Alissa Brink Gabriela Iasevoli Jason Oesterle Joey Tamburo Just In Time

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

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

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

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

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

What It Does Eliminates waste Exposes problems Achieves continuous production

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

What It Assumes Stable Environment

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Just In Time Faster Cheaper Better Toyota Production System Video Example