Developments of JIT and Lean Operations 1960’s: Developed as Toyota Production System by Taiichi Ohno and his colleagues 1970’s: U.S. and European auto makers began to apply JIT to improve quality and productivity 1990’s and beyond: Expanded the JIT concept to streamline all types of operations
Definition of JIT A set of techniques to increase, productivity, improve quality, and reduce cost of an operations A management philosophy to promote elimination of waste and continuous improvement of productivity
What Could Be the Expected Benefits of JIT?
Main Elements of JIT Elimination of waste Quality at the source Balanced and flexible work flow Continuous improvement (Kaizen) Simplification and visual control Focus on customer needs Partnerships with key suppliers
What is A “Waste?”
Why is Inventory Reduction Important?
Quality at the Source Jidoka – autonomation (automatic detection of defects, e.g., Poka-yoke) Employee empowerment Prevention orientation (elimination of root causes through PDSA cycle)
Balanced and Flexible Work Flow Yo-i-don (ready, set, go) system Stable production schedule Set-up time reduction Flow-shop and cellular layouts Shojinka (flexible & multi-skilled workforce) Teamwork Total productive maintenance (TPM)
Respect for People Productivity improvement needs employee support Demonstrate by - providing cross-training opportunities
- creating a safe and equitable work environment
- encouraging people to achieve their potential by giving them greater responsibility and authority
- promoting teamwork (formal and informal)
- developing partnerships with unions
Continuous Improvement (Kaizen) Employee suggestion system Process improvement 5S’s - Seiri - organization
- Seiton - tidiness
- Seiso - purity
- Seiketsu - cleanliness
- Shitsuke - discipline
Simplification and Visual Control Standard and simple product designs Andon boards Kanban pull system Flag systems Music as signals
Focus on Customer Needs Customer needs determine the “value” of a product or service Be responsive to customers needs (present and future) Strive to “delight,” not just “satisfy” customers
Partnerships with Suppliers Reduce number of suppliers Use long-term contracts Emphasize price, delivery, and services Improve communication Share information Develop local just-in-time delivery Provide technical support to suppliers
JIT Implementation Steering committee Education program Pilot project planning Employee training Pilot implementation Pilot post mortem Feedback to steering committee
Advancements in JIT (JIT II) Backwards Integration of staff and line functions to suppliers (e.g., purchasing) Requires EDI or web access to materials and logistics systems On-site supplier representative(s) with transaction processing authority Goal: link suppliers’ cycle to firm’s cycle to mutually reduce wait and move times
How Can JIT Be Applied to Non-Manufacturing Operations?
What Are Toyota’s Secrets of Success?
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