“Team Members”

• Rehman AKbar 060904-009

• Syed Asad Raza 060904-005
• Muhammad Muzzamil 060904-001
• M.Salman Saleem 060904-008
• Murtaza Subhani 063305-007
 Just in time
&
Lean Production
 Just in time
&
Lean Production
• Waste Reduction

• Variability Reduction

• Pull vs Push
(Manufacturing cycle time)
(e.g.Northern Telecom
 Green Gear cycling

• Des ig ns an d man ufa ct ur es

hig h p er form an ce tra vel
bic ycle s (bik e-in -a-s uitc as e)

• St ra te gy is ma ss
cu sto miza tion with low
inv ent or y , w or k c ells , a nd
elimin ati on of mac hin e s etu ps
 “The Major
Misconceptions of JIT”

• JIT is Only an Inventory Control

System

• It is a Method to “Push”
Inventory Back to the Supplier

• JIT is a Quality Control Program

 “JIT Requires
to Achieve Competitative
Advantage”
• Suppliers
• Preventive Maintainace
• Quality Production

• Employee Empowerment
• Commitment

• Layout

• Inventory
 Suppliers(Jit)

• JIT Partnership
“Partnership of suppliers and purchasers that
removes wastes and drive down costs for mutual
benefits”

 Goals of JIT Partnership.

 Characteristics of JIT Partnership.
 Concerns of suppliers.
 Concerns of suppliers

• Desire for Diversification

• Poor customer Scheduling

• Engineering Changes

• Quality Assurance

• Small Lot Sizes

• Proximity
 Goals of JIT Partnership

• Elimination of unnecessary
Activities

• Elimination of plant inventory

• Elimination of transit inventory

(Consignment inventory) e.g G.M

• Elimination of poor suppliers

 Inventory (JIT)

Reduce Variability
Reduce Inventory
Reduce Lot sizes
Reduce Setup Costs
Reduce Variability

Inventory level

Process
Scrap downtime

Setup Quality
time problems

Late deliveries
Reduce Variability

Inventory
level

Process
Scrap downtime

Setup Quality
time problems

Late deliveries
 Lot Size Example
D= Annual demand = 400,000 units
d= Daily demand = 400,000/250 = 1,600 per day
p= Daily production rate = 4,000 units
Q= EOQ desired = 400
H= Holding cost = $20 per unit
S= Setup cost (to be determined)

2DS 2DS
Q= Q2 =
H(1 - d/p) H(1 - d/p)

(Q2)(H)(1 - d/p) (3,200,000)(0.6)

S= 2D = 800,000 = $2.40
 Reduce Setup Times
Initial Setup Time 90 min —

Separate setup into preparation and actual

setup, doing as much as possible while the
Step 1 machine/process is operating
(save 30 minutes)

60 min —
Move material closer and
Step 2 improve material handling
(save 20 minutes)
45 min —
Standardize and
Step 3 improve tooling
(save 15 minutes)
25 min —
Use one-touch system to eliminate
Step 4
adjustments (save 10 minutes)
15 min —
Training operators and standardizing 13 min —
Step 5 work procedures (save 2 minutes)
Repeat cycle until subminute —
setup is achieved
 Scheduling (JIT)

“Schedules must be communicated

inside and outside the organization”

 Level Schedules

 Kanban
 Scheduling Small Lots

JIT Level Material-Use Approach

A A B B B C A A B B B C

Large-Lot Approach
A A A A A A B B B B B B B B B C C C

Time
 Kanban
 User removes a
standard sized
container
 Signal is seen by
the producing
department as
authorization to
replenish
Signal marker
on boxes

Part numbers
mark location
 Number of Kanbans
Example
Daily demand = 500 cakes
Production lead time = 2 days
(wait time +
material handling time +
processing time)
Safety stock = 1/2 day
Container size = 250 cakes
Demand during lead time = 2 days x 500 cakes = 1,000

1,000 + 250
Number of kanbans = 250 =5
Advantages of Kanban

• Avoids over production

• Minimizing waste

• Simple and understandable

• Reduce Lead time

 Disa dvantages o f
Ka nban
• Break down in kanban system
can result in the entire line
shutting down.
•k
JIT Layout+Tactics
“Reduce waste due to movement”

• Distance Reduction

• Increased Flexibility

• Impact on Employees

• Reduced space and inventory

 Quality (JIT)

JIT c uts the c ost of o btain in g

good q uali ty because J IT
exposes poor qualit y

Be cause l ead time s are

shorte r, q uali ty pro blems are
exposed s ooner
 JIT Quality Tactics

Use statistical process control

Empower employees
Build fail-safe methods
Expose poor quality with small lot JIT
Provide immediate feedback
Employee Empowerment

• Brin g th eir kn ow led ge an d

involvemen t to d aily
op erat ion s

• Tr ain ing

• En ric hme nt or job Ro ta tio ns

• Comp anie s gain f rom

 Lean Production

 Different from JIT in that it is

externally focused on the customer
 Often called the Toyota Production
System (TPS)
 In practice, JIT, Lean Systems, and
TPS are often essentially the same
 Toyota Production
System

 Work shall be completely specified as to

content, sequence, timing, and outcome
 Every customer-supplier connection must
be direct
 Product and service flows must be simple
and direct
 Any improvement must be made in
accordance with the scientific method at
the lowest possible level of the
organization
 Lean Systems

 Use JIT techniques

 Reduce space requirements
 Educate suppliers
 Develop close relationships with suppliers
 Build systems that help employees to
produce perfect parts
 Make jobs more challenging
 Reduce the number of job classes
 The 5 S’s
 Sort/segregate
 Simplify/straighten
 Shine/sweep
 Standardize
 Sustain/self discipline
 Safety
 Support/maintenance
 Seven Wastes

 Overproduction
 Queues
A broader
 Transportation perspective
 Inventory suggests other
resources like
 Motion energy and water
are wasted but
 Over-processing should not be
 Defective product
 JIT in Services

• Suppliers
(e.g. Restaurants)

• Layouts
(e.g. McDonald)

• Inventory
(e.g McDonald)

• Scheduling
(e.g Hospitals)
Conclusion