JIT, TPS & Lean Operations

Group Members:
Sanaullah Bhatti “71”
Abdul Fattah Phull “02”
Irfan Ali Channa “47”
JIT: Just In Times
 It is an approach focusing on the continuous improvement
and problem solving with the maximum rate at which
something can be processed or reduced inventory ( a strategy
to take the items in the production process alike needed).
For example;
Toyota, Dell etc.
TPS: Toyota Production System
Toyota emphasis on the continuous improvement, respect for people
and standard work practices, for the assembly-line.
TPS emphasis on the employee learning, and empowerment in an
assembly-line members
Lean Operations:
It emphasizes to understand the customer need or want and fulfill it
without any waste through continuous improvement, and after it to
complete the need or want as per required.
Lean operations are driven as per the order of customer.
Three Issues in the GPS:
1. Eliminate Waste
2. Remove Variability
3. Improve Throughput
Three Issues in the GPS:
Eliminate Waste:
Seven wastes defined by the Taiichi Ohno, at TPS.
1. Overproduction
2. Queues
3. Transportation
4. Inventory
5. Motion
6. Over processing
7. Defective product
Three Issues in the GPS:
1.Eliminate Waste:
1. Sort/ Segregate
2. Simplify/ Straighten
3. Shine/ Sweep
4. Standardize
5.Sustain/ Self-discipline
Three Issues in the GPS:
1.Eliminate Waste:
Two added Ss to establishing and maintaining a lean work
place.
1. Safety:
Build good safety practices into the above 5 activities.
2. Support/ maintenance:
Reduce variability, unplanned downtime and costs.
Three Issues in the GPS:
1. Eliminate Waste
2. Remove Variability
3. Improve Throughput
Three Issues in the GPS:
2. Remove Variability:
Among the many sources of variability are;
Poor production processes that allow employees and
suppliers to produce number of quantities, or late or non-
conforming units.
Unknown Customer demands.
Incomplete or inaccurate drawings, and bills of materials.
Three Issues in the GPS:
1. Eliminate Waste
2. Remove Variability
3. Improve Throughput
Three Issues in the GPS:
3.Improve Throughput:
 It is the measure in units or time that it takes to move from receipt to
delivering an order.
 The time that an order remains in the shop is the ‘manufacturing life
cycle’ (time between arrival of material till the shipping of products)
 A technique used to Increase throughput is the ‘pull-system’
 Push System:
It is about, making to stock, in which production is not based on
the actual demand.
Three Issues in the GPS:
3.Improve Throughput:
JIT: Just In Times
 JIT; is a key ingredient of lean operations, and it is particularly helpful in
supporting strategies of rapid response and low cost.
 It reduces costs associated with excess inventory, cuts variability, and
waste and improves throughput.
 Many services use JIT techniques;
for example;
According to the website “brighthubpm.com”
The companies Harley Davidson, Dell and Toyota use this system in
their production processes. In which the product is not built until the
product is ordered and paid for.
JIT: Just In Times
JIT Partnerships:
 A partnership exists when the suppliers and purchasers work together
with open communication, and goal of removing wastes and driving
down costs.
 Close relationships and trust are critical to the success of JIT.
 Some specific goals of JIT partnerships are;
Removal of un-necessary activities; such as receiving, incoming
inspection, and paperwork related to the bidding, invoicing and
payment
Removal of implant (To put or insert) inventory; by delivery in small lots
directly to the using department as needed.
JIT: Just In Times
JIT Partnerships:
Removal of in-transit inventory; by encouraging suppliers to locate
nearby and provide frequent small shipments.
An arrangement in which the suppliers maintain title to the inventory
until it is used known as the “Consignment inventory”.
JIT: Just In Times
Concerns of Suppliers:
 Successful JIT partnership require that supplier concerns be
addressed. These concerns include;
i. Diversification
ii. Scheduling
iii. Lead-time
iv. Quality
v. Lot Sizes
JIT: Just In Times
JIT Layout:
 It reduces an other kind of waste movement.
 It place material directly where it is needed.
 Toyota keeps the needed material in the frame of manufacturing
directly with moving more from assembly line to reduce the time.
JIT: Just In Times
JIT Layout:
Distance Reduction
Increased Flexibility
Impact on employees
Reduce space and inventory
JIT: Just In Times
JIT Inventory:
 It is necessary to keep the minimum inventory for keeping the
system perfect running
 With just-in-time inventory, the exact amount of goods arrives at the
moment, it is needed, not a minute before or a minute after.
JIT: Just In Times
JIT Inventory
JIT inventory techniques:
 Reduce inventory and variability
Reduce lot sizes
Reduce Setup Costs

