A PROJECT REPORT

On
Just In Time
&
Lean manufacturing in operation system
Under the guidance of
Mr.Nitesh Sharma
Submitted by
Rahul Sharma
Roll no.
In partial fulfillment of the requirement
For the award the degree
Of
Master of business administration
In
Operation management

A project report entitled

Just In Time
&
Lean manufacturing in operation system
By
Rahul Sharma
Roll no.
Submitted in partial fulfillment of the
Requirement for the degree of
Master of business administration
To

I hereby declare that the project report entitled

Just In Time & Lean manufacturing in operation system
Submitted in partial fulfillment of the requirements for the degree of masters of
business administration
TO
Sikkim-Manipal university, India is my original work and not submitted for the award
of any other degree, diploma, fellowship, or any other similar title or prizes.
Place:..
Date:...
Sign:
(Surya prakash vaishnav)
Roll no: 1408019160

This is to certify that the project report entitled

(JIT and lean manufacturing in operation system)
Submitted in partial fulfillment of the requirements for the degree of
Masters of Business Administration
of Sikkim-Manipal University
by
(Rahul Sharma)
Roll nohas worked under my supervision and guidance and that no part of this
report has been submitted for the award of any other
degree, Diploma, Fellowship or other similar titles or prizes and that the
work has not been published in any journal or Magazine

(Guides Name and Qualification)

Certified

ACKNOWLEDGEMENT
it is not possible to prepare a project report without the assistance & encouragement of
other people. This one is certainly no exception.
On the very outset of this report, I would like to extend my sincere & heartfelt
obligation towards all the personages who have helped me in this Endeavour. Without
their active guidance, help, cooperation & encouragement, I would not have made
headway in the project.
I am ineffably indebted to Mr. Shyam sundar Sharma (HR) For conscientious guidance
and encouragement to accomplish this assignment.
I am extremely thankful and pay my gratitude to my faculty guide Mr.
for her valuable guidance and support on completion of this project in its presently.
I also acknowledge with a deep sense of reverence, my gratitude towards my parents
and member of my family, who has always supported me morally as well as
economically.
At last but least gratitude goes to all of my friends who directly or indirectly helped me
to complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Thanking You
Rahul Sharma

INDEX
CHAPTER

DESCRIPTION

PAGE NO

Executive summary of the project

1-2

Introduction

3-7

Just In Time Philosophy

8-10

Value Added Analysis

Understanding Waste

15-16

JIT & Quality

17-22

Uniform plant load

23-26

Setup time reduction

27-30

Cellular manufacturing

31-34

10

Pull systems

35-38

11

JIT purchasing

39-41

12

JIT in conjunction with manufacturing resource planning

42-43

13

Management responsibility

44-46

14

Implementing JIT

47-48

15

Case study

49-55

16

Glossary

56-58

17

Conclusion

59

18

References

60-65

11-14

LIST OF TABLE
Sr no

caption

page no

(4.1) value-added analysis

12

(4.2) value-added analysis

13

(15.1) date wise number of pilgrims through jit & physical queue 54

LIST OF FIGURE
Sr no

description

page no

Getting to the root cause

20

Poka yoke speaker box assembly

21

Poka yoke drilling holes in a side plate

22

level loading

25

Traditional manufacturing system

31

U-shaped work cell

32

Cellular manufacturing system

34

Push system

36

Kanban system

37

10

Production control by pull system

38

11

Typical manufacturing costs

39

12

Waiting time in hours per day in the month of april 2014

53

13

Number of pilgrims through jit & physical queue

55

CHAPTER 1
1. EXECUTIVE SUMMARY OF THE PROJECT
This report provide an analysis and evolution of the just in time & lean manufacturing, the
advantage and disadvantage of the system and how it would benefit. The jit is a process
where goods are ordered as required, as opposed to the currently used batch processing
system where goods are made in bulk & stored in warehouse until sold. The just in time &
lean manufacturing was initially developed to not only cut down the amount of waste
produced by other systems, which was seen as incurring unnecessary cost rather than adding
value to the company, but to also meet customer demands with minimum delays. It has been
found that when implemented correctly the jit system can benefit the company in numerous
ways. For example, it has been shown to reduce the amount of inventory stored in warehouse
as goods are sold direct to the customer as ordered. It has been shown to speed up production
lead times, eliminate and/or minimize the amount of quality control and reduce the amount of
faulty stock returned. As well as benefitting company in reducing transportations cost, as
goods are sent form factory to the customer rather than via a warehouse first, another
advantage is, the jit system allows the company to keep up to date with customer demands
and new technology as the goods are made to order so the newest technology available is
used. This is extremely important when dealing with goods that have a high turnover such as
computers, because the goods would be produced as needed. It has also been proven to
eliminate waste on any goods manufacturing which have become obsolete due to
technological advance, while there are some disadvantage to the jit system, such as stock outs
and possible communication breaks downs, (explain in detail in the report), the advantage far
out weight the disadvantages.
1.1 INTRODUCTION TO THE STUDY:
Aim of doing the project: to implement the management study and understand them better
in the way of our project.
1.2 OBJECTIVE OF DOING THE PROJECT:
(i) To implementing our learnings of project.
(ii) To be upgraded with the practical business life.
(iii) To develop the project skills in us.
(iv) To increase our confidence level.
(v) To implement the quality to work.

1.3 IMPORTANCE OF DOING THE PROJECT:

(i) Acquiring detailed knowledge in specific topic.
(ii) Dealing with the practical corporate environment.
(iii) Dealing with practical models.
(1)
(iv) throwing out best possible project skills to stand out of the crowd.
(v) Enhancing the creative and innovative skills.
1.4 METHODOLOGY OF DATA COLLECTION:
(i) primary data collection: survey, questionnaire, data analysis
(ii) secondary data collection: internet, newspaper, books

CHAPTER 2
2. INTRODUCTION
Just-in-time (JIT) & Lean manufacturing or lean production, often simply "lean", is a
systematic method for the elimination of waste within a manufacturing system. Lean also
takes into account waste created through overburden and waste created through unevenness
in workloads. Working from the perspective of the client who consumes a product or service,
"value" is any action or process that a customer would be willing to pay for.
Essentially, lean is centered on making obvious what adds value by reducing everything else.
Lean manufacturing is a management philosophy derived mostly from the Toyota Production
System, also known as just-in-time production or the Toyota production system (TPS), is a
methodology aimed primarily at reducing flow times within production as well as response
times from suppliers and to customers. Following its origin and development in Japan,
largely in the 1960s and 1970s and particularly at Toyota, JIT migrated to Western industry in
the 1980s, where its features were put into effect in many manufacturing companiesas is
attested to in several books and compendia of case studies and articles from the 1980s.
Alternative terms for JIT manufacturing have been used. Motorola's choice was short-cycle
manufacturing (SCM). IBM's was continuous-flow manufacturing (CFM), and demand-flow
manufacturing (DFM), a term handed down from consultant John Constanza at his Institute
of Technology in Colorado. Still another alternative was mentioned by Goddard, who said
that "Toyota Production System is often mistakenly referred to as the 'Kanban System,'" and
pointed out that kanban is but one element of TPS, as well as JIT production.

But the wide use of the term JIT manufacturing throughout the 1980s faded fast in the 1990s,
as the new term lean manufacturing became established as "a more recent name for JIT." As
just one testament to the commonality of the two terms, Toyota production system (TPS) has
been and is widely used as a synonym for both JIT and lean manufacturing.

