Just-In-Time and

Lean Operations

14 Principles of Toyota
Principle
No.

Principle

Base your management decisions on a long term

philosophy, even at the expense of short term financial
goals

Create continuous process flow to bring problems to the

surface

Use pull system to avoid overproduction

Level out the work load (Heijunka)

Build a culture of stopping to fix problems, to get quality

right the first time

Standardized tasks are the foundation for continuous

improvement and employee empowerment

Use visual control so that no problems are hidden

2

14 Principles of Toyota
Principle
No.

Principle

Use only reliable, thoroughly tested technology that

serves your people and processes

Grow leaders who thoroughly understand the work, live

the philosophy and teach it to others

10

Develop exceptional people and teams who follow your

companys philosophy

11

Respect your extended network of partners and

suppliers by challenging them and helping them
improve

12

Go and see for your self to thoroughly understand the

situation (Genchi Genbutsu)

13

Make decisions slowly by consensus, thoroughly by

considering all options, but implement decisions rapidly

14

Become a learning organization through relentless

reflection and continuous improvement (Keizen)3

3
3

Introduction
Taiichi Ohno, the vice president of Toyota Motor
Company developed JIT concepts.
JIT requires only necessary items be produced (or
supplied) in necessary quantities at necessary times.
Producing one unit extra is as bad as being one unit short.
Completing production one day early is as bad as finishing
one day late. Items are supplied only when needed or
just-in-time.

The major objective of JIT production is to eliminate

waste. Waste has been defined as anything other than
the minimum amount of equipment, materials, parts,
space , and time which are absolutely essential to add
value to the product.
In short, waste is anything that does not add
value.

Examples of Waste

Waiting for parts

Counting parts
Over production
Moving parts over long distances
Storing inventory
Machine breakdown
Rework, etc.
Looking for tools

Japanese
words

Seiri
Seiton
Seiso
Seiketsu
Shitsuke

Malay
Words

Sisih
Susun
Sapu
Seragam
Sentiasa
Amal

Meaning

Example

Sorting
(Organization)

Get rid of
rubbish

Straighten or Set
in order
(Orderliness)

30-second
retrieval of a
document

Sweeping
(Clean up)

Keep the work

place clean so
that the work
can proceed
smoothly

Standardizing
(Standardization)

Transparency of
storage

Sustaining
(Discipline )

Practice 5-S in
daily life
7

Basic Elements of JIT

Suppliers
Pull production system
Cellular layout
Inventory
Scheduling (or kanban production system)
Flexible work force
Preventive maintenance
Quality at the source

Suppliers
A network of reliable and dependable suppliers is essential
to JIT.
Buyer and supplier should work together with mutual
trust and there should be long term commitment.
In order to develop long term commitment and reduce
variability in the in coming materials, company needs to
reduce number of suppliers.
Further, supplier base should be as near to the
buyer as possible.

Pull Production
System
In push method, the production of the item begins in
advance of customer needs. In pull method customer
demand activates production of the item.
In manufacturing sector, in a push system, a
schedule is prepared in advance for a series of
workstations, and each workstation pushes its
completed work to the next station. With the pull
system, workers go back to the previous stations and
take only those parts or materials they need and
process immediately.

Pull Production
System

Pull system prevents overproduction and

under production.
JIT uses pull system of production.

Cellular Layout
Machines
Enter

Worker 2
Worker 1

Exit
Key:

Product route
Worker route

Worker
3

Result of JIT
layout
Each month Security Pacific Corporations focussed
facility sorts 7 million cheques, processes 5 million
statements, and mails 190,000 customer statements.
With a JIT layout, mail processing time has been
reduced by 33%, salary costs by $tens of thousands per
year, floor space by 50%, and in-process waiting lines by
75% to 90%. Storage including shelves and drawers
have been removed.

Inventory
Just-in-time inventory is the minimum inventory
necessary to keep a system running. With just-in-time
inventory, the exact amount of goods arrives at the
moment it is needed, not a minute before or a minute
later.

Type of problems

Late deliveries
Lengthy setups
Bad designs
Poor quality
Machine breakdown
Ineffective layout

Some of the JIT inventory tactics

are :
-- Use a pull system to move inventory
-- Reduce lot size
-- Develop just-in-time delivery system with the suppliers
-- Deliver directly to the point of use
-- Reduce set up time and thereby set up costs

Following are the advantages to keep

smaller lot sizes:

-- It requires less space and less capital investment

-- It reduces holding cost.
-- Small lots cut lead times. Usually a large lot needs to
wait longer to be processed.
-- If any defective item is discovered, large lots cause
longer delays because the entire lot must be inspected
to find out the items that need rework. The task will be
easier for small lots.
-- Controlling task is easier for smaller lots.

Steps to Reduce Setup Time

90 min

Initial Setup Time

Step 1

Separate setup into preparation, and actual setup, doing as much as

possible while the machine/process is running (save 30 minutes)

60 min

Step 2

Move material closer and improve material

handling (save 20 minutes)

45 min

Step 3

Standardize and improve

tooling (save 15 minutes)

Step 4
Step 5

Use one-touch system to eliminate

adjustments (save 10 minutes)
Training operators and
standardizing work procedures
(save 2 minutes)

25 min
15 min
13 min

JIT Scheduling
Tactics
No.

Tactic

Communicate the schedule to the

suppliers

Make level schedule

Perform to the schedule

Seek one-piece make and one-piece

move

Use kanbans

Kanban
Kanban is the authorization for the next container of
material to be produced.
The purpose of kanban system is to signal the need for
more parts and to ensure that those parts are produced
in time to support subsequent fabrication or assembly.
This is done by pulling parts through from the final
assembly line.

Kanban System

Kanban (Cards)

Quality at the
source
For an effective JIT system, quality of products must be
very high, because there is no buffer inventory against
defetive units.
A poka yoke is any fool-proof device or
mechanisms that prevents defects from occurring.

Flexible Work Force

Multi-skilled workers
General purpose equipments

Preventive
Maintenance
Unplanned machine breakdown can disrupt the schedule.
How frequently check-ups should be conducted?
Collect the following data:
-- Time between breakdown
-- Frequency of breakdown
-- Cost of breakdown
-- Cost of preventive maintenance

Preventive Maintenance -- An
Example
One Deming prize winning company Aishin
Seiki, has not experienced an equipment
breakdown in more than four years. Prior to total
preventive maintenance, they had more than 700
breakdowns in a month.

Applications of JIT Principles

1.

Is JIT dead?

2.

JIT inventory systems hold appeal

3.

JIT: Zero tolerance

4.

JIT implementation: A survey on US manufact

uring companies

Thank You