Just-In-Time Manufacturing

1
Just-In-Time Manufacturing

• Matt Schmidt
• Penn State University
• OISM 470W

2
Just-In-Time Manufacturing?

• What is JIT Manufacturing?
• Where did it come from?
• What are the main principles?
• Is it easy to Implement?
• What phrase best describes JIT?

3
Just-In Time Manufacturing

• JIT- A philosophy of continuous improvement that
  puts emphasis on prevention rather than
  correction, and demands a company wide focus on
  quality.
• JIT- operational management approach to achieve
  world class manufacturing.
• JIT- production is based on demand

4
History of JIT Manufacturing

• Evolved in Japan after World War II, as a result
  of their diminishing market share in the auto
  industry.
• Toyota Motor Company- Birthplace of the JIT
  Philosophy Under Taiichi Ohno.
• W. Edwards Deming
• 14 points for Management
• JIT is now on the rise in American Industries.

5
Principles Of JIT Manufacturing

• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management

6
Principles Of JIT Manufacturing

• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management

7
Total Quality Management

• Seek long-term commitment to quality efforts with
  continuous improvement
• Quality must be a higher priority than cost
• Minimizing waste

8
Total Quality Management

• Eliminate Quality Inspectors
• Quality is everyones responsibility
• Do it right the first time

9
Principles Of JIT Manufacturing

• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management

10
Production Management

• Pull System vs. Push System
• Pull Made to order
• Push Made for inventory
• Flexability of the system
• Design For Testability In the process
• Poka-Yoke Mistake-proofing
• Throughout entire process

11
Production Management

• Reduced lot sizes Shorter cycle times
• Eliminate disruptions in the process
• Standardized Parts/ Simplicity

12
Production Management

• Communication Techniques
• Completion of task-Kanban
• Problem- Andon or siren/light
• Stopping the process if something goes wrong
  Jidoka
• Preventive Maintenance

13
Production Management at Toyota

• Toyota uses a Kanban pull system throughout the
  production process.
• Each task in the process seems to take identical
  length and work content, so everyone is working
  at the same pace to reduce bottlenecks.

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Principles Of JIT Manufacturing

• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management

15
Supplier Management

• Establish Long Term Relationships with few
  suppliers.
• Delivery of Parts 100 Defect Free
• Where they are needed
• When they are needed
• The exact quantity
• Work Together

16
Supplier Management

• Elimination inspection of parts
• Information Systems
• Eliminating barriers to information
• Communicate problems to suppliers in a positive
  manner.

17
Supplier Relations at Toyota

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

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Principles Of JIT Manufacturing

• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management

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Inventory Management

• Eliminate Safety Stock Zero Inventory
• Reduce WIP
• JIT is not an inventory control system
• Reduction in inventory opens up space

20

• Inventory hides problems in a process.
• Water Level Inventory
• Rocks Problems in the system
• Boat Company Operations

21
Principles Of JIT Manufacturing

• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management

22
Human Resource Management

• Company-wide Involvement
• Motivation for continuous improvement
• Problem Solving
• High Employee Interaction
• Build Pride In Workmanship

23
Human Resource Management

• Self-Inspection of work
• Diversified Employees
• Absenteeism
• To eliminate boredom in process
• Management Support and Empowerment of workforce

24
Human Resource Management at Toyota

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

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WIP Example
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Implementation Problems

• Worker resistance
• Lack of top management support
• Lack of communication
• Lack of formal training

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Most Important Question

• What phrase best describes the
  Just-In-Time philosophy?
• Continuous Improvement

28
Summary

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

29
References

• Cammaranano, J. Lessons to be Learned JIT.
  Atlanta, Georgia Engineering and Management
  Press, 1997.
• Dear, A. Working toward JIT Management
  Technology. London Derek Doyle and Associates,
  1988.
• Fisher, D. The JIT Self Test Success Through
  Assesment and Implementation. Chicago, IL Irwin
  Inc., 1995.
• Hernandez, A. JIT Quality A Practical Approach.
  Englewood Cliffs, NJ Prentice-Hall, 1993.
• Hutchins, D. Just-In-Time Inventory Control.
  Brookfield, VT Gower Publishing, 1988.
• OGrady, P.J. Putting the JIT Philosophy Into
  Practice. New York, NY Nichols Publishing,
  1988.
• Reinfeld, N.V. Handbook of Production and
  Inventory Control. Englewood Cliffs, NJ
  Prentice-Hall, 1987.
• Schneiderjans, M.J. Advanced Topics In JIT
  Management JIT Systems. Westport, CT Greenwood
  Publishing Group, 1999.
• Taver, R.W. Manufacturing Solutions for
  Consistent Quality and Reliability The 9 Step
  Problem Solving Process. New York, NY AMACON,
  1995.
• Wesner, J.W., Hiatt, J.M., and Trimble, D.C.
  Winning with Quality Applying Quality Principles
  in Product Development. Reading, MASS
  Addison-Wesley Publishing Co., 1995.