Just-in-time (JIT) Introduction:

Just-in-time (JIT) is defined in the APICS dictionary as a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. It also has been described as an approach with the objective of producing the right part in the right place at the right time (in other words, just in time). Waste results from any activity that adds cost without adding value, such as the unnecessary moving of materials, the accumulation of excess inventory, or the use of faulty production methods that create products requiring subsequent rework. JIT (also known as lean production or stockless production) should improve profits and return on investment by reducing inventory levels (increasing the inventory turnover rate), reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs (such as those associated with machine setup and equipment breakdown). In a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge against problems that may arise. JIT is not about automation. JIT eliminates waste by providing the environment to perfect and simplify the processes. JIT is a collection of techniques used to improve operations It can also be a new production system that is used to produce goods or services. JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes (even when the facility uses a jobbing or batch process layout) by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that found in an assembly line. To accomplish this, an attempt is made to reach the goals of driving all inventory buffers toward zero and achieving the ideal lot size of one unit. The basic elements of JIT were developed by Toyota in the 1950's, and became known as the Toyota Production System (TPS). JIT was well-established in many

Japanese factories by the early 1970's. JIT began to be adopted in the U.S. in the 1980's (General Electric was an early adopter), and the JIT/lean concepts are now widely accepted and used.

Some Key Elements of JIT 1. Stabilize and level the MPS with uniform plant loading (heijunka in Japanese): create a uniform load on all work centers through constant daily

production(establish freeze windows to prevent changes in the production plan for some period of time) and mixed model assembly (produce roughly the same mix of products each day, using a repeating sequence if several products are produced on the same line). Meet demand fluctuations through end-item inventory rather than through fluctuations in production level. Use of a stable production schedule also permits the use of back flushing to manage inventory: an end items bill of materials is periodically exploded to calculate the usage quantities of the various components that were used to make the item, eliminating the need to collect detailed usage information on the shop floor. 2. Reduce or eliminate setup times: aim for single digit setup times (less than 10 minutes) or "one-touch" setup -- this can be done through better planning, process redesign, and product redesign. A good example of the potential for improved setup times can be found in auto racing, where a NASCAR pit crew can change all four tires and put gas in the tank in under 20 seconds. (How long would it take you to change just one tire on your car?) The pit crews efficiency is the result of a team effort using specialized equipment and a coordinated, well-rehearsed process. 3. Reduce lot sizes (manufacturing and purchase): reducing setup times allows economical production of smaller lots; close cooperation with suppliers is necessary to achieve reductions in order lot sizes for purchased items, since this will require more frequent deliveries. 4. Reduce lead times (production and delivery): production lead times can be reduced by moving work stations closer together, applying group technology and

cellular manufacturing concepts, reducing queue length (reducing the number of jobs waiting to be processed at a given machine), and improving the coordination and cooperation between successive processes; delivery lead times can be reduced through close cooperation with suppliers, possibly by inducing suppliers to locate closer to the factory. 5. Preventive maintenance: use machine and worker idle time to maintain equipment and prevent breakdowns. 6. Flexible work force: workers should be trained to operate several machines, to perform maintenance tasks, and to perform quality inspections. In general, JIT requires teams of competent, empowered employees who have more responsibility for their own work. The Toyota Production System concept of respect for people contributes to a good relationship between workers and management. 7. Require supplier quality assurance and implement a zero defects quality program: errors leading to defective items must be eliminated, since there are no buffers of excess parts. A quality at the source (jidoka) program must be implemented to give workers the personal responsibility for the quality of the work they do, and the authority to stop production when something goes

wrong. Techniques such as "JIT lights" (to indicate line slowdowns or stoppages) and "tally boards" (to record and analyze causes of production stoppages and slowdowns to facilitate correcting them later) may be used. 8. Small-lot (single unit) conveyance: use a control system such as a kanban (card) system (or other signaling system) to convey parts between work stations in small quantities (ideally, one unit at a time). In its largest sense, JIT is not the same thing as a kanban system, and a kanban system is not required to implement JIT (some companies have instituted a JIT program along with a MRP system), although JIT is required to implement a kanban system and the two concepts are frequently equated with one another. Objective of JIT 1. Produce only the products the customer wants.

