Just-in-Time and Lean Systems

The Philosophy of JIT Often termed “Lean Systems” All waste must be eliminated- non value items Broad view that entire organization must focus on serving customers JIT is built on simplicity- the simpler the better Focuses on improving every operation- Kaizen Install simple visible control systems Flexibility to produce different models/features Abid Haleem, JMI

A Simple Definition of JIT A philosophy of manufacturing based on planned elimination of ALL waste, and improvement of productivity and customer value, through “Continuous Improvement” (or ‘Kaizen’) …… Abid Haleem, JMI

What is ‘Waste’? Waste is ‘anything other than the minimum amount of equipment, materials, parts, space, and worker’s time, which are absolutely essential to add value to the product.’ — Shoichiro Toyoda President, Toyota © 1995 Corel Corp. Abid Haleem, JMI

THE SEVEN WASTES Waste of over production Waste of waiting Waste of transportation   Waste of processing itself Waste of stocks Waste of motion Waste of making defective products Abid Haleem, JMI

The Problem of Manufacturing… Getting the right material and physical resources together at the right place and at the right time to meet the customer’s requirements. Desired features, On time delivery, High Quality, at the best price… Abid Haleem, JMI

Breaking down the problem… Getting the material needed… Having enough inventory of material to support production Not having too much inventory and extra costs… Abid Haleem, JMI

Claims for JIT: reduced inventory shorter lead times not too early, not to late...   JIT is the result businesses want, not a starting point   Abid Haleem, JMI

A More Complete Definition of JIT JIT (Just-In-Time) is a STATE OF MIND for achieving competitive excellence by creating an attitude of continuous improvement, through 100 percent involvement to eliminate all waste, institutionalizing only value-adding activities with 100 percent quality—NOTHING LESS Abid Haleem, JMI

Three Elements of JIT Abid Haleem, JMI

Elements of JIT Manufacturing Inventory reduction exposes problems Kanbans & pull production systems Small lots & quick setups Uniform plant loading Flexible resources Efficient facility layouts Abid Haleem, JMI

Role of Inventory Reduction Inventory = Lead Time (less is better) Inventory hides problems Abid Haleem, JMI

Small Lot Sizes & Quick Setups Small lots mean less average inventory and shorten manufacturing lead time Small lots with shorter setup times increase flexibility to respond to demand changes Strive for single digit setups- < 10 minutes Abid Haleem, JMI

Effective Facility Layouts Workstations in close physical proximity to reduce transport & movement Streamlined flow of material Often use: Cellular Manufacturing (instead of process focus) U-shaped lines: (allows material handler to quickly drop off materials & pick up finished work) Abid Haleem, JMI

Types of Manufacturing Layout Process Layout Product Layout Cellular Layout Abid Haleem, JMI

Traditional Process Focused Layout Jumbled flows, long cycles, difficult to schedule Abid Haleem, JMI

Process Layout Characteristics Advantages Deep knowledge of the process Common tooling and fixtures Most Flexible -- can produce many different part types Disadvantages Spaghetti flow -- everything gets all tangled up (can not “pull” materials with this layout) Lots of in-process materials Hard to control inter-department activities Can be difficult to automate Abid Haleem, JMI

PRODUCT LAYOUT Part #1 L L M D G A A Receiving L M G Part #2 L M D Shipping Part #3 Abid Haleem, JMI

Product Layout Characteristics Advantages Easy to control -- input control Minimum material handling -- frequently linked to the next process Minimal in-process materials Can be more easily automated Disadvantages Inflexible -- can only produce one or two parts Large setup Duplicate tooling is required for all cells Abid Haleem, JMI

JIT Cellular Manufacturing Product focused cells, flexible equipment, high visibility, easy to schedule, short cycles Abid Haleem, JMI

Cellular Layout Characteristics Advantages Control is simplified Common tooling and fixtures Flexible -- can produce many different part types - a part family?? Disadvantages Setup ?? Need to know about many different processes Abid Haleem, JMI

From Process Layout to Work Cell – For Flow Saw Lathe Grinder Heat Treat Press 1 2 3 4 5 6 Abid Haleem, JMI

Benefits of JIT Smaller inventories Shorter lead times Improved quality Reduced space requirements Lower production costs Increased productivity Greater flexibility Abid Haleem, JMI

Quality Processes Yield Quality Results Inconsistent Process Inconsistent Results Traditional = People doing whatever they can to get results Consistent Process Desired Results Lean = People using standard process to get results Abid Haleem, JMI

Definition of Lean Manufacturing “A philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise. It involves: … identifying and eliminating non-value-adding activities, … employing teams of multi-skilled workers, … using highly flexible equipment, which may eventually be automated.” Abid Haleem, JMI

Implementing JIT Reorganize workplace Reduce setup times Remove clutter & minimize storage Reduce setup times Reduce lot sizes & lead times Implement layout changes Cellular manufacturing & close proximity Switch to pull production Extend methods to suppliers Abid Haleem, JMI

People Make JIT Work JIT has a strong element of training and involvement of workers. A culture of mutual trust and teamwork must be developed. An attitude of loyalty to the team and self-discipline must be developed. Another crucial element of JIT is empowerment of workers, giving them the authority to solve production problems. Abid Haleem, JMI

Highlights JIT manufacturing has become the standard for many industries; concept incorporates TQM and respect for people. JIT views waste as anything that does not add value. JIT converts traditional “push” systems to a “pull” production system. Key elements of JIT are “pull”, kanbans, small lots, quick setups, uniform plant loading, flexibility, and work cells. Abid Haleem, JMI

Highlights (Continued) TQM concepts must be incorporated JIT manufacturing. Team based work systems, empowerment, cross-functional flexibility, with appropriate reward systems are all part of JIT. Most of the JIT concepts are equally applicable to “Service Organizations.” JIT requires changes to be made in all functional areas and examination of all processes for waste. Abid Haleem, JMI

THANK YOU Abid Haleem, JMI