PRODUCTION AND

OPERATIONS
MANAGEMENT
Chapter 24
JUST-IN-TIME
SYSTEMS
Himalaya Publishing House
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
Chapter 24
Just-in-Time Systems
What is a Just-in-time
System?
Just-in-time: A philosophy of manufacturing
based on planned elimination of all waste and
continuous improvement of productivity.
Himalaya Publishing House
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
Chapter 24
Just-in-Time Systems
Concepts of JIT
The three fundamental concepts of JIT are :
1. Elimination of waste and variability
2. Pull versus Push systemand
3. Manufacturing cycle time (or throughput
time).
Himalaya Publishing House
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
Chapter 24
Just-in-Time Systems
Overview of JIT
manufacturing
Inventory reduction
Quality improvement
Lead time reduction
Lead time reduction
Continuous Improvement
Total Preventive Maintenance
Strategic Gain
Himalaya Publishing House
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
Chapter 24
Just-in-Time Systems
Characteristics of Just-in-Time
System
1. Pull method of material flow
2. Constantly high quality
3. Mall lot sizes
4. Uniformworkstation loads
5. Standardised components and work methods
6. Close supplier ties
7. Flexible workforce
8. Line flow strategy
9. Automated production
10. Preventive maintenance
Himalaya Publishing House
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
Chapter 24
Just-in-Time Systems
JIT Manufacturing Versus JIT
Purchasing
JIT manufacturing: An Organisation- wide approach
to produce output with in the minimum possible lead
time and at the lowest possible total cost by
continuously identifying and eliminating all forms of
waste and variance.
JIT purchasing: Same pull type approach used in JIT
manufacturing applied to purchasing shipments of
parts and components from suppliers.
Himalaya Publishing House
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
Chapter 24
Just-in-Time Systems
Pre-requisites for JIT
Manufacturing
1. Stabilise production schedules.
2. Make the factories focussed.
3. Increase production characteristics of manufacturing work
centers.
4. Improve product quality.
5. Cross-train workers so that they are multi-skilled and
competent in several jobs.
6. Reduce equipment break downs through preventive
maintenance.
7. Develop long-term supplier relationships that avoid
interruptions in material flows.
Himalaya Publishing House
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
Chapter 24
Just-in-Time Systems
Elements of JIT
Manufacturing System
1. Eliminate waste
2. Enforced problem solving
3. Continuous improvement
4. Involvement of people
5. TQM
6. Parallel processing
Himalaya Publishing House
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
Chapter 24
Just-in-Time Systems
Benefits of JIT System
1. Low inventory levels
2. Shorter production cycle time
3. Improved product quality
4. Reduced WIP Inventory
5. Better labour utilisation.
Himalaya Publishing House
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
Chapter 24
Just-in-Time Systems
Major Tools and Techniques of JIT
Manufacturing
Shop-floor JIT or little JIT has nine tactical tools.
The tactical tools of little JIT are :
i. Kanban system or Pull scheduling
ii. Set up reduction (SMED)
iii. Lean production
iv. Poka- Yoke (Fool proofing)
v. Quality at the source
Himalaya Publishing House
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
Chapter 24
Just-in-Time Systems
vi. Standardisation and simplification
vii. Supplier partnerships
viii. Reduced transaction processing and
ix. Kaizen (continuous improvement).
Kanban system:
A physical control system consisting of cards and
containers. The system is used to signal the need for
more parts and to ensure that those parts are produced
in time to support subsequent fabrication or
assembly.
Himalaya Publishing House
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
Chapter 24
Just-in-Time Systems
Benefits of Kanban
Kanban systems have resulted in significant benefits :
1. Reduced inventory level
2. Less confusion over sequence of activities
3. Less obsolescence of inventories while in storage
4. Smaller floor space requirements for storing inventory
Himalaya Publishing House
Production and Operations Management
By K. Aswathappa & K. Shridhara Bhat
Chapter 24
Just-in-Time Systems
The focus of JIT systems is on improving the process,
therefore, some of the JIT concepts useful for the manufacturer
are also useful to service providers. These concepts include the
following :
1. Consistently high quality
2. Uniformfacility loads
3. Standardised work methods
4. Close supplier ties
5. Flexible workforce
6. Automation
7. Preventive maintenance
8. Pull method of material flow
9. Line flow strategy