2. Produce products only at the rate that the customer wants them. 3. Produce with perfect quality 4. Produce with minimum lead time. 5. Produce products with only those features the customer wants. 6. Produce with no waste of labor, material or equipment every movement must have a purpose so that there is zero idle inventory. 7. Produce with methods that allow for the development of people. Just in time production (JIT) Just in time is a pull system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time. This means that stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum. This requires a carefully planned scheduling and flow of resources through the production process. Modern manufacturing firms use sophisticated production scheduling software to plan production for each period of time, which includes ordering the correct stock. Information is exchanged with suppliers and customers through EDI (Electronic Data Interchange) to help ensure that every detail is correct. Supplies are delivered right to the production line only when they are needed. For example, a car manufacturing plant might receive exactly the right number and type of tyres for one days production, and the supplier would be expected to deliver them to the correct loading bay on the production line within a very narrow time slot. Advantages of JIT 1. Lower stock holding means a reduction in storage space which saves rent and insurance costs 2. As stock is only obtained when it is needed, less working capital is tied up in stock 3. There is less likelihood of stock perishing, becoming obsolete or out of date

4. Avoids the build-up of unsold finished product that can occur with sudden changes in demand 5. Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time Disadvantages of JIT 1. There is little room for mistakes as minimal stock is kept for re-working faulty product. 2. Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed 3. There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders however, JIT is a very responsive method of production the purposes of: Reducing Cost Improving Delivery Improving Quality Adding Flexibility Improving Performance Increase innovativeness

JIT and Elimination of Waste: JIT usually indentifies seven prominent types of waste to be eliminated: 1. Waste from Overproduction 2. Waste of waiting/idle time 3. Transportation Waste 4. Inventory Waste 5. Processing Waste 6. Waste of Motion 7. Waste from Product Defects

List of Companies that use just in time (JIT):

Harley Davidson Toyota Motor Company General Motors Ford Motor Company Manufacturing Magic Hawthorne Management Consulting Strategy Manufacturing Inc.

Benefits of JIT to the companies. The main benefits of JIT are listed below. 1. Set up times are significantly reduced in the warehouse which will allow the company to improve their bottom line to look more efficient and focus time spend on other areas. 2. The flows of goods from warehouse to shelves are improved. Having employees focused on specific areas of the system will allow them to process goods faster instead of having them vulnerable to fatigue from doing too many jobs at once and simplifies the tasks at hand. 3. Employees who possess multi-skills are utilised more efficiently. This will allow companies to use workers in situations where they are needed when there is a shortage of workers and a high demand for a particular product. 4. Better consistency of scheduling and consistency of employee work hours are possible. This can save the company money by not having to pay workers for a job not completed or could have them focus on other jobs around the warehouse that would not necessarily be done on a normal day. 5. Increased emphasis on supplier relationships is achieved. No company wants a break in their inventory system that would create a shortage of supplies while not having inventory sit on shelves. 6. Supplies continue around the clock keeping workers productive and businesses focused on turnover. Having management focused on meeting deadlines will make

employees work hard to meet the company goals to see benefits in terms of job satisfaction, promotion or even higher pay. Classic JIT diagram The classic JIT diagram is as below. There the company (the boat) floats on a sea of inventory, lurking beneath the sea are the rocks, the problems that are hidden by the sea of inventory. | --|-| --------------\ /

========\ Company /============ Sea of inventory \---------/ x xxx xxxx Rocks - the problems hidden by the sea of inventory

xxxxx xxxxxx

xxxxxxxxxxxxxxxx

If we reduce the inventory level then the rocks become exposed, as below.

