Just-in-Time and
Lean Operations
Instructed by
Muhammad Waqas Chughtai
What Are Toyota’s Secrets of
Success?
What Are Toyota’s Secrets of
Success?
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
JIT is set of techniques to increase, productivity,
improve quality, and reduce cost of an
operations.
JIT philosophy means getting the right quantity
of goods at the right place and the right time
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
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)
On-site supplier representative(s) with
transaction processing authority
How Can JIT Be Applied to Non-
Manufacturing Operations?
What Are Toyota’s Secrets of
Success?
Thanks