2.1 CONCEPT OF JIT & LEAN MANUFACTURING

The nature of just-in-time, meaning JIT manufacturing/production or JIT in any other setting
(e.g., administration, may be reduced to four somewhat differently stated views.
Many have said that JIT revolves around wastes: "At its core, JIT is a waste-elimination
philosophy . . . ." Among the earliest writings on the matter, Shingo lists, as the "7 wastes,"
the wastes of: over-production, waiting, transportation, processing itself, stocks, motion, and
making defective products.
(3)
Others have equated JIT production with kanban. For example, one book has both kanban
and just-in-time in its main title.
Still others assert that JIT's main aim is elimination of inventories, although Murray
maintains that "JIT is defined as 'NOT an inventory control systembut a way of thinking,
working and management to eliminate wastes in the manufacturing process'. In keeping with
that view, JIT manufacturing has often been referred to in contrast to the more conventional
just-in-case (JIC) mode: JIC keeps extra inventories to be used in case of disruptions (e.g.,
scrap, rework, equipment breakdowns, late deliveries), whereas JIT continually reduces such
inventory buffers by continually attacking causes of disruptions[need quotation to verify]
Zero Inventories is the title of a 1983 book by Hall, but the book actually does not suggest
that JIT is mainly about inventory; rather the book features quick setup, cells (group
technology), kanban, and so on, and zero inventory is posed only as an unattainable ideal, one
that is easy to see and count.
The fourth view is that JIT is mainly about quick response, relating to the "T"for "time"
in JIT. As Blackburn put it, "Quick response is one of the major benefits of JIT. Time or
speed is the linchpin of this manufacturing philosophy. Inventory, on the other hand, is an
ancillary benefit." Quick response refers alternatively to reduction of cycle times, flow times,
throughput times, and, all the way to the customer, lead times: "JIT," according to Bicheno,
has the "provocative goal," of producing "instantaneously, with perfect quality and minimum
waste," and he goes on to qualify "instantaneously" by saying, "The ideal way to produce the
end product is literally just in time to meet the market demand for it. Thus, JIT is primarily a
lead-time reduction programme."
The four JIT viewsreferring to wastes, kanban, inventory, and quick response/lead-time
reductiondo not suggest opposing views, but rather appear to be complementary points of
emphasis, collectively serving to describe the essence of JIT.Aside from the four viewpoints,

Just in time has often been paired with total quality control, forming the acronym,
JIT/TQC.The rationale is that TQC avoids stoppages and slowdowns disruptive to the quickflow aims of JIT; and JIT exposes quality issues and their causes soon after they occur, thus
facilitating their elimination.
Lean principles are derived from the Japanese manufacturing industry. The term was first
coined by John Krafcik in his 1988 article, "Triumph of the Lean Production System," based
on his master's thesis at the MIT Sloan School of Management. Krafcik had been a quality
engineer in the Toyota-GM NUMMI joint venture in California before joining MIT for MBA
studies. Krafcik's research was continued by the International Motor Vehicle Program
(IMVP) at MIT, which produced the international best-selling book co-authored by Jim
Womack, Daniel Jones, and Daniel Roos called The Machine That Changed the World. For
many, lean is the set of "tools" that assist in the identification and steady elimination of waste.
As waste is eliminated quality improves while production time and cost are reduced.
A non exhaustive list of such tools would include: SMED, value stream mapping, Five S,
Kanban (pull systems), poka-yoke (error-proofing), total productive maintenance, elimination
of time batching, mixed model processing, rank order clustering, single point scheduling,
redesigning working cells, multi-process handling and control charts (for checking mura).
There is a second approach to lean manufacturing, which is promoted by Toyota, called The
Toyota Way, in which the focus is upon improving the "flow" or smoothness of work, thereby
steadily eliminating mura ("unevenness") through the system and not upon 'waste reduction'
per se. Techniques to improve flow include production leveling, "pull" production (by means
of kanban) and the Heijunka box. This is a fundamentally different approach from most
improvement methodologies, and requires considerably more persistence than basic
application of the tools, which may partially account for its lack of popularity.
The difference between these two approaches is not the goal itself, but rather the prime
approach to achieving it. The implementation of smooth flow exposes quality problems that
already existed, and thus waste reduction naturally happens as a consequence. The advantage
claimed for this approach is that it naturally takes a system-wide perspective, whereas a waste
focus sometimes wrongly assumes this perspective.
Both lean and TPS can be seen as a loosely connected set of potentially competing principles
whose goal is cost reduction by the elimination of waste.These principles include: pull
processing, perfect first-time quality, waste minimization, continuous improvement,
flexibility, building and maintaining a long term relationship with suppliers, autonomation,
load leveling and production flow and visual control. The disconnected nature of some of
these principles perhaps springs from the fact that the TPS has grown pragmatically since
1948 as it responded to the problems it saw within its own production facilities. Thus what
one sees today is the result of a 'need' driven learning to improve where each step has built on
previous ideas and not something based upon a theoretical framework.

Toyota's view is that the main method of lean is not the tools, but the reduction of three types
of waste: muda ("non-value-adding work"), muri ("overburden"), and mura ("unevenness"),
to expose problems systematically and to use the tools where the ideal cannot be achieved.
From this perspective, the tools are workarounds adapted to different situations, which
explains any apparent incoherence of the principles above.
Also known as the flexible mass production, the TPS has two pillar concepts: Just-in-time
(JIT) or "flow", and "autonomation" (smart automation). Adherents of the Toyota approach
would say that the smooth flowing delivery of value achieves all the other improvements as
side-effects. If production flows perfectly (meaning it is both "pull" and with no
interruptions) then there is no inventory; if customer valued features are the only ones
produced, then product design is simplified and effort is only expended on features the
customer values.
The other of the two TPS pillars is the very human aspect of autonomation, whereby
automation is achieved with a human touch.In this instance, the "human touch" means to
automate so that the machines/systems are designed to aid humans in focusing on what the
humans do best.
Lean implementation is therefore focused on getting the right things to the right place at the
right time in the right quantity to achieve perfect work flow, while minimizing waste and
being flexible and able to change. These concepts of flexibility and change are principally
required to allow production leveling (Heijunka), using tools like SMED, but have their
analogues in other processes such as research and development (R&D). The flexibility and
ability to change are within bounds and not open-ended, and therefore often not expensive
capability requirements. More importantly, all of these concepts have to be understood,
appreciated, and embraced by the actual employees who build the products and therefore own
the processes that deliver the value. The cultural and managerial aspects of lean are possibly
more important than the actual tools or methodologies of production itself. There are many
examples of lean tool implementation without sustained benefit, and these are often blamed
on weak understanding of lean throughout the whole organization.
Lean aims to make the work simple enough to understand, do and manage. To achieve these
three goals at once there is a belief held by some that Toyota's mentoring process,(loosely
called Senpai and Kohai, which is Japanese for senior and junior), is one of the best ways to
foster lean thinking up and down the organizational structure. This is the process undertaken
by Toyota as it helps its suppliers improve their own production. The closest equivalent to
Toyota's mentoring process is the concept of "Lean Sensei," which encourages companies,
organizations, and teams to seek outside, third-party experts, who can provide unbiased
advice and coaching, (see Womack et al., Lean Thinking, 1998).
In 1999, Spear and Bowen identified four rules which characterize the "Toyota DNA":
Rule 1: All work shall be highly specified as to content, sequence, timing, and outcome.

Rule 2: Every customer-supplier connection must be direct, and there must be an

unambiguous yes or no way to send requests and receive responses.
Rule 3: The pathway for every product and service must be simple and direct.
Rule 4: Any improvement must be made in accordance with the scientific method, under the
guidance of a teacher, at the lowest possible level in the organization.
There have been recent attempts to link lean to service management, perhaps one of the most
recent and spectacular of which was London Heathrow Airport's Terminal. This particular
case provides a graphic example of how care should be taken in translating successful
practices from one context (production) to another (services), expecting the same results. In
this case the public perception is more of a spectacular failure, than a spectacular success,
resulting in potentially an unfair tainting of the lean manufacturing philosophies.

2.1.1 JIT AND LEAN MANUFACTURING REQUIREMET:

Why Just-In-Time manufacturing when there are dozens of other manufacturing philosophies
from which a company may choose? Just-In-Time (JIT) manufacturing distances itself from
the competition because no large capital outlays are required. Other methods promote
complexity, large overheads, automation, and other "state-of-the-art" technologies, while JIT
advocates simplifying and streamlining the existing manufacturing process.
Since World War II, traditional American companies have developed a way of doing business
that entails top management planning, re-planning, and more planning. Although some
planning is good, it ultimately adds no value to the end product. Customers want quality
products at competitive prices - they couldn't care less how much planning was required to
get that product to them. By implementing JIT, much of the planning disappears and a large
portion of the remaining planning is entrusted to the shop floor personnel.
The purpose of this text is to introduce basic JIT concepts and assure you that JIT can work in
your company. The transition to JIT often is not easy, but it is almost always rewarding. All
employees in the company - from top management to direct labor - must have a clear
understanding of the benefits that JIT offers to them and to their company. JIT is not a cureall for every manufacturing problem. But, if implemented properly, JIT is a no-cost or lowcost method for improving your manufacturing process.

