1. Just-In-Time & Lean Systems
MBA 8452 Systems and Operations Management
Just-In-Time & Lean Systems

2. Objective: Just-In-Time Operations
Be able to explain the JIT Production Concept
Explain the importance of the Elimination of Waste
Explain the elements of JIT
Be able to apply JIT Operations to a situation

3. What is JIT ? • Management philosophy Pull system though the plant
WHAT IT IS •
Attacks waste
Exposes problems and bottlenecks
Achieves streamlined production
WHAT IT DOES •
Employee participation
Industrial engineering/basics
Continuing improvement
Total quality control
Small lot sizes
WHAT IT REQUIRES •
Stable environment
WHAT IT ASSUMES

4. JIT Focus: Eliminate Waste
Waste from overproduction
Waste of waiting time
Unnecessary transportation waste
Storing inventory
Processing waste
Waste from machine breakdown
Waste from rework

5. Inventory Hides Problems
Bad
Design
Poor
Quality
Lengthy
Setups
Machine
Breakdown
Inefficient
Layout
Unreliable
Supplier

6. Lower Inventory To Expose Problems
Bad
Design
Poor
Quality
Lengthy
Setups
Machine
Breakdown
Inefficient
Layout
Unreliable
Supplier

7. JIT Element Quality at the Source
Do it right the first time
Self-inspection
Line-stopping empowerment
Defects prevention -- Poka-yoke

8. JIT Element Pull Production System
Customers
Final
Assy
Sub
Fab
Vendor

9. JIT Element Kanban Production Control System
Withdrawal kanban
Storage Part A
Storage Part A
Production Center
Assembly Line
Production kanban
Material Flow
Card (signal) Flow

10. JIT Element Uniform Plant Loading
Maintain a stable mix of products, and firm monthly schedules.
Monthly Daily
Model demand demand
Small
Midsize
Luxury
The sequence of L-M-S-M-L repeated 40 times per day maintains the proper mix of models.

11. JIT Element Small-Lot Production
Requires less space & capital investment
Reduces inventory (see next two slides)
Moves processes closer together
Makes quality problems easier to detect

12. JIT Element Quick Setup
A requirement for small-lot-size, mixed-model production.
What are the consequences of long setup times?

13. JIT Element Preventive Maintenance
Proactive approach that uses periodic inspection & maintenance to keep machines operating
The goal is to achieve zero breakdown

14. JIT Element Focused Factory Networks
Final Assembly
Coordination
System Integration

15. JIT Element Group Technology
Departmental Specialization
Saw
Lathe
Press
Grinder
Heat Treat
Using Departmental Specialization for plant layout can cause a lot of unnecessary material movement.

16. JIT Element Group Technology (cont.)
Group technology cells
Press
Lathe
Grinder A 2 B
Saw
Heat Treat 1
Using Group Technology Cells can reduce movement and improve product flow.

17. JIT Element Supplier Networks
Reliable suppliers are critical to JIT
Supplier selection
Small number of suppliers; single sourcing
Long-term agreements
Geographical proximity
Frequent information sharing
Benefits
Small but frequent deliveries
Reduced lead times
Quality expectations

18. A Summary of the Benefits of JIT
1. Reduced inventory
2. Improved quality
3. Lower costs
4. Reduced space requirements
5. Shorter lead time
6. Increased productivity
7. Greater flexibility
8. Better relations with suppliers
9. Simplified scheduling and control activities
10. Increased capacity
11. Better use of human resources
12. More product variety