Just-in-Time and

Lean Operations

Instructed by
Muhammad Waqas Chughtai
What Are Toyota’s Secrets of
Success?
What Are Toyota’s Secrets of
Success?
Just-in-Time and
Lean Operations
 Developments of JIT and
Lean Operations

 1960’s: Developed as Toyota Production

System by Taiichi Ohno and his colleagues
 1970’s: U.S. and European auto makers
began to apply JIT to improve quality and
productivity
 1990’s and beyond: Expanded the JIT
concept to streamline all types of operations
 Definition of JIT

 JIT is set of techniques to increase, productivity,

improve quality, and reduce cost of an
operations.
 JIT philosophy means getting the right quantity
of goods at the right place and the right time
 A management philosophy to promote
elimination of waste and continuous
improvement of productivity
What Could Be the Expected
Benefits of JIT?
 Main Elements of JIT

 Elimination of waste
 Quality at the source
 Balanced and flexible work flow
 Respect for people
 Continuous improvement (Kaizen)
 Simplification and visual control
 Focus on customer needs
 Partnerships with key suppliers
What is A “Waste?”
Why is Inventory Reduction
Important?
 Quality at the Source

 Jidoka – autonomation (automatic

detection of defects, e.g., Poka-yoke)
 Employee empowerment
 Statistical process control
 Prevention orientation (elimination of root
causes through PDSA cycle)
 Balanced and Flexible
Work Flow
 Yo-i-don (ready, set, go) system
 Stable production schedule
 Set-up time reduction
 Flow-shop and cellular layouts
 Shojinka (flexible & multi-skilled workforce)
 Teamwork
 Total productive maintenance (TPM)
 Respect for People
 Productivity improvement needs employee support
 Demonstrate by
• providing cross-training opportunities
• creating a safe and equitable work environment
• encouraging people to achieve their potential by
giving them greater responsibility and authority
• promoting teamwork (formal and informal)
• developing partnerships with unions
Continuous Improvement
(Kaizen)
 Employee suggestion system
 Process improvement
 5S’s
• Seiri - organization
• Seiton - tidiness
• Seiso - purity
• Seiketsu - cleanliness
• Shitsuke - discipline
 Simplification and Visual
Control

 Standard and simple product designs

 Music as signals
 Performance display systems
 Focus on Customer Needs

 Customer needs determine the “value” of

a product or service
 Be responsive to customers needs
(present and future)
 Strive to “delight,” not just “satisfy”
customers
 Partnerships with Suppliers

 Reduce number of suppliers

 Use long-term contracts
 Emphasize price, delivery, and services
 Improve communication
 Share information
 Develop local just-in-time delivery
 Provide technical support to suppliers
 JIT Implementation
 Top management commitment
 Steering committee
 Education program
 Pilot project planning
 Employee training
 Pilot implementation
 Pilot post mortem
 Feedback to steering committee
 Expansion to next project
 Advancements in JIT (JIT II)
 Backwards Integration of staff and line
functions to suppliers (e.g., purchasing)
 On-site supplier representative(s) with
transaction processing authority
How Can JIT Be Applied to Non-
Manufacturing Operations?
What Are Toyota’s Secrets of
Success?
Thanks