JUST-IN-TIME

PRODUCTION
SYSTEMS

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 APICS Definition of JIT

“A philosophy of manufacturing based on

planned elimination of waste and continuous
improvement of productivity ……”

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 APICS Definition of JIT
“The primary elements of Just-in-Time are:
– to have only the required inventory when needed;
– to improve quality to zero defects;
– to reduce lead times by reducing setup times,
queue lengths, and lot sizes;
– to incrementally revise the operations themselves;
– and to accomplish these things at minimum cost”.

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 JIT Synonyms
• IBM - Continuous Flow Manufacturing
• HP - Stockless Production
- Repetitive Manufacturing System
• GE - Management by Sight
• Motorola - Short Cycle Manufacturing
• Japanese - The Toyota System
• Boeing - Lean Manufacturing

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 JIT Demand-Pull Logic

Fab Vendor

Sub
Fab Vendor
Customers
Final
Assembly

Sub Fab Vendor

Fab Vendor
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 Push vs. Pull Manufacturing
• Production Systems that signal delivery from
downstream stations are known as pull-
production systems.
• Production Systems which push materials on
downstream stations are known as push-
production systems.

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 Traditional Push System

F
M I
A N
T I
Process Process Process
E S
R H
I E
A D
L
G
Inv. O
O
Work-In-Process Work-In-Process D
Staging Area Staging Area S

Inv.

Material Is Moved Down Stream After Processing at Each Stage

Work-In-Process Inventories Develop
06/11/23 Traditional Efficiency Measures Encourage Overproduction
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 Push vs. Pull Systems
• Push-Production Systems are generally based
on two concepts
– adjacent workstations in the process are
independent of each other.
– keeping every worker and every stations always
working at their maximum capacity is best for the
company.

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 Alternative Pull System

Signal
Supplier

C
Signal U
M S
A
T T
E
Process Process Process O
R
I M
A E
L R
Inv.
Signal D
E
Signal Signal M
FGI A
N
D
Pull Systems Move Material In Response To A Signal From a Downstream Process
Minimal WIP Buildup/Reduced Space Requirements
Reduced Material Inventory/ More Frequent Supplier Deliveries
Minimal Finished Goods Inventory
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Emphasis on Throughput Not Efficiency Measures PKB
 The Japanese Approach to
Productivity
• Imported technologies
• Efforts concentrated on shop floor
• Cycle time reduction
• Quality improvement focus
• Elimination of waste
• Respect for people

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 JIT Manufacturing Philosophy
• The main objective of JIT manufacturing is to
reduce manufacturing lead times.
• This is primarily achieved by drastic
reductions in work-in-process (WIP).
• 100% capacity utilization is not the
predominant objective.
• The result is a smooth, uninterrupted flow of
small lots of products throughout production.

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 Capacity Utilization
Production Lead Times (days)
60

50
Traditional
Manufacturing
40

30

20 JIT
Manufacturing
10
% Capacity
Utilization
10 20 30 40 50 60 70 80 90 100

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 Waste in Operations
(1) Waste from overproduction
(2) Waste of waiting time
(3) Transportation waste
(4) Inventory waste
(5) Processing waste
(6) Waste of motion
(7) Waste from product defects
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 Minimizing Waste:
Quality at the Source
• Self-inspection

• Automated inspection

• Line-stopping empowerment

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 Minimizing Waste:
Quality at the Source
Every individual to be responsible personally for the
quality of the product or the component that he or she
produced
Each person given only one part to work on at a time
Jidoka push buttons installed on the assembly and
production lines
“Stop everything when something goes
wrong”

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 Minimizing Waste:
Uniform Plant Loading
Produce some quantity of every product
every day
Adjust resources to produce precisely the
quantity that is needed – no more, no less
Objective is to dampen the reaction
waves that normally occur in response to
schedule variations

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 Minimizing Waste: Inventory
Hides Problems
Example: By identifying
defective items from a
Machine
downtime vendor early in the
production process the
Scrap Vendor downstream work is
Work in delinquencies Change saved.
orders
process
queues Engineering design Design
(banks) redundancies backlogs

Example: By identifying
Paperwork Inspection Decision defective work by
backlog backlogs backlogs employees upstream,
the downstream work is
saved.
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 Kanban Production Control
• At the core of JIT manufacturing at Toyota is
Kanban, an amazingly simple system of
planning and controlling production.
• Kan, in Japanese, means card and ban means
signal.
• Kanban is the means of signaling to the
upstream workstation that the downstream
workstation is ready for the upstream
workstation to produce another batch of parts.

