Chapter 3

JUST IN TIME SYSTEM

3.1 INTRODUCTION

JIT may be described as an extension of the original concept of managing the material

flow in a factory to reduce the inventory levels. In fact, there is much more involved

in a manufacturing organization than reducing inventories to control costs.

Manufacturing has to deal with other issues, such as process control, level of

automation, flexible manufacturing, machine set up times, direct labor productivity,

overhead, supplier management, engineering support, and the quality of product

delivered to customers. A modem manufacturing organization has to deal efficiently

with these issues in order to operate a smooth, productive, and quality minded

department. This chapter gives an overview of JIT system in which all these aspects

are taken care of.

3.2 MANUFACTURING STRATEGY

With the development of faster means of communication, better quality computers

and rapid transportation systems, manufacturing is no longer restricted at local level,

but has become global in character. As a manufacturing company has to become

competitive for its survival, it has to supply products of consistent high quality at

reliable and reduced delivery time. Market also demands more product variants that

means reduced lot size and high flexibility in operations. Manpower cost has also

risen. All these factors tend to increase the product cost. But the industry has to

maintain the cost at a reasonable level. Confronting these challenges, companies

world-wide are forced to find ways to reduce costs, improve quality, and meet the

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ever-changing needs of their customers. One successful solution has been the

adoption of Just-in-time (JIT) manufacturing strategy in which many functional areas

of a company such as manufacturing, engineering, marketing, and purchasing etc. are

involved.

3.3 BACKGROUND

The basic idea of JIT was originally developed in Toyota Company of Japan. In the

1960s, Toyota worked hard on developing a whole range of new approaches to

manage manufacturing [95]. The development of these approaches was hastened by

the 'Oil shock' of the 1960s. By 1972, these new approaches had begun to attract wide

attention in Japan and in the mid 1970s other Japanese companies began to

experiment with, and adopt these approaches. At this stage and for some time later,

this was not known as JIT; it was called 'Toyota Manufacturing System'. By the end

of 1970s, the Toyota Manufacturing System had begun to attract attention in the

West. One of the many elements of this system was a pull scheduling technique using

'Kanbans'. The system first became known in the West as 'Kanban System'. However,

this was rather misleading, as Kanban was only a small part of the total system. Since

early 1980’s, the approach has become widely known. As the approach has been

adapted by Western companies, it has been given many shapes including 'Zero

Inventory', 'World Class Manufacturing', and 'Continuous Flow Manufacturing'.

However, the term that has now become most wide to describe this approach to

manufacturing is 'Just-in-Time system'. The Just-in-Time system is not one technique

or even a set of techniques for manufacturing, but is an overall approach or

philosophy, which embraces both old and new techniques. Now a days, JIT concepts

are being applied in a variety of industries across the globe. Survey and case studies

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of industries of United States, the United Kingdom, Germany, Italy, Korea, Hong

Kong and India [19,36, 94,95,128] have shown growing acceptance of JIT.

3.4 DEFINITIONS OF JIT

It is an approach, which is demand driven and encourages flow type production. It is

also described as a drive to simplify the manufacturing system in order to quickly

detect the problems and force immediate solutions. JIT has been continuously defined

and updated by many researchers. The various definitions and statements have been

tabulated in Table 3.1. JIT can be summarized as a system to eliminate waste and

achieve excellence in an entire organization. The sole purpose of JIT is to eliminate

waste. Anything that does not add any value to the product is termed as waste. Waste

may also include anything that is not necessary for the manufacturing of a product or

is in excess.

3.5 ELEMENTS OF JIT

Various elements of JIT as stated by many researchers are shown in Table 3.2. Brief

description of these elements is given below:

Automation and autonomation. Autonomation means, "to build in a mechanism to

prevent mass-production of defective work in machines or product lines. The

autonomous machine is a machine to which an automatic stopping device is attached.

Thus the aim is to ensure that 100 percent good units flow to the subsequent process,

in a rhythmic, uninterrupted manner.

Bufferstock removal. Constant elimination of buffer stocks is emphasized to

highlight production problems previously shielded by high inventory levels. These

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 Table 3.1 JIT Defmitions/Descriptions/statements as Reported in Literature

Name of author Definition/description/statement

APICS [95] JIT is a philosophy of manufacturing based on a management plan

that identifies and then eliminates all waste and emphasizes

continuous improvement in plant productivity.

