Production Operations Management Just-In-Time Manufacturing


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Production Operations Management

  • Just-In-Time Manufacturing

  • U. Akinc


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



Examples of Waste

  • Inventory

  • Inspection

  • Set-up Time

  • Data Processing

  • Most Indirect Labor

  • Rework

  • Scrap

  • Customer Returns



JIT & Competitive Priorities



JIT makes problems Visible



Functions of Inventories Revisited

  • Safety Stocks

  • Lot Size Inventories

  • Anticipation Stocks

  • De-coupling

  • Transit

  • Speculation



Pillars of JIT



JIT works best with...



A KANBAN



Two-card Kanban



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%’



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