1. JIT and Lean Operations Just-In-Time (JIT) Defined 1. JIT can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods). 2. JIT also involves the elimination of waste in production effort. 3. JIT also involves the timing of production resources (i.e., parts arrive at the next workstation “just in time”).

2. JIT and Lean Operations JIT/Lean Production  Just-in-time (JIT): A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed.  JIT   lean production  JIT  pull (demand) system  JIT operates with very little “fat”

3. JIT and Lean Operations Goal of JIT The ultimate goal of JIT is a balanced system. Achieves a smooth, rapid flow of materials through the system.

4. JIT and Lean Operations Summary JIT Goals and Building Blocks Product Design Process Design Personnel Elements Manufactur- ing Planning Eliminate disruptions Make the system flexible Eliminate waste A balanced rapid flow Ultimate Goal Supporting Goals Building Blocks

5. JIT and Lean Operations Secondary Goals 1. Eliminate disruptions 2. Make system flexible 3. Eliminate waste, especially excess inventory

6. JIT and Lean Operations  Big JIT – broad focus ( Includes Internal as well as External) 1.Vendor relations 2.Human relations 3.Technology management 4.Materials and inventory management  Little JIT – narrow focus Internal to organization 1.Scheduling materials 2.Scheduling services of production Big vs. Little JIT

7. JIT and Lean Operations JIT Building Blocks 1. Product design 2. Process design 3. Personnel/organizational elements 4. Manufacturing planning and control

8. JIT and Lean Operations The Lean Production System  Based on two philosophies:  1. Elimination of waste  2. Respect for people

9. JIT and Lean Operations Traditional Supplier Network Buyer Supplier

10. JIT and Lean Operations Tiered Supplier Network Supplier Buyer Supplier First Tier Supplier Second Tier Supplier Third Tier Supplier

11. JIT and Lean Operations Transitioning to a JIT System  Get top management commitment  Decide which parts need most effort  Obtain support of workers  Try to reduce scrap material  Start by trying to reduce setup times  Incorporate quality  Gradually convert operations  Convert suppliers to JIT  Prepare for obstacles

12. JIT and Lean Operations Obstacles to Conversion  Management may not be committed  Workers/management may not be cooperative  Suppliers may resist

13. JIT and Lean Operations JIT in Services Eliminate disruptionsEliminate disruptions Make system flexibleMake system flexible Reduce setup and lead timesReduce setup and lead times Eliminate wasteEliminate waste Simplify the processSimplify the process  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.

14. JIT and Lean Operations JIT in Services (Examples)  Upgrade Quality  Clarify Process Flows  Develop Supplier Networks  Introduce Demand-Pull Scheduling  Reorganize Physical Configuration  Eliminate Unnecessary Activities  Level the Facility Load

15. JIT and Lean Operations  JIT II: a supplier representative works right in the company’s plant, making sure there is an appropriate supply on hand. JIT II

16. JIT and Lean Operations Benefits of JIT Systems 1. Reduced inventory levels 2. High quality 3. Flexibility 4. Reduced lead times 5. Increased productivity