Unit 7

The Lean/ Just-in- Time Concept and Repetitive Manufecturing

Introduction

• Organisation’s objectives moved from stressing best possible capacity

utilization to focus on short delivery lead times
• Companies had to avoid physical inventory, as it proved to be
increasingly risky due to technological advances at turned goods into
non-sellers often overnight
• Short lead time becomes a companies’ competitive strategy
• To handle all this aspects, concepts were developed mainly from
Japan and group together as Just-in-Time (JIT)
• The JIT content where relaunched as “lean”
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Introduction

• Lean/JIT aims towards the fastest flow of goods while reducing overburdening, unevenness and
useless effort or waste
• Lean/JIT has advantages for all the concepts and all characteristics in logistic practices and
processes
• Some shown in figure 6.0.0.1 ON the prescribed text book
• One of the techniques is the kaban;
• is a well known and simple production and purchase control technique
• Takes care of only short term planning and control
• Can only be used in production and procurement with frequent order repetition
• i.e. manufacturing standard products , if needed with few variants

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Fig. 6.0.0.1 Degree of suitability for the simple techniques of
planning & control

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JIT and Jidoka- increasing productivity through reduction of
overburdening, unevenness and useless

• JIT ensures:
• Increasing productivity through reduction of Overburdening, Unevenness and Useless Effort or Waste
• The origin of JIT concept is in Toyota Production System (TPS).
• TPS is a framework of concepts and methods for increasing productivity and quality.
• The basis of TPS minimisation are called 3M, namely: Muri, Mura, and Muda
• Muri: overstraining or excessive stress
• Mura: Unevenness
• Muda: waste or useless effort
• Ohno's seven wastes are overproduction, waiting, transportation, unnecessary inventory, unnecessary motion, making
defects, inappropriate processing
• The 3Ms interact mutually
• Reduction of Muda without simultaneously reducing Mura can result in Muri
• Muri is a prerequisite of a durable reduction of Muda
• Muri entails in general Muda and Mura, so avoiding Muri has priority

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JIT and Jidoka- increasing productivity through reduction of
overburdening, unevenness and useless

• Jidoka concept
• Comprises approaches and techniques for immediately halting production when abnormal conditions occur
• It aims at elimination of production defective products by building quality into the production process
• A device was developed to stop a weaving loom bas soon as a thread broke
• JIT Concept
• encompasses a certain set of approaches , methods and techniques for planned elimination of all waste
• Primary elements
• Required inventory when needed
• To improve quality to zero defects
• To reduce lead time by reducing setup times, queue times and lot sizes
• To incrementally revise the operations
• potential for short delivery lead times

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Lean and JIT

• Stockless production or zero inventories as synonyms for JIT are misleading, thus not used
• Kaban techniques does allow buffer stock
• misunderstanding resulted from this misinterpretation could be one of the fact JIT was frequently
understood and applied incorrectly
• Hence the new catchword “:lean” took place of the term JIT
• Lean production is the minimisation of all required resources (including time) for the various
activities in an organisation. It involves identification and illumination of waste
• Lean enterprise applies the principles of lean production to all areas within an organisation
• Lean gives the target area of flexibility with the aim of reducing useless effort or waste
• Figure 6.1.1.1. shows the change of view of inventory between 1970 and 1990

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Fig. 6.1.1.1 Alternative views of inventory.

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Characteristic Features for Simple and Effective Planning & Control
Techniques of Repetitive Manufacturing

• Figure 5.3.2.1: reasons for simple or rather complicated techniques in materials management.
o low-cost items/ continuous frequency of customer demand.
o JIT concept that reduce “mura.” with repetitive manufacturing.
• The repetition of the same processes creates a potential for automation in administration.
• Continuous frequency of customer demand allows production or procurement with order release
according to consumption, or a simple (stock) replenishment.
• Figure 5.3.2.2: reasons for avoidable situation in materials management, i.e. customer tolerance
and to reduce “muri,” “mura,” and “muda”.
• Figure 5.3.4.1 reasons for simple or rather complicated techniques in capacity management.
flexibility of capacities along the time axis, to reduce “muri,”

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Characteristic features for simply and effective planning and control
techniques of repetitive manufacturing

• Simple planning and control techniques require:

• Low cost
• Continuous frequency of customer demand

• Dependent demand for expensive components, more continuous demand can be achieved through
• e.g. reducing lot sizes and product concept with variants or even standard components
• More simple techniques can be implemented in places of more complicated techniques of materials management
• to achieve this, methods were developed within JIT concept that reduce Mura
• The methods leads to production/procurement with frequent order repetition, i.e. repetitive manufacturing
• Repetition creates automation
• Continuous frequency allows simple (stock) replenishment
• Deterministic demand
• Short lead times
• Flexibility of capacity along time axis

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The Lean / Just-in-Time Concept (Methods and Techniques)

Lead Time Reduction through Setup Time Reduction and Batch Size Reduction
• Most simply reckoned, lead time is the sum of operation times and interoperation
times plus administration time.
• In job shop production, operation time determines in part queue time at a work
center, which makes up a significant portion of interoperation time.
• Reducing operation time, therefore, has both a direct and indirect effect. The
simplest definition of operation time can be expressed as the formula in Figure
6.2.1.1.

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The Lean / Just-in-Time Concept (Methods and Techniques)

Fig. 6.2.1.1 The simplest formula for operation time

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The Lean / Just-in-Time Concept (Methods and Techniques)

• The simplest way to reduce operation time is through reduction of batch or lot size.
• Smaller batch size results in more setup
• high utilization increases lead time which cause higher costs
• a significant reduction in setup time allows operation time and lead time.
• The following shows how setup-time reduction can be achieved
1. Setup-friendly production facilities:
• setup time with existing specialized machines.
• Machine programmable systems such as computer numerical control (CNC) machines, industrial robots, or flexible manufacturing
systems (FMS).
2. Cyclic planning:
• Products sequence manufactured by a machine minimum to keep total setup time.
• Cyclic planning is an example of sequencing, the planning of optimum sequences.
• Cyclic planning yields a basic cycle, as Figure 6.2.1.2 shows

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Fig. 6.2.1.2 Cyclic production planning.

Prescribed Textbook: 14
The Lean / Just-in-Time Concept (Methods and Techniques)

3. Harmonizing the product range through a modular product concept:

4.. Reducing idle time of production facilities:
• The term single-minute exchange of dies (SMED) refers to methods aimed at reducing idle time of production facilities,
according to Figure 6.2.1.3.
• These methods were developed primarily in Japanese industry (see [Shin85] or [Shin89]). In principle, there are two kinds
of setup operations:
• Internal setup (time) or inside exchange of dies (IED) takes place when the workstation is stopped or shut down.
• External setup (time) or outside exchange of dies (OED) takes place while the workstation is still working on another order.
• SMED is composed of the entire setup, it reduces idle time of the system by means of shifting portions of IED to OED. T

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Fig. 6.2.1.3 Concepts of reducing setup time.

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 Further Concepts of Lead Time Reduction

• Other lead time reduction requires adaption of the production infrastructure

• The first three reduce wait time, 4th reduces operation time ,5 reduces lead time for
several operations and 6th reduces transport time
1.Production concepts of lead time reduction
• Product families instead of job shop production
• Good flow-oriented areas as shown is figure 6.2.2.1
2. Cellular manufacturing
• It requires successive operations with L or U-shaped lined
• Figure 6.2.2.2 changes job shop production to cellular manufacturing

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Fig. 6.2.2.1 Production or manufacturing segmentation.

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Fig. 6.2.2.2 Changeover to cellular manufacturing.

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Further Concepts of Lead Time Reduction

3. Standardizing the production infrastructure, (quantitatively) flexible capacity, and increasing the flexible
capability of capacities:
• standardize the machinery, tools, and devices
• flexible capability of the workforce be increased through training and broader qualifications
• increase the availability of production facilities
4. Structuring assembly processes:
• In the assembly process, staggered supply of components reduces lead times, as shown in Figure 6.2.2.5.
• The inbound deliveries in Figure 6.2.2.5 may be preassemblies or assemblies
5. Complete processing:
• the execution of several different operations at a stretch
6. Organizing supply and buffer storage to support the flow of goods:
• Point-of-use inventory
• Point-of-use delivery

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Line Balancing — Harmonizing the Content of Work

• Line balancing balances the assignment of the tasks to workstations in a manner that minimizes the number of
workstations and the total amount of idle time at all stations for a given output level.
• Line balancing is particularly important for line manufacturing, that is, repetitive manufacturing performed by
specialized equipment in a fixed sequence (i.e., an assembly line).
• Harmonizing the content of work means to design the following so that they require the same length of time:
• (1) the various production structure levels, and
• (2) the times required for individual operations within a production structure level.

