Just-in-Time and Lean Operations Developments of jit and Lean Operations 1960’s: Developed as Toyota Production System by Taiichi Ohno and his colleagues

Just-in-Time and Lean Operations

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

• Respect for people

• 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

• Statistical process control

• 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

• Performance display systems

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

• Top management commitment

• Steering committee

• Education program

• Pilot project planning

• Employee training

• Pilot implementation

• Pilot post mortem

• Feedback to steering committee

• Expansion to next project

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?