Just-in-Time Manufacturing

A. INTRODUCTION
Why Just-in-Time manufacturing ?

No large capital outlays required.

Advocates simplifying and streamlining existing process.

Planning is entrusted to shop floor personnel.

No-cost, or low-cost method for improving mfg. process.

B. JIT PHILOSOPHY
Basis is the concept of ideal production.

Centers on the elimination of waste- from raw material to shipping.

Defined as: Production of the minimum number of units in the smallest

possible quantities at the latest possible time, which eliminates the need
for inventory.

Does not mean to produce on time but to produce just in time.

B. JIT PHILOSOPHY
1. History of Just-in-Time

Incorrectly rumored to have been invented by Henry Ford.

Actually invented by Taiichi Ohno of Toyota.

Ohnos system designed to handle varying volumes/various parts.

Nothing more than good, common sense manufacturing.

B. JIT PHILOSOPHY
2. From Supermarket to Shop Floor

Ohno is believed to have gotten his JIT idea from U.S.

supermarkets.

Customers pull items from shelf.

Empty space on shelf is signal for stocker to replace item.

If items are not bought, no replacement required.

When item become low, stocker reorders from supplier.

Customers take only what they need because they know items will
be restocked.

Ohno applied the same concept to manufacturing.

B. JIT PHILOSOPHY
3. What to Expect

JIT is more than an inventory system.

It is an operational philosophy which includes:

A set-up time improvement system.

A maintenance improvement system.

A quality improvement system.

A productivity improvement system.

A properly implemented JIT system should:

Produce products customers want.

Produce products only at the rate customers want them.

Produce with perfect quality.

Produce instantly with zero unnecessary lead time.

Produce with no waste of labor, material or equipment.

B. JIT PHILOSOPHY
3. What to Expect

Elements of the implementation process include:

Reductions in set-up time;

A formal preventive maintenance program;

Utilization of quality circles;

Cellular manufacturing techniques;

Cross training of employees;

Quality certification of suppliers;

Reductions in vendor lead time;

Reductions in lot sizes;

Sole sourcing, and

Presence of one who championed the cause in the company.

B. JIT PHILOSOPHY
3. What to Expect

Benefits of JIT implementation include:

Reductions in downtime;

Reductions in inventory;

Reductions in scrap and rework;

Reductions in work space;

Increased inventory turns;

Increased labor utilization;

Increased equipment utilization; and

Improved service to customers.

C. FIRST IN FIRST OUT (FIFO)

A method of inventory rotation to ensure that oldest

inventory (first in) is used first (first out):

Simply means how you handle your products;

For example, groceries

Perishable items (milk and eggs) restocked from the back;

Old items are pushed to the front;

Selected first by the customer.

FIFO Racks

D. TAKT TIME

TAKT German word for baton an orchestra

conductor uses to regulate the speed, beat or timing at
which musicians play.

The rate or time a completed product is finished.

2 minutes, 2 hours, 2 days, or 2 weeks.

1.

How is Takt Time Established ?

Established by customer buying rate.

2.

What if Customers Buy Fewer Products?

Takt time changes to adjust to customer buying rate.

Increases or decreases result in staffing and production changes.

3.

What if Customers Buy More Products?

Takt time decreases to make more products in shorter time.

There is no substitute for continuously improving a balanced Takt time.