Just-in-Time and Lean Operations

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Just-in-Time and Lean Operations
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Developments of JIT and Lean Operations

• 1960s Developed as Toyota Production System by
  Taiichi Ohno and his colleagues
• 1970s U.S. and European auto makers began to
  apply JIT to improve quality and productivity
• 1990s and beyond Expanded the JIT concept to
  streamline all types of operations

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Definition of JIT

• A set of techniques to increase, productivity,
  improve quality, and reduce cost of an operations
• A management philosophy to promote elimination of
  waste and continuous improvement of productivity

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What Could Be the Expected Benefits of JIT?
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Main Elements of JIT

• Elimination of waste
• Quality at the source
• Balanced and flexible work flow
• Respect for people
• Continuous improvement (Kaizen)
• Simplification and visual control
• Focus on customer needs
• Partnerships with key suppliers

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What is A Waste?
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Why is Inventory Reduction Important?
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Quality at the Source

• Jidoka autonomation (automatic detection of
  defects, e.g., Poka-yoke)
• Employee empowerment
• Statistical process control
• Prevention orientation (elimination of root
  causes through PDSA cycle)

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Balanced and Flexible Work Flow

• Yo-i-don (ready, set, go) system
• Stable production schedule
• Set-up time reduction
• Flow-shop and cellular layouts
• Shojinka (flexible multi-skilled workforce)
• Teamwork
• Total productive maintenance (TPM)

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Respect for People

• Productivity improvement needs employee support
• Demonstrate by
• providing cross-training opportunities
• creating a safe and equitable work environment
• encouraging people to achieve their potential by
  giving them greater responsibility and authority
• promoting teamwork (formal and informal)
• developing partnerships with unions

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Continuous Improvement (Kaizen)

• Employee suggestion system
• Process improvement
• 5Ss
• Seiri - organization
• Seiton - tidiness
• Seiso - purity
• Seiketsu - cleanliness
• Shitsuke - discipline

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Simplification and Visual Control

• Standard and simple product designs
• Andon boards
• Kanban pull system
• Flag systems
• Music as signals
• Performance display systems

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Focus on Customer Needs

• Customer needs determine the value of a product
  or service
• Be responsive to customers needs (present and
  future)
• Strive to delight, not just satisfy customers

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Partnerships with Suppliers

• Reduce number of suppliers
• Use long-term contracts
• Emphasize price, delivery, and services
• Improve communication
• Share information
• Develop local just-in-time delivery
• Provide technical support to suppliers

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JIT Implementation

• Top management commitment
• Steering committee
• Education program
• Pilot project planning
• Employee training
• Pilot implementation
• Pilot post mortem
• Feedback to steering committee
• Expansion to next project

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Advancements in JIT (JIT II)

• Backwards Integration of staff and line functions
  to suppliers (e.g., purchasing)
• Requires EDI or web access to materials and
  logistics systems
• On-site supplier representative(s) with
  transaction processing authority
• Goal link suppliers cycle to firms cycle to
  mutually reduce wait and move times

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How Can JIT Be Applied to Non-Manufacturing
Operations?
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What Are Toyotas Secrets of Success?