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Just-In-Time Just-In-Time Manufacturing Manufacturing Matt Schmidt Matt Schmidt Penn State Penn State University University OISM 470W OISM 470W

JIT Manufacturing

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Just In Time Manufacturing

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Just-In-Time ManufacturingJust-In-Time Manufacturing

Matt SchmidtMatt Schmidt

Penn State UniversityPenn State University

OISM 470WOISM 470W

Just-In-Time Just-In-Time Manufacturing?Manufacturing?

What is JIT Manufacturing?What is JIT Manufacturing?

Where did it come from?Where did it come from?

What are the main principles?What are the main principles?

Is it easy to Implement?Is it easy to Implement?

What phrase best describes JIT?What phrase best describes JIT?

Just-In Time ManufacturingJust-In Time Manufacturing

JITJIT- A philosophy of - A philosophy of continuous continuous improvementimprovement that puts emphasis on that puts emphasis on prevention rather than correction, and prevention rather than correction, and demands a company wide focus on demands a company wide focus on quality.quality.

JITJIT- operational management approach - operational management approach to achieve world class manufacturing. to achieve world class manufacturing.

JITJIT- production is based on demand- production is based on demand

History of JIT History of JIT ManufacturingManufacturing

Evolved in Japan after World War II, as a Evolved in Japan after World War II, as a result of their diminishing market share result of their diminishing market share in the auto industry. in the auto industry.

Toyota Motor CompanyToyota Motor Company- Birthplace of the - Birthplace of the JIT Philosophy Under Taiichi Ohno.JIT Philosophy Under Taiichi Ohno.• W. Edwards DemingW. Edwards Deming• 14 points for Management14 points for Management

JIT is now on the rise in American JIT is now on the rise in American Industries.Industries.

Principles Of JIT Principles Of JIT ManufacturingManufacturing

Total Quality ManagementTotal Quality Management

Production ManagementProduction Management

Supplier ManagementSupplier Management

Inventory ManagementInventory Management

Human Resource ManagementHuman Resource Management

Principles Of JIT Principles Of JIT ManufacturingManufacturing

Total Quality ManagementTotal Quality Management

Production ManagementProduction Management

Supplier ManagementSupplier Management

Inventory ManagementInventory Management

Human Resource ManagementHuman Resource Management

Total Quality Total Quality ManagementManagement

Seek long-term commitment to Seek long-term commitment to quality efforts with continuous quality efforts with continuous improvement improvement

Quality must be a higher priority Quality must be a higher priority than costthan cost

Minimizing wasteMinimizing waste

Total Quality ManagementTotal Quality Management

Eliminate Quality InspectorsEliminate Quality Inspectors

Quality is everyone’s responsibilityQuality is everyone’s responsibility

Do it right the first timeDo it right the first time

Principles Of JIT Principles Of JIT ManufacturingManufacturing

Total Quality ManagementTotal Quality Management

Production ManagementProduction Management

Supplier ManagementSupplier Management

Inventory ManagementInventory Management

Human Resource ManagementHuman Resource Management

Production ManagementProduction Management

Pull System vs. Push SystemPull System vs. Push System• Pull = Made to orderPull = Made to order• Push = Made for inventoryPush = Made for inventory

Flexability of the systemFlexability of the system

Design For Testability – In the processDesign For Testability – In the process• Poka-Yoke= Mistake-proofingPoka-Yoke= Mistake-proofing• Throughout entire processThroughout entire process

Production ManagementProduction Management

Reduced lot sizes= Shorter cycle Reduced lot sizes= Shorter cycle timestimes

Eliminate disruptions in the processEliminate disruptions in the process

Standardized Parts/ SimplicityStandardized Parts/ Simplicity

Production ManagementProduction Management

Communication TechniquesCommunication Techniques• Completion of taskCompletion of task-Kanban -Kanban • ProblemProblem- Andon or siren/light- Andon or siren/light

Stopping the process if something Stopping the process if something goes wrong =Jidokagoes wrong =Jidoka

Preventive MaintenancePreventive Maintenance

Production Management Production Management at Toyotaat Toyota

Toyota uses a Kanban pull system Toyota uses a Kanban pull system throughout the production process.throughout the production process.

Each task in the process seems to Each task in the process seems to take identical length and work take identical length and work content, so everyone is working at content, so everyone is working at the same pace to reduce the same pace to reduce bottlenecks.bottlenecks.

Principles Of JIT Principles Of JIT ManufacturingManufacturing

Total Quality ManagementTotal Quality Management

Production ManagementProduction Management

Supplier ManagementSupplier Management

Inventory ManagementInventory Management

Human Resource ManagementHuman Resource Management

Supplier ManagementSupplier Management

Establish Long Term Relationships with Establish Long Term Relationships with few suppliers.few suppliers.

Delivery of Parts = 100% Defect FreeDelivery of Parts = 100% Defect Free• Where they are neededWhere they are needed• When they are neededWhen they are needed• The exact quantity The exact quantity

Work TogetherWork Together

Supplier ManagementSupplier Management

Elimination inspection of parts Elimination inspection of parts

Information SystemsInformation Systems• Eliminating barriers to information Eliminating barriers to information

Communicate problems to Communicate problems to suppliers in a positive manner. suppliers in a positive manner.

Supplier Relations at Supplier Relations at ToyotaToyota

Toyota communicates their Toyota communicates their damand for parts 20 days in damand for parts 20 days in advance to their suppliers, with the advance to their suppliers, with the right to change the forecast up to right to change the forecast up to the 10the 10thth day. day.

