Bcure.

: Titbett and Srltlen

Introduction
examines an
a method of "' .... ''' ..'''1,.''' ..''''

n.",nl'"fI ..,n

IS
or
and control. Although

(Jln. It Is
much of the

on

plannng and control issues, in

the 'lean' concept has much wider impllcations tor improving
in
the ideas behind
operations
much of
principies, which once were a radical
from traditional operations
have
now themselves
orthodox. In
chapter
the
for the
(and sometimes services) only when they are needed
internal or external customers?' Figure 15.1 places lean operations and JIT in the overall model 01
operations management.

15.1 This chapter covers lean operations and just~in~time

r",,,,,..'t"'''15 Lean operatons and JIT

What s the lean approach and how s It different from traditional operations
practice?
What are the main elements

the lean philosophy?

Wha.t are the techniques 01 JIT?

How can JIT be use,d for planning and control?
Can JIT be used in

""""'U!I"","

operations?

Il Ca.n JIT and MRP coexist?

Seen as the leading practitioner and the main

of
the lean approach, the Toyota Motor Company has
aU Its processes
simultaneously to give high-quality, fast throughput and
exceptional productivty. [t has done this by developlng a
set of
that has
what We now cal!
lean or just-in-time but which Toyota caUs the Toyota
Production
The TPS has two themes,
in-time' and 'jidoka'. Just-in-time is defined as the rapid
and coordinated movement of
throughout the
and
network to meet customer
demand. li is operationa[zed by means of heijunka
(Ievelllng and smoothing tMe ftow of
kanban
(>:nll1::lJll1l1 to the preceding process that more
are
needed) and nagare (Iaying out processes to achieve
the
smootMer flow 01 parts
process). Jidoka is described as 'humanizing tM interface
between
and machine', Toyota's phifosophy ls
that the machne is there to serve the
purpose,
The operator should be 113ft free to exercise his or her
Uc!ClAfnAflt Jidoka ls
by means of fai!safeing (or machine jidoka), Ilne-stop authority (or human
jidoka) and visual control
status of production
processes and vsbility of process
Toyota believes that both just-In-time and jidoka should
be applied ruthlessly to the eliminaton of waste, where
waste is defined as 'anythlng other than the mnimum
amount of equpment, items, parts and workers that are
"'''''''V'U''''y essental to production'.
Cho
identified seven types 01 waste that must be ellminated rrom
all
processes. They are waste from over
producton, waste from waiting time, transportaton waste,
inventory waste,
waste, waste of motion and
waste from product defects.
this, authorlties on
Toyota ciam that Its strength les in understanding the
differences between the tools and
used with

j
;;tl

I
~

---------'~
Toyota operations and the overall philosophy of its approach
to lean synchronization. This ls what some have cailed the
,:r"",,,,r,,,,,f ""r'",rlrw of the
production system, 'namely,
that activities, connections and production flows in a Toyota
factory are rigidly
at the same time
nn,,,,,"'Hn,,,, are enormously flexible and adaptable. Activties
and processes are constanUy being
and
to a
level of
enabling the company to
continually innovate and improve',1
One influential study of Toyota identifed tour rules that
the
delivery and development activlties
wihin the company.l
~
~

!!1l\

Rule one - all work shall be highly specified as to

content, sequence, timing and outcome.
Rule two - every customer-suppl1er connection mus!
be direct and there mus be an unambiguous yes OY no
method of sending
and
responses.
Rule three - the route for every product and service
mus be simple and directo
Rule tour - any
mus be made in accomance
with the scientfc mehod, under the guidance of a teacher
and at the lowest possible level in the organization.

Pan Three Planning and control

Just-in-time (JiT)
A method DT planning and
control ond an operations
aims to meet
demand Instontaneously \IIlth
perfect qualit'! and no waste,

lIT

""1nI1J'1!

and no wastc.

