Just In Time

Unit II: Just In Time: Why JIT , Basic Principles of JIT, JIT system, Kanban, Six Kanban rules,
Expanded role of conveyance, Production leveling, Three types of Pull systems, Value stream
mapping. JIDOKA, Development of Jidoka concept, Why Jidoka, Poka, Yoke systems,
Inspection systems and zone control – Types and use of Poka-Yoke systems, Implementation of
Jidoka
Just-In-Time
• It was originally formed in Japan as a response to the country’s
limited natural resources, leaving little room for wastage.

• JIT- A philosophy of continuous improvement that puts emphasis on

prevention rather than correction, and demands a company wide
focus on quality.

• Just-in-Time is a common inventory management technique and

type of lean methodology designed to increase efficiency, cut costs
and decrease waste by receiving goods only as they are needed.
 Why Just In Time
With the right approach, utilizing a JIT inventory management strategy
has a number of potential benefits for businesses:
• Lower inventory holding costs – with inventory purchased or produced
at short notice there’s no need to have unsold inventory taking up
valuable warehouse space.
• Improved cash flow – without the need to store large volumes of
inventory at all times, capital expenditure is reduced, and cash can be
invested elsewhere.
• Less dead stock – because inventory levels rely on customer demand,
there’s less risk of unwanted stock left sitting in your warehouse.
Basic Principles of JIT

1. Total Quality Management

2. Production Management

3. Supplier Management

4. Inventory Management

5. Human Resource Management

 Total Quality Management (TQM)
• Seek long-term commitment to quality efforts with
continuous improvement
• Quality must be a higher priority than cost minimizing
waste
• Quality is everyone’s responsibility
Production Management
Pull System vs. Push System
• Pull = Made to order
• Push = Made for inventory

Design For Testability – In the process

• Poka-Yoke= Mistake-proofing
• Throughout entire process
Production Management
Communication Techniques
• Completion of task- Kanban
• Problem- Andon or siren/light

Stopping the process if something goes

wrong =Jidoka

❂ Preventive Maintenance
Production Management at
Toyota
 Toyota uses a Kanban pull system
throughout the production process.

 Each task in the process seems to take

identical length and work content, so
everyone is working at the same pace to
reduce bottlenecks.
Supplier Management
Establish Long Term Relationships with few
suppliers.

Delivery of Parts = 100% Defect Free

• Where they are needed
• When they are needed
• The exact quantity

Work Together
Supplier Management

Information Systems
• Eliminating barriers to information

Communicate problems to suppliers in a

positive manner.
Supplier Relations at Toyota
 Toyota communicates their damand for
parts 20 days in advance to their suppliers,
with the right to change the forecast up to
the 10th day.
Inventory Management
Eliminate Safety Stock = Zero Inventory

Reduce Work-in- Progress

JIT is not an inventory control system

Reduction in inventory opens up space

Inventory hides problems in a
process.

Water Level = Inventory

Rocks = Problems in the system
Boat = Company Operations
 Human Resource Management
•❂ Company-wide Involvement
• Motivation for continuous improvement
• Problem Solving
• High Employee Interaction
Human Resource Management

Self-Inspection of work

Diversified Employees
• Absenteeism
• To eliminate boredom in process

Management Support and Empowerment of

workforce
Human Resource Management at
Toyota

 In 1986 from a labor force of 60,000

Toyota received 2.6 million improvement
proposals, 96% of which were
implemented by either management or the
employees themselves.
Kanban
• KAN=CARD, BAN= SIGNAL
• Kanban (meaning signboard or billboard) is a scheduling system
for lean manufacturing and just-in-time manufacturing (JIT).

• Taiichi Ohno, an industrial engineer at Toyota, developed

Kanban to improve manufacturing efficiency. Kanban is one
method to achieve JIT.

• The system takes its name from the cards that track production
within a factory.

• Kanban is also known as the "Toyota Nameplate System" in the

automotive sector.
 Kanban
• Factories are complicated and busy places – and making sure all work is done can be difficult.

That’s where the Kanban, or signboard system, fits into the Toyota Production system.

• Kanban displays can broadcast lots of different types of information, from stock levels to

production volumes. In its simplest form a Kanban board will show goods in, goods in

production, and goods out.

