Just in Time

Dr. T. T. Kachwala
 JIT Overview

1. JIT Introduction/Definition/Nomenclature
2. JIT – A Comprehensive Philosophy
3. Mutually Supportive Components of JIT
4. Elements that support JIT flow
5. Implications and Testimony of Success
6. JIT in Services
7. Lean Manufacturing / Lean Production
Slide 2
 JIT Introduction
The term just-in-time (JIT) is used to refer to an operations system in which
materials are moved through the system, and services are delivered with precise
timing so that they are delivered at each step of the process just as they are
needed – hence the name just-in-time.

Initially, the term JIT referred to the movement of materials, parts, and semi
finished goods within a production system. Over time, the scope of JIT
broadened and the term became associated with lean production. Now the two
terms are often used interchangeably to refer to a highly coordinated, repetitive
manufacturing or service system designed to produce a high volume of output
with fewer resources than more traditional repetitive systems, but with the ability
to accommodate more variety than traditional systems.

Slide 3
 JIT Definition

The Dictionary defines JIT as: “A philosophy of manufacturing

based on planned elimination of all waste and continuous

improvement of productivity. It encompasses the successful

execution of all manufacturing activities required to produce a

final product, from design engineering to delivery and including

all states of conversion from raw material onwards.”

Slide 4
 JIT Definition

The primary elements of Just-in-Time are:

1. to have only the required inventory when needed
2. to improve quality to zero defects
3. to reduce lead times by reducing setup times,
queue lengths and lot sizes
4. to incrementally revise the operation themselves
5. to accomplish these things at minimum cost

Slide 5
JIT – A Comprehensive Philosophy

JIT was pioneered by Taichi Ohno (Toyota Motor Company) to achieve

following objectives:
1. Improve performance
2. Overcome image of Poor Quality
3. To take care of Scarce Resources

JIT – A Comprehensive Philosophy

4. Its about change in Mindset
5. Approach ideologically related to Japanese culture, customs & labor
management relations
6. JIT operates with very low WIP & finished goods inventory

Slide 6
JIT – A Comprehensive Philosophy

JIT SUPPORTING GOALS

 The ultimate goal of JIT is a balanced system, that is, one that achieves a

smooth, rapid flow of materials and / or work through the system. The idea

is to make the process time as short as possible by using resources in the

best possible way.

 The degree to which the overall goal is achieved depends on how well the

following supporting goals are achieved:

1. Eliminate disruptions.

2. Make the system flexible.

3. Eliminate waste, especially excess inventory.

Slide 7
Mutually Supportive Components of JIT

The roots of JIT system can be traced to the Japanese aversion to

wastage. It seeks to eliminate all source of waste by providing the

right part at the right place at the right time

JIT manufacturing is a broad philosophy of continuous improvement that

includes three mutually supportive components (Productivity Triad)

1. People Involvement

2. Total Quality Control

3. JIT Flow

Slide 8
People Involvement
JIT has a strong human resource management component i.e. utilizing the full
capability of the worker. Underutilization of Human Talent is considered a
waste.

A fundamental tenet of the JIT philosophy is that workers are assets. Well trained and

motivated workers are the heart of a JIT system. They are given authority to

take decisions & are expected to do more than traditional operator job.

Workers are cross trained to perform several parts of a process and operate a variety

of machines. This adds to system flexibility.

Successful people involvement stems from a culture of Teamwork & Trust. It goes

beyond JIT company to include Suppliers. JIT systems typically have close

relationships with Vendors, who are expected to provide frequent small

deliveries of high quality goods.

Slide 9
People Involvement

Inspection of incoming goods is viewed as inefficient and

therefore the burden of ensuring quality shifts to the vendor.

The supplier may participate in design review etc. Suppliers

can get the feedback to improve productivity or Quality. The

system is designed to provide long term stable relationship

with supplier.

The ultimate goal of the buyer is to certify a vendor as a

producer of high quality goods.

Slide 10
Total Quality Control

1. Quality is the sine qua non (without which not) of JIT

2. Quality involves every department & every employee in the company.

Every employee should aim to satisfy its immediate customer.

3. Quality is designed in to the product and the production process

4. Companies like Toyota follow the concept of “Jidoka” i.e. it is better to

make nothing rather than making it incorrectly

5. “Total” in terms of time means it never ends. There is never a level of

quality that is “good enough”

Slide 11
 JIT Flow
 JIT system are designed to minimize inventory storage. Inventories are buffers that
tend to cover up recurring problem that are never resolved {Large rocks (problems)
are hidden by a high water level (inventory)}

Machine breakdown, poor

quality, unreliable vendor, poor
scheduling problems can be
solved using ample inventories
(which allows for smooth
production). However cost of
production is high because of
inefficient production and
problems are unresolved.

Slide 12
JIT Flow
The JIT approach is to pare down inventories gradually in order to uncover the
problems. {Lower water level reveals rocks (problems such as bottlenecks,
waste, poor timing)}. Efforts are taken to remove these rocks from water

Reducing Inventory will allow the

production problems to surface.

