Just in Time

1
Just-in-Time
and Lean Systems
©The McGraw-Hill Companies, Inc., 2004

2
Just-In-Time (JIT)
Defined
 JIT can be defined as an integrated set of
activities designed to achieve high-volume
production using minimal inventories (raw
materials, work in process, and finished
goods)
 Lean Production supplies customers with

exactly what the customer wants, when the
customer wants, without waste, through
continuous improvement.

3
What Does Just-in-Time Do?
 Attacks waste
 Anything not adding value to the product
 From the customer’s perspective
 Exposes problems and bottlenecks

caused by variability
 Deviation from optimum
 Achieves streamlined production
 By reducing inventory

4
Features of Lean production

WHAT IT IS WHAT IT DOES
• Management philosophy
• Attacks waste
• “Pull” system though the plant
WHAT IT REQUIRES WHAT IT ASSUMES
• Employee participation • Stable environment

• Continuing improvement
• Small lot sizes

JIT Demand-Pull
5
Here the customer starts

the process, pulling an Logic
inventory item from
Final Assembly…
Then sub-
assembly work is Fab Vendor
pulled forward by
that demand… Sub
Fab Vendor
Customers
Final
Assembly
The process continues Sub Fab Vendor

throughout the entire
production process and
supply chain Fab Vendor
6
The Toyota Production System

 Based on two
philosophies:
 1. Elimination of
waste
 2. Respect for
people
Toyota’s run smoother
than this!

7
Introductory Quotation
Waste is ‘anything other

than the minimum amount
of equipment, materials,
parts, space, and worker’s
time, which are absolutely
essential to add value to the
product.’
— Shoichiro Toyoda
President, Toyota © 1995 Corel Corp.

8
Types of Waste
 Overproduction
 Waiting
 Transportation
 Inefficient processing
 Inventory
 Unnecessary motion © 1995
Product defects
Corel
Corp.


9
Elements that address elimination

of waste
1. Focused factory Networks
2. Group Technology
3. Quality at source
4. Uniform Plant loading
5. JIT production
6. Kanban Production control
7. Minimized the set up times
10
These are small specialized

Minimizing Waste: plants that limit the range
Focused Factory of products produced
Networks (sometimes only one type of
product for an entire
facility)
Some plants in
Japan have as
Coordination few as 30 and as
System Integration many as 1000
employees

11
Minimizing Waste: Group Technology (Part 1)

Note how the flow lines are going back and forth
 Using Departmental Specialization for plant layout can cause
a lot of unnecessary material movement
Saw Saw Saw Grinder Grinder
Heat Treat
Lathe Lathe Lathe Press Press Press

12
Minimizing Waste:
Group Technology (Part 2)
 Revising by using Group Technology Cells can reduce
movement and improve product flow
Grinder
1 2
Saw Lathe Lathe Press
Heat Treat
Grinder
Saw Lathe A B Lathe Press

13
Minimizing Waste:
Uniform Plant Loading (heijunka)
Suppose we operate a production plant that produces a single
product. The schedule of production for this product could be
accomplished using either of the two plant loading schedules
below.
Not uniform Jan. Units Feb. Units Mar. Units Total

1,200 3,500 4,300 9,000
or
Uniform Jan. Units Feb. Units Mar. Units Total

3,000 3,000 3,000 9,000
How does the uniform loading help save labor costs?
14
Example-Mixed model
production system in Toyota
 Model Monthly Daily Cycle
Quantity Quantity Time
Sedan 5000 250 4 min
Hardtop 2500 125 2 min
Wagon 2500 125 2 min

15
Inventory Hides Problems Just as

Water in a Lake Hides Rocks
Inventory level
Inventory level
Process Process
Scrap Scrap
downtime downtime
Setup Setup Quality
Quality time
time problems problems
Late Late
deliveries deliveries

16
Lowering Inventory
Reduces Waste
Work in process inventory level

(hides problems)
Unreliable Capacity
Scrap
Vendors Imbalances

17
Lowering Inventory
Reduces Waste
Reducing inventory reveals
problems so they can be solved.
WIP
Unreliable Capacity
Scrap
Vendors Imbalances

