Just in Time

Claudia Regife Vera

Blanca Paloma García López

Mª Carmen Gil Hurtado

GADI 31

Operations Management II

INDEX

1.Just in time

2.Just in time layout

3.Just in time inventory

4.Lean Production.

5. Just in time in sevices

1.Just in time (JIT)

“A philosophy of continuous and forced problem solving that drives out waste”

JIT is a key component of Lean Production

Supplies and components are “pulled” through a system to arrive where they are needed when they are needed

Key points:

1) WASTE REDUCTION

2) VARIABILITY REDUCTION

3) PUSH versus PULL

1.1)Wastereduction

Provides fast delivery

Reduce work in process

Speeds throughtput.

JIT

1.2) Variabilityreduction

“Any deviation from the optimum process that delivers perfect product on time, every time”

The less variability, the less waste in the system.

Variability is caused by poor management.

It occurs because:

Incomplete or inaccurate drawings or specifications.

Poor production processes resulting in incorrect quantities, late, or non-conforming units.

Unknown customer demands.

1.3) Pull versus Push

PULL system: a system that pulls a unit to where it is needed just as needed.

https://www.youtube.com/watch?v=5hoTWwtYEQo

PUSH system: a system that pushes materials into downstream workstation regardless of their timeliness or availability of resources to perform the work.

© 2008 Prentice Hall, Inc. 16 – 7

JIT and Competitive Advantage

Figure 16.1

2. JIT LAYOUT

“JIT layout reduces the movement of material on a factory floor that doesn´t

add value.”

Move material directly to the location where needed

1)Distance reduction

2) Increased flexibility

3) Impact on employees.

4) Reduce space and inventory.

2.1)Distancereduction

The use of WORK CELLS appears

Often based on group technology codes

Contains several machines performing different operations

RESULT produce one good unit at a time>>> units are only produced after a customer order.

2.2)IncreasedFlexibility

Work cells are designed to easily adapt to changes (volume, improvement, design…)

Also applied to office environment ( furniture and equipment movable, office walls and telecommunications connections…)

2.3) Impact onemployees

Cross-trained employees Flexibility and efficiency.

JIT

better communication

immediate feedback

2.4)Reducedspace &

inventory

Reduction of travel distance

storage is reduced or even removed

3. Just in time inventory

“The minimum inventory

neccesary to keep a perfect

system running”

3.1 Reduce variability

Eliminate inventory that hides variability in the production

system

3.2 Reduce inventory

Remove inventory that reduces variability

3.3 Reduce Lots sizes

Producing good products in small lot sizes helps in reducing

inventory and inventory costs.

3.4 Reduce set-up costs

The way to drive down lot sizes and reduce average inventory

is to reduce set up costs which in turn lowers the optimum

order size

3. Just in time inventory

4.Lean Production

“A way to eliminate waste through a focus on exactly what the

customer wants”

https://www.youtube.com/watch?v=wfsRAZUnonI

External focus

Analysis of activities required to production and optimization of the entire process according to customers.

A good example:

Toyota Production

System ( TPS)

4 PRINCIPLES:

1. Completely specified work

2. Customer-supplier relationship must be direct and related information specific

3. Product and service flows simple and direct

4. Scientific method at the lowest possible level in the organization

Attributes of a lean producer

Use of just in time techniques.

Build systems that help employees to be efficient.

Reduce space requirements.

Close relationships with suppliers.

Educate suppliers to accept responsibilities

Eliminate all but value-added activities.

Constant development of the work force

Responsibility at the lowest level ( challenging jobs)

Japanese 5 S’s of lean

production

Sort/segregate

Simplify/ straighten

Shine/ sweep

Standardize

Sustain/self discipline

US :

• Safety • Support/

Maintenance

7 wastes

Overproduction

Queues

Transportation

Invetory

Motion

Overprocessing

Defective product

5. Just in time in services

As In JIT production it requires:

Suppliers

Layouts

Inventory

Scheduling

QUIZ

Push system is related to:

A. MRP

B.JIT

C.Kanban techniques

D.None of them

QUIZ

Variability can appear due to

A. Accurate specifications

B. Production before specifications are made

C. None of them

QUIZA Reduce variability

B Reduced space and inventory

C Reduce inventory

D Reduce lot sizes

Reducing inventory in roder to reduce variability is a key idea of:

QUIZ

The more frequent orders requirereducing setup costs; otherwhise

inventory cost will decrease. As the setupcosts are lowered, inventory costs

increase. TRUE OR FALSE?

A True

B False

QUIZ A- Standadize

B- Safety

C- Simplify

D- Sustain

Which is NOT one of the original 5 S’s?

QUIZ

Which of the following affirmations about lean production is CORRECT?

A- It is customer-oriented

B- It implies an external focus

C- Gives responsibility to lower level jobs

D- All of the above are correct