1. Alissa Brink Gabriela Iasevoli Jason Oesterle Joey Tamburo
Just In Time

2. What is Just-in-Time Inventory?
A philosophy that seeks to eliminate all types of waste, including carrying excessive levels of inventory and long lead times
A method of continuous improvement by driving out all added costs by decreasing inventory, as well as focusing on perfection
Comes from the indication of replacing material buffers just when they are needed and not before or after
Developed by Toyota Motor Company, called TPS
Works best with a production system
Three theories
Minimize waste in all forms
Continuously improve processes and systems
Maintain respect for all workers

3. Just-in Time In a Nutshell
Keeping work flows moving
Eliminating inventories
Reducing travel distances
Eliminating defects and scrap
Maximizing usage of space

4. Features Small lot sizes Uniform workstation loads Flexible workforce
Line flows
Consistent high quality
Close supplier ties
Standardized components and work methods
Pull method of materials flow
Preventative Maintenance
Automated Production

5. The Basics of Just-in Time
What it is
What it does
What is requires
What it assumes

6. What It Is Management Philosophy “Pull” system through the facility
A work station pulls output from preceding station as needed

7. What It Does Eliminates waste Exposes problems
Achieves continuous production

8. What It Requires Total Quality Control Small Lot Sizes
Industrial Engineering
Continuing Improvement
Employee Participation

9. What It Assumes
Stable Environment

10. Traditional vs. Just-In-Time
Manufacturing
Capacity
Conversion System
Kanban
Layout
Workforce
Inventories
Suppliers
Planning and Control
Quality
Maintenance
Traditional
Just In Time

11. Manufacturing Traditional Just In Time Custom outputs System designs
Designs and produce standard outputs
Standard hours
Costs
Incremental Improvements
Better design for manufacturability
Higher accuracy

12. Capacity Traditional Just In Time Excess capacity Highly used
Inflexible
Just In Time
Waste is minimized
Flexible
Moderately used

13. Conversion Traditional Just In Time Lots of space for inventory Lead
Long lead times
Handling equipment
Ex: Job shops
Just In Time
Short lead times
Cellular manufacturing
Repetitive production
Pull System: A work station pulls output from preceding station as needed
Lead
T ime
Push
Pull

14. Kanban
Means “signal”
Device that communicates demand for work or materials from the preceding station
This process allows for production to be “pulled” through the system
Rather than “pushed” out before it is needed
Focuses on scheduling and controlling the logistical chain
Example: Toyota Kanban Card

15. Layout Traditional Just In Time
Spread-out Equipment throughout facility
Between the equipment is space for work in-progress inventories
Handling equipment required
Just In Time
Machines and workers are very close, next to one another
Minimal work in-progress through flow lines
Manual transfer between stations after each unit

16. Workforce Traditional Just In Time
Employees have a competitive, stern attitude
Employees expertise is only in one area
Most of employee time is nonworking time
Just In Time
Supportive attitudes
Generally skilled flexible workers
Work teams who can resolve multiple problems

17. Inventories Traditional Just In Time Use space for large quantities
Push System
Just In Time
Inventory is never seen
Pull System

18. “Inventory Hides Problems”
Lowering inventory allows problems to be exposed

19. Suppliers Traditional Just In Time Multiple suppliers Very Competitive
Single-sourcing agreements
Supplier is considered part of the team

20. Planning and Control Traditional Just In Time
Complex and computerized focus on “planning”
Forecasting for an uncertain future
Just In Time
Focus on “control”
Simple procedures
Responds to real time activity
Flexible, quick operations

21. Quality Traditional Just In Time Inspection at few points
Inspection is done continuously through every step by workers
Zero defects is the goal

22. Maintenance Traditional Just In Time
Corrective maintenance: repairing machine only when it is broken
Experts are hired for just repairs
Just In Time
Preventative maintenance: Service on machines before it is expected to fail
Maintenance is done by equipment operators

23. McDonalds and JIT McDonalds uses just in time
Orders are only made as they are placed
The total time to prepare a hamburger is a minute and a half from the freezer to the customer’s hands
Cook frozen patty in 40 seconds
Condiments added to burger after cooked
Burger is wrapped
Cashier hands to the customer who ordered it

24. Benefits of Just In Time
Make problems visible
Workforce improvements
Easy to halt production and switch to different products to meet customer demand
Lower costs by no inventory
Invest cash, rather than hold inventory
Less damage costs

25. Potential Issues Implementing JIT
Need better information technology to coordinate the delivery of parts and materials
Response time of a massive and unexpected order
Need Regulation
Natural disasters could interfere with the flow of suppliers, stopping production
Philosophy of organization requires change

26. Wrap Up
A method of continuous improvement by driving out added costs by decreasing inventory
Eliminate all types of waste
Leads to better customer satisfaction, better supply chain, and lower warehouse costs
Improve a business’s return on investment by reducing in-progress inventory and associated costs

27. Just In Time Faster Cheaper Better
Toyota Production System Video Example