CHAPTER 3
3. JIT PHILOSOPHY:
The basis of Just-In-Time (JIT) is the concept of ideal production. It centers on the
elimination of waste in the whole manufacturing environment, from raw materials through
shipping. Just-In-Time is defined as "the production of the minimum number of different
units, in the smallest possible quantities, at the latest possible time, thereby eliminating the
need for inventory. Remember, JIT does not mean to produce on time, but to produce just in
time.

3.1 History Of JIT AND LEAN MANUFACTURING:

JIT is sometimes said to have been invented by Henry Ford because of his one-at-a-time
assembly line, circa 1913. This is an incorrect conclusion since Ford's system could handle no
variety and was designed for large volumes and large batch sizes of the same parts.
JIT was invented by Taiichi Ohno of Toyota shortly after World War II. Ohno's system was
designed to handle large or small volumes of a variety of parts. Many people are intimidated
by JIT because of its association with Japan. If these people take a broader look at JIT, they
will see that it is nothing more than good, common sense manufacturing.
Ohno and his associates came to America to study our manufacturing processes. They
determined that our system was much like the system that Japanese companies were using,
but Japanese companies could not afford waste in their systems due to the devastation to their
economy caused by World War II. While in America, Ohno learned much about America's
culture. One of his discoveries has transformed the world's perspective on manufacturing.
3.1.1 FORM SUPERMARKET TO SHOP FLOOR:
Legend has it that Ohno got the idea for his manufacturing system from America's
supermarket system. Ohno learned the kanban (pull) system from our supermarket system in
which customers pulled items from the shelves to fill their shopping carts, thereby creating an
empty space on the shelf. The empty space is a signal for the stocker to replace that item. If
an item was not bought that day, there was no need to replace it. When item quantities
become low, that is the signal for the stockers to order more goods from their suppliers.
Customers are content to take just what they need, because they know that the goods will be
there the next time they need them.

To apply this concept to manufacturing, Ohno devised a system whereby the usage of parts is
determined by production rates.
Materials are pulled through the plant by usage or consumption of the parts in final assembly.
To obtain maximum results, Ohno decided to move the machines closer together and form
manufacturing cells.
The JIT system continued to evolve, with the central thrust being the elimination of waste.
Ohno's system has become a totally flexible system in which production rates are determined
by the end user rather than the producer.

3.2 WHAT TO EXPECT:

While the prevailing view of JIT is that of an inventory control system, it is much more. JIT
is an operational philosophy which incorporates an improved inventory control system in
conjunction with other systems, such as:
A set-up time improvement system.
A maintenance improvement system.
A quality improvement system.
A productivity improvement system.
A properly implemented JIT system should:
Produce products customers want.
Produce products only at the rate that customers want them.
Produce with perfect quality.
Produce instantly with zero unnecessary lead time.
Produce with no waste of labor, material, or equipment. Every move has a purpose and there
is no idle inventory.
An overview of JIT literature suggests that the steps or elements of the implementation
process generally (though not always) include the following:
Reductions in set-up time.
Utilization of a formal preventive maintenance program.
Utilization of quality circles.

 Utilization of cellular manufacturing techniques.

Cross-training of employees. Quality certification of suppliers.
Reductions in vendor lead time.
Reductions in lot sizes.
Sole sourcing.
Presence of one who "championed the cause of JIT within the firm. Benefits touted as
results of JIT implementation include:
Reductions in down time.
Reductions in inventory.
Reductions in scrap and re-work.
Reductions in workspace.
Increased inventory turns.
Increased labor utilization.
Increased equipment utilization.
Improved service to customers.

CHAPTER 4
4. VALUE ADDED ANALYSIS:
Maybe you believe that your company is efficient enough and that the benefits of JIT are not
worth the frustration and stress associated with change. At this point you have a decision to
makeyou can adopt a new company motto such as Were no worse than anybody else, or
you can take positive steps toward improving the process. To strengthen the incentive for
change, companies should identify the inefficiencies (wastes) in their present manufacturing
processes.
To identify waste in your company, a value-added analysis should be performed. We must
always be aware that any activity that does not add value to a product is waste. There are
specific methods for performing a value-added analysis but we will use a simplified approach
for our purposes. Take a pad and pencil and go out on the shop floor. Pick a product and
follow it through the entire manufacturing process from raw materials to shipping. Note every
activity performed on the product.

SR.NO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

ACTIVITY
Receive aluminum from vendor
To storage rack via forktruck
Store aluminum
To shear via forktruck
Wait for shear
Set up shear
Shear aluminum
Stack part on pallet
Wait till have correct batch size
Wait for forktruck
To storage via forktruck
Store part
To CNC mill via forktruck
Set up CNC mill
Clamp part in vise
Mill inside recess
Change tool
Drill pilot holes
Change tool
Drill finished holes
Change tool
Tap holes
Remove part from vise
De-burr part
Stack part on pallet
Wait till have correct batch size
Wait for forktruck
To storage via forktruck
Store part
Sell part
To shipping dock via forktruck
Ship part
TOTAL

VALUE
ADDING
YES

NON
VALUE
ADDING
YES
YES
YES
YES
YES

YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
8

24

TABLE-4.1 VALUE-ADDED ANALYSIS

Table 4.1 showed us that 32 total activities take place before the customer receives the part.
Only eight of these activities add value, therefore all other activities must be considered

waste. Even though some of these wasteful activities are absolutely necessary, they are still
waste and should be viewed as such.
We will now streamline the manufacturing process, using JIT techniques that will be
discussed in-depth later. Table 4.2 shows that non-value-added activities have been reduced
to nine instances.
SR NO.

ACTIVITY

VALUE
ADDING

NON
VALUE
ADDING

Receive aluminum from vendor

YES

To shear via forktruck

YES

Set up shear

YES

Shear aluminum

Set up CNC mill

YES

Clamp part in vise

YES

Mill inside recess

Change tool

Drill pilot holes

10

Change tool

11

Drill finish holes

12

Change tool

13

Tap holes

14

Remove part from vise

15

De-burr part

16

Sell part

17

Ship part

YES

YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
TOTALS

TABLE-4.2 VALUE-ADDED ANALYSIS

Perhaps non value-added activities can be reduced further and perhaps they cannot. The
concept is to keep an open mind as to how you can continuously improve the process. All
remaining steps are now optimized to produce the part as efficiently as possible.

4.1 Dont Forget The Office

Evaluating a process using a value-added analysis should not be limited to the shop floor. All
processes in an organization can benefit from eliminating waste. Everything from purchase
orders to typing memos should be streamlined. How long does a purchase order sit on
someones desk awaiting a signature, only to be changed, retyped, and submitted again? It
may then stall at a higher level in the organization and so on up the ladder. Not only will the
techniques of JIT manufacturing help eliminate some of the nonvalue-added steps in your
process, but in doing so they will reduce lead time, improve throughput time and increase
quality.

CHAPTER 5
5. UNDERSTANDING WASTE
Ask almost any shop floor employee the definition of inventory and the likely answer will be
you know all this stuff stacked up around here and all that stuff in the warehouse. Many
employees (and some supervisors and managers) do not understand that Work-In-Process
(WIP) is also inventory. Pure and simple inventory is waste. Another way to describe
inventory is money loaned out of a companys pocket that has yet to be repaid.
JIT is much more than a plan for decreasing inventory, it is a manufacturing philosophy for
eliminating waste. For our purposes, waste can be defined as something other than the
essential resources of people, machines, and material needed to add value to the product.
Anything else, such as inventory, scheduling, meetings, warehousing goods, management,
and moving stock can be considered wasteful because these actions do not directly add value
to the product. All waste cannot be purged from the system; however, we must strive toward
that ideal goal. Above all it must be ever present in the attitudes of our manufacturing system
that cost without value is waste.
A typical company produces excess inventory with the idea that we can use this stuff when
the next order comes in." Routinely these parts are forgotten when the next order is placed.
Other than initial costs of the products, they are also paying for moving the product,
warehouse space, fork trucks, warehouse personnel, tracking the products, and moving the
products again, etc. One company that we visited was constantly plagued with the problem of
misplaced inventory. They had numerous storage bins, plus inventory was sometimes
temporarily placed on the shop floor in different places. More often than not, new parts
would be made when the internal customer needed the parts, because nobody knew the parts
already existed. Another company we visited wastes money on rust preventatives and the
time-consuming task of removing rust from parts in storage solely for the benefit of excess
inventory.