| --|-| --------------\ / x xxxx

xxx

========\ Company /====xxxxx===xxxxxx======== \---------/ xxxxxxxxxxxxxxxx

Now the company can see the rocks (problems) and hopefully solve them before it runs aground! One plan to expose the problems is simply to:

make a large amount of finished goods stock to keep the customers supplied try running the production system with less inventory to expose problems revert to the original levels of inventory until you have had time to fix the problems you exposed

repeat the above - hence continuous improvement

Suppliers Suppliers can be crucial to JIT success Supplier gets:

long-term, guaranteed, contract a good price steady demand minimal paperwork (e.g. use electronic means to order - such as email or Web or electronic data interchange, EDI)

In return the supplier agrees to

quality components (e.g. zero defects) guaranteed delivery times a "partnership" with its customer contingency plans to cope with disruptions, common disruptions might be:
o o o

the effect of bad weather a truck drivers strike blocking roads/ports a flu outbreak reducing the supplier's workforce

Supplier selection criteria:

close to production plant (else potential transportation delays)

good industrial relations ("involvement", "value", "dignity", "ownership"), no strike deals

you believe that the supplier can met their promises with respect to the list of factors given above that that they are agreeing to

With suppliers satisfying these criteria you can reduce the total number of suppliers, indeed it seems logical so to do. If you had five suppliers meeting all these criteria why do you need five? Obviously you might decide to have more than one supplier for safety reasons. Even the best run supplier can suffer a factory fire or an earthquake, but probably no more than two or three suppliers. JIT implementation design Based on a diagram modeled after the one used by Hewlett-Packards Boise plant to accomplish its JIT program. 1) F Design Flow Process F Redesign /relay out flow L Reduce lot sizes O Link operation W Balance work station capaity M Preventive maintenance S Reduce setup times

2) Q Total Quality Control I automatice inspection M Quality measures M Fail safe methods W Workers participations

3) S Stabilize Schedule S Level schedule W Establish freeze window UC Under utilize capacity

4) K Kandan pull system D Demand pull B Back flush L Reduce lot size

5) V Work with Vendors L Reduce lead time D Frequent deliveries U Project usage requirement Q Quality expectation

6) I Further Reduce Inventory in Other Areas S Store T Transit C Implement carrousel to reduce motion waste C Implement conveyor belts to reduce motion waste

7) P Improve Product Design P Standare production configuration P Standardize and reduce the no. Of parts P Process design with product design Q Quality expectations

Goal of Just in Time According to Cheng in Just-In-Time Manufacturing An Introduction, he explains the ideas of Suzaki for the objectives of JIT. There are three main objectives: 1. Increasing the organizations ability to compete with others and remain competitive over the long run. The competitiveness of the firms is increased by the use of JIT manufacturing process as they can develop a more optimal process for their firms. 2. Increasing efficiency within the production process. Efficiency is obtained through the increase of productivity and decrease of cost.

3. Reducing wasted materials, time and effort. It can help to reduce the costs. Other short-term and long-term objectives are:

1. Identify and response to consumers needs. Customers needs and wants seem to be the major focus for business now, this objective will help the firm on what is demanded from customers, and what is required of production.

2. Optimal quality/cost relationship. The organization should focus on zero-defect production process. Although it seems to be unrealistic, in the long run, it will eliminate a huge amount of resources and effort in inspecting, reworking and the production of defected goods. 3. Reduce unwanted wastes. Wastes that do not add value to the products itself should be eliminated.

4. Develop a reliable relationship between the suppliers. A good and long-term relationship between organization and its suppliers helps to manage a more efficient process in inventory management, material management and delivery system. It will also assure that the supply is stable and available when needed.

5. Plant design for maximizing efficiency. The design of plant is essential in terms of manufacturing efficiency and utility of resources.

6. Adopt the work ethnic of Japanese workers for continuous improvement. Commit a long-term continuous improvement throughout the organization. It will help the organization to remain competitive in the long run. Limitation of Just in Time Regardless of the great benefits of JIT, it has its limitation, JIT has the following major limitations: 1. Culture Differences The organizational cultures vary from firm to firm. There are some cultures that tie to JIT success but it is difficult for an organization to change its cultures within a short time.