Ansari [5] JIT is not a series of techniques rather, it is a manufacturing

philosophy that requires the support, commitment and participation

of human resources at all levels of organization.

Billeshbach [19] JIT can be defined as an organizational philosophy, which utilizes

employees to identify and resolve problems and inefficiencies in the

workplace.

Garg et al. [59] JIT is a philosophy that defines the way the work should be done. It

is concerned with creating the right environment for effective

operation. They further stated that JIT is best defined as an approach

to achieve excellence in a manufacturing company.

Hall [74] JIT is not confined to a set of techniques for improving production

defined in the narrowest way as material conversion. It is a way to

visualize the physical operations of the company from raw material

to customer delivery.

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Mazany [108] JIT is a philosophy that extends throughout the entire organization

and one which emphasizes a proactive approach to the management

of operations.

Monden [113] JIT is an approach where waste in the production process is

systematically identified and removed to reduce cost and lead times,

and improve quality. JIT is a production system to produce the kinds

of units needed, at the time needed, and in the quantities needed.

Prem Vrat et al.[128] JIT is indeed a complex, highly integrated system of methods,

techniques and philosophies which must be understood in a holistic

sense.

Schonberger [137] JIT is a system to produce and deliver finished goods just in time to

be sold, purchased materials just in time to be transformed in to

fabricated parts, and sub assemblies just in time assembled into

finished goods.

Voss [154] JIT is an approach that ensures that the right quantities are purchased

and made at the right time and quality, and that there is no waste.

Voss & Robinson [155] JIT is a production methodology which aims to improve overall

productivity through elimination of waste and which leads to improve

quality.

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 Table 3.2 Elements of JIT in Manufacturing as Reported in Literature

JIT elements

Automation [128]

Autonomation (i.e. Jidoka)[128, 154]

Buffer stock removal [95]

Cellular manufacturing [95,128,154,155]

Computer integrated manufacturing [95]

Continuous improvement [95,154,155]

Effective communication [128]

Flexible workforce [95,100,128]

High quality [95,128,154]

JIT purchasing [95,154,155]

Kanban [51,95,100, 128,155]

Layout improvement [155]

3jp
Poka yoke [128,154]
k
y
a
Preventive maintenance [95,128,155] (2 ^ 1

Process flexibility [51,100]

^
Product & Process simplification [95,155]

Quality circles [128]

Setup time reduction [95,100,128,154,155]

Small lot size [51,95,100,154]

Smooth flow of materials [95]

Smooth production [51,95,100,155]

Standard containers [95,128,155]

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Standardization [51,100]

Statistical process control [155]

Statistical quality control [128]

Streamlined process design [51,100]

Under capacity scheduling [128]

Worker centered quality control [95]

Zero defect [155]

Zero deviation schedule [95]

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have to be resolved without delay in order to maintain production. Removal of buffers

also releases space.

Cellular manufacturing. Many JIT factories are organized in small autonomous

modules or cells, each cell being totally responsible for its own production and supply

of the adjacent module. The cells are designed so that the material flow between the

cells is minimized. For this purpose it is common to create 'families' of parts which

are then processed by a dedicated group of machines in a cell. Within the cell, the

workforce is trained to work as a group and often many functions normally

considered as staff functions such as scheduling and maintenance are brought into the

cell or module.

Computer integrated manufacturing. The use of computers to automate

manufacturing operations, such as changing the type and quantity of manufactured

products through minimal changes in hardware and/or software.

Continuous improvement. JIT is not a one-time effort. It embodies the ethics of

continuous improvement, which needs to be supported by all levels of staff in the

production team. JIT seeks plant wide involvement in work improvement projects.

Suggestion schemes are therefore strongly encouraged and supported.

Flexible workforce. Flexible workforce is created through multifunctional training

and job rotation. Each worker rotates through and performs every job in the workshop

to which he is assigned. In the job rotation system, all managers and supervisors are

made to rotate through every job, each worker within each shop is rotated through and

trained to perform each job in the shop, and scheduling of the workers through job

rotation at a frequency of several times each day. Flexible workforce is necessary to

match the production rate and production type as closely as possible to the market

demand.

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Quality. The achievement of high quality levels is a prerequisite of successful JIT.