• Kanban is a scheduling system for lean and just-in-time (JIT) production. It is an information

system where the supply or production of a product is determined by the actual demand of the

customers. Therefore, products are supplied or produced in the amount and time required.
Kanban Six Rules
Toyota has six rules for the effective application of Kanban:
1) Never pass on defective products;
2) Take only what is needed;
3) Produce the exact quantity required;
4) Level the production (Heijunka):
Also known as production smoothing. It is a technique for reducing
the Mura (unevenness) which in turn reduces Muda (waste). It was
vital to the development of production efficiency in the Toyota
Production System and lean manufacturing.
5) Fine-tune production (Kanban); and
6) Stabilize and rationalize the process.
Expanded role of conveyance

The Kanban system originated in the manufacturing industry; however,

today it is used in any process that requires a continuous provision of
materials or products in order to satisfy their customer’s demands
and at the same time reduce excess inventories and the production
of waste. Some of the benefits of implementing this system are:
• Wasted work and time is reduced.
• Increases productivity.
• Increases efficiency.
• More time can be available to improve the processes.
• Delivery of products and materials is improved.
 Expanded role of conveyance
• This system enables organizations to operate on the principle of “Pull
Production” instead of “Push Production”; in a pull-based supply chain,
procurement, production and distribution are driven by customer’s demand placed
rather than based on forecast demand of a product.

• Although historically Kanban system uses cards to signal the need for a product or
material, in many organizations these have been replaced by plastic markers, balls
and, more recently, by signals that are sent electronically using sophisticated
software.

• Whichever method an organization wishes to choose, Kanban will enable them to

align their inventory levels with actual consumption, thus improving their
efficiency and allowing them to produce exactly what they need when they need it.
Production leveling (Heijunka (hi-JUNE-kuh)

• Heijunka (hi-JUNE-kuh) is a Japanese word for leveling.

• It is part of the lean methodology of process improvement that helps
organizations match unpredictable customer demand patterns and eliminate
manufacturing waste by leveling the type and quantity of production output
over a fixed period of time.

• Meaning
Keeping total manufacturing volume as constant as
possible.
Production leveling -Heijunka (hi-JUNE-
kuh)
• “Leveling the type and quantity of production over a fixed period of
time.

• This enables production to efficiently meet customer demands while

avoiding batching and results in minimum inventories, capital costs,
manpower, and production lead time through the whole Value
stream.”
Production leveling-Heijunka (hi-JUNE-kuh)
• It is part of the Lean methodology of process improvement that helps
organizations match unpredictable customer demand patterns and eliminate
manufacturing waste by leveling the type and quantity of production output
over a fixed period of time.

• It may be easier to understand Heijunka and how it can improve the production
process by contrasting it with the traditional production method of Batching.

• Batching has been a commonly used method for organizing the manufacturing
process since the invention of Mass production.

• Batching produces large lots of products without taking into account the
fluctuation of customer demand.

• The output that is not immediately purchased by the customer is placed in

inventory.
 Production leveling
(Heijunka (hi-JUNE-kuh)
• The traditional method of Batching has several drawbacks:
• Customer demand is rarely predictable. When customers
follow an unanticipated buying pattern, the manufacturer
may experience confusion and disorder.
• The demand on upstream processes is inconsistent.
• The cost of unsold goods held in inventory decreases
profitability.
• Daniel T. Jones, founder and chairman of the Lean
Enterprise Academy, writes:
• “Years ago, Toyota reached the counter-intuitive conclusion that
this [batching] is a bad idea. Its reasoning was that no production
system can be continuously responsive to turning orders without
suffering from mura (unevenness in productivity and quality),
and muri (overburden of machines, managers, and production
associates). And mura and muri together create muda (waste).”
Production leveling (Heijunka (hi-JUNE-kuh)

• Predictability – Happens when demand is level

• Flexibility – Achieved by reducing changeover time and Flexibility to produce
what the customer wants when they want it.
• Stability – Averaging production volume and type over the long term
• Reduced inventory of unsold goods.
• Balanced use of labor and machines.
• Predictable demand on the upstream processes and suppliers.
Production leveling (Heijunka (hi-JUNE-kuh)
Core Concepts to Guide Heijunka Implementation

• Takt time: The time it takes to finish a product in order to

meet customer demand; can be thought of as the customer
buying rate. It is the guidance for the
entire heijunka implementation.
• Volume leveling: Manufacture at levels of long-term average
demand and keep a buffer inventory proportional to variability
in demand, stability of production process and shipping speed.
• Ex: A hat producer receives orders for 500 of the same hat
per week. 200 orders on Monday, 100 on Tuesday, 50 on
Wednesday, 100 on Thursday, and 50 on Friday.
Production will make a 100 hats per day – a level amount
 Production leveling (Heijunka (hi-JUNE-kuh)
Core Concepts to
Guide Heijunka Implementation

• Type leveling (Product Mix): Essentially,

make every product every day and reserve
capacity for changeover flexibility; use
a heijunka box to visualize the production
flow and schedule.
• Ex: What if the situation involves multiple
types of hats?
• A heijunka production schedule might
look like AABCDA,ABCDAB with
emphasis placed on efficient changeover
times and buffer inventories that meet
demand for more popular items.
Production leveling _Heijunka (hi-JUNE-kuh)