Principles Of JIT Principles Of JIT ManufacturingManufacturing

Total Quality ManagementTotal Quality Management

Production ManagementProduction Management

Supplier ManagementSupplier Management

Inventory ManagementInventory Management

Human Resource ManagementHuman Resource Management

Inventory ManagementInventory Management

Eliminate Safety Stock = Zero InventoryEliminate Safety Stock = Zero Inventory

Reduce WIPReduce WIP

JIT is not an inventory control systemJIT is not an inventory control system

Reduction in inventory opens up spaceReduction in inventory opens up space

Inventory hides problems in a Inventory hides problems in a process.process.

Water Level = InventoryWater Level = Inventory

Rocks = Problems in the Rocks = Problems in the systemsystem

Boat = Company OperationsBoat = Company Operations

Principles Of JIT Principles Of JIT ManufacturingManufacturing

Total Quality ManagementTotal Quality Management

Production ManagementProduction Management

Supplier ManagementSupplier Management

Inventory ManagementInventory Management

Human Resource ManagementHuman Resource Management

Human Resource Human Resource ManagementManagement

Company-wide InvolvementCompany-wide Involvement• Motivation for continuous Motivation for continuous

improvementimprovement• Problem SolvingProblem Solving• High Employee InteractionHigh Employee Interaction

Build Pride In WorkmanshipBuild Pride In Workmanship

Human Resource Human Resource ManagementManagement

Self-Inspection of workSelf-Inspection of work

Diversified EmployeesDiversified Employees• AbsenteeismAbsenteeism• To eliminate boredom in processTo eliminate boredom in process

Management Support and Management Support and Empowerment of workforceEmpowerment of workforce

Human Resource Human Resource Management at ToyotaManagement at Toyota

In 1986 from a labor force of In 1986 from a labor force of 60,000 Toyota received 2.6 million 60,000 Toyota received 2.6 million improvement proposals, 96% of improvement proposals, 96% of which were implemented by either which were implemented by either management or the employees management or the employees themselves. themselves.

WIP Example WIP Example

Implementation ProblemsImplementation Problems

Worker resistanceWorker resistance

Lack of top management supportLack of top management support

Lack of communicationLack of communication

Lack of formal trainingLack of formal training

Most Important QuestionMost Important Question

What phrase best describes the What phrase best describes the Just-In-Time philosophy? Just-In-Time philosophy?

Continuous Continuous ImprovementImprovement

SummarySummary

JITJIT- A philosophy of - A philosophy of continuous continuous improvementimprovement that puts emphasis that puts emphasis on prevention rather than on prevention rather than correction, and demands a correction, and demands a company wide focus on quality.company wide focus on quality.

ReferencesReferences

Cammaranano, J. Cammaranano, J. Lessons to be Learned: JIT.Lessons to be Learned: JIT. Atlanta, Georgia: Engineering and Atlanta, Georgia: Engineering and Management Press, 1997.Management Press, 1997.

Dear, A. Dear, A. Working toward JIT: Management Technology.Working toward JIT: Management Technology. London: Derek Doyle and London: Derek Doyle and Associates, 1988.Associates, 1988.

Fisher, D. Fisher, D. The JIT Self Test: Success Through Assesment and Implementation.The JIT Self Test: Success Through Assesment and Implementation. Chicago, Chicago, IL: Irwin Inc., 1995. IL: Irwin Inc., 1995.

Hernandez, A. Hernandez, A. JIT Quality: A Practical Approach.JIT Quality: A Practical Approach. Englewood Cliffs, NJ: Prentice-Hall, 1993. Englewood Cliffs, NJ: Prentice-Hall, 1993.Hutchins, D. Hutchins, D. Just-In-Time: Inventory Control.Just-In-Time: Inventory Control. Brookfield, VT: Gower Publishing, 1988. Brookfield, VT: Gower Publishing, 1988.O’Grady, P.J. O’Grady, P.J. Putting the JIT Philosophy Into Practice.Putting the JIT Philosophy Into Practice. New York, NY: Nichols Publishing, New York, NY: Nichols Publishing,

1988.1988.Reinfeld, N.V. Reinfeld, N.V. Handbook of Production and Inventory Control.Handbook of Production and Inventory Control. Englewood Cliffs, NJ: Englewood Cliffs, NJ:

Prentice-Hall, 1987.Prentice-Hall, 1987.Schneiderjans, M.J. Schneiderjans, M.J. Advanced Topics In JIT Management: JIT Systems.Advanced Topics In JIT Management: JIT Systems. Westport, CT: Westport, CT:

Greenwood Publishing Group, 1999.Greenwood Publishing Group, 1999.Taver, R.W. Taver, R.W. Manufacturing Solutions for Consistent Quality and Reliability: The 9 Step Manufacturing Solutions for Consistent Quality and Reliability: The 9 Step

Problem Solving ProcessProblem Solving Process. New York, NY: AMACON, 1995.. New York, NY: AMACON, 1995.Wesner, J.W., Hiatt, J.M., and Trimble, D.C. Wesner, J.W., Hiatt, J.M., and Trimble, D.C. Winning with Quality: Applying Quality Winning with Quality: Applying Quality

Principles in Product Development. Principles in Product Development. Reading, MASS: Addison-Wesley Publishing Co., Reading, MASS: Addison-Wesley Publishing Co., 1995.1995.