5.1 Evils of Inventory

Although inventory has long been accepted as a necessary evil we must remember that it is
still an evil. Why is inventory evil? Traditional manufacturing processes build in safety stock
at every station throughout the entire system, from extra raw materials to warehouses full of
completed products. This superfluous WIP provides manufacturers with a means to endure
the problems, rather than solving the problems at the root cause.
Lets take a hypothetical look at a company that is reducing inventory. ACME manufacturing
produces roller skates for a major toy company. In one process, bearings are pressed into the
skate wheels. Frequently a wheel does not run true because the bearings are inserted at an
angle. This problem can only be detected after the wheel has been assembled. When such a
problem does occur the entire wheel assembly must be discarded. This problem was
undetected for years because the manufacturing line never slowed down due to these defects.
Extra wheels and bearings were always available to the assembler.
After inventory was reduced, the wheel assembler had difficulty meeting demand. He no
longer had the inventory cushion to hide the quality problems. There was not enough extra
WIP to allow him to continually produce bad parts. Now that the quality problem is evident, a
concentrated effort must be made to solve it.
Do not make the mistake of raising WIP to allow the line to flow smoothly. We need the
problems to surface so that we can solve them. Remember, the WIP is not the solution to the
problems it is only a means to wade through them. Inventory must first be reduced, then you
can solve the problems.
Inventory must be decreased using a systematic approach. A methodical approach is to cut
inventory by one half then solve the problems then cut half of that inventory and solve the
problems. Continue this process. See Xenos paradox mentioned in Section E.

CHAPTER 6

6. JIT AND QUALITY

The single most substantial ingredient of JIT is quality. It is impossible for JIT to be
successful until the company has drastically improved its attitude toward quality. In the
language of the Malcolm Baldrige National Quality Award, quality is a race with no finish
line." The ultimate aspiration is to satisfy all customers (internal and external) all the time.
The Wallace Company, a past winner of the Baldrige Award, installed a buzzer on the shop
floor that sounded anytime a customer called their customer service hot line. Instantly all
workers knew they had a dissatisfied customer. Can you imagine installing such a device in a
traditional manufacturing company?

6.1 The Chicken Or The Egg

Analogous to the familiar chicken or the egg question, it is often asked, Which comes first,
quality or JIT? Quality is a two way street; JIT is impossible without quality, but quality is
directly enhanced by JIT. Although quality is possible without JIT, it requires the use of
wasteful procedures such as inspection and rework. JIT proposes the idea of do it right the
first time rather than inspecting in quality. In a JIT environment, each internal customer (the
next operator down the line) must be completely satisfied by the previous operation. Any
problems in quality are resolved immediately, rather than allowing them to contaminate the
system further.
To produce quality you must install quality. Quality must evolve from both sides at the same
time. To allow operators to satisfy their internal customers, quality procedures, materials,
machines, and mindset must be present. JIT is not possible without quality, but JIT is a means
by which quality is achieved.
A mathematics riddle known as the Xenos paradox asks if a person walks toward a wall,
each step being one half as large as the previous one, when will that person reach the wall?
The answer is "never", but that person is continuously getting closer and closer to his or her
goal. Continuous improvement in quality must be viewed in the same way. If you set a
standard at 95 percent, people figure that they are doing fine as long as they are at or near that
objective. Companies have to be motivated to advance quality to increasingly higher and
higher standards. Ultimately the goal should be perfection.

6.2 What If?

The alternative to setting standards at the highest possible level becomes clearer when you
look at the consequences of almost, but not quite. If 99.9 percent is good enough, then...
Two million documents will be lost by the IRS this year.
22,000 checks will be deducted from the wrong bank accounts in the next 60 minutes.
1,314 phone calls will be misplaced by telecommunication services every minute.
12 babies will be given to the wrong parents each day.
291 pacemaker operations will be performed incorrectly this year.
315 entries in Websters Third New International Dictionary of the English Language
(unabridged) will turn out to be misspelled.
Incidentally, 99.9 percent accuracy would be a remarkable improvement in the context of
current performance levels in most of todays traditional manufacturing companies.
Employees should be producing by the following code:
Defect-free output is more important that output itself.

 Defects, errors, and breakdowns can be prevented.

Prevention is cheaper than rework.
6.3 What is Quality?
One of the great gurus of quality, Phil Crosby, says that companies often have a
misconception of quality. He says that the true definition of quality is meeting requirements
not an intuition for aesthetics, roundness, or perfectionbut something that can be truly
measured. If a Yugo (economy car of the the early 1970s) meets its customer's requirements
as well as a Rolls Royce meets its customer's requirements, then it can be argued that the
Yugo is as much a quality car as a Rolls Royce.
Now that we understand what quality is and what it can do for us, how do we get quality?
The key is to obtain quality at the source. The sources for quality are the manufacturers and
vendors processes, machines, and operators. Contrary to traditional beliefs, the source of
quality is not the inspection bench.
6.4 Preventing Quality Problems
To dismantle the inspection bench mentality, we must take positive steps in prevention of
quality problems. Specific guidelines and rigorous procedures must be established. The steps
toward attaining a quality product are to first define the requirements, get the process under
control, and then keep the process under control.
6.4.1 Defining the Requirements
Many manufacturing companies do an inadequate job of defining quality requirements. If you
are looking at a part or a process, and say thats good enough then you have not sufficiently
defined your requirements. The real definition of quality is meeting both internal and external
customer requirements. Employees and vendors should have strict guidelines that distinguish
good parts (quality) from rework or rejected parts so 100 percent customer satisfaction can be
reached.
Let us look back at our ACME manufacturing example. The assembler had no specific
requirements for pressing the bearings into the wheel. He was told that the wheel must run
true. What is true? How much leeway does he have? Can the bearings be somewhat angled or
must they be exactly straight? The assembler should be supplied with strict criteria for quality
such as each bearing should be pressed into the wheel at a perpendicular angle plus or minus
one degree. He now knows what is expected and what is considered good enough.
6.4.2 The Root Cause of the Problem
To get the process under control, you must first find the root cause of the problem. This can
be accomplished by running the gamut from simple methods such as pareto and matrix
analysis to complicated design experiments. A common problem is to attack the symptom and
not the problem. For example, if a breaker tripped at your house, you could reset the breaker
and hope for the best, replace the breaker box, or you could check for an overloaded

plug (too many appliances plugged into one outlet). In your manufacturing process, dont
make the mistake of rewiring the whole house before the actual problem is diagnosed.
Everyone has worked on a problem that magically went away, although you were not exactly
sure why. It could be any one of the solutions you tried or a combination of any two. In this
case, you do not know if you have gotten to the root cause or not. You must be able to turn
the problem on and off to ultimately conclude that the problem has been solved. If you can
not turn the problem on and off it is likely that you have solved a symptom rather than a
problem. At this point you should ask why and continue to ask why until you find the
root cause. Figure 1-4, shown on the following page, illustrates the problem of bad service at
a restaurant

FIG- 6.1 Getting To The Root Cause

Obviously you cannot turn the problem of the owners offspring on and off, but asking why
did get you to the root cause. Disciplining the waitress will not solve the real problem. The
root cause of this problem is a bad promotion policy. The long-term solution is a change in
that policy. If you ask why enough times you will get to the root cause.

6.4.3 Keeping Control of the Process

Once you have found the solution, keeping the process under control is an easier task.
Statistical Process Control (SPC) is a method of managing a process by gathering information
about it and using that information to adjust the process to prevent problems from occurring.
Using SPC is one way to keep your process under control. Poka-yoke, a Japanese word for
fail-safing, should also be applied. In the Poka-yoke theory, parts and processes are designed
so that doing the job right is easier than doing it wrong. An example of this is to design a part
that is asymmetrical so that it fits only one way, thus eliminating misinstallation. Machines
can be fitted with limit switches that will not allow it to cycle if all processes are not
completed in the correct order. These methods should not only be used by your company but
by your vendors as well. The following are such examples (Hirano, 131).