Shegio Shingo, says;

“Inventory is Evil”
JIT: Just In Times
JIT Scheduling:
Ford Motor Company communicates its schedules to bumper
manufacturer Polycon Industries.
The schedule system transmits information to portable terminals
carried by Polycon warehouse personnel who load the bumpers onto
conveyers leading to the loading dock (of a ship).
JIT: Just In Times
JIT Scheduling
Level Schedules:
Scheduling products so that each day’s production meets the
demand for that day.
This technique schedules many small lots that are always changing, it
has on occasion been called ‘Jelly Bean’
JIT: Just In Times
JIT Scheduling
Kanban:
 Kanban is a Japanese word. Japanese use systems that pull inventory
from through work centers. They often use a card (Kanban) to signal
the need for an other container of material
 When there is visual contact between the producer and user, the
process works like this;
The user removes a standard size container of parts from a small
storage area,
The signal at the storage area is seen by producing department as an
authorization to replenishing (to fill) the storage area.
JIT: Just In Times
JIT Scheduling
Kanban:
 As a customer pulls an order from finished goods, a signal (Kanban
card) is sent to the final assembly area. Final assembly produces and
resupplies finished goods. When final assembly needs components, it
sends a signal to its supplier a work-cell. The work-cell intern sends a
signal to the material part supplier.
JIT: Just In Times
JIT Scheduling
Kanban:
JIT: Just In Times
JIT Quality:
The relation between JIT and quality is very strong. They are related in
three ways,
First; JIT cuts the cost of Second; JIT creates an early warning system for quality
obtaining good quality, problems so that fewer bad units are produced and
this saving occurs feedback is immediate.
because scrap (a small
separated piece), rework, Third; Finally better quality means fewer buffers
inventory investment, are needed and therefore a better easier-to-
and damage costs are
employ JIT system can exist.
buried in inventory.
TPS: Toyota Production System
Three core components of TPS are continuous improvement, respect
for people, and standard work practice.
1.Continuous Improvement: 2.Respect for People:
processes can be improved indeed Employees are empowered and
that improvement is an integral part of TPS respects the employees by
every employee’s job. This process is creating environment to enrich
formulized in TPS by Kaizen. jobs and their lives.
3.Standard Work Practice:
Work is completely specified content, time, sequence,
outcome. Improvements must be in accordance with
Scientific methods. Any gap between expected and
existing will be quite evident.
Lean Operations:
 Lean operation means identifying customer value by analyzing all the
activities to produce the product and then optimizing the entire
process from the customer’s perspective.
 Organizations that focus on JIT, quality and employee empowerment
are often lean producers. Such firms drive out activities that do not
add value in the eyes of the customer;
for example,
United Parcel Services, Harley-Davidson, Toyota etc.
Lean Operations:
 Lean operations adopt a philosophy of minimizing waste by striving for
perfection through continuous learning, creativity and teamwork.
 They tend to share the following attributes;

Use of JIT techniques.

System to help employees.
Reduce space requirements.
Develop partnerships with suppliers.
Educate the suppliers for end customer needs
Eliminate all; material handling, inspection, inventory and rework etc.
which doesn’t create added-value.
Lean Operations in Services:
 Suppliers: The waste is too evident whether the food spoils, and
customer complain or getting sick.
 Layouts: It is to keep cold if it is cold, and having hot if it is hot
 Inventory: Unexpected order is not conducted because of going on at
almost zero inventory.
Lean Operations in Services:
Scheduling:
 Macdonald’s production is done in small lots.
Both personnel and production must be scheduled.
Excellent forecasts drive those schedules.
Six Sigma Process:
Sigma is a statistical term that measures process deviation from
the process mean or target
Components:
Genuine focus on customer
Data and fact driven management
Process focus, management
and improvement
Proactive management
Boundaryless corporation
Drive for perfection, tolerance
and failure