“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
