containers
25

Round up to 4 (to allow some slack) or

down to 3 (to force improvement)
Example 11.1
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Small-Lot Production
 Requires less space & capital
investment
 Moves processes closer together
 Makes quality problems easier to
detect
 Makes processes more dependent
on each other

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Inventory Hides Problems

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Lower Levels of Inventory
Expose Problems

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Components of Lead Time
 Processing time
 Reduce number of items or improve
efficiency
 Move time
 Reduce distances, simplify
movements, standardize routings
 Waiting time
 Better scheduling, sufficient capacity
 Setup time
 Generally the biggest bottleneck
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 Kaizen
 Continuous improvement
 Requires total employment
involvement
 Essence of JIT is willingness of
workers to
 Spot quality problems
 Halt production when necessary
 Generate ideas for improvement
 Analyze problems
 Perform different functions
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 Benefits of JIT
1. Reduced 8. Better relations
inventory with suppliers
2. Improved quality 9. Simplified
3. Lower costs scheduling and
4. Reduced space control activities
requirements 10. Increased capacity
5. Shorter lead time 11. Better use of
6. Increased human resources
productivity 12. More product
7. Greater flexibility variety

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 JIT Implementation
 Use JIT to finely tune an
operating system
 Somewhat different in
USA than Japan
 JIT is still evolving
 JIT isn’t for everyone

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