Commonly used quality programmes in support of JIT include:

• Zero defects

• Statistical process control

• Statistical quality control

• Process data collection,

• Worker centered quality control,

• Use of Poka-yoke stops devices,

• Autonomous inspection and counting.

• Quality circles

JIT purchasing. Materials and components are purchased in compliance with well-

defined requirements in terms of quantity, quality and delivery. JIT emphasizes small

lot purchasing, vendor development, long term buyer-seller relationships, vendor

involvement in product design, high quality of purchased material, frequent part

delivery, cooperative transport system etc. A full-fledged JIT is virtually impossible

without JIT supply.

Kanban. It is a pull system of managing material movement comprising a 'Kanban

Card' based information system. It helps trigger the movement of material from one

operation to the next. Merely by altering the frequency of the circulating Kanban, the

production system can be made to adjust to demand fluctuations within limits. The

number of cards in the system determines the total inventory. Hence, the objective is

to minimize the total number of Kanbans.

Layout changes. The physical layout of production facilities is arranged so that the

process flow is as streamlined as possible, i.e. for each component, the proportion of

value added time is maximized. The flow is analyzed in these terms and the layout

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configured accordingly resulting in the reduction and/or elimination of stores and

conveyors. Use of dedicated lines, U-shaped or parallel lines, use of small machines

with multiple copies, small plants with multiple copies may be possible. Flexibility of

equipment is essential to adjust quickly to changes in market demand, product type

etc.

Poka yoke. Autonomous defect control is a pillar of JIT. In this system, almost all

machines are autonomous, so that mass production of defects is prevented and

machine breakdowns are autonomously checked. Poka-yoke is one such mechanism

to prevent defective work by putting various checking devices on the implements and

instruments. This idea is extended to the production lines of manual work through the

Andon light board system. If something abnormal happens in a product line, the

worker pushes his stop button, thereby stopping the whole line.

Preventive maintenance. Effective JIT requires removal of causes of uncertainty

and waste. A major cause of uncertainty is breakdown. Rigorous preventive

maintenance attempts to remove this uncertainty.

Product and Process simplification. This can be achieved by two measures: the

rationalization of the product range and the simplification of the methods of

manufacture. Simplification is also brought about through component item

standardization and component routing standardization.

Small-lots and Set up time reduction. JIT advocates small lot production on the

basis that it allows production of daily mix of products that more closely matches

demand. The object of minimizing setup times is to reduce the batch sizes to the

minimum possible thus reducing manufacturing cycle time and the manufacturing

inventory. This also results in release of floor space and minimizes material handling.

Until the introduction of flexible manufacturing systems, however, small batch

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production generally not justified because it was too expensive to set up conventional,

nonautomated equipment for a short production run. Today, however, the driving

force behind flexible manufacturing is to make it economically justifiable and

technically possible to produce even a single unit. Flexible automation is a prime tool

for companies that implement JIT. Setups that take hours in a traditional approach

take minutes in JIT operations. Use of 'SMED'- Single Minute Exchange of Dies

System-is common to set up reduction projects.

Smoothing of production. Smoothing of production is the most important condition

to achieve JIT. Production smoothing enables the system to adapt smoothly to the

variations in customer demand by gradually changing the frequency of lots without

altering the lot size in each process. To achieve this, JIT systems often resort to

undercapacity scheduling. Flexibility of production lines can be increased to allow

concurrent assembly of different models on the same line.

Standard containers. JIT emphasizes use of small-standardized containers. This

way it is possible to greatly simplify the material movement and the use of material

handling equipment.

Standardization. The emphasis on the standardization of activities arises from

balancing between processes, which is expected to improve operational effectiveness

and efficiency. By standardizing job activities, resources can be focussed on only a

few areas. The resulting impact on productivity can be significantly higher if one

standardizes activities and concentrates organizational efforts and resources on those

limited activities. Standardization of activities also reduces the time and cost of cross­

training employees, but the flexibility has to be maintained in order to serve the

different needs.

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3.6 JIT IMPLEMENTATION ASPECTS

JIT is a management philosophy affecting every aspect of an organization not only

manufacturing but also marketing, human resource management, planning, and all

other organizational functions. Successful JIT implementation requires not only

commitment of everyone within an organization but also the cooperation of suppliers,

and often of the customers as well. In the literature, following factors have been

suggested for successful JIT implementation.

