jit mba 2009

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JUST IN TIMEJUST IN TIME

BY: SHOBHIT KUMARBY: SHOBHIT KUMAR

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Producing only what is needed,Producing only what is needed,

when it is needed when it is needed

A philosophy A philosophy An integrated management systemAn integrated management system

JIT’s mandate:JIT’s mandate:

Eliminate all wasteEliminate all waste

What is JIT ? What is JIT ?

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JUST IN TIME JUST IN TIME

Taiichi Ohno who was a vice president at Toyota Motor Company developed this concept

JIT involves producing only what is needed, when it is needed.

JIT is a philosophy and an integrated management system.

JIT is also defined as the philosophy of manufacturing based onplanning and eliminating of the wastages and on continuousimprovement of productivity.

JIT production is based on demand

JIT is now on the rise in American Industries.

The focus of JIT is to improve the system of production by eliminating all forms of WASTE.

Produce what the customer desire

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JUST IN TIME JUST IN TIME

Produce products only at the rate thecustomer wants them

Produce with perfect quality

Produce instantaneously with zerounnecessary lead time

Produce with no wastage of Labor,

material of equipment Always use those methods that allow

people to develop.

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What is JIT? What is JIT?

• a corporate system designed to produce

output within the minimum lead time and at

the lowest total cost by continuously identifying and eliminating all forms of

corporate waste and variance.

• a corporate strategy

• a philosophy • Focus of JIT:

• variance & waste

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Seven Basic Types of Seven Basic Types of

WasteWaste• Waste from overproduction

• Waste from waiting times

• Transportation waste

• Process Waste

• Inventory Waste

• Waste of motion

• Waste from product defects

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Figure 11.1Figure 11.1

Waste in OperationsWaste in Operations

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Common Causes of Common Causes of

WasteWaste• Layout (distance)

• Long setup time

• Incapable processes

• Poor maintenance

• Poor work methods• Lack of training

• Inconsistentperformancemeasures

• Ineffectiveproduction planning

• Lack of workplaceorganization

• Poor supplyquality/reliability

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Objectives of JIT Objectives of JIT

• Produce only the products the customer wants.

• Produce products only at the rate that the customer wantsthem.

• Produce with perfect quality

• Produce with minimum lead time.

• Produce products with only those features the customer wants.

• Produce with no waste of labor, material or equipment -- every movement must have a purpose so that there is zero idle

inventory.• Produce with methods that allow for the development of

people

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Basic Elements of JIT Basic Elements of JIT

1.1. Flexible resourcesFlexible resources

2.2. Cellular layoutsCellular layouts

3.3. Pull production systemPull production system

4.4. Kanban production control Kanban production control 5.5. Small-lot productionSmall-lot production

6.6. Quick setupsQuick setups

7.7. Uniform production levelsUniform production levels8.8. Quality at the sourceQuality at the source

9.9. Total productive maintenanceTotal productive maintenance

10.10. Supplier networksSupplier networks

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Kanban Card SystemKanban Card System

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Storage

area

Empty containers

Full containers

Single-Card Kanban SystemSingle-Card Kanban System

Receiving postKanban card for

product 1

Kanban card for

product 2

Figure 13.3

Fabricationcell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

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Storage

area

Empty containers

Full containers



product 1

Kanban card for

product 2

Figure 13.3

Fabricationcell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

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Storage

area

Empty containers

Full containers

Single-Card Kanban SystemSingle-Card Kanban SystemReceiving post

Kanban card for

product 1

Kanban card for

product 2

Figure 13.3

Fabricationcell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

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Storage

area

Empty containers

Full containers



product 1

Kanban card for

product 2

Figure 13.3

Fabricationcell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

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Storage

area

Empty containers

Full containers



product 1

Kanban card for

product 2

Figure 13.3

Fabricationcell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

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Storage

area

Empty containers

Full containers



product 1

Kanban card for

product 2

Figure 13.3

Fabricationcell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

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Storage

area

Empty containers

Full containers



product 1

Kanban card for

product 2

Figure 13.3

Fabricationcell

O1

O2

O3

O2

Assembly line 1

Assembly line 2

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KANB

AN

Part

Nu

mber:

1234

567Z

Loca

tio

n:

Aisle

5

Bin4

7

LotQuan tity

:

6

Supplie

r:

WS83

Custom

e r:

WS1

16

Each container must have a card Each container must have a card Assembly always withdraws fromAssembly always withdraws from

fabrication (pull system)fabrication (pull system)

Containers cannot be moved Containers cannot be moved without a kanbanwithout a kanban

