JIT (Just In Time)

JIT manufacturing is a philosophy of

manufacturing
based
on
planned
elimination of waste & continuous
improvement of productivity.
Just in time is a pull system of production,
so actual orders provide a signal for when
a product should be manufactured.
Demand-pull enables a firm to produce
only what is required, in the correct
quantity and at the correct time.

Advantages of JIT

1. Lower stock holding means a reduction in storage space

which saves rent and insurance costs
2. As stock is only obtained when it is needed, less working
capital is tied up in stock
3. There is less likelihood of stock perishing, becoming obsolete
or out of date
4. Avoids the build-up of unsold finished product that can occur
with sudden changes in demand
5. Less time is spent on checking and re-working the product of
others as the emphasis is on getting the work right first
time
. Disadvantages of JIT
1. Production is very reliant on suppliers and if stock is not
delivered on time, the whole production schedule can be
delayed
2. There is no spare finished product available to meet
unexpected orders, because all product is made to meet
actual orders however, JIT is a very responsive method of

JIT elements

Seven sources of waste were identified by Taiichi

Ohno, also of Toyota Motor Company:

Waste from overproduction

waste from inventory
waste in unnecessary transportation
waste from producing defects
waste in processes
waste in waiting time
waste in motions.

Characteristics of JIT
1) Pull System
2) Quality
3) Small Lot Sizes
4) Quick Setups
5) Production Smoothing
6) Suppliers
7) Kanban Card

Kanban
Kanban is the Japanese word for
card
The card is an authorization for
the next container of material to
be produced
A sequence of kanbans
pulls material through
the process
Many different sorts of
signals are used, but
the system is still called
a kanban

Kanban
1. User removes a
standard sized
container
2. Signal is seen
by the
producing
department as
authorization
to replenish
Signal

marker on
boxes

Figure 16.8

Part numbers
mark
location

More Kanban
When the producer and user are
not in visual contact, a card can be
used
When the producer and user are in
visual contact, a light or flag or
empty spot on the floor may be
adequate
Since several
components may
be required,
several different
kanban techniques

More Kanban
Usually each card controls a
specific quantity or parts
Multiple card systems may be
used if there are several
components or different lot
sizes
In an MRP system, the schedule
can be thought of as a build
authorization and the kanban a
type of pull system that
initiates actual production

Advantages of Kanban
Allow only limited amount of
faulty or delayed material
Problems are immediately
evident
Puts downward pressure on bad
aspects of inventory
Standardized containers reduce
weight, disposal costs, wasted
space, and labor

KANBAN

Kanban is the Japanese word for card

The card is an authorization for the next container of material
to be produced
A sequence of kanbans pulls material through the process
Many different sorts of signals are used, but the system is still
called a kanban

Material/Pa
rts Supplier

Final
assembl
y

Work
cell

Finished
goods

Kanban
Kanban

Kanban

Customer
order

JIT MANUFACTURING: THE PULL SYSTEM

(KANBAN)

Uses simple visual signals to control production

Workcenter B uses parts produced by Workcenter A

How can we control the flow of materials so that B always has parts and A
doesnt overproduce?

KANBAN CARD
Signal to Produce

When a container is opened by

Workcenter B, its kanban card is
removed and sent back to Workcenter
A.
This is a signal to Workcenter A to
produce another box of parts.

Signal to Pull

Empty box sent back. Signal to pull

another full box into Workcenter B.
Question: How many kanban cards
here? Why?