Traditional Approach The traditional approach in manufacturing is to store up a large amount of inventory in the means of backing up during bad time. Those

companies rely on safety stocks may have a problem with the use of JIT.

Difference in implementation of JIT Because JIT was originally established in Japanese, it is somehow different for implementing in western countries. The benefits may vary. Loss of individual autonomy This is mainly due to the shorter cycle times which adds pressures and stress on the workers. Loss of team autonomy This is the result of decreasing buffer inventories which lead to a lower flexibility of the workers to solve problem individually.

Loss of method autonomy It means the workers must act some way when problems occur, this does not allow them to have their own method to solve a problem.

JIT success is varied from industry to industry Some industries are benefit more from JIT while others do not.

Resistance to change JIT involves a change throughout the whole organization, but human nature resists to change. The most common resistance are emotional resistance and rational resistance. Emotional resistance are those psychological feeling which hinder performance such as anxiety. Rational resistance is the deficient of the needed information for the workers to perform the job well. Relationship between management and employees is important A mutual trust must be built between management and employees in order to have effective decision making. Employee commitment Employees must commit to JIT, to enhance the quality as their ultimate goal, and to see JIT as a way to compete rather than method used by managers to increase their workload.

Production level JIT works best for medium to high range of production volume.

Employee skill JIT requires workers to be multi-skilled and flexible to change.

 Compensation Compensation should be set on time-based wages. This allow the workers to concentrate on building what the customers wants.

Effect of Just In Time Effect of Just-In-Time Purchasing Relationships on Organizational Design, Purchasing Department Configuration, and Firm Performance Just-in-time purchasing requires close relationship and co-operation on product development and specification(product and information flow). It also involves joint product design, extensive verification of supplier quality and shared production plan. Three questions are addressed in this articles: 1. Is JIT purchasing associated with overall organizational design? 2. Is JIT purchasing associated with the configuration of purchasing? 3. Is JIT purchasing associated with performance? To answer these questions, we have to first look at the factors that related to each of the question. In consideration of overall organizational design, four different aspects are discussed: formalization, decentralization, integration and specialization. Formalization refers to formal internal performance control, formal benchmark control and the strategic formalization of the purchasing function. It is found that the more JIT purchasing, the more internal and benchmark control are implemented. The reasons for that are 1) JIT represents the exact process management, so more performance information is needed to ensure that the remaining inventory meets the specification. 2) JIT provides feedback which are essential to the succeed of JIT implementation. And also, with the increase of JIT purchasing, a written statement of shared vision(goal) of the firm is needed.

Decentralization consists of line-operating decision and scheduling. JIT purchasing is related to decentralized decision-making because a higher employees involvment will result in higher performance. JIT purchasing is positively related to line-operating and negatively related to scheduling. Integration is the lateral communication. While there are more JIT purchasing, it is very important to have a stable and good communication among departments within a firm. Thus, JIT is positively related to integration. Specialization focuses on division of labor. As more JIT purchasing, more labor is needed to perform a faster production schedule. So, it is positively related to JIT. It is very obvious that JIT purchasing is associated with overall organizational design. To address the second question, we have to look into two aspects. They are the number of layers for the purchasing function and the span of control of the senior purchasing executive. The authors found out that JIT purchasing is negatively related to the number of layers for the purchasing function and positively related to the senior purchasing executives span of control. For the third question - Is JIT purchasing associated with performance? JIT is expected to be related with efficiency, financial performance and market performance. And it is found out that JIT is negatively related to weeks of inbound inventory, positively related to financial performance and market performance. From this study, two managerial implications can be drawn. First, implementing JIT exchange with suppliers. The relationship between buyer and seller is now toward relational exchange as the JIT purchasing is more frequently used. Second, JIT purchasing correlates with performance. There are several importance tools for total quality management control: 1. relations diagram 2. Affinity diagram 3. Systematic diagram ( Tree diagram)

