JUST-IN-TIME (JIT)

PRODUCTION SYSTEM
The name just-in-time refers to a
production system in which operations
(processing, movement of materials & goods,
etc.) occur just as they are needed or
demanded. JIT approach emphasizes continual
effort to remove waste & inefficiency from the
production process through small lot sizes,
high quality, and teamwork.
MISUNDERSTANDINGS
ABOUT JUST-IN-TIME
Different JIT Systems

JIT means zero stock

Impossible to implement in Pakistan

Only good for manufacturing concerns

Inner & outer dimensions
Key Elements of
JIT Systems
A fixed, steady rate of production
Low inventories
Small lot sizes
Quick, low-cost setups
Layout
Preventive maintenance & repair
Multifunctional workers
Key Elements of
JIT Systems
High quality levels
A cooperative spirit
Reliable vendors
A pull system of moving goods
Problem solving
Continual improvement
Kanban
Definition: A kanban is a sign-board or card in Japanese and is the
name of the flow control system developed by Toyota.
Role:
Kanban is a tool for realizing just-in-time. For this tool to work
fairly well, the production process must be managed to flow as
much as possible. This is really the basic condition. Other
important conditions are leveling production as much as possible
and always working in accordance with standard work methods.
Ohno 1988
Push vs. Pull: Kanban is a pull system
Push systems schedule releases
Pull systems authorize releases
MRP versus Kanban

Lover Level
Inventory

MRP
Kanban

Kanban Signals Full Containers
Lover
Level
Inventory
Assembly
Assembly
Kanban Mechanism
Outbound
stockpoint
Outbound
stockpoint
Production
cards
Completed parts with cards
enter outbound stockpoint.
When stock is
removed, place
production card
in hold box.
Production
card authorizes
start of work.
Benefits of JIT Systems
Reduced levels of in-process inventories,
purchased goods, and finished goods
Reduced space requirements
Increased product quality & reduced scrap &
rework
Reduced manufacturing lead times
Greater flexibility in changing the production
mix
Benefits of JIT Systems
Smoother flow of production, with fewer
disruptions caused by problems due to quality;
shorter setup times; multi skilled workers who can
help each other & substitute for others in case of
absenteeism
Increased productivity levels & utilization of
equipment
Worker participation in problem solving
Benefits of JIT Systems
Pressure to build good relationships
with vendors

Reduction in the need for certain
indirect labor, such as material handlers
Converting to a JIT System
Top management must be committed to the
conversion and that they know what will be
required. Furthermore, management must be
willing to provide visible support.

Management must know what it will cost &
how long it will take to complete the
conversion, and what results can be expected.
Converting to a JIT System
Study the operations carefully; decide which
parts will need the most effort to convert

Obtain the support & cooperation of workers

Begin by trying to reduce setup times while
maintaining the current system
Converting to a JIT System
Gradually convert operations, beginning at the end
of the process & working backward. At each stage,
make sure the conversion has been relatively
successful before moving on.

Do not begin to reduce inventories until major
problems have been resolved.

Convert suppliers to JIT as one of the last steps
Converting to a JIT System
Prepare to work closely with suppliers. Start by
narrowing the list of vendors, identifying those
who are willing to embrace the JIT philosophy

Try to use vendors located nearby if quick
response time is important

Insist on high standards of quality & adherence
to strict delivery schedules
Obstacles to Conversion
Management may not be totally committed
or may be unwilling to devote the necessary
resources to conversion

Workers may not display a cooperative spirit

Management may resist because JIT shifts
some of the responsibility from management
to the workers
Obstacles to Conversion
Suppliers may resist, for several reasons:
Buyers may not be willing to commit the resources
necessary to help the supplier adapt to the JIT system

They may be uneasy about long-term commitments
to a buyer

Frequent, small deliveries may be difficult,
especially if the supplier has other buyers that are
not using JIT systems
Obstacles to Conversion
The burden of quality control will shift to the
supplier

Frequent engineering changes may have to
be made as the result of continuing JIT
improvements on the part of the buyer
Why is Zero Defects an
Important Concept?

Key Element in our capability
to implement Kaizen
Manufacturing Systems.

No need for just in case inventories
Allows company to make only what the
customer needs.
What is a Zero Defect Quality
System (ZDQ)?

A quality concept to manufacture ZERO defects
& elimination of waste associated with defects!


ZERO is the goal!
1-10-100 Rule
$1000
The 1-10-100 rule states that as a product or service moves through
the production system, the cost of correcting an error multiplies by
10.
Activity Cost
Order entered correctly $ 1
Error detected in billing $ 10
Error detected by customer $ 100
Dissatisfied customer shares the experience with others the costs is

Source Inspection
Detects mistakes before they become defects
Transformation = Quality production the 1st time
Inspection.eliminated ???
Transport
Storage
Delay/wait
Dedicated lines
One piece flow