Operations Management

Lect. 6 “Just-in-Time and Lean Systems”

Dr: Aly Hassan Elbatran

Head of Mechanical Engineering Department

Faculty of Engineering, Arab Academy for Science
and Technology and Maritime Transport, Egypt

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 Waste
 Waste is anything that does not add value.
 Equipment
 Time wasted due to unsynchronized production
 Excessive inventories
 Unnecessary material handling due to poorly designed layouts
 Scrap & rework due to poor quality
 Time, energy, space or human activity

TXM, lean solutions

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 Waste Elimination
 Waste has a large negative impact on the functioning of a business, resulting in:-
 high cost.
 lost customers.
To eliminate these problems, many companies have turned to Just in Time (JIT).

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 Just in Time

o Just-in-time (JIT) philosophy:- Getting the right quantity of

goods at the right place at the right time.

o JIT is an all-encompassing manufacturing and service

management philosophy that is founded on the concept of

elimination of waste.

o The term just-in-time stems from a primary form of waste

elimination: reducing inventories (in manufacturing) and

waiting times (in services).

o JIT considers waste anything that does not add value—

anything.

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 The Philosophy of JIT
1. Eliminate Waste
Material, energy, time, and space.

2. A Broad View of Operations

https://sushantskoltey.files.wordpress.com/2010/
04/the20720wastes.jpg
Part of the philosophy of JIT is that everyone in the
organization should have a broad view of the organization
and work toward the same goal, which is serving the
customer.

3. Simplicity
JIT is built on simplicity, the simpler the better. JIT
encourages employees to think about problems and come
up with simple solutions.

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 The Philosophy of JIT

4. Continuous Improvement
o A major aspect of the JIT philosophy is an
emphasis on quality.
o Continuous improvement in every aspect of
the operation is a cornerstone of JIT
philosophy.
o Continuous improvement applies to
everything from reducing costs to improving
quality to eliminating waste.
o Continuous improvement (kaizen):- A
philosophy of never-ending improvement.

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 The Philosophy of JIT
5. Visibility
o Part of the JIT philosophy is to make all waste visible.
o Waste can be eliminated only when it is seen and identified.
o Waste also can be eliminated with simple solutions if it can be seen.
o When waste is hidden we forget about it, which creates problems.

tulip.co/blog/manufacturing/just-in-time-vs-just-in-case/

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 The Philosophy of JIT
6. Flexibility
o JIT was based on the need for survival, and survival means being flexible in
order to adapt to changes in the environment.
o A company can be flexible in many ways.
 Volume of products
 a wide variety of products.

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 Elements of JIT
JIT system:- The three elements are just in- time manufacturing, total quality
management, and respect for people.

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 Just in Time Manufacturing

o JIT is a philosophy based on elimination of waste.

o Another way to view JIT is to think of it as a philosophy

of value-added manufacturing.

o By focusing on value-added processes, JIT is able to

achieve high-volume production of high-quality, low-cost

products while meeting precise customer needs.

o Just-in-time manufacturing is the element of JIT that

focuses on the production system to achieve value-

added manufacturing.

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Elements of JIT Manufacturing
o Inventory reduction exposes problems

o Kanbans & pull production systems

o Small lots & quick setups

o Uniform plant loading

o Flexible resources

o Efficient facility layouts

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 Inventory Reduction

Inventory hides problems

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 Kanban and Pull Production

o Kanban card

A card that specifies the exact quantity of product that

needs to be produced.

o Production card

A kanban card that authorizes production of material.

o Withdrawal card

A kanban card that authorizes withdrawal of material.

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Kanban and Pull Production

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 Kanban and Pull Production
The formula to compute the number of kanbans needed to control the production of a
particular product is as follows:

where
N - total number of kanbans or containers (one card per container)
D - demand rate at a using workstation
T - the time it takes to receive an order from the previous workstation (also called
the lead time)
C - size of container
S - safety stock to protect against variability or uncertainty in the system (usually
given as a percentage of demand during lead time)

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Kanban and Pull Production

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 Small Lot Sizes and Quick Setups
 Small lots mean less average inventory and shorten
manufacturing lead time

 Small lots with shorter setup times increase flexibility to

respond to demand changes

 Strive for single digit setups < 10 minutes

 Setup reduction process is well-documented

 External setup:- do as much preparation while present job

is still running

 Internal setup:- Requires the machine to be stopped in

order to be performed. simplify, eliminate, shorten steps
involved with location, clamping, & adjustments.

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 Uniform Plant Loading
 A constant production plan for a facility with a given planning horizon.
 A “level” schedule is developed so that the same mix of products is
made every day in small quantities
 Leveling the schedule can have big impact along whole supply chain

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 Flexible Resources

 General purpose equipment:

 Portable equipment with plug in power/air

 E.g.: drills, lathes, printer-fax-copiers, etc.

 Capable of being setup to do many different things with

minimal setup time

 Multifunctional workers:

 Workers assume considerable responsibility

 Cross-trained to perform several different duties

 Trained to also be problem solvers

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 Effective Facility Layouts

 Workstations in close physical proximity to reduce

transport & movement

 Streamlined flow of material

 Often use:

 Cellular Manufacturing (instead of process focus)

 U-shaped lines: (allows material handler to quickly drop off

materials & pick up finished work)

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 Effective Facility Layouts

Jumbled flows, long cycles,

difficult to schedule

Product focused
cells, flexible
equipment, high
visibility, easy to
schedule, short
cycles.
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 JIT and TQM
The costs of poor quality can be quite high when one includes product
redesign, rework, scrap, servicing returned products, or even losing
customers. All this represents waste.

Quality in JIT is centered on building quality into the process. A production

process that is well within the set quality control limits should not produce a
defective product.

Quality at the source means that the root cause of quality problems needs
to be identified. This could be a problem with the design, suppliers, the
process, or any other area.

 Jidoka:- Authority given to workers to stop the production line if a

quality problem is detected.
 Poka-yoke:- Foolproof devices or mechanisms that prevent
defects from occurring.
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 JIT and TQM

 To avoid unexpected machine stoppages, a company invests in

preventive maintenance, which is regular inspections and
maintenance designed to keep machines operational.
 Although preventive maintenance is costly, the costs are
significantly smaller than the cost of an unexpected machine
breakdown.
 Work environment- everything in its place, a place for everything
 Everyone is responsible, so no one can blame anyone else if
something is misplaced.
 All this creates a positive work environment, which is considered
essential to the quality of work life and contributes to employee
satisfaction.

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 Respect for People
 Genuine and meaningful respect for associates

 Willingness to develop cross-functional skills

 Actively engage in problem-solving (quality circles)

 Everyone is empowered

 Everyone is responsible for quality: understand both internal and

external customer needs

 Associates gather performance data

 Team approaches used for problem-solving

 Decisions made from bottom-up

 Everyone is responsible for preventive maintenance

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 Role of Management

 Responsible for culture of mutual trust

 Serve as coaches & facilitators

 Support culture with appropriate incentive system

including non-monetary

 Responsible for developing workers

 Provide multi-functional training

 Facilitate teamwork

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 Supplier Relationships

 Use single-source suppliers when possible

 Build long-term relationships

 Work together to certify processes

 Co-locate facilities to reduce transport if possible

 Stabilize delivery schedules

 Share cost & other information

 Early involvement during new product designs

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 Advantages of JIT
 Smaller inventories

 Shorter lead times

 Improved quality

 Reduced space requirements

 Lower production costs

 Increased productivity

 Greater flexibility

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THANK YOU

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