LEAN PRODUCTION/ JUST IN

TIME PRODUCTION

Lecture 9
 LEAN PRODUCTION/JIT
• JUST IN TIME (JIT)
– With ‘just in time’, a company holds virtually no stocks. Instead
it relies on the prompt deliveries of components and raw
materials. They must arrive the moment the company requests
them.
– Rather then occasional major deliveries to a warehouse, in a JIT
system, supplies arrive only when company asks for them. The
producer subsequently takes them to the factory floor
immediately.
– JIT inventory and manufacturing share the same basic principles
—produce or receive the product only at the time it is needed.
They are essentially two different points in the supply chain but
can operate independently or at the same time
 LEAN PRODUCTION/JIT
– JIT is an inventory management method in which goods are
received from the supplier only as they are needed. Company
employ this inventory strategy to increase efficiency and
decrease waste by receiving goods only as they need them for
the production process which reduces inventory cost. This
method requires producers to forecast demand accurately.
– JIT manufacturing is a production model in which items are
created to meet demand not created in surplus or in advance of
need. JIT manufacturing tries to match production to demand
by only supplying goods which have been ordered and focuses
on efficiency, productivity (with a commitment to continuous
improvement) and reduction of wastes for the producer and
supplier of goods.
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– JIT is often referred to as just in time
manufacturing, just in time production, just in
time inventory management, lean manufacturing,
stockless production, or the Toyota production
system.
– Lean manufacturing is a methodology that focuses
on minimizing waste within manufacturing system
while simultaneously maximizing productivity.
Waste is seen as anything that customers do not
believe adds value and are not willing to pay for.
 LEAN PRODUCTION/JIT
Lean manufacturing is a management
philosophy focusing on the reduction of seven
wastes.
Over-production Capacity exceeding demand. Stocking too much
of a product that goes unused has obvious costs.
Waiting time If one task along the chain takes longer than
another (slower or halted), than any time the
employee in charge of the next task spends
waiting is wasted.
Transportation This means having one plant closer to another in
the production chain, or minimizing the costs of
transportation using more efficient methods.
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Over-processing Painting an area that will never be seen or adding
features that will not be used are examples of over-
processing. Essentially, it refers to adding more value
than the customer require
Costs Costs
Inventory This includes the waste of storage, the waste of
capital tied up in unprocessed inventory, the waste of
transporting inventory, the containers used to hold
inventory, the lightening of the storage space, etc.
Motion Unnecessary moment of employees or machinery.
Motion could refer to anything from a worker bending
over to pick something up on the factory floor to
additional wear and tear on machines resulting in
capital depreciation that must be replaced.
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• JIT/Lean Production Features
– By eliminating waste (muda), quality is improved, production time is
reduced and cost is also decreased. Muda is Japanese word that means
uselessness; wastefulness. Waste in this context refers to wastage of
time or resources.
• Pull Production (by mean of Kanban (sign/signal e.g. battery low
signal))
– The Kanban pull system is a lean manufacturing technique that aims to
eliminate raw material wastage by supplying only what is needed,
when it is required. A car indicator which is a pull signal indicates the
amount of fuel used by the car and if it is near the reserve capacity
then it indicates we need to fill the fuel to the car. This means this car
has implemented Kanban framework. Same is the case in inventory, if
its getting deficient then we get a pull signal.
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– While some believe lean manufacturing is a set of problem
solving tools.
• Key Lean Manufacturing Principles
– Perfect first-time quality – quest for zero defect.
– Waste Minimization
– Continuous Improvement: products must be improved with
the passage of time to compete in market.
– Pull Processing: Products are pulled from the consumer
end, not pushed from the production end.
– Flexibility: company should have the flexibility to meet all
sorts of demands, either its too big or too complex.
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– Building and maintaining a long term relationship
with suppliers through collaborative risk sharing,
cost sharing, and information sharing
arrangements.
• Applications of Lean Manufacturing
Over Production
– Lean Healthcare Systems (relevant
Waiting time
units for patients, relevant medicine Transportation
availability in the same unit). Over-processing
– Lean Software Manufacturing Costs
– Systems Engineering Inventory
– Lean Systems in Defense Industry. Motion
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• Generic Strategy for Implementation of a Lean
Program
– Top Management to agree and discuss their lean vision
– Management brainstorm to identify project leader and set
objectives.
– Communicate plan and vision to the workforce.
– Ask for volunteers to form the lean implementation team.
– Appoint members of the lean manufacturing
implementation team.
– Train the implementation team in the various lean tools.
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• Organizational and Operational Strategy
– Organizations aiming for JIT system should focus on the
human resource management with proper system of
incentives, rewards, labor classification, cooperation and
trust in place.
– Organization should concentrate on effective management
of inventory, purchasing, logistics and scheduling.
– Organization should develop a demand base system so less
waste is generated and good management of high quality,
small lot sizes, good quality, standardized components and
work methods is ensured.
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– Lean or JIT systems are effective only if they are
designed to produce or deliver the right products
in the right quantities just in time to serve
subsequent processes or customers.
– Organizations which design their operations on JIT
philosophy need to encourage partnership
concept whether it’s between organization’s
purchasing department and supplier or
partnership between management and labor.
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