18
Lowering Inventory
Reduces Waste
Reducing inventory reveals
problems so they can be solved.
Unreliable WIP Capacity

Scrap
Vendors Imbalances

To Lower Inventory,
19
Reduce Lot Sizes

Inventory Level
Average
Lot Size 200
inventory = 40 Average inventory
= 100
Lot Size 80
Average inventory = (Lot size)/2 Time

Frequent Orders can
20
Reduce Average Inventory

Q1 When average order size = 200,
average inventory is 100
Q2 When average order size = 100,

average inventory is 50
200
Inventory
100
Time

21
Reducing Lot Sizes Increases the

Number of Lots
Customer Lot size = 5
orders 10 Lot 1 Lot 2
Lot size = 2
Lot 1 Lot 2 Lot 3 Lot 4 Lot 5

Relationship b/w Lot size &
22
Set up cost
Cost
Setup Cost
Optimal Lot Size

Lot Size

23
Relationship b/w Lot size &

Set up cost
Cost
Setup Cost
New optimal Original
optimal Lot Size
lot size
lot size
24
Minimizing Waste: Kanban

Production Control Systems
Once the Production kanban is This puts the
received, the Machine Center Withdrawal system back
produces a unit to replace the kanban were it was
one taken by the Assembly Line before the item
people in the first place was pulled
Storage Storage
Machine Part A Part A Assembly
Center
Line
Production kanban
Material Flow
The process begins by the Assembly Line
people pulling Part A from Storage Card (signal) Flow
25
Diagram of Outbound Stock

point with Warning Signal Marker

26
Kanban Signals “Pull”

Material Through the Process

Just in Time

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1

©The McGraw-Hill Companies, Inc., 2004

 Lean Production supplies customers with

©The McGraw-Hill Companies, Inc., 2004

What Does Just-in-Time Do?

 Exposes problems and bottlenecks

©The McGraw-Hill Companies, Inc., 2004

Features of Lean production

WHAT IT REQUIRES WHAT IT ASSUMES

• Employee participation • Stable environment

©The McGraw-Hill Companies, Inc., 2004

Here the customer starts

The process continues Sub Fab Vendor

The Toyota Production System

©The McGraw-Hill Companies, Inc., 2004

Waste is ‘anything other

©The McGraw-Hill Companies, Inc., 2004

©The McGraw-Hill Companies, Inc., 2004

Elements that address elimination

These are small specialized

©The McGraw-Hill Companies, Inc., 2004

Minimizing Waste: Group Technology (Part 1)

Saw Saw Saw Grinder Grinder

Lathe Lathe Lathe Press Press Press

©The McGraw-Hill Companies, Inc., 2004

©The McGraw-Hill Companies, Inc., 2004

Not uniform Jan. Units Feb. Units Mar. Units Total

Uniform Jan. Units Feb. Units Mar. Units Total

©The McGraw-Hill Companies, Inc., 2004

Inventory Hides Problems Just as

©The McGraw-Hill Companies, Inc., 2004

Work in process inventory level

©The McGraw-Hill Companies, Inc., 2004

©The McGraw-Hill Companies, Inc., 2004

Unreliable WIP Capacity

©The McGraw-Hill Companies, Inc., 2004

Reduce Lot Sizes

Average inventory = (Lot size)/2 Time

©The McGraw-Hill Companies, Inc., 2004

Reduce Average Inventory

Q2 When average order size = 100,

©The McGraw-Hill Companies, Inc., 2004

Reducing Lot Sizes Increases the

©The McGraw-Hill Companies, Inc., 2004

Optimal Lot Size

©The McGraw-Hill Companies, Inc., 2004

Relationship b/w Lot size &

Minimizing Waste: Kanban

Diagram of Outbound Stock

©The McGraw-Hill Companies, Inc., 2004

Kanban Signals “Pull”

©The McGraw-Hill Companies, Inc., 2004

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