Once the problems are visible,

corrective action can be taken to

eliminate these problems. This

reduces the cost & results in an

efficient manufacturing plant

Slide 13
 JIT Flow

As more rocks are removed, the need for water to cover them diminishes. Likewise, as
more of the major production problems are solved, there is less need to rely on inventory.
{The large rocks are removed, the water level (inventory) can be lowered [Diagram C]}

Smooth Production resumes at lower

levels of inventory once the production
problems are eliminated.
Inventory level is like a barometer to
measure the effectiveness of the
manufacturing system. Lower the
inventory level, more effective the
manufacturing system.
JIT, TQM, TOC are all advocating low
levels of inventory

Slide 14
JIT Flow
1. Excessive Inventory hides the problems and a lot of scrap is already
produced before it is discovered
2. In JIT flow, it is easier to trace and solve the problem
3. JIT ensures low WIP holding cost and low time required for end to
end flow of product through all work centers

Goal of any JIT flow is “One piece production and conveyance”

All processes approach the condition where each process can produce
only one piece, can convey it one at a time and have only one piece
in stock between the processes

Slide 15
Elements that Support JIT Flow

1. A set of Uniform Production Rate and Mixed Model Assembly

2. A Pull method of coordinating work centers

3. Purchasing and Producing in small lots

4. Quick, inexpensive setups

5. Multi skilled workers and flexible facilities

6. High Quality levels

7. Preventive Maintenance and Housekeeping

8. Continuous Improvement

Slide 16
JIT Flow-Uniform Production Rate

 Objective of JIT is to achieve a smooth flow of materials from the

company’s suppliers to the company’s customers with no delays or
interruptions.

 JIT system works best when production schedules are kept level and
any required changes are made in small steps.

Mixed Model Assembly (Heijunka)

 Each day a mix of models is produced in short repetitive sequence.

 Work load in each work center remains uniform.

 Neither workers nor work centers need to be reassigned.

Slide 17
Pull Method of Coordinating Work Centers
 The term push and pull are used to describe two different systems for
moving work through a production process. In traditional production
systems, a push system is used: work finished at one work station is
pushed to the next station to the final operation & to the final inventory.
 Conversely in a pull system, control of moving the work rests with the
following operation; each work station pulls the output from the preceding
station as it is needed; output of the final operation is pulled by the
customer demand or the master schedule.
 JIT system communication moves backward through the system from
station to station. Each workstation (i.e. customer) communicates its
need for more work to the preceding work station (i.e. supplier) thereby
assuring that supply equals demand.

Slide 18
Pull Method of Coordinating Work Centers

 In JIT system, coordinating fabrication and assembly operation through

all the work centers that feed the final assembly line is done by the Pull
Method. Each work centre requests, or “pulls”, items from the previous
work centre only as they are required. The requirement is authorized
through Kan Ban system.
 It is a reactive system based on actual demand and improves co-
ordination between processes and thereby eliminates the need for large
inventory.
 The chain reaction of the linkages between the work centres produce
only the items required to feed the final assembly operations & in the
amounts needed.

Slide 19
The Kanban System
 Name comes from Japanese word Kanban meaning “Card or

Sign”

 Kanban is an information System used by a WC to signal its

supplier WC to send a container of an item and to authorize him

to make a new container of that particular item.

 Triggers used for re-supply are flashing light, empty container

itself, or a message on computer terminal etc

 Parts are kept in small containers and only specific number of

these containers are provided

Slide 20
Purchasing & Producing in small lots
 In the JIT philosophy, the ideal lot size is one unit, a quantity that may
not always be realistic owing to practical considerations requiring
minimum lot sizes (machines that process multiple items, heat
treatment equipment etc.). Nevertheless the goal is to reduce the lot
size as much as possible.
 Small lot sizes in both the production process and deliveries from
suppliers yield a number of benefits that enable JIT systems to
operate effectively (in-process inventory, space requirements,
inspection & rework cost reduces)
 Production Lots are small and items are placed in containers that hold
about 1 hour work or less. Small lots and changing product mixes
require frequent setups. Unless these are quick & relatively
inexpensive, the time and cost to accomplish them can be prohibitive.

Slide 21
Purchasing & Producing in small lots
 Taichi Ohno perfected the technique of die - change through
endless experimenting. The set up time required to change dies
were reduced from a day to three minutes {Single Minute
Exchange of Dies (SMED)}. Ohno asked the production workers
to perform the die changes (eliminated the need for die change
specialist).
 Setup tools and equipment and set up procedures were
simplified and standardized (Through Training, Standardize the
equipment and Setup procedures)
 To ensure shortest possible time for exchanges of dies, the tools
and supplies must be at the machine, setup people must be
ready before the machine is ready for internal steps, the internal
steps should be minimized and standardized.
Slide 22
Purchasing in Small Lots
1. Supplier must be located close to the plant
2. The supplier works to provide good quality and achieve on time
deliveries
3. Certified suppliers are permitted to deliver their items to the
points of use in the factory, instead of having them first go
through a receiving inspection

Multi Skilled Workers

4. For a WC to make different items, multi-skilled workers are
required
5. Workers must be capable of performing any operation that is
required so that production will not be delayed

Slide 23
High Quality Levels
1. High quality is required to avoid frequent disruptions to JIT flow.
Consequently problem solving is important when defects occur. Quality
improvement focuses on finding & eliminating the causes of problems so
they do not continually crop up.
2. JIT systems use autonomation which involves automatic detection of
defects during production. It empowers the worker to stop production &
correct the cause of the defect. Defects are an opportunity to improve
production system
3. JIT methods helps to maintain good quality. If one WC starts making
defects, the downstream WC will soon be out of material and will finally be
stopped. Several people may be available to solve the problem.