4. Matrix diagram 5. Matrix data analysis 6. Process derision program chart 7. Arrow diagram From seven tools, it help Japanese product quality to meet following total quality management: The ability to eliminate defective products The ability to improve productivity The ability to complete tasks on time The ability to increase product value-driven The ability to completely eliminate waste The ability to reduce lead time and inventory cost Just in Time Inventory and Productive Management Introduction: Generally speaking, most of the company and factories must manage the inventory material efficiently and effectively. Therefore, reducing levels of inventory stock in company and factory is an internal and external matter. In terms of supply and demands management, the Just-In-Time (Inventory Management) are linked strategically and operationally. Take Japan for an example. Japan has encouraged the adoption of just-in-time methods and quality management methods. That is the reason why Japan can do a good job on economic performance. As to Technological advances, it also play an important role on inventory management. Essential Aspects inventory Management influence on Just in Time Lessons have been learnt from Japanese methods where substantial efficiencies are gained from frequent deliveries of small quantities to meet immediate demands. This

compares with methods of stock control such as the economic inventory management approach. Reduction inventory in supply chains Reduce transit time Reduce manufacture cost Increase management efficiency and effective Reliable delivery Short distances between client and server Consistent quality so that server performance and throughput is unaffected Just in Time-----Manufacturing (1) Introduction Just in Time---manufacturing is a systems method to develop and operate a factory system. It is mainly basis on the total Decrease of waste. As you know, many people think JIT is not a new knowledge field. As a matter of fact, it has been part and plays an important role of the Japanese manufacturing industry adopted method for a long time . It requires all the materials such as equipment, human resources, and management skills are made available only in the amount required and at the time required to do the job. It is based on producing only the necessary units in the necessary quantities at the necessary time by bringing production rates exactly in line with market demand. Generally speaking, JIT means making what the market wants. JIT has been found to be so effective that it increases productivity, work performance and product quality. Whats even more, it plays a vital role to increase productivity and decrease the total cost of manufacturing production. (2) Planning for JIT

Since each manufacturing process is different, it is up to the individual company to determine the degree of appropriateness and the final application of JIT. However, it is very important to define the plan and objectives before setting up a JIT manufacturing system. It is impossible to establish a new JIT system that can be used successfully without change. Therefore, we should take serious consideration to make a plan for Just-In-Time, which will benefit to our factory performance. 3) Defining the Planning JIT manufacturing system requires an understanding of the objectives of JIT, and objectives of the JIT system. After the objectives are set up for the manufacturing, the process of planning becomes one of determining what is required to meet those objectives. The goal of a JIT approach is to develop a system that allows a factory to have only the materials equipment and people by hand required doing the some plan. T o achieve this goal, we should have equipped with at least five fundamental plan: a) Integrating and optimizing every step of the manufacturing process b) Reducing manufacturing cost c) Producing product on demand d) Developing manufacturing flexibility e) Produce quality product to maintain commitments and links made between Customers and Suppliers We also should keep in mind that achieving these obtaining targets do not automatically make a company a JIT manufacturer. On the contrary, it will lead to achieve even one of these objectives will prevent a manufacturer from establishing a successful JIT system. According to Common Wealth on May, 1996 report, it said that A company cannot decide to implement JIT; they must earn the right to use JIT by revising their quality for system." (4) Reducing Manufacturing Cost

If we can design products that it will speed up and decrease manufacturing processes. Gradually, it will helps us to reduce the cost of manufacturing and building the product to specifications benefit. One aspect in designing products for manufacture ability is the need to set up a good boss and employee relationship. At least, this is to cultivate and procure the resources of the production experts, and the line employees to develop cost saving solutions. Participatory quality programs utilize employee knowledge about their job functions and review the department performance. It will, finally, encourage with rewards for suggested total cost saving. (5) Manufacturing Flexibility According to China time report on August 1996. "Manufacturing flexibility is the ability to start new projects or the rate at which the production mix can be adjusted to meet customer demand." Planning for manufacturing flexibility requires the understanding of the elements in the manufacturing process and understanding elements in the process that restrict flexibility and improving on these areas. The unique feature of Just-In-Time is the modification from between pull and push systems. The main idea behind these approaches are that "work should not be pushed on to the next worker until that worker is ready for it." (Hauser, J.R.) As a result, manufacturing flexibility requires production managers to consider the some important factors, such as supplier lead time, production process time, process setup time and so forth. 6) Keep in touch between customers and suppliers For factory main commitment to achieving the internal structures, both customer and supplier are also playing a vital role to support JIT manufacturing. Because it is the primary requirement for developing the JIT system, each other can establish trust and honest between the supplier and the customer which is a must, since every Just-inTime operation depends on it. Supposed, finally, it leads to failure to keep the commitments each other. Finally, it will be result to a serious form of breakdown manufacturing systems. Therefore, we should pay attention to this kind of serious call. Never be ignorant of this commitment. If we can make use of Just-In-Time (manufacturing approaches), it, eventually, will attain those goal, which are the fundamental concept of producing product only as needed or on demand.

