Operations CH 4 - Lean & JIT

Chapter 4
Lean operations and JIT
Source: Tibbet and Britten
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Lean operations and JIT
Lean operations and JIT Operations str

ategy
The market requires … sp
ecified time, quantity and qu
ality of products and service Operations
s Design management Improvement
The operation supplies … t
he delivery of products and s
ervices only when needed
Planning and
control
‘The key principle of lean operations is relatively
straightforward to understand: it means moving to
wards the elimination of all waste in order to deve
lop an operation that is faster and more dependa
ble, produces higher quality products and service
s and, above all, operates at low cost.’
Synonyms
continuous flow manufacture

high value-added manufacture
stockless production
low-inventory production
fast-throughput manufacturing
lean manufacturing
Toyota production system
short cycle time manufacturing
Source: Corbis/Denis Balihouse
JIT material flow
Traditional approach
buffer inve buffer inve

ntory ntory
stage A stage B stage
C
JIT approach
orders orders
stage A stage B stage C
deliveries deliveries
JIT and capacity utilization focus on producing onl
y when needed
JIT approa
Traditional ch
approach fewer stoppages
focus on high capaci
ty utilization lower capacity utilizat
ion, but low inventory so pr
more stoppages b oblems are expose
ecause of problem d and solved
s
more production
at each stage high inventory mea no surplus produc
ns less chance of pr tion goes into inv
oblems being expos entory
ed and solved
extra production
goes into inventory bec
ause of continuing stop
pages at stages
JIT definitions
JIT aims to meet demand instantly, with perfect quality and no waste
More fully:
Improved overall productivity and elimination of waste
Cost-effective production and delivery of only the
necessary quantity of parts at the right quality, at
the right time and place, while using a minimum
amount of facilities, equipment, materials and hu
man resources
JIT is dependent on the balance between the supplier
’s flexibility and the user’s flexibility
JIT is accomplished through the application of eleme
nts that require total employee involvement and team Source: Empics
work
A key philosophy of JIT is simplification
The lean philosophy of operations is the basis for JIT techniq
ues that include JIT methods of planning and control
The lean philosophy of operations

Eliminate waste Involve everyone Continuous improvemen
t
JIT as a set of techniques for managing operatio

ns JIT as a method of p
lanning and control
Basic working practices TPM
Pull scheduling
Design for manufacture Set-up reduction
‘Kanban’ control
Operations focus Total people involvement
Levelled scheduling
Small, simple machines Visibility
Mixed modelling
Flow layout JIT supply
Synchronization
The 5 S’s
Sort (Seiri) Eliminate what is not needed and keep what is needed.
Straighten (Seiton) Position things in such a way that they can be eas
ily reached whenever they are needed.
Shine (Seiso) Keep things clean and tidy; no refuse or dirt in the work
area.
Standardize (Seiketsu) Maintain cleanliness and order – perpetual ne

atness.
Sustain (Shitsuke) Develop a commitment and pride in keeping to sta

ndards.
‘Value stream’ mapping
‘Value stream’ mapping focuses on value-adding activities. It distinguishes

between value-adding and non-value-adding activities. It is similar to proce
ss mapping but different in four ways:
It uses a broader range of information than most process maps.
It is usually at a higher level (5–10 activities) than most process maps
.
It often has a wider scope, frequently spanning the whole supply chai
n.
It can be used to identify where to focus future improvement activities

.
T/T = Task time
‘Value stream’ map for an industrial ai TTT = Total throughput time
V-A T = Value-added time
r-conditioning installation service C/T = Cycle time
Sales offi Operations

ce planning Cash manag
Forecasts Invoice sta ement
tus
Job tracking confirmations

Completion
confirmation
Survey Order Assemble Frame Install
Wait in Wait for a Ship to bran Wait for in

branch ssembly ch and wait stallers
T/T = 0.5 T/T = 0.5 T/T = 5.0 T/T = 0.75 T/T = 0.75
Avail = 100% Avail = 100% Avail = 100% Avail = 100% Avail = 100%
C/T = 30 C/T = 10 C/T = 12.5 C/T = 17 C/T = 35
58 hrs 96 hrs 48 hrs 48 hrs TTT = 258 hrs

