Production Operations
Management
Just-In-Time
Manufacturing
U. Akinc
Bus 241
1
Just-in-Time (JIT)
Just in time is a philosophy of management
that transcends inventory management,
indeed manufacturing management
 Predicated on eliminating all waste from
manufacturing
 Waste to be eliminated includes anything
that does not add value to the product or
service

Bus 241
2
Examples of Waste
Inventory
 Inspection
 Set-up Time
 Data Processing
 Most Indirect Labor
 Rework
 Scrap
 Customer Returns

Bus 241
3
JIT & Competitive Priorities

Reduces costs via waste elimination

Increases conformance quality

Improves flexibility due to small inventory

Improves delivery performance due to
shorter lead times
Bus 241
4
JIT makes problems Visible
Bus 241
5
Functions of Inventories
Revisited

Safety Stocks

Lot Size Inventories

Anticipation Stocks

De-coupling

Transit

Speculation
Bus 241
6
Pillars of JIT
Set-up Time reduction
 Total Quality Management
 Vendor Relations
 Flexible Resources
 Employee Involvement
 Meticulous Maintenance
 Pull vs. Push System of Scheduling


KANBAN
Bus 241
7
JIT works best with...

Uniform production rate

Flexible workforce

Limited product variety
Bus 241
8
A KANBAN
Bus 241
9
Two-card Kanban
Bus 241
10
Typical Benefits of JIT

5 Companies Surveyed:
Lead time down by 90%
 Inventory down by 35-73%
 Set up time down by 75-95%
 Material costs down by 6-11%
 Quality costs down by 26-63%


Harley Davidson
Inventory turns 7 to 20
 Direct labor prod. up 50%
 Rework reduction 80%
 Warranty costs down by 90%’

Bus 241
11