Core Concepts to Guide Heijunka Implementation

• Heijunka box: A working diagram of type leveling and

production schedule.
• illustration, each time period builds an A and two Bs along with a
mix of Cs, Ds and Es. What is clear from the box, from the simple
repeating patterns of kanbans in each row, is that the production is
smooth of each of these products.
• Work slowly and consistently: Taiichi Ohno, founder of the
Toyota Production System, says it best: “The slower but
consistent tortoise causes less waste and is much more desirable
than the speedy hare that races ahead and then stops
occasionally to doze. The Toyota Production System can be
realized only when all the workers become tortoises.”
• Changeover time: Efficiency of changeover is the fulcrum
of heijunka; narrowing changeover times helps tighten the value
stream between supply and demand.
Production leveling (Heijunka (hi-JUNE-kuh)

Core Concepts to Guide Heijunka Implementation

• Buffer inventory: Having some product ready to ship at the

beginning of each production cycle is essential to smoothing
production and leveling demand at consistent rates and quality so that
resource waste is minimized on the line.
• Type standardization: By manufacturing one of each product or
service a day, knowledge can be more readily shared across types to
benefit every process.
Pull System
• A Pull System is one that is set up to respond directly to internal or
external customer demand. Production facility begins to replenish the
orders based on customer demand.
 Pull System
• Supermarket Pull System

• The most basic and widespread type, also known as a fill-

up or replenishment or a-type pull system.

• In a supermarket pull system each process has a store—a supermarket—

that holds an amount of each product it produces.

• Each process simply produces to replenish what is withdrawn from its

supermarket.

• Typically, as material is withdrawn from the supermarket by the

downstream customer process, a kanban or other type of information will

be sent upstream to the supplying process to withdraw product. This will

authorize the upstream process to replace what was withdrawn.

• Each process is responsible for the replenishment of its supermarket, so daily

management of the worksite is relatively simple and kaizen opportunities are relatively

easy to see. The disadvantage of a supermarket system is that a process must carry an

inventory of all part numbers it produces, which may not be feasible if the number of

part numbers is large.

 Pull System
• Sequential Pull System

• A sequential pull system—also known as a b-type pull system—Products are

essentially "made-to-order" while overall system inventory is minimized.

• In a sequential system, the scheduling department must set the right mix and
quantity of products to be produced.

• This can be done by placing production kanban cards in a heijunka box, often
at the beginning of each shift.

• These production instructions then are sent to the process at the upstream end
of the value stream.

• Often this is done in the form of a “sequence list,” sometimes called a

“sequential tablet.” Each following process simply produces in sequence the
items delivered to it by the preceding upstream process. FIFO of individual
products must be maintained throughout.

• A sequential system creates pressure to maintain short and predictable lead

times. In order for this system to work effectively, the pattern of customer
orders must be well understood. If orders are hard to predict, production lead
time must either be very short (less than order lead time) or an adequate store
of finished goods must be held.

• A sequential system requires strong management to maintain, and improving it

may be a challenge on the shop floor.
 Pull System

Mixed Supermarket and Sequential Pull System

Supermarket and sequential pull systems may be used together in a mixed system—also
known as a c-type pull system.

A mixed system may be appropriate when an 80/20 rule applies, with a small percentage of part
numbers (perhaps 20%) accounting for the majority (perhaps 80%) of daily production volume.

Often an analysis is performed to segment part numbers by volume into (A) high, (B) medium,
(C) low, and (D) infrequent orders.

Type D may represent special order or service parts. To handle these low-running items, a
special type D kanban may be created to represent not a specific part number but rather an
amount of capacity.

The sequence of production for the type D products is then determined by the method the
scheduling department uses for sequential pull system part numbers.
Value-Stream Mapping
• Value-stream mapping, also known as
"material- and information-flow
mapping", is a lean-management method for
analyzing the current state and designing a
future state for the series of events that take a
product or service from the beginning of the
specific process until it reaches the customer.
• A value stream map is a visual tool that
displays all critical steps in a specific
process and easily quantifies the time and
volume taken at each stage.
Value-Stream Mapping
Hines and Rich (1997) defined seven value-stream mapping tools. Process activity mapping: the initial step of
constructing a map which consists of a study of process flows, waste identification, and business process re-
engineering.

1. Supply chain response matrix: identifying critical bottlenecks for processes in a simple diagram.

2. Production variety funnel: helps draw connections to other industries that may have solutions to existing problems.

3. Forrester effect mapping: line graphs showing the customer demand and production, allowing visualization of
supply and demand and potential delays.

4. Quality filter mapping: locates product and service defects in the supply chain.

5. Decision point analysis: determines inflection points for push-and-pull demand in the supply chain.

6. Physical structure mapping: combined model that overviews supply chain from an industry level.
Development of JIDOKA
• Jidoka was first used in 1896 by the Japanese inventor Sakichi Toyoda who later
became the creator of Toyota Motor Company.

