Session 17 - 18

JIT & Lean Operations

•  JIT
•  Lean Operations
•  Building Blocks of JIT
•  JIT/ Lean versus Traditional Production Philosophies
 Session 17 - 18

JIT & Lean Operations

JIT
•  JIT - a highly coordinated operations system in which materials
are moved through the system and services are delivered with
precise timing so that they are delivered at each step of the
process just as they are needed
•  Visual or audible signals trigger production and deliveries
•  Operates on a ‘pull’ or demand basis
 Session 17 - 18

JIT & Lean Operations

Lean Operations
•  Lean Operations - a flexible system of operation that uses
considerably fewer resources (i.e., activities, people, inventory,
and floor space) than a traditional system
•  Three basic elements:
1.  Demand driven
2.  Waste reduction
3.  Culture of excellence and continuous improvement
•  High process quality is a must for lean operations
 Session 17 - 18

JIT & Lean Operations

Lean Operations
•  Key terms:
o  Muda
o  Kanban
o  Pull system
o  Heijunka
o  Kaizen
o  Jidoka
o  Poka-yoke
o  Team concept
 Session 17 - 18

JIT & Lean Operations

Lean Operations
•  Ultimate goal - a balanced, rapid flow of work
•  Supporting goals:
o  Eliminate disruptions
o  Make the system flexible
o  Eliminate waste, especially excess inventory
 Session 17 - 18

JIT & Lean Operations

Building Blocks of JIT

•  Product Design
o  Standard parts
o  Modular Design
o  Highly capable production system with quality built in
o  Concurrent engineering

•  Process Design
o  Small lot sizes
o  Setup time reductions
o  Manufacturing cells
o  Quality improvement
 Session 17 - 18

JIT & Lean Operations

Building Blocks of JIT

o  Production flexibility
o  A balanced system
o  Little inventory storage
o  Fail-safe methods

•  Personnel & Organizational Elements

o  Workers are assets
o  Cross-trained workers
o  Continuous improvement
o  Cost accounting
o  Leadership / project management
 Session 17 - 18

JIT & Lean Operations

Building Blocks of JIT

•  Manufacturing Planning & Control
o  Level loading
o  Pull system
o  Visual system
o  Limited work-in-process (WIP)
o  Close vendor relationships
o  Reduced transaction processing
o  Preventive maintenance & housekeeping
 Session 17 - 18

JIT & Lean Operations

JIT/ Lean versus Traditional Production Philosophies

Factor Traditional System JIT System
Inventory High, to offset Minimum necessary
forecast errors, late to operate
deliveries, etc.
Deliveries Few, large quantity Many, small quantity
Lot sizes Large Small
Setups, runs Few, long runs Many, short runs
Vendors Long-term Partners
relationships are
unusual
Workers Necessary to do work Assets