Description of Process: Front plates were attached to speaker boxes.

Before Improvement:
It was difficult to determine the correct
orientation of the speaker boxes because the
mounting holes were symmetrical at the top
and bottom. Correct mounting depended
exclusively on the worker's vigilance, with
the result that the speaker boxes were
sometimes mounted to the front plates
upside down.

After Improvement:
The positions of the mounting holes were
made asymmetrical on the top so that
incorrect mounting is impossible. Upside
down mounting is completely eliminated.

FIG-6.2 Poka-Yoke - Speaker Box Assembly

Description of the Process: A workpiece, a side plate, is set into position on a drill press and
dowel holes are drilled. The workpiece is essentially symmetrical, and back and front are
difficult to distinguish at a glance, although two edges are grooved along their length.

Before Improvement:

After Improvement:

The workers, when setting the workpiece into

position, checked to see whether the top and
bottom of the plate were in the correct position.
They then drilled the dowel holes.
Inexperienced workers sometimes confused top
for bottom and drilled the holes in the wrong
places. Even veteran workers sometimes
mounted the part backwards. These defects
were discovered only at assembly.

The grooved edges of two sides of the

workpieces are used as guides for setting up the
plates correctly. A limit switch is mounted on
the jig and interlocked with the start switch so it
is impossible to start the drill press if the side
plate is set in the wrong position. Defects due to
defective holes are completely eliminated.

FIG-6.3 Poka-Yoke - Drilling Holes in a Side Plate

CHAPTER 7
7. UNIFORM PLANT LOAD
The diversion between traditional manufacturing philosophy and JIT becomes apparent when
discussing the concept of Uniform Plant Load. Everyone will agree that we need to eliminate
waste and strive for quality to receive the most benefit from our manufacturing systems, but
there are two views on how to go about this. The traditional system calls for production at the
machine rate while JIT advocates production at the customer requirement rate. The JIT
concept of Uniform Plant Load states that balance between operations is more important than
speed, and ideally we should never produce faster than the customer requirement rate.
The concept of Uniform Plant Load incorporates two radically different facets of production.
They are rate of production (cycle time) and frequency of production (level loading). It must
be remembered that neither of these concepts will achieve maximum results until the process
is under control and quality has been improved to world-class or near world-class standards.

7.1 Cycle Time

Traditional definitions of cycle time include the time it takes a machine to cycle through its
process or the time from start to completion of a product (throughput time). Under JIT, cycle
time is the total time required for a worker to complete one cycle of operations, including
walking, load/unload, inspect, etc. Cycle time should equal the customer requirement rate, or
better stated the sales rate. We should view the last step in the manufacturing process as when
the product gets sold, not when the product is completed. This rate is also expressed in terms
of takt time. Takt time is the total daily operating time divided by the total daily requirement.
Takt time tells you how many hours, minutes, or seconds are required for each part.
Takt is a German word for baton. In comparing a manufacturing process to an orchestra, the
rate at which the orchestra leader moves the baton is the rate at which the orchestra plays, just
as the rate of customer requirement is the rate of company production.
Companies that have produced as fast as possible (machine rate) for many years often
struggle with the concept of slowing down individual machines so as to achieve perfect
balance between operations. If your customer requirement rate is 20 parts per month, then
why would you want to produce 30 parts per month? This would lead to the evils of
inventorythe consumption of space, waste in motion, and materials that hide problems.
Conceptually, each machine should run as if a rheostat were attached. The rheostat could be
dialed up or down as needed to produce at the exact rate required. If the requirement rate
changed from month to month then the production rate could be altered to meet these
requirements.
(23)

If you set the last operation to the sales rate then each preceding operation should feed the
last operation at that rate. This system can then be exploded backwards throughout the plant
until the first operation (usually raw materials) is reached.

7.1.1 Workforce
If ten people are producing 20 parts per month in August, but only ten parts are needed in
September, five people should then be capable of producing the needed ten parts so that labor
costs remain constant. This reduction can only be accomplished with a good physical plant
layout (to be discussed later) and a well-trained, flexible workforce. The logical questions at
this point are: Where do the five people go?, and Where do they come from when
production goes back to 20? It must be made abundantly clear that the purpose of
implementing JIT is not to reduce the workforce. You can now use this idle time to cross-train
employees for even more flexibility. When not on the production line employees can perform
other tasks, attend team meetings, do preventative maintenance, make plans to further
improve the process and so forth. Rather than producing extra parts and dealing with
inventory, you are now optimizing employee time. That leads us to the golden rule of JIT:
Machines can be idle but people cannot.
We should not make the mistake of trying to find the perfect balance between parts produced
and manpower required. There is no perfect balance. We must decide how many parts the line
should produce that month, week, or day and balance to that number. Remember, the answer
is not to run the line as fast as possible, but to produce to the customer requirement rate by
deciding how fast the line must run to meet the particular deadline and how many people are
needed for this rate.

7.2 Level Loading

The second facet of Uniform Plant Load is level loading. Level loading suggests that if you
sell a product every month, then make the product every month. Ideally, if you sell a product
every day, then make the product every day. You must make your products as frequently as
your customers require them.
Let us assume that your company produces three productsalphas, betas, and deltasfrom the
same line. Cycle time has been implemented, therefore, your equipment is running at the
right speed. For example, we will say that in the month of March we will need 25 percent
alphas, 50 percent betas, and 25 percent deltas. In a traditional manufacturing environment
alphas would be produced for 25 percent of the month.

We would then change over (setup) and run betas for 50 percent of the month; change over
again and run deltas for the remaining 25 percent of the month. Do your customers buy
alphas the first week, betas the next two weeks, and deltas the last week?
The next logical step may be to produce a weeks worth every week. You have instantly gone
from setting up 3 times a month to 12 times a month. Traditional manufacturing will be quick
to note that valuable time will be spent setting up with no time to produce. Increased number
of changeovers can be accomplished only after setup time has been reduced to allow this. We
will address the subject of setup time in the next chapter. In a nutshell, if we are to change
over four times more often, then we must reduce setup time to 25 percent of its original time.
To meet these goals you must take a structured step-by-step approach. A lofty goal may be to
produce a days worth every day. It is true this is a very high standard but Toyota is currently
producing two hours worth every two hours.

FIG-7.1 Level Loading

Setup reduction has a direct correlation to batch size. If setups are reduced by 50 percent then
batch sizes can be reduced by 50 percent. Additional direct benefits of level loading are
learning curve improvements, increased mix flexibility, reduced inventory, shorter lead times,
and quality improvements.
Let us look at our original process of producing alphas for one week, betas for two weeks and
deltas for the remaining week. If a customer calls in a change order for more alphas the third
week of the month; a three-week delay occurs before alphas are being produced again.
If you are on a daily or even weekly production schedule, reaction to changes in mix can be
almost immediate. Production of alphas can begin the next day or you could change over the
same day if requirement rate of betas and deltas would allow.

As the system begins to produce at the customer requirement rate and reduced setup times are
translated into smaller batch sizes, lead times are also reduced. When a product is being
manufactured monthly, lead times are expressed in months. Weekly manufactured parts
require lead time in terms of weeks and daily parts in terms of days. There is now no need for
extravagant scheduling and tracking systems. If the requirement rate changes, parts can be
put into the queue at the next changeover period.
As stated earlier there is a direct correlation between setup reduction and batch sizes. The
same can be said for batch sizes and potential cost of failure. If a batch size is cut in half, the
potential cost of rework or scrap is cut in half. A streamlined manufacturing process dictates
that quality problems will be less likely and if they occur will be much easier to detect and
correct. Smoother production runs need fewer adjustments, therefore quality becomes more
predictable.