Chapter 15 Lean operations and JIT

(a) Traditional approach - buffers separata stages

(b) JIT approach - deliveries are macle 011 request

Orders

Orders

Deliveries

Deliverjes

15.2 (a) Traditional and (b) JIT flow between stages

ollscures
intrinsic problems
Im)<,,,tnrll

and the consequences the problem will be prevented from spreading to the whole process.
However, contrast this position with that illustrated in the bottom process in Figure 15.2,
which is an extreme fonn of JIT. Here items are worked on and then passed directly to the
next stage 'just-in-time', Problems at any stage have a very different effect in such a process.
For example, now if stage A stops workng,
B will notce immediately and stage e very
500n after. Stage
problem ls now quickly exposed to the whole proce5s, alI of which ls
affected by the problem. One result of this i8 that
re5ponsibility for solving the problem
is no longer confined to the staff at stage A but 5 now shared by everyone. Thi8 considerably
of the problem being solved, if only beca use t 1S now too important to
improves
be ignored. In other words, by preventing nventory from accumulating benveen stages, the
operation has increased the chances of the intrinsic efficiency of the plant being improved.
Although smplified, this example highlights the differences benveen a traditional and a
to encourage high effidency, they take different
approach. Although they both
routes to dong so. Traditonal approaches seek to encourage efficiency by protecting each
part of the operation from disruption. Long, unintermpted mns are its ideal state. The JIT
approach takes the opposite view. Exposure of processes (although not suddenly, as in our
simplified example) to problems can both make them more evident and change the 'motivaas a
tion structure' the whole system tOVliards solving the problems. JIT se es
Hes over the processes and prevents problems being noticed.
The idea of obscuring effects of inventory is often illustrated diagrammatcally, as in Figure
15.3. The many problems oE fue operation are shown as rocks in a river bed which cannot be
seen because of the depth of the water. The water in
analogy represents the inventory in
the operation. Yet, even though the rocks cannot be seen, they slow the progress of the river's
flow and cause turbulence. Gradual1y redudng the depth of the water (inventory) exposes
the worst of the problems which can be resolved, after which the water 1S lowered further,
exposng more problems, and so on. The same argument can be used to characterize the
relationship between the stages of production on a larger scale, where each stage is a 'macro'
operation. Here stages A, B and e couId be a supplier operation, one's own operaton and a
customer's operation, respectvely.

Pan Three Planning and control

15.3 ReduoinQ the level 01 lnventory (water) allows opel"ations management (the ship) to see the
problems in the operation (the rooks) and work to reduce them

(a) Traditional appl'oaoh

(b) JIT appl"oaoh

Focus on high
utllizatlon""

Focus on
when needed

More stc,ppagE,s
because of
problems

More production
at eaoh

means less chance

of problems being
eX::losE~d and solved

Extra
goes nto I n"",nt('\Y\i
beoause of continuing
stolPpa.ges at

Fewer stopp;ag.,s

Lower capacity
utllization, but

Low invento!)' so

No surpius
goes
nto invento!)'
VU\JvUV!

15.4 The different views of capacity utili:zation in (a) tl"aditional and (b) JIT apPl'oaohes to operatons

Chapter 15 lean operations and JIT

-8

set

Terminology in this area is sometimes a little confusing

also evolved over time. We
are using two terms here almost interchangeably,
and 'just-in-time'. Generally, lean can
be viewed as a philosophy of operations management. In other words, it gives a dear view
which can be used to guide the way operations are managed in many different contexts.
Within this philosophy there is a collection of many tools and techniques that both implement and support the lean philosophy. These techniques are more generally called
just-in-time techniques. Some of
to01s and techniques are well known outside the lean
sphere and relate to activities covered in other chapters of this book ather techniques relate
specifically to the way production s planned and controlled under a lean regime. This chapter summarizes lean philosophy, draws together some of the JIT techniques descrbed
elsewhere, and treats more detail the planning and control aspects of JIT (see Figure 15.5).

The lean approach to managing operations i8 founded on doing the simple things well, on
gradually doing them better and (above all) on squeezing out waste every step of the way.
aften seen as
leading practitioner of the lean approach in Japan, the Toyota Motor
Company has developed a set of practices which has shaped what we now call1ean or JIT.
Sorne argue that the origins of JIT lie within Toyotas reaction to
'oil shock' of rising oil
prices in the
1970s. The need for improved manufacturing efficiencies that this provoked spurred Toyota to accelerate
JIT ideas which were already forming. These
developments by Toyota, and other Japanese manufacturers, were also encouraged by the
natonal cultural and economic circumstances. Japan's attitude towards waste ('make every
grain of
count'), together with lts position as a crowded and virtually naturally resourceless country, produced ideal conditions in which to devise an approach that emphasizes low
waste and high added value.
Three key
defme the lean philosophy that in turn underpins the techniques of JIT:
eliminatin of waste, the involvement of staff in the operation and the drive for continuous improvement. 4 We willlook at each briefly in turno

The lean philosophy of operations

111

Eliminate waste

111

!nvolve everyone

Contnuous mprovement

JIT as a set oftechniques for managing operations

111

Basic working practices

Design for manufacture
Operatlons focus
Small simple machines
Flow layout

111

TPM
Set-up reduction
Total people involvement
V[sibiliiy
JIT supply

JIT as a method of
planning and control
111
111
111
111
111

Pull scheduling
Kanban confrol
LeveHed scheduHng
Mixed modening
Synchronization

15.5 The lean philosophy of operations is the basis fol' JIT techniques that include
JIT methods of planning and control

Pan: Tlm;,e Planning and control

The eHmnatiol1 O uvaste

s
to leal1
appmaGhes

Arguably the most significant part of the lean philosophy is its focus on the elmnation of
aIl forms of ,vaste. Waste can
defined as any activity which does not add value. Two
simple devces are commonly used in lean improvement. One, 'the seven forms of waste', s
concemed with identifying waste as the first step towards elimnating t; the other, 'the 5S's',
is a simple set of principIes for reducing waste.