Example: Toyota manufacturing processes route the product around the plant to various work centers where work is staged to be processed. Implementing manufacturing cells typically increases net income dramatically and reduces cycle time over 50%. The cost of design and implementation is usually recovered within the first year from inventory savings. In this paper, we present the benefits of bringing the processes to the product and discuss the value of simulation as a tool to design and predict cell performance prior to implementation; therefore, reducing financial and technical risk to the company. On September 10, 1997, Mr. Hoskins presented on "Improve Profits and Reduce Cycle Time with Manufacturing Cells and Simulation" for the National Technology University series on Kanban just-In-Time Manufacturing of this series. On October 27 - 28, 1996 Jerry Hoskins, President presented a paper titled "Developing a Lean Implementation Roadmap" at the SME Kanban Manufacturing Conference in Dearborn, Michigan. The intent of this paper is to provide information to companies on where to start with a Kanban implementation based on where one is currently manufacturing operation. His theory help our many manufactures implement all the elements of Kanban Manufacturing directed at elimination of manufacturing waste as defined by the Toyota Production System. These systems are more flexible, responsive, and profitable than traditional manufacturing systems. And, its theory also help our many participate determine where best to start with a Kanban implementation which usually involves an assessment of current operations. Once plan is developed we design the system to be implemented which may involve layout, cells, JIT, process technology, and process simulation. Elements of Just in Time According to Cheng, the basic elements of JIT manufacturing are: People Involvement Plants System

People Involvement Maintaining a good support and agreement from people involved in production. This is not only reduce the time and effort in implementation of JIT, but also minimize the chance of creating implementation problem. (Cheng, 6) The attempt to maximize peoples involvement may carry through the introduction of quality circle and total involvement concept. (Cheng, 7) Manufacturers can gain support from 4 sources. 1. Stockholders and owners of the company - should maintain a good long-term relationship among them.

2. Labor organization - all labors should be well-informed about the goals of JIT, this is crucial in gaining support from the them.

3. Management support - support from all level of management. The ideas of continuous improvement should spread all over the factory, managers and all shopfloor labor.

4. Government support - government can show their support by extending tax and other financial help. This can enhance the motivation, and also help in financing the implementation of JIT. Plants Certain requirements are needed to implement JIT, there are: 1. Plant layout - the plant layout is mainly focus on maximizing working flexibility. It requires the use of "multi-function workers".

2. Demand pull production - it means to produce when the order is received. This can manage the quantity and time more appropriately.

3. Kanban - a Japanese term for card or tag. Special inventory and process

information are written on the card. This helps tying and linking the process more efficiently.

4. Self-inspection - it is carried out by the workers at catch mistakes immediately.

5. Continuous improvement - this concept should be adopted by every members in the organization in order to carry out JIT. This is the most important concept of JIT. This can allow an organization to improve its productivity, service, operation and even customer satisfaction in an on-going basis. System This refers to the technology and process that combines the different processes and activities together. Two major types are MRP (Material Requirement Planning) and MRP II (Manufacturing Resource Planning). (Cheng, 8) MRP is a computer-based, bottom-up manufacturing approach. This involves two plans, production plan and master production schedule. Production plan involves the management and planning of resources through the available capacity. Master production schedule involves what products to be produced in what time. (Cheng, 8) MRP II is mainly involved the management or planning of financial resources in order to carry out the operation. The above three factors formed the element of JIT. JIT approaches Three 1. 2. 3. Reducing Reducing main approaches and are administrative all pulled flow cycle possible: times waste breakdowns

manufacturing Reducing the

Cycle time reduction

The cycle time represents the time between the customer demand and its final delivery: 1. Manufacturing cycle time includes the machining, transportation, inspection and 5S

warehousing. Classical tools are used to reduce these cycle times such as SMED, TPM, 2.

