1. PowerPoint Presentation
DAVIS
AQUILANO
CHASE
PowerPoint Presentation by
Charlie
Cook
F O U R T H E D I T I O N
chapter 14
Just-in-Time Systems
© The McGraw-Hill Companies, Inc., 2003

2. Chapter Objectives
Introduce the underlying concepts of JIT and there Japanese approach to improving productivity.
Identify the differences between Japanese and U.S. companies with respect to implementing JIT, and explore why these differences exist.
Identify the various elements that need to be included to successfully implement JIT within an organization.
Illustrate how many JIT concepts have been implemented in services.
Fundamentals of Operations Management 4e

3. Managerial Issues
Using JIT as a tool for controlling the flow of materials, identifying sources of error, and minimizing inventories.
Developing the strong supplier relationships on which successful implementation of JIT depends.
Achieving production linearity in manufacturing and service operations.
Fundamentals of Operations Management 4e

4. JIT Logic JIT (just-in-time)
A coordinated approach that continuously reduces inventory while also improving quality.
Seeks to achieve high volume production using minimal inventories of raw material, work in process, and finished goods.
“Big” JIT (lean production)
Seeks to eliminate all forms of waste in production activities.
“Little” JIT
Focuses on scheduling goods inventories and providing service resources.
Fundamentals of Operations Management 4e

5. Pull System
Fundamentals of Operations Management 4e
Exhibit 14.1

6. The Japanese Approach To Productivity
Fundamental National Goal
Full employment through industrialization
Target Industries for Market Dominance
Electronics, vehicles, shipbuilding
Competitive tactics:
Imported technology rather than take R&D risks.
Focused engineering on the shop floor to achieve high productivity and low cost.
Improved quality beyond that of competitors.
Eliminated waste in all forms.
Have great respect for people.
Fundamentals of Operations Management 4e

7. Quasar Plant Productivity
*2 years later. †Same people
Exhibit 14.2
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8. The Japanese Approach to Productivity
Elimination of Waste
Focused Factory Networks
Group Technology
Jidoka (quality at the source)
Just-in-Time Production
Uniform Plant Loading
Kanban
Minimized Setup Times
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9. Group Technology versus Departmental Specialty
Exhibit 14.3
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10. Just-In-Time Exhibit 14.4 Fundamentals of Operations Management 4e
Source: Adapted from Chris Gopal (of Price Waterhouse), “Notes on JIT.”
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11. Inventory Hides Problems
Exhibit 14.5
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12. Toyota Example of Mixed-Model Production Cycle in a Japanese Assembly Plant
Exhibit 14.6
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13. Flow of Two Kanbans Kanban Pull System
A manual, self-regulating system for controlling the flow of material. Workers produce only when the Kanban ahead of them is empty, thereby creating a “pull” system through the factory.
Exhibit 14.7
Fundamentals of Operations Management 4e

14. Minimizing Setup Time—Hood and Fender Press Comparison (800 ton press)
*For low-demand items (less that 1,000 per month), as large as seven days.
Exhibit 14.8
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15. Setup Reduction Results at JKC
Exhibit 14.9
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16. Respect for People Lifetime Employment Company Unions
Attitude toward Workers
Automation/Robotics
Bottom-Round Management
Subcontractor Networks
Quality Circles
Fundamentals of Operations Management 4e

17. JIT in the United States
Problems with Implementing JIT
Geographic distances
Supplier-customer relationships
“Jumbo-Inventory-Transfer”
MRP systems
Fundamentals of Operations Management 4e

18. Implementing JIT Production
JIT Layouts/Design Flow Process
Design must ensure balanced continuous workflow with minimum of work in process and delays.
Internal and external logistics must be considered.
Preventive maintenance is emphasized.
Process orientation encourages the use of simple machines.
Goal is a economic production lot size of one.
Fundamentals of Operations Management 4e

19. How to Accomplish Just-in-Time Production
Exhibit 14.10
Source: This diagram is modeled after the one used by Hewlett-Packard’s Boise plant to accomplish its JIT program.
Fundamentals of Operations Management 4e

20. The Impact of JIT on Lot Size
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Exhibit 14.11

21. Implementing JIT Production
JIT in a Line Flow or Product Layout
No work done until product has been pulled from the end of the line.
Completed work stays at the workstation until remove by a downstream station.
Exhibit 14.12
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22. Relationship between JIT and Quality
Source: Richard J. Schonberger, “Some Observations on the Advantages and Implementation Issues of Just-in-Time Productions Systems,” Journal of Operations Management 3, no. 1 (November 1982), p. 5.
Exhibit 14.13
Fundamentals of Operations Management 4e

23. Total Quality Control Stabilize Schedule Kanban Pull Work with Vendors
Continuous Inventory Reduction
Improve Product Design
Concurrently Solve Problems and Measure Performance
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24. Diagram of Outbound Stockpoint with Warning Signal Marker
Exhibit 14.14
Source: Robert Hall, Zero Inventories (Homewood, IL: Dow Jones-Irwin, 1983), p. 51.
Fundamentals of Operations Management 4e

25. Company Experiences with JIT
JIT/TQC benefits
Average inventory reduction of about 50 percent
Reduction of throughput time of 50 to 70 percent
Reduction in setup times of as much as 50 percent without major investment in plant or equipment
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26. JIT in Services Application of JIT to Services
Synchronization and balance of information and workflow
Total visibility of all components and processes
Continuous improvement of the process
Holistic approach to the elimination of waste
Flexibility in the use of resources
Respect for people
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27. Gizmo Production Flow Case Exhibit 14.1
Fundamentals of Operations Management 4e
Case Exhibit 14.1