Operation Management

JIT AND LEAN

SYSTEMS
GROUP 5
JIT and Lean
Systems
Just-In-time (JIT) is a philosophy originating
from the Japanese auto maker Toyota where
Taiichi Ohno developed the Toyota Production
system (Ohno, 1988). The basic idea behind
JIT is to produce only what you need, when you
need it. This may seem a simple idea but to
deliver it requires a number of elements in
place such as the elimination of wasteful
activities and continuous improvements.
ELIMINATE
WASTE
WASTE
- represent unproductive resources
- does not add value to the operation
 Types of Waste

2. Waiting Time 3. Transport

1. Overproduction
This is the time spent by labour or Unnecessary transportation of WIP
This is classified as the greatest equipment waiting to add value to a (work in progress) is another source of
source of waste and is an outcome of product. This may be disguised by waste. Layout changes can substantially
producing more than is needed by the undertaking unnecessary operations reduce transportation time.
next process. which are not immediately needed.
 Eliminate
Waste
4. PROCESS. Some 6. MOTION. Simplification
operations do not add of work movement will
value to the product but reduce waste caused by
are simply there because of unnecessary motion of
poor design or labour and
machine maintenance. equipment.
Improved design or 7. DEFECTIVE GOODS. The
preventative maintenance total costs of poor quality
should eliminate these can be very high and will
processes. include scrap material,
5. INVENTORY. Inventory wasted
of all types (e.g. pipeline, labour time and time
cycle) is considered as expediting orders and loss
Waste is anything that does
not add value from the
customers point of view.

Storage, inspection, delay,

waiting in queues and
defective products do not add
values and are 100% waste.
Continuous Improvement
(Kaizen)
Continuous Improvement or Kaizen, the Japanese term, is a
philosophy which believes that it is possible to get to the deals of JIT
by a continuous stream of improvements over time.
Kaizen is core to lean manufacturing and the Toyota Way. It was
developed in the manufacturing sector to lower defects, eliminate
waste, boost productivity, encourage worker purpose and
accountability and promote innovation.
Kaizen
Kaizen is the concept of creating small, positive
changes to eventually reap major
improvements.

An attitude based on cooperation and

commitment instead of radical, top-down
transformation

everything can always be improved, Nothing is

status quo, and adaptation trumps
perfectionism.
Kaizen cycle for continuous improvement
 5 S OF KAIZEN
01 03 05
02 04
Sort Shine Sustain
Set In Standardize
the first step Order regular maintaining
in making organized, cleaning and make it easy to what has
things cleaned identify and maintenance maintain- been
up and arranged simplify and accomplished
organized everything in a standardize
work area
 The idea of a pull system comes from the need to
reduce inventory within the production system. In a
push system a schedule pushes work on to machines

JIT Pull which is then passed through to the next work centre.

Systems The pull system comes from the idea of a supermarket

in which items are purchased by a customer only when
needed and are replenished as they are removed.

To implement a pull system a kanban (Japanese for

‘card’ or ‘sign’) is used to pass information through the
production system.
2 Types of
Kanban System
Single Card Kanban System
In this system, each card represents a single task or unit of
work. As work progresses, the card moves through various
stages on a board (e.g., To Do, In Progress, Done).

Two Card Kanban System

This system involves two types of cards: signal cards and work
cards. Signal cards indicate the need for more work to be
pulled into a stage of the process. Work cards represent the
actual tasks being worked on.
Operation
Principles of
Kanban System
Move a kanban only when the lot it represents is
1 consumed

2 No withdrawal of parts without a kanban is allowed

The number of parts issued to the subsequent

3 process must be the exact number specified by the
kanban

A kanban should always be attached to the

4
physical product
Operation
Principles of
Kanban System
The preceding process should always produce its parts in
5 the quantities withdrawn by the subsequent process

Defective parts should never be conveyed to the

6 subsequent process

A high level of quality must be maintained because of the

lack of buffer inventory. A feedhack mechanism which
7
reports quality problema quickly to the preceding process
must be implemented.

Process the kanbans in every work centre strictly in order in

8
which they arrive at the work centre