Top management support. Top management support has been recognized as the

most important factor in the implementation of JIT because JIT is an innovative

approach, which requires changes throughout the organization as well as the

commitment of all people within the organization

Employees participation and bottomup management. Employees' participation and

bottomup management have been recognized as important factors for successful JIT

implementation because they lead to the improvement of performance in quality,

productivity and flexibility. It is achieved through teamwork, education, flexibility in

workpractices and skills, simple payment schemes, appropriate skill training,

appointment to management positions who understand production.

Education and training. Education and training plays a pivotal role in a JIT

environment. Both attitude change and skill development are necessary. Management

and employees at all levels in the organization must understand and accept the need

for JIT change. It is important that all levels of management understand JIT

philosophy, how JIT operates, the expected benefits, and needs for JIT

implementation. Management also needs to understand the nature of the attitudinal

skill and knowledge level changes required of them and their employees. One

important requirement for full-scale implementation of JIT is an increase in the level

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of technical skills and flexibility of workers. Others include better interpersonal and

communication skills, stricter adherence to procedures and schedule, increased

judgement and responsibility, and greater dedication and commitment.

Teamwork. Involvement of people at all levels of an organization is paramount in

JIT implementation aspects. The creation and maintenance of teams is the mechanism

by which this involvement occurs.

Quality. One of the basic requirements for a successful implementation of JIT is the

existence of total quality management principles. JIT experts advice against the

implementation of JIT unless a company has made a full commitment to quality. JIT

requires quality throughout the process, from the supplier through manufacturing all

the way to the customer. Commonly used programmes in support of JIT include zero

defects, statistical process control, process data collection, worker centered quality

control, use of poka yoke stop devices etc. Employees must perform their tasks

correctly the first time. The use of quality circles and Kaizen concepts are helpful in

this regard.

Good relationship with vendors. Materials and components are purchased in

compliance with well-defined requirements in terms of quantity, quality and delivery.

JIT emphasizes small lot purchasing, vendor development, long term buyer-seller

relationships, vendor involvement in product design, high quality of purchased

material, frequent part delivery, cooperative transport system etc.

3.7 BENEFITS OF JIT IMPLEMENTATION

Various benefits of JIT as stated by many researchers are shown in Table 3.3. These

benefits can be grouped into the following categories:

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 Table 3.3 Benefits of JIT in Manufacturing as Reported in Literature

Benefits

Fast response to engineering changes [95]

Improved competitiveness position [36]

Improved equipment efficiency [51,36,100]

Improved worker efficiency [51,36,100]

Improved worker motivation [51,36,100]

Increased administrative efficiency [95,137]

Increased flexibility [95,154,155]

Increased profit margins [36]

Increased teamwork [51,100]

Less scrap [51,100,137]

Lower overheads [ 154,155]

Reduced product cost [36,95]

Reduced production lead-time [36]

Reduced raw materials/parts [51,100,154,155]

Reduced space requirements [36,51,100,137,154,155]

Increased quality [36,51,95,100,137,154,155]

Increased productivity [51,95,100,137,154,155]

Reduced inventories [51,100,137]

Reduced labor requirements [36]

Reduced paperwork [36]

Reduced work in process reduction [51,100,154]

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Improved competitive position. The most significant benefit of JIT is to improve

the responsiveness of the firm to the changes in the market place- thereby affording it

overwhelming advantages in competition.

Product cost. Product cost is greatly reduced due to reduction of manufacturing

cycle time, reduction of scrap, inventories, space requirements, material handling, and

elimination of non-value adding operations.

Quality. Quality is greatly improved due to fast detection and correction of defects,

use of automatic stop devices, higher quality of purchased parts, and worker centered

quality control and statistical process control. Total preventive maintenance, and

lower inventory levels also help quality improvement.

Design. Due to fast response to engineering changes, alternate designs can be

quickly brought on the shop floor

Productivity. Productivity improvements are obtained due to the use of flexible

workforce, reduced rework, reduced inspection, reduced part delay and reduced

throughput time. Workers acquire multiple skills and become highly productive.

Flexibility. System's flexibility i.e. response to change improves. The change may

involve variations in quantity of demand, type of products, routing pattern, alternate

materials, workforce availability etc.

Administrative efficiency. There are fewer suppliers, minimal expediting and

release of papers, simple communication and receiving. Many times incoming

inspection is eliminated altogether.