Administrative cycles are less visible since they more occur in the background.

They include order entries, purchase entries & follow-up, payments, credit notes Depending on industries, there can be up to 90% waiting time and 10% value added time!

Waste reduction The wastes encompass all operations not having any value added on a given product. Shigeo Shingo from Toyota has classified them among 7 root causes: 1. Over-production: to be sure to get the right component quantity, we produce Queues or Waiting time: Products dont move as produced to early Transports: No value added and can be expensive (e.g. factory transfer,) Processes: If not well adapted to the operation to perform, there can be a waste of

more! 2. 3. 4.

time 5. 6. 7. Movements: Useless movements in a shopfloor or around a line. Non-Quality: Defective products are pure financial loss!

Inventory: Overstocking is usually seen when disruptions occurred during the

manufacturing cycle, when a machine is down too often for instance or when absenteeism is always over predicted.

Japanese people use to say that the inventories are made to tackle unsolved problems in order to maintain the throughput rate. So the method consists in reducing slowly the inventories in order to continuously solve the issues causing problems:

Flow breakdowns This approach consists in identifying all the flow breakdown causes in order to eliminate them.

The main objective is to maintain a high throughputs rate in order to quickly assemble or produce the products to get faster sales revenues. The causes could be classified as following:

Random

breakdowns:

o o o o o

Waiting times Missing part or component Machine breakdown Absenteeism Rework

Waiting for decision (after inspection)

Operation breakdowns:
o o o

Inspection Transit (between shopfloors or to warehouse) Handling / Warehousing

JIT change management scope

The JIT is a full process that impacting all factory main functions, from sales to purchasing troughout the supply chain:

Sales: From maximizing turnover at all cost to maximizing margins. Sales people should change their habits to avoid big ordering waves disturbing the manufacturing line, by smoothing orders through the year and get yearly discount instead of individual order discounts. New metrics for sales performance are hence required.

Suppliers: There are fewer suppliers but they are considered as partners with long term contracts in order to get a stable supply plan and reduce the shortage. Hence long term forecasts are issued so that they can plan accordingly. Supplier Schedules are used, replacing traditional purchase orders, and reception inspection is skipped or simplified for selected suppliers allowing direct delivery to the manufacturing line.

Distribution: It can represent up to 40% of the cost paid by the customer. Distribution is optimized by increasing delivery frequencies to reduce inventory levels and reducing the number of warehouses.

Engineering: Products are standardized in order to reduce the number of components and lower the safety stocks. Then products are simplified as much as possible: less bill of material levels, simpler routings, fewer operations but productivity should increase by reducing the value added times.

Manufacturing lines: Machines are grouped by products family not by their functions anymore. The raw material and components are stored on the line itself, replacing a central warehouse (and high inventory). Preventive maintenance is done to reduce the number of machine breakdowns, flexibility and reduced exchange die are searched, non-quality is avoided and machining setup is simplified.

Human Resources: The workforce is back in the middle of the production process. Continuous improvement is performed at all levels every day. The work environment is optimized, less noisy, clean and safety is improved. Workers are taking decisions over the lines in order to improve the manufacturing layout and the line efficiency. Performance is now measured accordingly: team performance instead of individual, manufacturing schedule adherence per product rather than total quantity produced of all items,

Conclusion: The JIT is rather a philosophy or a concept than a simple method. All departments are involved to change from traditional manufacturing to lean production. It is a long process that needs to be followed over a decade to get fruitful results