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 everyone’s 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.

14. 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.

18. Principles Of JIT Manufacturing • Total Quality Management • Production Management • Supplier Management • Inventory Management • Human Resource Management

19. 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.

25. WIP Example

26. Implementation Problems • Worker resistance • Lack of top management support • Lack of communication • Lack of formal training

27. 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. O’Grady, 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.