In most applications, benefits reported have been dramatic. However, a point

commonly made by most implementing organizations is that there are so many

intangible and non-quantifiable benefits of JIT, that it is grossly erroneous to assess

JIT's impact purely from quantified benefits.

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3.8 PROBLEMS IN IMPLEMENTATION

It is easy to understand the concepts of JIT in terms of eliminating waste and

improving productivity. But, in reality, the concepts are difficult to implement because

of the need for fundamental organizational changes Wafa and Yasin [158]. The factors

that hinder the implementation of JIT in manufacturing environment have been

grouped into four categories. These four categories are:

• Management

• Workers

• Process

• Suppliers

Management

• Lack of formal training programmes for management

• Extent of management support to JIT implementation

• Lack of communication between workers and management

Workers

• Lack of formal training programmes for workers

• Reduction in labour turnover rate

• Increase in workforce morale

• Extent of cross training workers

• Extent of workers' resistance to cross training

• Extent of the use of unionized workers

• Unionized workers as a hindering factor to JIT implementation

Process

Reduction of rejects of finished goods

Improvement of finished goods inventory

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 Reduction in lead times

• Reduction in setup times

• Reduction in the levels of work load variability

• Cut down setup time through machine modification or replacement of existing

equipment

• Cut down maintenance time through machine modification or replacement of

existing equipment

Suppliers

• Lack of cooperation of suppliers in communication and information exchange

• Lack of cooperation of suppliers in correctly supplied materials

• Lack of cooperation of suppliers in timing of supplied materials

• Extent of use of sole suppliers

Goonatilake [69] and Ebrahimpour & Schonberger [51] have exposed the

problems of developing countries on the basis of their studies of manufacturing firms

in developing countries. The problems include underutilization of capacity, low

productivity, unreliable and long lead times, shortage of raw materials and parts,

inferior quality, lack of technology transfer and management etc. These problems

identified by researchers in context of developing countries including India are shown

in Table 3.4.

3.9 MISCONCEPTIONS ABOUT JIT PHILOSOPHY

The following are certain misconceptions about JIT philosophy;

JIT being restricted to high technology systems. Being a philosophy, JIT doesn't

restrict itself to high technology manufacturing environments, which make extensive

use of modem technologies like FMS, CIM etc. JIT philosophy is valid in any

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 Table 3.4 Relevant Problems of Developing Countries in JIT context as Reported in Literature

Problems

Inferior quality [51]

Lack of technology transfer and management [51 ]

Little worker's motivation [128]

Low productivity [51]

Non- receipt of delivery by buyer of exact quantity on exact time [128]

Poor quality of incoming material [128]

Shortage of raw materials and parts [128,69]

Underutilization of capacities [51,69]

Unreliable long lead times [51,69]

Unreliable transportation system [128]

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manufacturing environment, regardless of the level of advancement in the technology

hardware.

JIT being restricted to any specific type of industry or size of the industry.

Organizations of different sizes, in a variety of industries, have successfully

implemented JIT. Indeed some applications have shown that JIT is eminently suited

to nonmanufacturing situations as well, such as in service and administrative work

situations.

JIT is highly cultural specific. Being of Japanese origin, there could be a tendency

to believe that success of JIT is highly culture specific. But there are ample and

conclusive evidence that culture doesn't stand in the way of JIT implementation.

However, cultural differences play a role in the adaptation of JIT and in the

determination of relative priorities for implementing specific components of JIT.

3.10 SUMMARY

Just-in-Time concept has changed the way manufacturing organizations do things.

Some of the JITconcepts are completely opposite to traditional ways of thinking. It is

human nature to resist change, and the implementation of JIT system is typical of this.

People resist these new ideas and call them risky. But it is important to realize that JIT

will not work if it has to be forced against everybody's will. Voluntary participation

and training is necessary.

Being a philosophy, JIT does not restrict itself to high technology manufacturing

environments which make extensive use modem technologies like flexible

manufacturing systems (FMS) or computer integrated manufacturing (CIM). JIT

philosophy is valid in any manufacturing environments, regardless of the level of

automation in the technology hardware. Similarly, the philosophy is not limited to any

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specific type of industry nor does the size of the organization matter. Organizations of

different sizes, in a variety of industries, have successfully implemented JIT

philosophy. Indeed, some applications [19,82,160] have shown that JIT is eminently

suited to non- manufacturing situations as well as, such as in service and

administrative work situations.

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