The seven forms of waste

The seven tlJpes of 'lijaste Toyota has identified seven
cf
which have been found to apply in many different
types of operations - both service and production - and which form the core oflean philosophy.
@

Over-production. Produdng more than is immediately needed by the nen process in the
operation is the greatest so urce of waste according to Toyota.
Waiting time. Equipment effidency and labour efficiency are two popular measures which
are widely used to measure equipment and labour waiting time, respectively. Less obvious
is the amount waiting tme of items, disguised by operators who are kept busy producing W1P which s not needed at the time.
Transport. Moving items around the operation, together with the double and triple handling vVIP, does not add vaIue. Layout changes which bring processes doser together,
improvements in transport methods and workplace organization can aU reduce waste. .
Process. The process itself may be a source of waste. Some operations may exist only
because of poor component design or poor maintenance and so could be eliminated.
lnventory. All inventory should become a target for elimination. However, it lS only by
tackling the causes of inventory that it can be reduced.
Metion. An operator may Iook busy but sometmes no vaIue is being added by the work
Simplification
is a rich source of reduction in the waste of motion.
Defectives. Quality waste i8 often very significant operations. Total costs of quality are
much greater than has traditionaUy been considered and it is therefore more important to
attack the causes of such costs. This lS discussed further in Chapter 20.

The
The 5S's

The 5-S
comes odginally from Japan and although the translation lnto English
i8 approximate, they are generaUy taken to represent
foUowing:

1 Sort (Seiri). Eliminate what is not u,,'~u...y

2

Position things

what is needed.
a way that they can be easily reached whenever

they are needed.

3 Shine (Seise). Keep things elean and tidy; no refuse or dirt in the work area.
4 Standardize (Seiketsu). Maintain deanliness and order - perpetual neatness.
5 Sustain (Shitsuke). Develop a commitment and pride in keeping to standards.
The 5$'s can be thought of as a simple housekeeping methodology to organize work areas
that focuses on visual order, organization, deanliness
standardzation. It helps to eliminate aH types of waste relating to uncertainty, waiting, searching for relevant information,
creating vadation and so on. By
what is unnecessary and making everything
ciear and predictable, ciutter is reduced, needed items are always in the same place and work
i8 made easier and faster.

Just-in-time principies can be taken to an extreme. When just-in-time ideas first stalied to
have an impact on operatlons practice in the West, some authorlties advocated the reduction of between-process inventories to zero. While in the long term this provides the
ultimate in motivation .101" operations managers to ensure the efficiency and reliability of

:n>l1in'h""15 Lean operatons and JIT

each proces::>
it does no admit tha possiblllty 01 soma processes always baing
intrinsically less than totally reliable. An alternative view is to allow imrentories (albe!t small
onas) around procass stages with hgher-han-averaga uncertainty. This a laast allows
sorne protection for the rest 01 the system. The same ideas apply to just-In-time delivary
betwaan factories. Tha Toyota Motor Corp., ofien seen as the eptoma of modem JIT, has
suffered from Its low inter-plant inventory policles. 80th the Kobe earthquaka and fires in
supplier plants have caused produotion a Toyota's main factorias ta olosa down for saveral
parts. Even in the best-regulatad networks, one can no!
days bacause 01 a shortage of
always account for such avans.

time

measure for \-vaste a ,...,rr,rp,oc

mnr",,"'," moved, checked or subject to anything
nW~Cf1"P<C through the
So,
at

activities

Valua straam
stream mapping

Part Three Plannng and control

PerkillS is one oUne world's leaders in the

of industrial diesel
world, As well as reputation tor ease of servoe alang with
low costs maintenance and
Perkins mus be
to
a
and efficient service ta its global
parts and
network of distrlbutors and dealers who
clase to the customer throughout tha world. This
Is why throughput afficiancy ls so mportapt to tha
company. 'Far us it is a tool that enabfes the va/ue stream
to be examined both inside Perkins and beyond ii.
Warking with our suppliers we can use measurement and
themaps to
improvement. In addition the map enables us fa monitor
the current state and understand tne effect that
improvement activites have on acheving
incrEla:sed oef'Celltac,e of vafue-added activitfes
lead time. We a/so wanted to train
agents within
base and
our
suppliers to carry out this
themsefves and sustain
year-on-year QCD Improvements: (Jim Shaw, Supply
Chaln Develioprne!lt I\lIi'm''ln".,.\

,f

b -_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~~

1 Sketch out what you think may be the

stream map tor a company like Perkins,

:2 What seem to be the

in a value

to Perkins 01

thls An'1rnAnrl ';>

Key
TIT '" Task time

TIT = Tota! throughout time

V-AT", VaJue-adqed time
CIT '" Cycle ttme

=258 hra

15.6 Value stream map for an industrial :r.r.tWlcl'l',nnnn installation service

."",,,n..... 15 Lean oo::wations and JIT

:::: 59 minutes
:::: 11 HHjllUUC,)
=1

== 31 minutes
:::: 15 HUJllUU'L"
:::: 1 hour 55 mUlUt(;s.

