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Just In TimeAlissa BrinkGabriela IasevoliJason OesterleJoey Tamburo

+What is Just-in-Time Inventory?

A philosophy that seeks to eliminate all types of waste, including carrying excessive levels of inventory and long lead times

A method of continuous improvement by driving out all added costs by decreasing inventory, as well as focusing on perfection

Comes from the indication of replacing material buffers just when they are needed and not before or after

Developed by Toyota Motor Company, called TPS

Works best with a production system

Three theories Minimize waste in all forms Continuously improve processes and systems Maintain respect for all workers

+Just-in Time In a Nutshell

Keeping work flows moving

Eliminating inventories

Reducing travel distances

Eliminating defects and scrap

Maximizing usage of space

+Features

Small lot sizes

Uniform workstation loads

Flexible workforce

Line flows

Consistent high quality

Close supplier ties

Standardized components and work methods

Pull method of materials flow

Preventative Maintenance

Automated Production

+The Basics of Just-in Time

What it is

What it does

What is requires

What it assumes

+What It Is

Management Philosophy

“Pull” system through the facility A work station pulls output from preceding station as

needed

+What It Does

Eliminates waste

Exposes problems

Achieves continuous production

+What It Requires

Total Quality Control

Small Lot Sizes

Industrial Engineering

Continuing Improvement

Employee Participation

+What It Assumes

Stable Environment

+Traditional vs. Just-In-Time Manufacturing

Capacity

Conversion System

Kanban

Layout

Workforce

Inventories

Suppliers

Planning and Control

Quality

Maintenance

Traditional Just In Time

+Manufacturing

Traditional Custom outputs System designs

Just In Time Designs and produce standard outputs

Standard hours Costs

Incremental Improvements Better design for manufacturability

Higher accuracy

+Capacity

Traditional Excess capacity Highly used Inflexible

Just In Time Waste is minimized Flexible Moderately used

+Conversion

Traditional Lots of space for inventory Long lead times Handling equipment Ex: Job shops

Just In Time Short lead times Cellular manufacturing Repetitive production Pull System: A work station pulls output from preceding

station as needed

PushLead

T ime Pull

+Kanban Means “signal”

Device that communicates demand for work or materials from the preceding station

This process allows for production to be “pulled” through the system

Rather than “pushed” out before it is needed

Focuses on scheduling and controlling the logistical chain

Example: Toyota Kanban Card

+Layout

Traditional Spread-out Equipment throughout facility Between the equipment is space for work in-progress

inventories Handling equipment required

Just In Time Machines and workers are very close, next to one another Minimal work in-progress through flow lines Manual transfer between stations after each unit

+Workforce

Traditional Employees have a competitive, stern attitude Employees expertise is only in one area Most of employee time is nonworking time

Just In Time Supportive attitudes Generally skilled flexible workers Work teams who can resolve multiple problems

+Inventories

Traditional Use space for large quantities

Push System

Just In Time Inventory is never seen

Pull System

+“Inventory Hides Problems”

Lowering inventory allows problems to be exposed

+Suppliers

Traditional Multiple suppliers Very Competitive

Just In Time Single-sourcing agreements Supplier is considered part of the team

+Planning and Control

Traditional Complex and computerized focus on “planning” Forecasting for an uncertain future

Just In Time Focus on “control” Simple procedures Responds to real time activity Flexible, quick operations

+Quality

Traditional Inspection at few points

Just In Time Inspection is done continuously through every step by

workers Zero defects is the goal

+Maintenance

Traditional Corrective maintenance: repairing machine only when it is

broken Experts are hired for just repairs

Just In Time Preventative maintenance: Service on machines before it is

expected to fail Maintenance is done by equipment operators

+McDonalds and JIT

McDonalds uses just in time Orders are only made as they are placed The total time to prepare a hamburger is a minute and a

half from the freezer to the customer’s hands Cook frozen patty in 40 seconds Condiments added to burger after cooked Burger is wrapped Cashier hands to the customer who ordered it

+Benefits of Just In Time

Make problems visible

Workforce improvements

Easy to halt production and switch to different products to meet customer demand

Lower costs by no inventory

Invest cash, rather than hold inventory

Less damage costs

+Potential Issues Implementing JIT

Need better information technology to coordinate the delivery of parts and materials

Response time of a massive and unexpected order

Need Regulation

Natural disasters could interfere with the flow of suppliers, stopping production

Philosophy of organization requires change

+Wrap Up

A method of continuous improvement by driving out added costs by decreasing inventory

Eliminate all types of waste

Leads to better customer satisfaction, better supply chain, and lower warehouse costs

Improve a business’s return on investment by reducing in-progress inventory and associated costs

Faster Cheaper

Better

Just In Time

Toyota Production System Video Example