• Just in time : a highly coordinated processing system in which goods move through the system and services are performed just as they are needed • Lean operation : a highly coordinated system that uses minimal resources and produces high quality goods or services

Terms associated with lean operations
• • • • • • • • Muda Kanban Pull system Heijunka Kaizen Jidoka Poka-yoke Team concept

Goals and building blocks of lean systems .

Supporting Goals • Eliminate disruptions • Make system flexible • Eliminate waste. especially excess inventory .

Sources of Waste • Overproduction • Waiting time • Unnecessary transportation • Processing waste • Inefficient work methods • Product defects .

JIT Building Blocks • Product design • Process design • Personnel/organizational elements • Manufacturing planning and control .

Product design • Standard parts • Modular design • Highly capable production systems with quality built in • Concurrent engineering .

Process design • • • • • • • • Small lot sizes Setup time reduction Manufacturing cells Quality improvement Production flexibility A balanced system Little inventory storage Fail-safe methods .

Personnel/organizational elements • • • • • Workers as assets Cross-trained workers Continuous improvement Cost accounting Leadership/project management .

Manufacturing planning and control • • • • • • • Level loading Pull systems Visual systems Limited work in progress Cross vendor relationships Reduced transaction processing Preventive maintenance and housekeeping .

Comparison of JIT and Traditional .

Transitioning to a jit system • Planning a successful conversion – Make sure top management is committed to the conversion – Study the operations carefully – Obtain the support and cooperation of workers – Begin by trying to reduce the setup times while maintaining the current system – Gradually convert operations. beginning at the end of the process and working backward – Convert suppliers to JIT and be prepared to work closely with them – Be prepared to encounter obstacles to conversion .

• Obstacles to conversion – Management may not be totally committed – Workers-management may not display a cooperative spirit – Difficult to change the culture of the organization – Resistance on part of the suppliers .

Downside of conversion to a JIT system • • • • Time and cost requirements Commitment of resources Attention to the smallest of details Management and worker commitment for continuous improvement • Traffic congestion due to frequent deliveries • Increased transportation cost .

JIT in services • • • • • • Eliminate disruptions Make the systems flexible Reduce setup times and processing times Eliminate waste Minimize work in process Simplify the process .

JIT II • Bose corporation • Vendor managed inventory • a supplier representative works right in the company’s plant. making sure there is an appropriate supply on hand .

Benefits of JIT system • Reduced inventory levels • High quality • Flexibility • Reduced lead times • Increased productivity .

• Increased equipment utilization • Reduced scrap and rework • Reduced space requirements • Pressure for good vendor relationships • Reduced need for indirect labor ..Cont….

Satisfaction for the customer because of reduced defects on the goods and an improved delivery. The goods will also be faster to market. • When a company adopts the Toyota lean manufacturing system. An increased morale and productivity of the employee. • Using the Toyota lean manufacturing process. . it knows that it can direct cost savings by eliminating wastes in the system. 2.Toyota’s lean manufacturing system • The Toyota lean manufacturing system lays out a plan to increase the profitability of companies by reducing the costs that can be incurred. 3. companies can readily see the following improvements in their company: 1.

who succeeded Michael Dell as CEO this past July (Dell continues as chairman). inventory is like fish. it has no warehouses.DELL AND JIT • JIT has been adopted by a lot of corporations since its inception. "The problems reveal themselves. • To Kevin Rollins. And though it assembles nearly 80. The key to this robust production system is a solid process that monitors demand and supply on a real-time." he says. it carries no more than two hours of inventory in its factories and a maximum of just 72 hours across its entire can literally see the stuff rot. But no one has gone as far as Dell. • Eleven years ago. and you can take immediate corrective action to fix them. Today. "The longer you keep it the faster it deteriorates -." .000 computers every 24 hours. Dell carried 20 to 25 days of inventory in a sprawling network of warehouses." Dell says. continuing basis. it's like draining a swamp -all of the stumps start to show. • "But when you have basically zero inventory.

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