Chapter 14 Classroom

14-1 JIT and Lean Operations
Operations Management
William J. Stevenson
8th edition
CHAPTER
14
JIT and
Lean Operations
Operations Management, Eighth Edition, by William J. Stevenson

McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
JIT/Lean Production
 Just-in-time (JIT): A highly coordinated

processing system in which goods move
through the system, and services are
performed, just as they are needed,
 JIT   lean production
 JIT  pull (demand) system
 JIT operates with very little “fat”
Goal of JIT
The ultimate goal of JIT is a balanced

system.
Achieves a smooth, rapid flow of materials

through the system
14-5 Summary JIT Goals and Building
JIT and Lean Operations
Blocks
Figure 14.1
Ultimate A
Goal balanced
rapid flow
Supporting
Goals Eliminate disruptions
Make the system flexible Eliminate waste
Product Process Personnel Manufactur- Building

Design Design Elements ing Planning Blocks
Sources of Waste
 Overproduction
 Waiting time
 Unnecessary transportation
 Processing waste
 Inefficient work methods
 Product defects
Big vs. Little JIT
 Big JIT – broad focus

 Vendor relations
 Human relations
 Technology management
 Materials and inventory management
 Little JIT – narrow focus
 Scheduling materials
 Scheduling services of production
JIT Building Blocks
 Product design
 Process design
 Personnel/organizational
elements
 Manufacturing
planning and control
Product Design
 Standard parts
 Modular design
 Highly capable production systems
 Concurrent
engineering
Process Design
 Small lot sizes

 Setup time reduction
 Manufacturing cells
 Limited work in process
 Quality improvement
 Production flexibility
 Little inventory storage
Benefits of Small Lot Sizes
Reduces inventory
Less rework
Less storage space
Problems are more apparent
Increases product flexibility
Easier to balance operations
Production Flexibility
 Reduce downtime by reducing

changeover time
 Use preventive maintenance to reduce
breakdowns
 Cross-train workers to help clear
bottlenecks
Production Flexibility (cont’d)
 Use many small units of capacity

 Use off-line buffers
 Reserve capacity for important customers

Personnel/Organizational Elements
 Workers as assets
 Cross-trained workers
 Continuous
improvement
 Cost accounting
 Leadership/project
management
Manufacturing Planning and Control
 Level loading
 Pull systems
 Visual systems
 Close vendor relationships
 Reduced transaction
processing
 Preventive maintenance
Pull/Push Systems
 Pull system: System for moving work where

a workstation pulls output from the preceding
station as needed. (e.g. Kanban)
 Push system: System for moving work where
output is pushed to the next station as it is
completed
Kanban Production Control System
 Kanban: Card or other device that

communicates demand for work or materials
from the preceding station
 Kanban is the Japanese word meaning
“signal” or “visible record”
 Paperless production control system
 Authority to pull, or produce comes
from a downstream process.
Traditional Supplier Network

Figure 14.4a
Buyer
Buyer
Supplier
Supplier Supplier
Supplier
Supplier
Supplier
Supplier
Supplier Supplier
Supplier Supplier
Supplier Supplier
Supplier
Tiered Supplier Network

Figure 14.4b
Buyer
Buyer
First Tier Supplier Supplier

Supplier
Second Tier Supplier Supplier

Supplier Supplier
Supplier
Third Tier Supplier Supplier

Supplier Supplier
Supplier Supplier
Supplier Supplier
Supplier
Comparison of JIT and Traditional

Table 14.3
Factor Traditional JIT

Inventory Much to offset forecast Minimal necessary to operate
errors, late deliveries
Deliveries Few, large Many, small
Lot sizes Large Small
Setup; runs Few, long runs Many, short runs
Vendors Long-term relationships Partners

are unusual
Workers Necessary to do the Assets
work
Transitioning to a JIT System
 Get top management commitment

 Decide which parts need most effort
 Obtain support of workers
 Start by trying to reduce setup times
 Gradually convert operations
 Convert suppliers to JIT
 Prepare for obstacles
Obstacles to Conversion
 Management may not be committed

 Workers/management may not be
cooperative
 Suppliers may
resist
 Why?
JIT in Services
The basic goal of the demand flow technology in the

service organization is to provide optimum response
to the customer with the highest quality service and
lowest possible cost.
 Eliminate disruptions
 Make system flexible
 Reduce setup and lead times
 Eliminate waste
 Minimize WIP
 Simplify the process
JIT II
 JIT II: a supplier representative works right

in the company’s plant, making sure there is
an appropriate supply on hand.
Benefits of JIT Systems
 Reduced inventory levels

 High quality
 Flexibility
 Reduced lead times
 Increased productivity
Benefits of JIT Systems (cont’d)
 Increased equipment utilization

 Reduced scrap and rework
 Reduced space requirements
 Pressure for good vendor relationships
 Reduced need for indirect labor
Elements of JIT
Table 14.4
 Smooth flow of work (the ultimate goal)
 Elimination of waste
 Continuous improvement
 Eliminating anything that does not add
value
 Simple systems that are easy to manage
 Use of product layouts to minimize moving
materials and parts
 Quality at the source
Elements of JIT (cont’d)

Table 14.4
 Poka-yoke – fail safe tools and methods
 Preventative maintenance
 Good housekeeping
 Set-up time reduction
 Cross-trained employees
 A pull system

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14-1 JIT and Lean Operations

Operations Management, Eighth Edition, by William J. Stevenson

 Just-in-time (JIT): A highly coordinated

The ultimate goal of JIT is a balanced

Achieves a smooth, rapid flow of materials

Product Process Personnel Manufactur- Building

Big vs. Little JIT

 Big JIT – broad focus

JIT Building Blocks

 Small lot sizes

Benefits of Small Lot Sizes

 Reduce downtime by reducing

Production Flexibility (cont’d)

 Use many small units of capacity

 Reserve capacity for important customers

Manufacturing Planning and Control

 Pull system: System for moving work where

Kanban Production Control System

 Kanban: Card or other device that

Traditional Supplier Network

Tiered Supplier Network

First Tier Supplier Supplier

Second Tier Supplier Supplier

Third Tier Supplier Supplier

Comparison of JIT and Traditional

Factor Traditional JIT

Lot sizes Large Small

Setup; runs Few, long runs Many, short runs

Vendors Long-term relationships Partners

Transitioning to a JIT System

 Get top management commitment

 Management may not be committed

The basic goal of the demand flow technology in the

 JIT II: a supplier representative works right

Benefits of JIT Systems

 Reduced inventory levels

Benefits of JIT Systems (cont’d)

 Increased equipment utilization

Elements of JIT (cont’d)

 Set-up time reduction

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