JIT/Lean Process

By J. V. Saraph

JIT Concept
JIT was conceived and evolved by Taiichi Ohno of
Toyota beginning in early 1950s; he called it Toyota
Production System (TPS)
Many firms in U.S. started adopting JIT in early
1980s
JIT elements can be applied to many environments
and across cultures
JIT has evolved into Lean or TPS Process.
Sometimes they are all used interchangeably
JIT involves reducing 8 types of waste (Muda) (one
more than the original 7 wastes)
JIT also works with Kaizen - CI and 5S

8 Types of Waste
(Mudas)

Overproduction
Waiting Time
Transportation
Processing
Inventory
Motion
Defects
Under-utilization of worker

Kaizen
Kaizen
Japanese concept
Kai = Good; Zen = Change
Change = radical (Reengineering)+ incremental
(kaizen)
Kaizen or Cont. Improvement (CI) = Incremental
No major investments in capital
Uses worker teams
Has short time frame 1 month to 3 months
Goals are set by workers
Kaizen Days Ideas explored in one-two days
and solutions found and implemented in short
order

5S at Gemba (Workplace)
Sort
Get rid of clutter - unneeded & obsolete
materials, tools, paper, processes, etc.

Set in Order

A place for everything, and everything in its

place; visual controls will help

Shine

Keep everything ship-shape, clean, in working

order, safe, well maintained

Standardize

Standardize steps to do work consistently

Sustain

Keep up and dont slide back to sloppy process

JIT Basic Rules of Pull

Do not process anything unless demanded
by the next process or end customer
Process exactly at a rate the customer
wants
Stop process (1) if there is no demand, and
(2) if there is any problem, and (3) Resume
process only after eliminating the root
causes of the problem
Any supplier is an extension of your
process and any customer is an extension
of your process. Collaboration and
information sharing is critical.

JIT Elements
Workers
Jidoka (Quality at Source); Worker Authorized to
Stop Process if there is a problem
Participation & Teams for (1) Problem Solving
and (2) Kaizen - CI
Multi Function Employees (MFE), Flexible, and
Cross-trained
Employee Suggestion System
Skills and Quality-related Training
Worker performs House-keeping, maintenance,
and quality checks at Gemba

JIT Elements
Suppliers
100% Quality of in-coming materials and services
Selection based on Capabilities, not Cost
Deliver directly to where required to point of
use- to Kanban
Small lots (One-piece is ideal); Kitted, Sequenced
Single Sourced; information sharing/product
development
Long Term; Partnership Contracts
Physically Close; Build Infrastructure/Campus
Around your Facility for Suppliers
Less Vertically Integrated; Retain only Critical
Processes and Components Internally, Outsource
or Off-shore Rest

JIT Elements
Scheduling
Leveling (Heijunka); Master Schedule Frozen
Takt Time
Use Kanbans (Facilitates Pull)

Layout

Assembly Line (Continuous Flow) preferred

Mixed Model Assembly Line
Cellular Layout; Group Technology
No warehouses or intermediate stores

Continuous Flow

Product oriented (Continuous Flow)

One Piece (or small lot)

JIT Elements
Quality
100% Vendor Quality
100% In-Process Quality
Worker is authorized to stop production
Expose and solve quality problems immediately

Equipment & Maintenance

Total Preventative Maintenance (TPM)
100% Equipment Availability

Visual Control at Gemba

Poke-Yoke & Mistake-proofing

Kanban & Andon System
Story-boards, Charts and Graphs

JIT Elements
Set-up Reduction
Facilitates Near Continuous Flow &
Small Lots

Lot Size Reduction

Reduces Buffer Inventory (Working
Capital)
Exposes Problems in the Process
Ideal Lot Size =1

JIT Benefits
Space Reduction
Lower Cycle Time; Better Speed/Delivery
Lower Working Capital due to Lower
Buffers
Higher Quality
Flexibility Faster Adjustment to Customer
Order Changes
Increased Capacity
Better Employee Participation & Morale
Higher Inventory Turns
Cost Savings due to Waste Reduction

Stabilizing Master Schedule

(Leveling -Heijunka)
Calculating Constant Rate of Output based on Master Schedule
Units

J F M A M J J A S O N D

MS

200

300

400

300

200

January
Month Units

400

300

400

300

200

200

200

200

Week

Units

50

50

50

50

Model A

20

20

20

20

Model B

20

20

20

20

Model C

10

10

10

10

January Production
Sequence

{AABBC}{AABBC}{AABBC}

Leveling

Kanban System
Calculating Kanban Container Size
January Monthly Demand of all models

200

January Model A Daily Demand (5 day

per week)

20/5 = 4

2 of Part X go in Model A;
Directly Delivered to Assembly Line
Daily Delivery
LT = 1 Day

Part X
Prod.

Daily Demand of Part X for Model A

Safety Stock S for Part X (as fraction of

DL)

.1

Container Size for Part X for Daily

Delivery

DL(1+S)
8x1(1.1) = 9

Kanban Area

Model A
Assembly

JIT and MRP

JIT & MRP can be used together
Differences in JIT & MRP
JIT

MRP

Dynamic; flexible

Static; Assumes LT =Constant

Day-to-Day (Short Term

Adjustments)

Forward Planning (Medium Term)

Driven by Customer Demand Rate

Driven by Master Schedule

Reduces inventories, and wastes

Does not focus on waste

reduction

Pull

Push