30 mins 30 mins 5 hrs 60 mins 60 mins V-A T = 8 hrs
Delivering smaller quantities more often can reduce inventor
y levels
Inventory le
vel
Inventory le
vel
Waste (muda) Which of these symbols signify non-value- addi
ng activities?
Activities: Types of waste:

operation
over-production
movement waiting time

transport
inspection process
inventory
delay
motion
storage defective goods
 influencing the throughput efficiency
The problem with inventory
Reduce the level

of inventory (water) t
WIP o reveal the operatio
productivity pro
Defective material
s
ns’ problems
blems
Scrap Rework
Downtime
WIP
Defective material
s
productivity pr
oblems Scrap Rework
Downtime
Small machines
The conventional Western approach is to purchase large

machines to get ‘economies of scale’.
These often have long, complex set-ups, and make big bat
ches, quickly creating ‘waste’.
Using several small machines rather than one large one allo
ws simultaneous processing, is more robust
and is more flexible
JIT small machines approach:
easy to move (layout)

quick set-up
flexible scheduling options
cheaper tooling
planned maintenance easier
fewer set-ups needed
emphasis: flexibility
economies of scope
Visible, enforced improvement
‘Traditional’ production systems often accept waste and use the in

surance of all types of inventory
In JIT systems:
gradual reduction of inventory
identify exposed problems
eliminate these problems
repeat the cycle
emphasis: continuous improvement in

small steps, to expose waste
and eliminate it
Levelled scheduling equalizes the mix of products made
each day
Scheduling in large batches
Batch size A = 600, B = 200, C = 200
250 250 100 50 250 250 100 50
A A A B A A A B
150 200 150 200
B C B C
600 A 200 B 600 200 B

200 C A 200 C
Levelled scheduling
Batch size A = 150, B = 50, C = 50
150 150 150 150 150 150 150 150
A A A A A A A A
50 50 50 50 50 50 50 50
B B B B B B B B
50 50 50 50 50 50 50 50
C C C C C C C C
150 A 150 A 150 A 150 A 150 A 150 A 150 A 150 A

50 B 50 B 50 B 50 B 50 B 50 B 50 B 50 B
50 C 50 C 50 C 50 C 50 C 50 C 50 C 50 C
JIT, MRP, or both?
complex stru
ctures PERT
MRP
JIT and/or
MRP
simple stru
ctures JIT
simple routings complex routing

s
Key Terms Test
Just-in-time (JIT)
A method of planning and control and an operations philoso
phy that aims to meet demand instantaneously with perf
ect quality and no waste.
Kaizen
Japanese term for continuous improvement.
Set-up reduction
The process of reducing the time taken to change over a pr
ocess from one activity to the next; also called single min
ute exchange of dies (SMED) after its origins in the meta
l pressing industry.
Key Terms Test
Single minute exchange of dies (SMED)

Alternative term for set-up reduction.
Andon
A light above a workstation that indicates its state: whether
working, waiting for work, broken down, etc. Andon lights
may be used to stop the whole line when one station sto
ps.
Key Terms Test
Kanban
Japanese term for card or signal; it is a simple controlling d
evice that is used to authorize the release of materials in
pull control systems such as those used in JIT.
Levelled scheduling (Heijunka)

The idea that the mix and volume of activity should even ou
t over time so as to make output routine and regular, so
metimes known by the Japanese term ‘heijunka’.

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Chapter 4

Lean operations and JIT

Source: Tibbet and Britten

Lean operations and JIT Operations str

continuous flow manufacture

buffer inve buffer inve

stage A stage B stage C

A key philosophy of JIT is simplification

The lean philosophy of operations

JIT as a set of techniques for managing operatio

Standardize (Seiketsu) Maintain cleanliness and order – perpetual ne

Sustain (Shitsuke) Develop a commitment and pride in keeping to sta

‘Value stream’ mapping focuses on value-adding activities. It distinguishes

It uses a broader range of information than most process maps.

It can be used to identify where to focus future improvement activities

Sales offi Operations

Job tracking confirmations

Survey Order Assemble Frame Install

Wait in Wait for a Ship to bran Wait for in

58 hrs 96 hrs 48 hrs 48 hrs TTT = 258 hrs

Activities: Types of waste:

movement waiting time

Reduce the level

The conventional Western approach is to purchase large

easy to move (layout)

‘Traditional’ production systems often accept waste and use the in

gradual reduction of inventory

identify exposed problems

eliminate these problems

repeat the cycle

emphasis: continuous improvement in

600 A 200 B 600 200 B

150 A 150 A 150 A 150 A 150 A 150 A 150 A 150 A

simple routings complex routing

Single minute exchange of dies (SMED)

Levelled scheduling (Heijunka)

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