Just In time (JIT) and Lean Systems

7.	Just In time (JIT) and Lean Systems Just In time (JIT) is a philosophy originating from the Japanese auto maker Toyota where Taiichi Ohno developed the Toyota Production system (Ohno, 1988). The basic idea behind JIT is to produce only what you need, when you need it. This may seem a simple idea but to deliver it requires a number of elements in place such as the elimination of wasteful activities and continuous improvements.
	7.1.	Eliminate Waste Waste is considered in the widest sense as any activity which does not add value to the operation. Seven types of waste identified by Toyota are as follows :
		-	Over-Production. This is classified as the greatest source of waste and is an outcome of producing more than is needed by the next process.
		-	Waiting Time. This is the time spent by labour or equipment waiting to add value to a product. This may be disguised by undertaking unnecessary operations (e.g. generating work in progress (WIP) on a machine) which are not immediately needed (i.e. the waste is converted from time to WIP).
		-	Transport. Unnecessary transportation of WIP is another source of waste. Layout changes can substantially reduce transportation time.
		-	Process. Some operations do not add value to the product but are simply there because of poor design or machine maintenance. Improved design or preventative maintenance should eliminate these processes.
		-	Inventory. Inventory of all types (e.g. pipeline, cycle) is considered as waste and should be eliminated.
		-	Motion. Simplification of work movement will reduce waste caused by unnecessary motion of labour and equipment.
		-	Defective Goods. The total costs of poor quality can be very high and will include scrap material, wasted labour time and time expediting orders and loss of goodwill through missed delivery dates.
	7.2.	Continuous Improvement Continuous Improvement or Kaizen, the Japanese term, is a philosophy which believes that it is possible to get to the ideals of JIT by a continuous stream of improvements over time.
	7.3.	Just-In-time (JIT) Pull Systems The idea of a pull system comes from the need to reduce inventory within the production system. In a push system a schedule pushes work on to machines which is then passed through to the next work centre. A production system for an automobile will require the co-ordination of thousands of components, many of which will need to be grouped together to form an assembly. In order to ensure that there are no stoppages it is necessary to have inventory in the system because it is difficult to co-ordinate parts to arrive at a particular station simultaneously. The pull system comes from the idea of a supermarket in which items are purchased by a customer only when needed and are replenished as they are removed. Thus inventory co-ordination is controlled by a customer pulling items from the system which are then replaced as needed. To implement a pull system a kanban (Japanese for ‘card’ or ‘sign’) is used to pass information through the production system. Each kanban provides information on the part identification, quantity per container that the part is transported in and the preceding and next work station. Kanbans in themselves do not provide the schedule for production but without them production cannot take place as they authorise the production and movement of material through the pull system. Kanbans need not be a card, but something that can be used as a signal for production such as a marked area of floorspace. There are two types of kanban system, the single-card and two-card. The single-card system uses only one type of kanban card called the conveyance kanban which authorises the movement of parts. The number of containers at a work centre is limited by the number of kanbans. A signal to replace inventory at the work centre can only be sent when the container is emptied. Toyota use a dual card system which in addition to the conveyance kanban, utilises a production kanban to authorise the production of parts. This system permits greater control over production as well as inventory. If the processes are tightly linked (i.e. one always follows the other) then a single kanban can be used. In order for a kanban system to be implemented it is important that the seven operational rules that govern the system are followed. These rules can be summarised as follows :
		-	Move a kanban only when the lot it represents is consumed
		-	No withdrawal of parts without a kanban is allowed
		-	The number of parts issued to the subsequent process must be the exact number specified by the kanban.
		-	A kanban should always be attached to the physical product
		-	The preceding process should always produce its parts in the quantities withdrawn by the subsequent process.
		-	Defective parts should never be conveyed to the subsequent process
		-	A high level of quality must be maintained because of the lack of buffer inventory. A feedback mechanism which reports quality problems quickly to the preceding process must be implemented.
		-	Process the kanbans in every work centre strictly in order in which they arrive at the work centre
		If several kanbans are waiting for production they must be served in the order that they have arrived. If the rule is not followed there will be a gap in the production rate of one or more of the subsequent processes. The system is implemented with a given number of cards in order to obtain a smooth flow. The number of cards is then decreased, decreasing inventory and any problems which surface are tackled. Cards are decreased, one at a time, to continue the continuous improvement process.