7.3 Learning Curve Improvements

Learning curve improvements are achieved when virtually every day is the same. If you are
producing all of your products at the customer requirement rate each day then the days
become more complex but each day is the same as the day before. Setups occur every day,
therefore there is not time to forget the setup procedure as was the case with infrequent
setups. There is no time to fall into a pattern for weeks only to have abrupt changes that
require relearning the setup and production process for the next product. Once the employee
gets into the rhythm of daily production, the day-to-day learning curve virtually disappears.
Uniform Plant Load allows us to produce at the exact rate and frequency that the customer
requires. Other aspects of JITsetup reduction, machine cells, pull systems, JIT purchasing,
and schedulingare methods used in achieving plant balance.
CHAPTER 8
8. SETUP TIME REDUCTION
Setup time is the interval between the production of one good part and the production of
another good but dissimilar part. Setup reduction is a prerequisite to implementing many
aspects of JIT by directly or indirectly influencing cycle time, level loading, work cells, pull
systems, cost, WIP, purchasing, floor space, quality, operator numbers, and batch sizes.
Everyone will agree that a two-hour setup reduced to two minutes is a great productivity
improvement, but this saved time should not be applied to longer production runs that
increase batch sizes. An hour saved that is transferred to the production of parts simply puts
those parts in inventory, which is the exact opposite of what we are striving for. Our objective
is to apply this hour to more frequent setups, thus giving us more flexibility to better
implement JIT.

8.1 Getting Started

Our mission is to reduce setup time by 75 percent on a low-cost or no-cost basis. Some
machines will require a little more setup time and some a little less, but 75 percent reduction
is our initial goal. This may not be accomplished in a week or a month, but can be achieved
through continuous improvement.
You must first decide which setup to work on. A good rule of thumb is to select your most
complex setup. Typically this is the setup that causes the largest bottleneck (takes the most
time), and therefore offers the opportunity for the largest time savings. After a particular
setup has been chosen, a Setup Reduction Team must be formed. The next problem that arises
is who should be on the Setup Reduction Team.

8.2 Setup Reduction Teams

Traditional management behavior seems to indicate a belief that the managers and the
engineering staff have all the solutions. In recent years new management approaches,
specifically TQM (Total Quality Management), have disproved the myth that management
best knows how to solve all manufacturing problems. The new Setup Reduction Team should
consist of the real expertsthe operators and setup people. Contrary to traditional
managements beliefs, these people have superior knowledge of their machines and the
process.
The typical Setup Reduction Team should have three to five shop floor personnela
combination of operators and setup people, one to two engineers and possibly a manager.
You will notice that the single largest component on the Setup Reduction Team is the shop
floor personnel. They probably have all the answers to reduce setup time but until now had
no avenue to impart their wisdom. The reason more engineers are not involved with the group
is that most setup problems are not engineering problems. Engineers tend to emphasize the
mechanics of the setup, but the real reasons time is lost are lack of preparation, lack of
organization, and operator error. Such problems may include not knowing what the next job
is, setting up for the wrong job, inability to find a forktruck driver or the forktruck is in use,
inability to find or not having the right tools, broken tools, not remembering the exact setup
procedure, not having the right bolts, or having no nuts for those bolts. The mechanics of the
setup may or may not need to be modified or, if so, only after other improvements have been
enacted.
After the team has been selected, proper training in team concepts must take place. The team
should know its mission and act on its findings, not just study and make recommendations.
Team training is a separate subject in itself and space does not allow us to pursue the topic
here. There are many good texts and seminars offered in this area that will allow you to learn
team training concepts.

8.3 Videotaping
If a picture is worth a thousand words, a videotape is worth at least a million. The single best
way to document and analyze a setup is with videotape. A verbal description or written
account of a setup will not give you the detail of a video. Many nonvalue-added steps can be
uncovered that would otherwise remain camouflaged by other means of documentation.
Obtaining a credible videotape is often not easy. One major dilemma that occurs is a
phenomenon known as the Heisenberg principle. Simply stated this idea is the belief that
something that is being observed is changed merely by the fact that it is being observed (Hay,
63). If workers know that they are being taped they will perform the setup with a much
greater sense of urgency. Outside preparations may occur that are not normally done. These
actions lead to a misrepresentation of the true time and steps involved in a setup, thus
defeating the purpose for videotaping.
Another problem that may occur is apprehension about being videotaped. Operators may fear
that management will use the tape to place blame for productivity problems, or to teach
others how to do their job, or that other team members will ridicule their performance. The
number of rumors that can surface when a video camera appears is infinite. The best deterrent
to these problems is prevention. Operators should be briefed on the reasons for
documentation prior to any videotaping with all questions being answered then. It should be
abundantly clear that no additional actions should be taken in the documented setup and that
safety will never be neglected to gain speed.
At no time will any guards be removed, parts fastened less securely, work be done on moving
equipment, etc.
One method to obtain more true documentation is to do videotaping without
announcement. Place the video camera in position just prior to the setup, thus allowing no
time for special preparations. The documentation should include the last part from the
previous job coming off the machine. The timer should then be set and everything should be
taped from that point on. Tape continuously even if no work is being done on the machine.
When the first good part from the new job is finished, the documentation is complete.
Once the videotape is complete, the Setup Reduction Team begins a detailed analysis of the
setup procedure. The primary focus of the analysis is to reduce machine downtime. Team
members generate a list of problems to solve and possible solutions for the problems.
8.4 The SMED System
One proven technique for optimizing setup time is the Single-Minute Exchange of Die
(SMED) system. The SMED system was founded by Shigeo Shingo while consulting with
Toyota in 1969. No man has revolutionized setup reduction philosophy as much as Shingo.
He has won numerous productivity improvement awards in Japan, the United States, and the
world over. The basis of SMED is the performance of setup operations in under ten minutes,
i.e., in a number of minutes expressed in a single digit.

The Four Conceptual Stages of SMED:

Internal setup and external setup are not distinguished.
Internal setup and external setup are distinguished.
Internal setup is converted to external setup.
Streamline all aspects of the setup.
The concept behind the SMED system is distinguishing internal setup (performed while the
machine is off) from external setup (performed while the machine is producing) and
converting internal to external setup. This is accomplished by examining the true functions of
setups. Once this step has been successfully applied, only internal activities are left. An
example of this would be to locate and organize all the bolts needed for the next setup while
the previous job is running instead of rushing around looking for bolts after the machine is
off.
After the activities of the setup have been corrected, the mechanics of the setup need to be
addressed. Or as Shingo states, all aspects must be streamlined".
Two major categories in this area are clamping and adjusting. Numerous texts have been
written concerning quick die change, Poka-yoke (fail-safing), fixtures, setup reduction, and
similar topics. Although we will deal with setup mechanics in general terms, further study in
this area is recommended.
8.5 Clamping
Video documentation will often reveal that substantial time is spent loosening and tightening
nuts and bolts. Threads are a very inefficient method for speed in a setup, because only the
last half turn of a bolt or nut gets the job done. The first fifteen, twenty or twenty-five turns
are a useless waste. Another problem with threads is the use of tools. Picking up a wrench
if you can find itis also a waste; therefore we must look for alternative methods for
clamping. Do not make the mistake of trying to buy the solution. While it is true that
hydraulic or pneumatic clamps save much time and wasted motion, they violate our no-cost
or low-cost policy. Look for methods that require only one or two motions such as cams,
levers, or pins. You can explore purchasing high-tech clamping systems after all other
avenues have been exhausted or continuous improvement has stagnated.
8.6 Adjusting
The videotape may also show large amounts of time is being spent to get the job to run right.
Traditional thoughts have been that adjustments are necessary, therefore no energy has been
expended to eradicate the problem. Our aim is to have quality parts produced the first time,
every time. Bad parts should never be produced due to setup. The problem with adjustments
arises because most machines are infinitely adjustable. For example, something on a machine
is measured, or tightened down, then a part is run. Then the machine is adjusted, tightened
down, then another part is run. This continues until a good part is produced. After analyzing

the videotape you may conclude that the machine needs to be adjusted to a few set positions.
At this point the machine should be converted to positive stops for those positions rather than
endlessly measured positions or better yet the machine can be designed to be self-positioning.
Reducing setup is a crucial step toward accomplishing JIT manufacturing goals. Setup
reduction is considered a high priority because it affects so many facets of JIT. Setup
reduction is much easier than most people think after traditional methods have been purged. It
is extremely important to adopt new perspectives that are not bound by old habits.