this was a

aPl:Jrecmble

JHJ'VH;iH"

or

Part Three

PIO,""'W\N

and control

Not al! commentators see JITinfluenced people-management

as onf'''"<>II\I
Uve. The JIT approach to people
can be viewed as patronizing. It may
from earlier
some extent, less autocratic than some Japanese management practice
times. However, it Is certainly not in line with some of the Job design philosophies which
a high emphasis on contribution and commitment, described in Chapter 9. Even in
Japan the approach 01 JIT is not without its critics. Kamata wrote an autobiographical
at a Toyota plant called Japan in the Passing Lane. His
descrlption of life as an ,
account speaks of 'the h1humanity and the unquestioning adherence' of working under
such a
Similar criticisms have been volced by some trade union representatives.

meet

must be on the way in which an ~L,,,~"'L"~'.L~'H

Kazen
Japanese word for continuous improvement is H,"""',-,,,,
Japanese term lar cootinuous
It i5
fully
18.
improvement

One effect of an increasng global approach to business

has been to highllght the relatively high labour costs which
companies have to live with.
This has red to two broad trends. The first is that many
Anrli"".Arl1f'l companles are increasng the proportion of
servlce in their product
Ths can he[p to reduce
the importance of
costs because
customers are
to pay for the extra service value
added, TM second trend Is to attempt to reduce
costs through a lean philosophy and JIT
methods. Take two
Junghelnrich ls one of the world's
of 11ft trucks. lts
are found all over the world in
T",r'TrIf"AC! warehouses and
that needs heavy
moving short distances. The
factory makes over 30,000 11ft trucks ayear of around
10,000 varieties which are based on ten baslc nlt:!'ffnt'm",
JIT methods of manufacture aUow the company to
assemble each
in three hours. Only three or four
years prevlously it would have taken 18 hours, Between
1998 and 2000 the company Increased output from Its
Hamburg plant by 30 per cent, wlth 10 per cent fewer
workers. Hans-Peter
the ""''''I"\,,,m.'''

attrlbutes much of the company's success to improved

links with Its suppllers and smooth fiow withn ihe
'To be
in this ffff.1W'iIJ'\I

Komax s the world's

maker of the machines
that make
hamesses for automobiles. lbe
company Is based in Switzerland
lika {'A,rm;mv
has high labour costs.
on sales of around $100
miHon, it
99 per cent of iis production.
ths
company doubled Its sales whiie reducing the number of
it succeeded in
this because of a
policy of outsourcing some 01 ts manufacturing. But this
couid work ordy with JIT
to deliver every two
om'8n7f'!cJ 1:hem to deliver three times a week. This
reduced inventories
and
up
throughput time.

nri'1r.ir,IA<::

contribua to

costs in

Chapter 15 Lean operations and JIT

The 'engine room' of the lean philosophy is a collection of JIT too1$ and techniques which
are the means for cutting out waste. There are many techniques which couId be termed JIT
techniques and theyfollow on naturally and logically from the overalllean philosophy.

Adopt basic working practices

Basic
can be considered as the method of operationalzing the 'involvement of everyone' lean principie. They are held to be the basic preparation of the operaton
and its staff for implementng JIT. They indude the following:
iIII

l!I

l!I

l!I

~
i9

i9

Discipline - Work standards which are critical for the safety of company members and the
environment, and for the quality of the product, must be followed by everyone all the time.
Flexiblity - It should be possible to expand responsibilities to the extent of people's capabilities. This applies as equally to managers as it does to shop-floor personnel. Barriers to
flexibility, such as grading structures and restrictive practices, should be removed.
Equality - Unfar and divisive personnel policies should be discarded. Many companies
implement the egalitarian message through to company uniforms, consistent pay structures which do not differentiate between full-time staff and hourly rated staff, and
open-plan offices.
Autonomy - Delegate increasing responsibility to peopIe involved in direct activites of the
business, so that management's task becomes one of supporting the shop floor.
Delegation means such things as giving direct Hne staff the responsibility for stopping
processes in the event of problems, scheduling work and materals arrival, gathering
performance-monitoring data and general problem solving.
Development of personnel- Over time,
aim is to create more company members who
can support the rigours of being competitive.
Quality of working life (QWL) - This may indude, for example, involvement in decision
making, security of employrnent, enjoyment and working area facilities.
Creativity -: This is one of the indispensable elements of motivation. Most of us enjoy not
just doing the job successfully but also improvrng 1t for the next time.
Total people involvement - Staff take on much more responsibility to use their abilities to
the benefit of the compan)' as a whole. They are expected to participate in activties such
as
selection new
dealng directly with suppliers
customers over schedules, quality issues and delivery information, spending improvement budgets and
planning and reviewing work done each day through communication meetings.

In
it i5 difficult to
aH the l;asic working practices at the same time. There are
trade-offs between discipline, autonomy and creativity, for example. It lS best to consider
these basc working practices as goals to be achieved.

Design for ease of processing

Studies in automotive and aerospace companies have shown that design determines 70-80
per cent of production costs. 7 Design improvements can dramatcally reduce product cost
through changes in the number of components and sub-assemblies and better use of materials and processing techniques. Often improvements of this magnitude would not be
remotely possible by manufacturing efficiency improvements alone.

