Just in Time

1. JUST IN TIME Supplying right product at right quantity at right time

2. Learning Objectives • Explain what is meant by the term lean operations system. • List each of the goals of JIT and explain its importance. • List and briefly describe the building blocks of JIT. • List the benefits of the JIT system. • Outline the considerations important in converting a traditional mode of operations to a JIT system. • List some of the obstacles that might be encountered when converting to a JIT system.

3. Operations strategy Lean operations and JIT Lean operations and JIT The market requires …specified time, quantity and quality of products and services Operations management Design Improvement The operation supplies … the delivery of products and services only when needed Planning and control

4. ‘The key principle of lean operations is relatively straightforward to understand: it means moving towards the elimination of all waste in order to develop an operation that is faster and more dependable, produces higher quality products and services and, above all, operates at low cost.’

5. buffer inventory buffer inventory stage C stage A stage B orders orders stage B stage C stage A deliveries deliveries JIT material flow Traditional approach JIT approach

6. focus on producing only when needed JIT approach Traditional approach fewer stoppages lower capacity utilization, but focus on high capacity utilization low inventory so problems are exposed and solved more stoppages because of problems no surplus production goes into inventory more production at each stage high inventory means less chance of problems being exposed and solved extra production goes into inventory because of continuing stoppages at stages JIT and capacity utilization

7. Improved overall productivity and elimination of waste Cost-effective production and delivery of only the necessary quantity of parts at the right quality, at the right time and place, while using a minimum amount of facilities, equipment, materials and human resources JIT is dependent on the balance between the supplier’s flexibility and the user’s flexibility JIT is accomplished through the application of elements that require total employee involvement and teamwork A key philosophy of JIT is simplification JIT definitions JIT aims to meet demand instantly, with perfect quality and no waste More fully: Source: Empics

8. The lean philosophy of operations Involve everyone Continuous improvement Eliminate waste JIT as a set of techniques for managing operations JIT as a method of planning and control Basic working practices TPM Pull scheduling Design for manufacture Set-up reduction ‘Kanban’ control Operations focus Total people involvement Levelled scheduling Small, simple machines Visibility Mixed modelling Flow layout JIT supply Synchronization The lean philosophy of operations is the basis for JIT techniques that include JIT methods of planning and control

9. 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”

10. Goal of JIT The ultimate goal of JIT is a balanced system. Achieves a smooth, rapid flow of materials through the system

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

12. Supporting Goals • Eliminate disruptions • Make system flexible • Eliminate waste, especially excess inventory

13. Big vs. Little JIT • Big JIT – broad focus • Vendor relations • Human relations • Technology management • Materials and inventory management • Little JIT – narrow focus • Scheduling materials • Scheduling services of production

14. JIT Building Blocks • Product design • Process design • Personnel/organizationalelements • Manufacturing planning and control

15. Comparison of JIT and Traditional

16. Transitioning to a JIT System • Get top management commitment • Decide which parts need most effort • Obtain support of workers • Start by trying to reduce setup times • Gradually convert operations • Convert suppliers to JIT • Prepare for obstacles

17. Obstacles to Conversion • Management may not be committed • Workers/management may not be cooperative • Difficult to change company culture • Suppliers may resist • Why?

18. Suppliers May Resist JIT • Unwilling to commit resources • Uneasy about long-term commitments • Frequent, small deliveries may be difficult • Burden of quality control shifts to supplier • Frequent engineering changes may cause JIT changes

19. JIT in Services 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. • Eliminate disruptions • Make system flexible • Reduce setup and lead times • Eliminate waste • Minimize WIP • Simplify the process

20. JIT II • JIT II: a supplier representative works right in the company’s plant, making sure there is an appropriate supply on hand.

21. Benefits of JIT Systems • Reduced inventory levels • High quality • Flexibility • Reduced lead times • Increased productivity

22. Benefits of JIT Systems (cont’d) • Increased equipment utilization • Reduced scrap and rework • Reduced space requirements • Pressure for good vendor relationships • Reduced need for indirect labor

23. Elements of JIT • Smooth flow of work (the ultimate goal) • Elimination of waste • Continuous improvement • Eliminating anything that does not add value • Simple systems that are easy to manage • Use of product layouts to minimize moving materials and parts • Quality at the source

24. Elements of JIT (cont’d) • Poka-yoke – fail safe tools and methods • Preventative maintenance • Good housekeeping • Set-up time reduction • Cross-trained employees • A pull system