CHAPTER 9
9. CELLULAR MANUFACTURING

The traditional method of arranging a manufacturing facility is by departmental speciality

that is, each department houses specialized equipment or technology. All the lathes, milling,
drilling, grinding and assembly would be done in completely separate departments.
Production in large batch sizes is inevitable when factories are laid out in this manner. Figure
9.1 illustrates a traditional manufacturing system. (Black, 34)

FIG-9.1 Traditional Manufacturing System

The JIT philosophy maintains that a manufacturing floor be laid out by product rather than by
function. All equipment should be dedicated to a product or family of products and organized
logically in the order in which the various processes are performed on that family of products.
Two characteristics must be fulfilled before a group of machines can be deemed the optimal
JIT work cell. The first is whether the product is flowing one at a time from machine to

machine, and, secondly, whether the cell has the flexibility to produce at different rates with
varying crew sizes (cycle time). See Figure 9.2.

FIG-9.2 U-shaped Work Cell

Many JIT purists argue that one-at-a-time flow is a necessity in a JIT work cell. It is true that
batches of one are the optimum size for waste reduction, but we are attempting to implement
practical JIT. The end goal is to have operation two start as soon as the part clears operation
one (batch size of one). But practical JIT champions the idea of continuous improvement. JIT
advocates batch size reduction as dictated by the setup time. Your process may not allow for
batch sizes of one. If some parts are forced to the next operation then so be it. Continue to
practice the doctrine of JIT and the batch sizes will continue to decrease.
To dedicate the machines and physically place them together but continue to produce in large
batch sizes at the machine rate (maximum output) would make no sense. JIT work cells must
be adjustable to be able to produce at the customer requirement rate. After the customer
requirement rate has been determined, you must ascertain the number of operators needed in
the work cell to produce the exact amount of products required. One common concern about
placing machines in cells is whether they lose their flexibility by being dedicated to that cell.
Can machines work on parts not dedicated to that particular cell? The answer is yes. Some
companies have found that they can produce parts through the work cell part of the time
while at other times the machines can be scheduled independently as if they were not in a
work cell. Machines can also be placed on casters to form temporary work cells to get the
ultimate in flexibility. Work cells can be formed, taken apart, or modified to satisfy customer
requirements. If machines are too heavy to be mobile a pull system can be used so each
machine can function as if it were in two or three cells.

As discussed in the Uniform Plant Load section of this text, the only way to keep labor costs
constant is to flex the crew size. Operators must be cross-trained to perform many tasks
properly in a work cell thus allowing one operator to run many machines.
9.1 U-shaped Work Cells
The most flexible work cell is the U-shaped layout. The U-shaped work cell should be large
enough to allow operators to work side by side, back to back, but not so close as to
inconvenience each other. Shown on the following page is an example of a U-shaped work
cell staffed with six operators and another with three operators.
All the work to be done in this cell can be accomplished from a central area inside the Ushaped cell. Every production period can have varying numbers of operators. Six operators
may be needed to produce 100 parts in March, but if 50 parts are required in April a staff of
three can theoretically produce those parts. When the operator does not have a full work load,
the traditionalists have the operator go up or down the assembly line to the adjacent
operation. In a U-shaped work cell, the operator has a full 360 degrees of mobility, therefore,
he or she can perform all or part of tasks within the cell.
In our example with three workers we show steps 1 and 6 to have a single operator, steps 2
and 5 have a single operator as do steps 3 and 4. Another advantage of a U-shaped work cell
is instantaneous quality control. Since parts are exiting one operation and migrating directly
to the next operation (if batch sizes are one), any deficiencies in quality show up
immediately. If a quality problem does occur it can be resolved promptly. There are no large
quantities of bad parts to sort through and the need for separate inspection is eliminated.

U-shaped Cells Versus Assembly Line Manufacturing

Traditional manufacturing operations are laid out in long, straight assembly lines. The
operators are spread along the line, thus, spreading out the work. Since it takes longer for the
product to travel from one operation to the next, more parts must be put in the queue to keep
everyone busy. Unlike the U-shaped work cell, people are separated from each other by the
assembly line, inventory, work benches, etc. Studies have also shown that physiological and
psychological disadvantages can occur from separating people in the work place. Crew size is
not flexible on an assembly line because the line has been divided into an established number
of separate areas. If an area is missing an operator, the line will not run. Operators do not
have the flexibility to perform more than one task.
Comparisons of Assembly Line and U-shaped Work Cell
Shown in Figure 1-11 (Black, 34) is the metalworking facility that we discussed earlier in this
manual. The departmental specialities have been dropped in favor of cellular manufacturing.
A much more logical, organized approach to manufacturing is the result of this
transformation.

Assembly Line: Uses Much Floor Space,

Operators Separated, Large Batch Sizes, Work
Spread Out, Non-flexible Crew Size, Delayed
Quality Control.

Work Cell: Optimizes Use of Floor Space,

Operators Together, Small Batch Sizes, Work
Condensed, Flexible Crew Size, And
Instantaneous Quality Control.

FIG-9.4 Cellular Manufacturing System

CHAPTER 10
10. PULL SYSTEMS
We are now ready to address pull systems, sometimes known as kanban systems or
supermarket systems. The United States is in the process of phasing out the use of the word
kanban due to its association with Japan. Kanban is not even a universally accepted Japanese
term since some plants in Japan that compete with Toyota view it as a Toyota-coined word.
For our purposes, we will use the term pull system.
As mentioned earlier, Toyota sent representatives to the United States shortly after World War
II to analyze our production techniques. They concluded that Americans ran their factories
much the same way the Japanese ran their factories. Every operation in the factory works
independently, then forces its parts onto the next operation. The Japanese termed this process
a push system.`

10.1 The Push System

A push system originates with a forecast schedule. This forecast is forced upon the previous
step (assembly) in the manufacturing process, all the while adjusting for lead times to predict
which subassemblies are needed and by when. The subassembly forecasts are then forced
upon the various component levels still maintaining lead time, thus completing the cycle
through the total manufacturing system down to raw materials. Paperwork accompanies this
system informing operators what is needed and by when.
Each operation then begins to manufacture parts and push them on to the next operator. That
operator receives the parts, does his work and pushes them along the line. Operator 1
continues to work even if operator 2 stops or is producing slower than operator 1. This extra
inventory creates buffers that hide manufacturing problems. The expectation is that this entire
inventory will be pushed along and will reach the predetermined places at the right time so as
to be shipped on schedule. Schedules are then analyzed to see what was not on time and
future schedules are adjusted accordingly.

FIG-10.1 Push System

10.2 From Supermarket To Factory Floor - The Pull System
While in America assessing our manufacturing processes, the Japanese visited some of our
supermarkets in their spare time. What they learned and took back to Japan has
revolutionized manufacturing. A supermarket is managed very differently from a factory.
Shoppers come to a supermarket knowing that there will always be a small stock of needed
inventory. Customers feel no pressure to buy large quantities because they know that the
goods will be available when they need them. Every night a stocker replenishes the
inventory that has been removed. Empty spaces on the shelves are the stockers signal to
produce more goods (restock). Exactly what has been taken is what is replaced. The
customers have directly told the store what to replace by what has been purchased.
The Japanese converted

this supermarket system for use in their factories. No operation can produce goods until it has
received a signal from its customers. When the operator gets a signal from the customer, he
then has authorization to produce a certain number of parts in a specific time period.
The most effective pull (kanban) signals are visual indicators such as empty containers or
empty floor space. If you have an empty container, fill it up; if you have no container then do
not produce that part. Other types of signals are limited only by the imagination. They may
include such things as color-coded golf balls, washers, different shaped cards, flashing lights,
or kanban cards. A red golf ball may signal an operation to produce 10 alphas while 2 blue
golf balls may indicate 20 betas are needed. The most used signal is a kanban card:

Part number 29AJ 087

Container 3 x 2 x 6 Box
20 Pieces per container
Location Cell 2
Card 3 of 5

FIG-10.2 Kanban Card

The card tells what type of part to build, what to put the parts in, how many parts to build,
where to send the parts and how many cards of these parts are required to maintain a smooth
flow. Paper work is limited in a pull system.
Imagine a company that makes a product line of alphas, betas, and gammas. Every day this
company ships 20 percent alphas, 60 percent betas, and 20 percent gammas. Suppose the
market (customer) demands more alphas and fewer betas on any given day. The only
paperwork that needs to be changed is the shipping schedule. Shipping sends a signal to
assembly to produce more alphas, while assembly sends a signal to subassembly for more
alpha components, and on through the system to more alpha raw materials. No paperwork
needs to be revisedit did not exist in the first place. Each previous operation is waiting to
find out what parts to produce depending on customer needs.
In an ideal JIT system, a pull signal is a compromise. If a true, one-at-a-time flow has been
implemented, no signal is needed. Figure 10.3 is what a model JIT pull system could look
like.