• The mechanism was able to detect if a thread is broken and, therefore,

immediately shut down the machine and signal that there’s a problem to avoid
producing defects. Afterward, the worker operating the loom had to fix the
problem and resume the production process.

• This was a revolutionary innovation because it allowed one operator to run more
than one machine at a time and increased production capacity significantly.

• Due to its usefulness, a UK company bought the patent and practically provided
the funding for Toyota's creation.
JIDOKA
Definition of Jidoka
• By definition, Jidoka is a Lean method that is widely adopted in manufacturing
and product development. Also known as autonomation, it is a simple way of
protecting your company from delivering products of low quality or defects to
your customers while trying to keep up your takt time.
• Jidoka relies on 4 simple principles to ensure that a company would deliver
defect-free products:
1. Discover an abnormality
2. Stop the process
3. Fix the immediate problem
4. Investigate and solve the root cause
• These 4 steps can be applied in various ways depending on your industry and
can serve as a steady foundation for achieving continuous improvement of your
process.
Implementation of JIDOKA
• The four principles to successfully implement jidoka:
1.Discover an abnormality – This can be a process
malfunction, defective work-in-progress items, or any
deviation to the normal workflow. Abnormal conditions
are usually flagged through a mechanism called andon.
2.Stop the process – Once an abnormality is detected,
operations should be stopped to prevent the production
of more defective items.
3.Fix the immediate problem – The supervisor
diagnoses and corrects the problem to resume
production.
4.Investigate and solve the root cause – The supervisor
identifies the cause of the problem, addresses it, and
improves the workflow to prevent the recurrence of the
problem.
Poka,-Yoke systems

• The term Poka-Yoke (poh-kah yoh-keh) was coined in Japan during

the 1960s by Shigeo Shingo, an industrial engineer at Toyota.
• Poka-Yoke techniques to correct possible defects and source inspection
to prevent defects.
• Poka-Yoke means ‘mistake-proofing’ or more literally – avoiding
(yokeru) inadvertent errors (poka).
• Poka-Yoke ensures that the right conditions exist before a process step
is executed, and thus preventing defects from occurring in the first
place. Where this is not possible, Poka-Yoke performs a detective
function, eliminating defects in the process as early as possible.
Poka-Yoke systems

• Poka-Yoke ensures that the right conditions exist before a process

step is executed, and thus preventing defects from occurring in the
first place. Where this is not possible, Poka-Yoke performs a detective
function, eliminating defects in the process as early as possible.
• Ex: One of the most common is when a car driver with a manual gearbox must
press on the clutch pedal (a process step – Poka-Yoke) before starting the
engine. The interlock prevents an unintended movement of the car.
• Poka-Yoke is any mechanism in a Lean manufacturing process that
helps to avoid mistakes.
• Its purpose is to eliminate product defects by preventing, correcting, or
drawing attention to human errors as they occur.
Inspection systems and zone control

• Each management level should think of managing in terms of his or

her ‘zone’.
• In an Ideal world, it might be possible to produce with no defects,
but unfortunately accidental defects can occur everywhere at any time
in the real world.
• However ,even if we might make defects , we can stop them before
they go to the next process. We can stop them before they go to the
next process. We call
• This “Zone Control”.
Inspection systems and zone control

Lean producers assign quality assurance to operators and employ Error-Proofing devices
within each production process in order to detect the problems at the sources.
Types and use of Poka-Yoke systems

• There are two types of poka-yoke: control and warning.

• Control: The goal is to make it mechanically impossible for mistakes to be
made. For example, there is only one way you can plug a three-prong electric
cord into a power outlet.
• Warning: Color or sound is used to alert operators that they are about to make
a mistake. For example, a message pops up on your screen to remind you to
save your documents before closing an application.
• The goal of any poka-yoke system should be zero defects. Let’s say
that you only have one defect out of every 10,000 units produced.
That’s a very good ratio. However, that one defect represents a 100%
defective product to the person who buys it.
Use of Poka-Yoke systems
• Implementing poka-yoke in your organization will benefit your organization in
many ways:
• Error prevention (control) and error avoidance (warning) means that you spend less time
and money training your employees.
• Fewer errors means more safety for workers and consumers.
• Less time and money is wasted on quality checks and inspection because the system is
designed to be mistake-proof.
• Employees adopt a culture of continuous improvement as a way of life.
• Zero defects, or as close to zero as possible, reduces waste and costs.
• Higher quality products lead to increased customer satisfaction and stakeholder confidence.
• Using poka-yoke prevents or greatly reduces errors and this builds confidence in
employees, management, and stakeholders. Increased confidence that comes from
getting work done right the first time can result in superior products, better
customer satisfaction, enhanced brand loyalty, and increased profits.
Thank You