Emphasize operations focus

The concept behind
focus is that simplicity, repetition and experience breed
8 Focus within operations means:

Pan Thl"ee

and contror

process on a HUjen",',,-,

HHUlas,vu

so

ABe

15.7 Using sevel"al small machines rather than (me larga eme allows siml..lltaneol..ls
pl'ocessing, is more robl..lst and is more flexible

Ghi:::lnt...y

15 Lean operations and JiT

over
an example).

to

>.u,.. u.,~

reducton
The process of reducing lhe
tlne
to changeover a
process fmm ()ne actvity lo
lhe next; also called single
minute 8xchange 01 dies
afler its origins in the

Alterna!ive term tor set~up

reduGtion,

~e

to

~a

~~

a variety of
such as cutting out
to search for too1s and
equipment,
pre-preparation of
which dday changeovers and the constant practice
routines. Setup
reduction is also caBed
because this was

<

<

<

too1s so
a
is
to
instead of having to be
machine is stopped. Preferably, a11
should be carded out exterup whle
nally, so that the internal setup is an assembly operation only;
attach
different tools to a standard fIXture.
to
a simple and ""'HU'U
loading and ~H,'~~~H''''
as ro11er r"'hV{'V"r<

an:5paTeIlT an
the easier it is
Problems are more easily rtp'fPrr,;
Visibility measures indude things
workplace and an area
to displaying

Aircraft are OVI"O'''''''''' Aldines tr'j to use them round the

clock because they can't make money from aircraft that
are sitting die on the
It is called 'running the
the
alrcraft hot' in the industry. Formany smaller
biggest barrler to runnng hot Is that their markets are not
large enough to justity passenger flights
the
and nigh. So, in arder to avoid aircraft being die
mus be used in some other way. Tha! was
737 'Ouick Change' (OC)
the motive behind
aircraft. With t, arrlines have the flexibilty to use it for
PaSsenger fUghts during ihe
and, with less than a
one-hour changeover (setup) time, use it as a cargo
airplane throughout tha
designed
trames that hold entire rows of seats that can smoothly
gl1de on and off the aJrcraft
twelve saats to be
mUed nto place at once. When used far cargo, the seats
are simpiy rolled out and
specia! cargo
cantainers designed to fit the curve of the
and
to the Inter[or. Befare
the
prevent
seats the sidewaUs are
cleaned so that, once
passengers cannot tell the
the seats are in
difference between a OC aircraft and a normal 737.

to share in its
and information becomes simple,

Aloha Airlines, which serves Hawaii, particularly

values the alrcraft's flexibUity. It allows it to provide
frequent, reliable sefvices in both passenger and cargo
markets. So the alrcraft that has been earrying
passengers around the islands
the day can be
fresh
to the hotels that
used to
also aliows
the aldine to
to
When Hurricane
Iniki hit the islands, the passenger market collapsed until
damage could be
but there was a huge
inorease in ihe amount of cargo traffic to repair the
island's facUties.

nflFlOv,Rr between
1 lf the
took two hours instead 010ne, how mueh
do you think Jt would have on the usefulness of
the aircraft?

2 Fo. an aircraft that carries passengers all the time, what

ls the equivafent of setup reduction? And why might Jt
be important?

Part Three

and control

A particularly mportant
to >"'4""',,,.<.:

Anden
Alght anove aworkstatioo
that ndlcates its state,
whether worklng, waiting for
work, broken dO'Nfl, etc.,
Andan lights may be
to
stop Li]e whoie llne when one

station stops,

Table 15.1

;:!mu....linn'\C< lean supply cOl"lcept

Factor

Lean

characteristics

Nature of competition

Global operation; local presence

Dependent upon all1ances/collaboration

How suppliers are seleced

by customers

Early lnvolvement 01 established

Re-sourcing as a last resort after attempts to improve

;;;'J{,~h<""f'1I"" of informatlol1
between supplier
ano customer

True transparency: costs, etc.

Two-way: discussion of costs and volumes
Technical and commercial informaion
Electronic data

Intl>rf'I,,,,r,n,,,,

Kanban

for production deliveries

investmens dlscussed
with fluctuations

Delivery practica

True
Local,

fr,,.nAI'!nn

delveres

and ntemationaJ JIT

Prce reductions based upon cost reductions from order

onwards: from joint efforts of suppler and customer
Attitude fo quailty

schemes bacome
Mutual agreement on quallty
Continual nteracton and kazen

18)

as goal
Source: Adapted from lammlng, R,
Prentice HalL

Sfr;,feCTes for lnnovation and Lean

Supply,

"t"'''15 Lean operations and JIT

Ch"..

Tabie 15.2 The leal"l/JIT ;:m:rO:Rfll1

Be clear about operations

and
a 'focus' qU"lrA(lV
where
so that processes cancentrate on a narrow set of
products, services or objectives.
Process

Ensure smooth flow along processes and fast throughput by working

on small batches and balancing capacity and flow.