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 Kanbans and Other Signals
• There are two types of Kanban cards:
– a conveyance or withdrawal card (C-Kanban)
– a production card (P-Kanban)
• Signals come in many forms other than cards,
including:
– an empty crate
– an empty designated location on the floor

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 Kanban Cards
Conveyance Kanban Card
Part number to produce: M471-36 Part description: Valve Housing

Lot size needed: 40 Container type: RED Crate

Card number: 2 of 5 Retrieval storage location: NW53D

From work center: 22 To work center: 35

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 Kanban Cards
Production Kanban Card
Part number to produce: M471-36 Part description: Valve Housing

Lot size needed: 40 Container type: RED crate

Card number: 4 of 5 Completed storage location: NW53D

From work center: 22 To work center: 35

Materials required:
Material no. 744B Storage location: NW48C
Part no. B238-5 Storage location: NW47B

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 How Kanban Operates
When a worker at downstream Work Center #2 needs a
container of parts, he does the following:
• He takes the C-Kanban from the container he just
emptied.
• He finds a full container of the needed part in storage.
• He places the C-Kanban in the full container and
removes the P-Kanban from the full container and
places it on a post at Work Center #1.
• He takes the full container of parts with its C-Kanban
back to Work Center #2.
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 Flow of Kanban Cards and
Containers
P-Kanban and C-Kanban and
empty container empty container
Full container Full container
and P-Kanban and C-Kanban

In-process
Upstream Downstream
storage
Work Center #1 Work Center #2

Parts Flow

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 Containers in a Kanban System
• Kanban is based on the simple idea of replacement of
containers of parts, one at a time.
• Containers are reserved for specific parts, are
purposely kept small, and always contain the same
standard number of parts for each part number.
• At Toyota the containers must not hold more than
about 10% of a day’s requirements.
• There is a minimum of two containers for each part
number, one at the upstream “producing” work center
and one at the downstream “using” work center.
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 Determining the Number of
Kanbans Needed
• Setting up a kanban system requires determining
the number of kanbans (or containers) needed.

• Each container represents the minimum

production lot size.

• An accurate estimate of the lead time required to

produce a container is key to determining how
many kanbans are required.

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 The Number of Kanban Card Sets
Expected demand during lead time  Safety stock
k
Size of the container

dL (1  S )

C

k = Number of kanban card sets (a set is a card)

d = Average number of units demanded over some time period
L = lead time to replenish an order (same units of time as demand)
S = Safety stock expressed as a percentage of demand during lead
time
C = Container size
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 Example of Kanban Card
Determination: Problem Data
• A switch assembly is assembled in batches of 4 units from
an “upstream” assembly area and delivered in a special
container to a “downstream” control-panel assembly
operation.

• The control-panel assembly area requires 5 switch

assemblies per hour.

• The switch assembly area can produce a container of

switch assemblies in 2 hours.

• Safety stock has been set at 10% of needed inventory.

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 Example of Kanban Card
Determination: Calculations
Expected demand during lead time  Safety stock
k
Size of the container

dL (1  S ) 5(2)(1.1)
   2.75, or 3
C 4

Always round up!

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 Minimizing Waste:
Minimized Setup Times
• What are the consequences of long setup
times?

• A requirement for small-lot-size, mixed-model

production?

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 Reducing Inventories
through Setup Time Reduction
• Central to JIT is the reduction of production lot
sizes so that inventory levels are reduced.
• Smaller lot sizes result in more machine setups
• More machine setups, if they are lengthy, result in:
– Increased production costs
– Lost capacity (idle machines during setup)
• The answer is: REDUCE MACHINE SETUP
TIMES

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 Setup Time Required for an
EOQ
• The economic production lot size (EOQ) model) is:

2DS
EOQ 
d
IC(1  )
p

where: D = annual demand rate

d = daily demand rate
p = daily production rate
IC = carrying cost per unit per year
S = cost per setup

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 Setup Time Required for an
EOQ
• The setup cost required for a given lot size can be
derived from the EOQ model as:
2
IC(EOQ)  d
S 1  
2D  p
• The setup time can be derived from the setup cost, S:

S
Setup Time =
Labor rate

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Example: Setup Time Required
A firm wants to determine what the length of the
setup time of an operation should be in order to make
an production lot size (EOQ) of 50 economical. An
analyst has made the following estimates:

D = 16,800 units (annual demand)

d = 84 units (daily demand rate @ 200 days/yr)
p = 140 units (daily production rate)
IC = $42 (carrying cost per unit per year)
Labor rate = $15.00/hour
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 Example: Setup Time Required
• Setup Cost Required for EOQ = 50

IC(EOQ) 2  d
S 1  
2D  p

$42(50) 2  140  84 
=    $1.25
2(16,800)  140 

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 Example: Setup Time Required
• Setup Time Required for EOQ = 50
S $1.25
SetupTime    0.0833 hours
Labor rate $15.00/hr

.0833 hours = 5.0 minutes

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 Minimizing Waste:
Minimized Setup Times
Setup times not treated as given
Two segments – internal and
external
Continuous reduction in setup
times
Single digit setup times (SMED)

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 Changes Required for JIT
• JIT requires certain changes to the factory and
the way it is managed:
– Stabilize production schedules
– Increase work center capacities
– Improve product quality
– Cross-train workers
– Reduce equipment breakdowns
– Develop long-term supplier relations

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