Slide 24
 Continuous Improvement (Kaizen)

1. The JIT philosophy carries with it an objective of continuous

improvement. JIT workers receive extensive training in SPC, quality
improvement, and problem solving.
2. Problem solving for problems that interrupt the smooth flow of work
through the system. When such problems surface, temporarily the
inventory levels may increase, but the intent is to eliminate the
problem, or at least reduce the chances of it recurring.
3. Japanese companies form teams composed of workers & managers
who routinely work on problems. Workers are encouraged to report
problems to the team.
4. A central theme of JIT is to work towards continuous improvement of the
system – reducing inventories, reducing set up cost & time, improving
quality, increasing output rate, and generally cutting waste & inefficiency.

Slide 25
Continuous Improvement (Kaizen)

1. Problem solving becomes a never ending quest for

improving operations as all members of the organization
strive to improve the system.
2. The way to measure the performance in JIT is to see how
little WIP it requires to operate.
3. The amount of inventory in JIT system is the sum of the
number of Kanbans circulating between two WCs
4. The manager can remove one Kanban to see the effect on
system and try to remove the hindrance if smooth flow
gets disturbed

Slide 26
Preventive Maintenance & Housekeeping

1. Equipment breakdown can be extremely disruptive.

Preventive Maintenance helps to avoid frequent break
downs

2. A set of records is maintained to know what needs to be

done to the machine

3. Workers are often responsible for maintaining their own

equipment.

4. Housekeeping involves keeping the work place clean and

free from material not needed for production.

Slide 27
Testimony of Success

 Richard Schonberg in his book “World Class Manufacturing”,

lists many successful implementations of JIT in the United
States. He also gives brief descriptions of the improvements
that resulted.
 Companies such as Dover Corporation, Hewlett-Packard, 3M,
General Electric, Harley- Davidson and John Deere have
reported reductions in inventories and through put times of up
to 90% and substantial improvements in productivity and on-
time delivery.

Slide 28
JIT IN SERVICES
1. When just-in-time is used in the context of services, the focus is often on
the time needed to perform a service – because speed is often an
important order winner for services.
2. Some services do have inventories of some sort, so inventory reduction is
another aspect of JIT that can apply to services.
3. In addition to speed, JIT services emphasize consistent, high-quality,
standard work methods, flexible workers and close supplier relationships.
4. Some of the ways JIT benefits can be achieved in services are: Eliminate
disruptions, Make the system flexible, Reduce setup times and processing
times, Eliminate waste, Minimize work-in-process & Simplify the process
5. An important key to JIT service is the ability to provide service when it is
needed.

Slide 29
Lean Manufacturing (Big JIT)
1. Dictionary defines lean manufacturing as “A philosophy of production
that emphasizes the minimization of the amount of all the resources
(including time) used in the various activities of the enterprise.”
2. It involves identifying and eliminating non-value-adding activities in
design, production, supply chain management and dealing with the
customers. Lean producers employ teams of multi skilled workers at all
levels of the organization and use highly flexible, increasingly
automated machines to produce volumes of products in potentially
enormous variety.
3. Lean production systems use much less of certain resources than mass
production systems for example: less space, less inventory, and fewer
workers - to produce a comparable amount of output.

Slide 30
Lean Production
1. Lean production emphasizes on quality, flexibility, time reduction, and
teamwork. This has led to a flattening of the organization structure, with
fewer levels of management. In effect, they incorporate advantages of
both mass production (high volume, low unit cost) and craft production
(variety and flexibility).
2. The skilled workers in lean production systems are taught to stop
production if they discover a defect, and to work with other employees
to find and correct the cause of the defect so that it won’t recur.
3. Emphasis is placed on anticipating when problems might occur before
they arise, and avoiding those problems through careful planning. The
focus is on designing a system (products and process) so that workers
will be able to achieve high levels of quality and quantity.

Slide 31
Lean Production
3. Lean Production or Japanese Production encompasses the full range of
Organizational and Operational improvements. Japanese manufacturing
revolution was really a result of more extensive change. The entire way
products were designed, work was organized, and responsibilities were
assigned was transformed, and a constant striving for improvement &
elimination of waste was instilled.
4. In lean systems, quality is ingrained in both the product and the process.
Companies that use lean operations have achieved a level of quality that
enables them to function with small batch sizes and tight schedules.
Lean systems have high reliability, major sources of inefficiency and
disruption have been eliminated, and workers have been trained not only
to function in the system but also to continuously improve it.

Slide 32
Thanks and Good Luck

Have a nice Day

Dr. T. T. Kachwala