Productlservice

IrlHUfrlLl!1tHLItlHV

in

lean ~Y"~''b~
rather than large
a process raute as much as
Reduce the distance travelled
possible and make routes obvious.
Process technology

Use small flexible procesa equlpment, preferably that can be moved

Into dlfferent configurations.

Job design

Concentrate on equipplng 81aff with necessary skms, being olear what

Is
and encourage autonomy,

Process
and control

Use pull control

Minlmize

m\J",ntn!V

Imt"\rn\!ArnPI"\T
Im."\rnltArn"",T

Maintenance

untl t Is needed.
po"sible because it obscures

nm,np,mq

must be contlnuous. It Is the momentum of

which Is more
than the rate of improvement

AII unexpected breakdown rs waste; concentrate en preventing

19).
disruptien
total productive maintenance

Al! errors are further sources of waste; everyone In the operation must
be involved in
an error-free state,

Jaoanese term far card ar

it s simple
controlling devce !hat 18 usad
to authorlze the ralease 01
matarais in pul! conllol
systems such as those usad
in Jll

it is

or even to

Pal1Three

and control

lIIIc

The move 01" conveyance kanban. A move kanban is

material can be

are recelveCl,
supply of tvvo
or standard containers of
which movement,
or snpply can
"'4O,",J<'-";:>

Chapter 15 Lean operations and JIT

StageA

Work centre A

Work centre B

Output stock
Empty standard container
FuI! standard container

Output stock

Move kanban

--~......

Flow path fol' standard containers

Kanban holding box

---.;)10>....

Flow path for move kanban

15.8 The operation oUne single-card kanban system of pl.IlI control

This sequence of actions and the flow of kanbans may at first seem complicated. However, in
practice their use provides a straightforward and transparent method of calling for material
only when it is needed and limiting the
which accumulates between stages. The
number of kanbans put into the loops between the stages or between the stock points and the
work centres is equal to
number of containers in the
and therefore the inventory
wruch can accumulate. Takng a kanban out
loop has fue effect of redudng fue inventory.

Hm!lE1""\

Leve!ied

The idea ttlat the mx and

volume of acllvlty should even
out over time so as to make
oulput routine and regular,
sometimes known by the
Japanese term

is the Japanese word for levelled

so that mixand volume are even over
tlme. For example, instead of producing 500 parts in one batch, which would cover the needs
for the ne:A.' three months, levelled scheduling would require the operation to make only one
per hour regularly. The principie of levelled scheduling is straightforward but the
requirements to put it into
are quite severe, although the benefits resulting from it
can substantial. The move from conventional to levelled scheduling is illustrated in Figure
15.9. eonventionally, if a mix
was required in a time period (usually a month), a
batch size would be calculated for each product and the batches produced in sorne sequence.
Figure 15.9(a) shows three products (A, E and e) which are produced in batch sizes of 600,
1, the unit commences producing product A.
200 and 200, respectively. Starting at
During day 3, the batch of 600 As 1S finished and despatched to the next stage. The batch of
Es is started but is not fmished until day 4. The remainder of day 4 is spent makng the batch
of es and both batches are despatched at the end of that day. The cycle then repeats itself.
The consequence
using large batches ls, first, that relatively large amounts of inventory
accumulate within and between the units, and second, that most days are different from one
another in terms of what they are expected to produce (in more complex clrcumstances, no
hvo days would be the same).
If the flexibility
unt could be increased so the batch sizes were reduced to a quarter
of their previous levels (see Figure 15.9b), a batch of each product can now be completed in
stage, which will reduce
a single day. Smaller batches of inventory are moving between
the overalllevel of work-in-progress in the operation. Just as significant is the impact on the
regularity and rhythm of the process. Now, every day, the activity in the process is the same.
This makes planning and control much easier. So, if on day 1 the daily batch of A was
11.00 am and all the batches were successfully completed in the day, then the
ished

Pan Three

Plarming and contra!

(a)
Salch size 01

Needtomake

Scheduling in Jarge batches

600
A

(b)
A = ISO
B = 50
50

Reduce batch

I..evelled scheduling

si;:e le:

e=

Over a 2Cl-\Jay peried

150
A
50
B
50

t i t
50
S
50

t ti i ii ti i i i i i i
50
B
50

1BO
A
50

S
50

50
S
50

15.9 Levelled SCll"le(lUllll1g eqlAauze5 the mix of

150
A
50
B
50

i50
A
50
S
50

150

150

150

50
B
51}

50
B
50

50
B
50

150
A
50
B
50

50
S
50

50
S
50

50

50

Chapter 15 Lean operatons and JIT

Suppose the number of products required in the 20-day period are:

Product A ::: 1920
Product B == 1200
Product e == 960
Assuming an eight-hour day, the cyele
for each product - that is, the nterval
between the production of each of the same type of product (see ehapter 7 for a full
explanation of cyde time 1S as follows:

r-

Product A, cyde time;:: 20 X 8 X 60/1920 == 5 mins

Prodct B, cycle time == 20 X 8 X 60/1200::: 18 mins
Product cyele time == 20 X 8 X 60/960 == 10 mins
the production

must produce:

1
of A every 5 minutes
1 unit of B every 8 minutes
1 unt e every 10 minutes.
Put another way, by finding the common factor

8 and 10:

8 units of A every 40 minutes

40 minutes
5 units of B
4 units of e every 40 minutes
means
a sequence which mixes eight units of A,
of B and four of e, and
repeats itself every 40 minutes, will produce the required output. There will be many different ways of sequendng the products to achieve this
... BAeABAeABAeABAeAB ... repeat~~ct ... repeated
This sequence repeats itself every 40 minutes and produces fue correct mix of products to
satisfy
monthly reQIUlrem.enl:s.

