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Production Operations Management

Just-In-Time (JIT) manufacturing is a management philosophy focused on waste elimination within production processes. By systematically reducing inefficiencies related to inventory, set-up time, inspection, and more, JIT fosters enhanced product quality, increased flexibility, and improved delivery performance. Key pillars of JIT include total quality management, vendor relations, and employee involvement. Companies adopting JIT can drastically reduce lead times and inventory levels, resulting in significant cost savings and efficiency gains. Explore JIT's critical principles and transformative benefits for modern manufacturing.

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Production Operations Management

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  1. Production Operations Management Just-In-Time Manufacturing U. Akinc Bus 241

  2. 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

  3. Examples of Waste • Inventory • Inspection • Set-up Time • Data Processing • Most Indirect Labor • Rework • Scrap • Customer Returns Bus 241

  4. 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

  5. JIT makes problems Visible Bus 241

  6. Functions of InventoriesRevisited • Safety Stocks • Lot Size Inventories • Anticipation Stocks • De-coupling • Transit • Speculation Bus 241

  7. 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

  8. JIT works best with... • Uniform production rate • Flexible workforce • Limited product variety Bus 241

  9. A KANBAN Bus 241

  10. Two-card Kanban Bus 241

  11. 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

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