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Fig. 6.2.2.5 Assembly-oriented providing of components.

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Fig. 6.2.3.1 Harmonizing the content of work: tasks of the same duration at
each production structure level result in the rhythmic flow of goods.

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Fig. 6.2.3.2 Harmonizing the content of work: The various operations at a
workstation (for all the products) as well as the various operations for a single
product should be of the same approximate duration.

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Just-in-Time Logistics

Motivation, qualification, & employee

empowerment

Quality assurance
Integrated
procurement and
supply chain
Job
enrichment

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Generally Valid Advantages of the Lean / Just-in-Time Concept for
Materials Management

• Lean/JIT corresponds exactly to the above two demands. Thus, production and procurement costs decreas
• . Reduction of batch or lot size
• Lead time reduction

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Fig. 6.2.5.1 Effect of forecast errors through the combining of
requirements in batches across many production structure levels.

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Fig. 6.2.5.2 (Customer) order penetration point with longer and
shorter lead time.

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Generally Valid Advantages of the Lean / Just-in-Time Concept for
Materials Management

1. Reduces queue time

2. Simple control techniques as Kaban Techniques

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The Kanban Technique

• Kanban is a production control technique that is fitting with the JIT concept. The Toyota Company began to
develop Kanban in the 1960s.
• It became well known in connection with the TPS
• . Orders to withdraw required parts from suppliers and feeding operations are released directly by the work
centers.
• Kanban represents the control portion of a planning system that is often not mentioned in the literature.
• The Kanban technique presupposes demands to be as continuous as possible along the entire value-adding
chain. In other words, this should be production or procurement with frequent order repetition.

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Kanban: A Technique of Execution and Control of Operations

• Kanban (Japanese for card, or visible record) is a reusable signal card that passes back and forth between two
stations. It is thus a kind of traveling card.
• Buffers are kept at the user operation.
• These stores will contain, for example, a maximum number of standard containers or bins (A) holding a fixed
number of items (k).
• The order batch size will be a set of containers (A).
• The Kanban card is a means to identify the contents of the container and to release the order. The card will
look similar to the one in Figure 6.3.1.1.

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Fig. 6.3.1.1 Example Kanban card

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Fig. 6.3.1.3 Basic principle of the Kanban technique: the Kanban
feedback loop

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Fig. 6.3.1.4 Kanban rules of order release and control of the
feedback control system.

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Kanban: A Technique of Materials Management

• As each container must be accompanied by a Kanban, the number of Kanban cards in the feedback loop
determines the amount of work in process. We can distinguish
• containers in issue by the user operation
• containers in buffer at the user operation
• containers in transport
• containers being filled by work at the feeding operation
• containers queued at feeding operation15
• containers that represent safety stock

• To calculate the optimum number of Kanban cards in a feedback control system, the data are first defined in
Figure 6.3.2.1.

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Fig. 6.3.2.1 Basic data for calculating the number of Kanban cards.

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Fig. 6.3.2.2 Number of Kanban cards in the system.

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Fig. 6.3.2.3 Formula to calculate the number of Kanban cards.

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Kanban: Long- and Medium-Term Planning

• The last rule for Kanban use in Figure 6.3.1.4 indicated that Kanban requires some long- and medium-term
planning tasks. This planning is independent of the Kanban feedback loop. In detail, planning must fulfill the
following tasks:
• Devise a long-term plan (and, if required, a medium-term plan) for resources according to an MRP II concept
(manufacturing resource planning):
• Firstly, determine the master plan (independent demand) based on forecast or based, occasionally, on customer demand
• Secondly, calculate gross requirement to determine required resources in the form of purchased goods and capacity.
• Thirdly, develop long-term contracts with suppliers (blanket orders; see Section 5.2.4); if necessary, fine-tune release
quantities in medium-term planning.
• Determine the type and number of Kanban cards for each feedback loop .
• Analyses of deviations will reveal those feedback loops that require reexamination of the number of Kanban
cards so that overstock in buffers and interruptions in the loop can be corrected. This is done by means of the
targeted addition or removal of Kanbans.

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