Also related to levelled scheduling i5

or the repeated
of parts. It means
that ultimately processes can be made so flexible that they achieve the JIT ideal of a 'batch
size of one'. The sequence individual items emerging from a process couId be reduced progressvely until 1t produced a steady stream of each item flowing continuously. So, for
example, rather than produce 200 As, 120 Bs and 80 es, a steady mixed stream in the same
ratio is produced (AA B A B e A B eA '"

A
concept to levelled scheduling can be applied to many transportation processes.
For example, a chain of convenience stores may need to make deliveries of all the dfferent
types of products it sells every week. Traditionally it may have despatched a truck loaded
with one particular product around
stores so that each store received the appropriate
amount of the product which would
it
one
This is equivalent to the large
batches
in the previous example. An alternatve would be to despatch smaller
quantities of all products in a single truck more frequently. Then each store would receive
smaller deliveries more frequently, inventory
would be
and the system could
respond to trends in demand more
because more
means more opportunity
to
the quantity delivered to a store. This is illustrated in Figure 15.10.

Pan Three Plannng and control

hwentory
levels

smaller

15.10

""",..IH'i",.,

more often can reduce inyentory leyels

Tabla 15.3 Inventory and quauas haye similar characteristics

Ofmaterial
(queue
Cost

Of informatiorl
ef infermatien)

Of customers
(queue of people)

Ties up wr\rfdrln

Wastes customer's time

Needs

Needs waiting area

Gives """''''1\''''

",c"',,clInt<m

Prometes

Utilizatlen
Ceordination

Aveids need for

Avods need for straight-

Avoids haying te match

and demand

Source: Adapteo from Fitzsimmons, J A (1990) 'Making continua! improvement; a competitve strategy tor service
1.G, ano Assocates (eos) Serviee Management Effectiveness,
flrms', in 8owen, DE, Chase, RB"
Jossey-Bass, Copyright 1990 John Wiley &, Sons, Inc" reprinted with permission,

nO"'nTIfV'C

and JIT

in service
found in rnanufacturng industries because
pnKessed in sorne way.
the
examples.
;::,upCI"rn'lrK,el:S usually replenish their shelves only when custorners
r.Vf'm,ont of

taken sufficient
IS

tme.
even

most

the

Many high visibility services

are based on a
system. For example, these
chefs only create their
dishes when customer
demand 'pulls' the service.

Part Three Plannng and control

was
the Mobiie Army
or MASH units made famous In the film and
lrelevision series of the same name. MASH units with iheir
treatment rooms and nn~mt'n('! theatres could be moved
at short
so as to
them close to the action
were needed. In
so
saved
where
fasi access to sultable
thousands of Uves
treatment Also, soldiers with minar wounds could be
treated and retumed to servlce
Now that nr}"l'lnIA
H('ven"";",,

is
usad to
Mobile Parts nV"I-I"'<'"''
These wlll be used to manufacture ""r,lal"ornc.rn
vehicles, tanks and other weapons 'on clemand', close te
the
field ei operaton. Ir is macle possible through
th e
of a
caned ,nc.,r"'""_Uthn,, rl'l,F'\h\l
This makas it pOl',sible to creata soltd
from a

""I,,,,,tl,,,,,,,r,nr1 ln mInutes rather than hours. A laser

traces a
to create a solid
made of sintered powdered materials such as polymers or
metals. Although stlll in Its
the "''-'''/''0'''+
AY,,,inrArlforaniJIic.atic}n

'1 Manufacturing
through the process described
aboye 1s many times more
than
conventionai tAI".hnr,lnr,iA1'l

about '" v "''' " au

MRP is

on the accuracy

characteristics 01 JIT

Chapter 15 Lean operations ane! J1T

., Dedsion making for operations control ls largely decentralized taetical decisions do not
rely on comput~-based information processing.
~ JIT scheduling is ~rate-based' (calculated in terms of output of a part per unit of time)
rather than volume-based (the absolute number of parts to be made in a given day or
week).
~ JITassumes (and encourages) resouree t1ex.ibility and minimized lead times.
~ JIT planning and control concepts are only one part of a wider and explidt JIT philosophy of operations.
JIT and MRP similarities and dfferences