Containers should contain theContainers should contain the

same number of partssame number of parts

Only good parts are passed along Only good parts are passed along Production should not exceed Production should not exceed

authorizationauthorization

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JIT PrinciplesJIT Principles

• Create flow production

• one piece flow

• machines in order of processes• small and inexpensive equipment

• U cell layout, counter clockwise

• multi-process handling workers• easy moving/standing operations

• standard operations defined

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The Pull SystemThe Pull System

Material is pulled through theMaterial is pulled through the

system when needed system when needed

Reversal of traditional push systemReversal of traditional push systemwhere material is pushed according where material is pushed according

to a scheduleto a schedule

Forces cooperationForces cooperationPrevent over and underproductionPrevent over and underproduction

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Kanban ProductionKanban Production

Control SystemControl System Kanban card indicates standard quantity Kanban card indicates standard quantity

of productionof production

Derived from two-bin inventory systemDerived from two-bin inventory system

Kanban maintains discipline of pull Kanban maintains discipline of pull

productionproduction

Production kanban authorizes productionProduction kanban authorizes production Withdrawal kanban authorizes movement Withdrawal kanban authorizes movement

of goodsof goods

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A Sample KanbanA Sample Kanban

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The Origin of KanbanThe Origin of Kanban

a) Two-bin inventory systema) Two-bin inventory system b) Kanban inventory systemb) Kanban inventory system

Reorder Reorder cardcard

Bin 1Bin 1

Bin 2Bin 2

Q - R

KanbanKanban

R R

Q Q = order quantity= order quantity

R R = reorder point - demand during lead time= reorder point - demand during lead time


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Types of KanbansTypes of Kanbans


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Kanban SquareKanban SquareMarked area designed to hold itemsMarked area designed to hold items

Signal KanbanSignal KanbanTriangular kanban used to signal Triangular kanban used to signal

production at the previous workstationproduction at the previous workstation

Material KanbanMaterial KanbanUsed to order material in advance of aUsed to order material in advance of a

processprocess

Supplier KanbansSupplier KanbansRotate between the factory and suppliersRotate between the factory and suppliers

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Determining Number of Determining Number of

KanbansKanbans

wherewhere

N N = number of kanbans or containers= number of kanbans or containersd d = average demand over some time period= average demand over some time period

LL = lead time to replenish an order = lead time to replenish an order

S S = safety stock= safety stock

C C = container size= container size

No. of Kanbans =No. of Kanbans =average demand during lead time + safety stockaverage demand during lead time + safety stock

container sizecontainer size

N N ==dLdL ++ S S

C C

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Inventory Hides ProblemsInventory Hides Problems

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Lower Levels of Inventory Lower Levels of Inventory Expose ProblemsExpose Problems

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Components of Lead TimeComponents of Lead Time

Processing timeProcessing time Reduce number of items or improveReduce number of items or improve

efficiency efficiency

Move timeMove time Reduce distances, simplify Reduce distances, simplify

movements, standardizemovements, standardize routingsroutings

Waiting timeWaiting time Better scheduling, sufficient capacity Better scheduling, sufficient capacity

Setup timeSetup time Generally the biggest bottleneck Generally the biggest bottleneck

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Benefits of JIT Benefits of JIT

1.1. Reduced Reduced

inventory inventory

2.2. Improved quality Improved quality

3.3. Lower costsLower costs4.4. Reduced spaceReduced space

requirementsrequirements

5.5. Shorter lead timeShorter lead time

6.6. Increased Increased productivity productivity

7.7. Greater flexibility Greater flexibility

8.8. Better relationsBetter relations

with supplierswith suppliers

9.9. Simplified Simplified

scheduling and scheduling and control activitiescontrol activities

10.10. Increased capacity Increased capacity

11.11. Better use of Better use of

human resourceshuman resources12.12. More product More product

variety variety

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Use JIT to finely tune anUse JIT to finely tune an

operating systemoperating systemSomewhat different inSomewhat different in

USA than JapanUSA than Japan

JIT is still evolving JIT is still evolving

JIT isn’t for everyoneJIT isn’t for everyone

JIT ImplementationJIT Implementation

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JIT In ServicesJIT In Services

Competition on speed & quality Competition on speed & quality

Multifunctional department storeMultifunctional department store

workersworkersWork cells at fast-food restaurantsWork cells at fast-food restaurants

Just-in-time publishing for Just-in-time publishing for

textbookstextbooksConstruction firms receiving Construction firms receiving

material just as needed material just as needed

jit mba 2009

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