1. CHAPTER 14
Just-In-Time Systems

2. Toyota Production System
The objective
Continuous improvement of the production system (Kaizen)

3. Toyota Production System
Elements of the Toyota System
Just-in-time
needed units arrived at the right time in the right amount
Kanban system
a pull system with tight limit on work-in-process inventory

4. JIT/Lean Production
Just-in-time: Repetitive production system in which processing and movement of materials and goods occur just as they are needed, usually in small batches
JIT is characteristic of lean production systems
JIT operates with very little “fat”

5. JIT Goals Eliminate disruptions Make system flexible
Reduce setup and lead times
Minimize inventory
Eliminate waste

6. Sources of Waste Waste form overproduction Waste of waiting time
Transportation waste
Inventory waste
Processing waste
Waste of motion
Waste from product defects

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

8. Building block - Product Design
Standard parts
Modular design
Quality

9. Building block - Process Design
Small lot sizes
Setup time reduction
Manufacturing cells
Limited work in process
Quality improvement
Production flexibility
Little inventory storage

10. Benefits of Small Lot Sizes
Reduces inventory
Less rework
Less storage space
Problems are more apparent
Increases product flexibility
Easier to balance operations

11. JIT - variability reduction
Reduction in S (setup cost) Q

12. JIT - Variability reduction
Reduction in safety stock
Safety Stock = ROP -  = z

13. Building block - Production Flexibility
Reduce downtime by reducing changeover time
Use preventive maintenance to reduce breakdowns
Cross-train workers to help clear bottlenecks
Reserve capacity for important customers

14. JIT - flexibility
Low setup cost
Flow direction
CCBBBA
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15. Building block - Personnel/Organizational Elements
Workers as assets
Cross-trained workers
Continuous improvement
Cost accounting
Leadership/project management

16. Building Block - Manufacturing Planning and Control
Level loading
Pull systems
Visual systems
Close vendor relationships
Reduced transaction processing

17. Pull/Push Systems
Pull system: System for moving work where a workstation pulls output from the preceding station as needed. (e.g. Kanban)
Push system: System for moving work where output is pushed to the next station as it is completed

18. Kanban Production Control System
Kanban is the Japanese word for card.
Paperless production control system
Authority to pull, or produce comes from a downstream process.

19. Summary JIT Goals and Building Blocks
Product
Design
Process
Personnel
Elements
Manufactur- ing Planning
Eliminate disruptions
Make the system flexible
Reduce setup
and lead times
Eliminate waste
Minimize inventories A
balanced
rapid flow
Ultimate
Goal
Supporting
Goals
Building
Blocks

20. Benefits of JIT Systems
Reduced levels of inventories
Reduced space requirements
Increased product quality
Reduced lead times
Greater flexibility in product mix

21. Benefits of JIT Systems (cont’d)
Smoother production flow
Increased productivity levels
Worker participation in problem solving
Pressure for good vendor relationships
Reduced need for indirect labor

22. Converting to a JIT System
Get top management commitment
Decide which parts need most effort
Obtain support of workers
Start by trying to reduce setup times
Gradually convert operations
Convert suppliers to JIT
Prepare for obstacles

23. Obstacles to Conversion
Management may not be committed
Workers/management may not be cooperative
Suppliers may resist

24. JIT in Service
The basic goal of the demand flow technology in the service organization is to provide optimum response to the customer with the highest quality service and lowest possible cost.