The irony is that JIT and M:RP have similar objectives. JIT scheduling aims to connect the
new network of internal and external suppIy processes by means of invisible conveyors so
that pars rnove only in response to coordinated and synchronized signals derived from endcustomer demando MRP seeks to meet projected customer demand by directing that items
are produced only as needed to meet that demando However, there are differences. M:RP i5
driven by the master production schedule. which identifies future end-item demando It
models a fixed lead-time environment, using the power of the computer to calculate how
many of, and when, each part should be made. Its output is in the form of time-phased
requirements plans that are entralIy calculated and coordinated. Parts are rnde in response
to central instruetions. Day-to-day distutbances, such as inaccurate stock records, undermine M:RP authority and can make the plans unworkable. While MRP is excellent at
planning, it is weak at control. JIT scheduling airos to meet demand instantaneously through
simple control systems based on kanban. If the total throughput time (P) is less than the
demand lead time (D), then JIT systems should be capable of meeting that demando But if
the P:D ratio is greater than 1, some speculative production wi1l be needed. And if demand is
suddenly far greater than expected for certain products, the JIT system may be unable to
cope. Pull scheduling is a reactive concept that works best when independent demand has
been levelled and dependent demand synchronized. While IT may be good at control, it is
weak on planning.
MRP is also better at dealing with complexity, as measured by numbers of items being
processed. It can handle detailed requirements even for 'strangers'. JIT pull scheduling lS less
capable o responding instantaneously to changes in demand as the part count, options and
colours increase. Therefore, JIT production systems favour designs based on simpler product structures with high parts commonality. Such disciplines challenge needless complex.ity,
so that more parts may be brought under puIl-scheduling control. Putting the relative
advantages ald disadvantages of JIT and MRP together suggests two approaches to blending the approaches.
Separate systams ror different products

>-

Using the runners, repeaters, strangers terminology deseribed earlier, pull scheduling using
kanban can be used fot <runners' and <repeaters~ MRP is then necessary only for strangers,
for which wotks orders are issued to identify what must be done at each stage, and then the
work itself is monitored to push materials through manufacturing stages. The advantage of
this is that by increasing responsiveness and reducing inventories, it makes it worthwhile to.
increase their number by design simplification.
MRP for ovarall control and JIT for internal control

MRP planning of supplier rnaterials airos to ensure that sufficient patts are in the pipeline to
enable them to be calIed up 'just-in-time'. The master production schedule is broken down
by meanS of MRP for supplier schedules (foreeast future demand), while actual materials
requirements for supplies are signalled by means of kanban to facilitate JIT delivery. Within
the factory, al1 materials movements are governed by kanban loops between operations. The
(drum beat' for the factory is set by the faCtory assembly schedule.

Pal1Thl"ee

and control

use
MRP which guide

to use

means

structures
"-

"-

PERT

"-

"-

"

""

" " """

MRP

....

....

JIT/MRP

"

"-

"-

"-

Simple
structures

JIT

"\

Simple

Source: From Vose, CA and Harrison, A

for Imr,!",n1Antlntl
Time Manufacture,
Copyright 1987 Springer, "'I-"'''uu"",u

The L;omr:a'lfOr1 Website to the bookGuide' to eech l'n<,nrc,r

Just-in-

peiarsonea.CCI.ulKfslaC:1l: - also has a brief

What is the lean approach and how is it different from traditional openatons

Lean is an approach to operations which tries to meet demand instantaneously wlth

quality
and no waste, It is an
whch dlffers from tradtlonaf
insomuch as It
stresses waste elimination and tast throughput, both of which contributa to low inventories.

Chapter 15 Lean operations and JIT

The abiHty to deHver just-in-time not on!y sayas working capital (through reducing
inventory levels) bu also has a significant impact on the ability of an operation to improve its
intrinsic efficiency.

What are the main elements of the lean philosophy?

Lean philosophy can be summarized as concerning three overlapping elements: (a) the elimination of waste in all lts forms, (b) the inclusion of all staff of the operation in ts improvement,
and (e) the idea that all improvement should be on a continuous bas!s.

What are the technlques of JIT?

The techniques which are usually associaed with JIT (not specifically eoncerned with planning
and control; see next point) are:
- developing 'basie working praetices' whieh support waste elimination and continuous
improvement;
- design for manufacture;
- focused operations whith reduce complexlty;
- using simple, sman machines which are robust and flexible;.
- rearranging layout and flow to enhance simpieity of flow;
- employing total productive maintenance (see Chapter 19) to encourage reliability;
- reducing setup and changeover times to enhance flexibillty;
- involving all staff in the improvement of the operation;
- making problems visible to all staff.

How can JIT be used

tor planning and control?

Many JIT techniques directly concem planning and control, such as:
- pul! scheduling;
- kanban control;
- levelled scheduling;
- synchronization of flow;
- mixed-model schedui1ng.

Can JIT be used in service operations?

Many of the aboye techniques are direetly applicable in service operations, although some
translation is required occasionally.

Can JIT and MRP coexist?

Although they may seem to be different approaches to planning and control, they can be combined in several ways to form a hybrid system.
The way in which they can be combined depends en the complexity of preduct structures, the
complexity of product routing, the volume-variety characterlstics of the operation and the level
of control required.