(37)

FIG-10.3 Production Control by Pull System

In the illustration, parts are flowing one at a time from the outside supplier (vendor) to the
work cells. In these work cells there is no need for pull signals since the parts move one at a
time from machine to machine. In an ideal JIT system the machines would be producing at
the exact customer requirement rate (cycle time) and could change over as often as needed
(level loading) for this rate. Parts would be pulled from cell to cell and then pulled to the
subassembly cell. Subassembly would then have its parts pulled to assembly then to shipping
and on to the final customer. This is a completely integrated manufacturing system where all
parts are moving one at a time. Theoretically, this should be your end goal. But, while
implementing JIT you will have a definite need for pull signals.
When pull signals are needed, the key to making them work is making sure that the inventory
is replenished frequently and quickly. This can only be accomplished after smaller batch sizes
have been implemented through the use of Uniform Plant Loading. We must also remember
that the smaller the batch sizes, the faster the setup must be. Just as in a supermarket,
customers will be satisfied with taking small amounts if they know that there will be ample
quantities available on the next shopping trip.
Up to this point we have been talking about pull systems for repetitive manufacturing
systems. Invariably the question comes up, What about job shops? To run a pull system in a
job shop, where a completely different product is produced daily, monthly or yearly, the
system must be managed differently. If a pull system is broken down to its purest form, the
signal is an authorization to produce whatever is next in the queue. In a job shop the signal
may stand for an hours worth of work. In effect, cell workers are saying, An hours worth
of work has been used upso I am authorizing you to give me another hours worth of
work. Regardless of how you express it, the customer is telling the supplier what to do next.

CHAPTER 11
11. JIT PURCHASING
Probably no single group will conflict with the principles of JIT as much as the purchasing
department. JIT purchasing is as different from traditional purchasing as JIT manufacturing is
from traditional manufacturing. The goal of a purchasing department is the same as that for
the manufacturing floorthe elimination of waste. Typical expenditures for a United States
manufacturer are 70 percent purchased material and components, 10 percent labor, and 20
percent overhead (Hay, 117).

FIG-11.1 Typical Manufacturing Costs

The fact that 70 percent of cost is purchased material reinforces the importance of total
commitment to JIT by the purchasing department. This commitment will not be obtained
unless the purchasing employees fully understand JIT principles because only then will they
apply these principles to their purchasing processes. Purchasing cost is a critical factor for a
JIT manufacturing system, but it lags behind quality and delivery lead time in importance.
Vendors must deliver quality products on time (just in time) before a JIT system can work,
regardless of cost. JIT purchasing offers a framework for a true partnership between vendors
and companies that helps to solve the problems of cost, quality and lead time.

11.1 Partnerships
Traditional relationships between companies and vendors do not allow for partnerships to be
formed. Companies send out bids for purchased materials with the contract going to the
lowest bidder. Six months down the road another bid is let with the lowest bidder getting that
contract. If the current vendor is not the lowest bidder that vendor may lose six months of
business. Companies want vendors to cut their profits, but vendors need to be assured of a
good profit now because they may not be here six months from now.

The new JIT partnership that we are striving for is a long-term, mutually beneficial
relationship with fewer but better vendors. Mutual trust must be developed between
companies and vendors. This cannot be accomplished if vendors change every time new bids
are sent out. For this reason a company should have few suppliers (preferably one) for each
purchased material or component. This idea of single sourcing is as troublesome to traditional
purchasing people as slower run speeds and smaller batch sizes are to traditional
manufacturing people.
Traditional purchasing people question whether the company is getting the best price possible
by using only one supplier. As a company is reducing its vendors, it is obtaining the best price
due to traditional competition. Vendors embrace the idea of a long-term relationship because
it allows their sales to remain more constant. Strict criteria concerning dependability (quality
and lead time) should be placed upon vendors by companies. When this criteria is
satisfactorily met, the vendor will become certified. Ideally certified vendors deliver
products just in time, every time, with 100 percent quality. A partnership is then formed
between the company and the vendor so that they can actively work together to continually
lower the cost of purchased material. It would be impossible to form such relationships with
several, ever changing vendors.

11.2 Eliminating Procurement Wastes

Three areas of waste need to be recognized before a company can successfully implement
JIT. First is the waste in a companys own manufacturing process: the moving, counting,
rework, storing, scheduling, setup times, and inspection. Secondly, waste within the
purchasing process itself should be eliminated. A third area that is often overlooked is the
manufacturing philosophy of a companys vendors. Since an average of 70 percent of a
companys costs come from purchased materials, every company should aid its vendors in
eliminating waste in the vendors manufacturing process. However, it should be stressed that
a company must first get its own house in order (eliminate waste) before the company can
help its vendors to improve their processes.
Lets look at a few nonvalue-added steps (waste) in a typical component before a valueadding process happens.
A purchase order does not add value, an amendment to a purchase order does not add value,
reports and invoices do not add value, taking something off a truck and putting it in a holding
area does not add value, inspecting it does not add value, moving it to a stockroom does not
add value, taking it from a large container and placing it in a small container does not add
value, and moving it to where it is going to be used does not add value. The way to eliminate
waste is to eliminate all steps that do not add value to the product.
The initial phase should be to delete inspection of all incoming raw materials, parts, and
components. This can be accomplished by working with vendors to make sure they
understand the process and how to solve problems in the process. They should have a

thorough understanding of the standards that you require and have competent inspection
procedures so they can deliver 100 percent quality materials and components. The eventual
goal is for vendors to monitor rather than inspect, with all operations done right the first time.
11.3 A Days Worth Every Day
In a repetitive manufacturing environment, the same amounts of inventory should be used up
every day. Ideally materials and components will be delivered in the afternoon, used the next
production day, and shipped the day after in the form of finished products. Packaging in this
process does not add value, therefore reusable containers should be used to ship goods if
possible. The vendor delivers goods to the production line and picks up empty containers for
the next days shipment. These containers are the pull signal that tells the vendor to produce
more, thus eliminating the need for purchase orders. Eliminating packaging cuts cost for the
vendor and the company, causing the partnership between the two to be strengthened.
Since these vendors are certified, there is no need for incoming inspection. A central holding
dock or receiving area is not needed. There is no need for a stockroom or an inventory
tracking system. There is no need for picking up and transporting. Purchase orders have been
deleted. There are no corrugated boxes or excess paper to be ripped open and thrown away.
And finally, no incoming invoices to be processed.
Traditional purchasing personnel are probably yelling What! No incoming invoice? How do
we know what to pay and how do we know that we received everything? Although a
partnership must be built on trust, there is often no trust pertaining to money matters. The
main proof of goods received is the shipping records. If two vendor components are needed
for each product manufactured, you must deduce that if you shipped 100 products, you owe
the vendor for 200 components. If the product was shipped, the components must have been
in it.Of course, eliminating incoming invoices only works for a repetitive manufacturing
facility, but all companies should question the way business is being conducted now. Every
process in the purchasing department should be optimized through the use of JIT/TQM
principles.
CHAPTER 12
12. JIT IN CONJUNCTION WITH MANUFACTURING RESOURCE PLANNING
JIT and MRPfriends or foes? Many have debated the comparative benefits of JIT and MRP.
To put this controversy to rest, we must have a better understanding of what MRP is and how
it can be used with JIT to achieve greater results than if either technique were used alone.
MRP I (Material Requirement Planning) and MRP II (Manufacturing Resource Planning)
evolved in the United States in the early 1960s. MRP II is the combination of various
manufacturing tools collected to form the most sophisticated planning and scheduling
strategy developed to date. These tools are Reorder Point (ROP), Economical Order Quantity
(EOQ), Material Requirement Planning (MRP I), Distribution Requirement Planning (DRP),
Capacity Requirement Planning (CRP), Shop Floor Control (SFC), and others. For the
purpose of this manual, MRP will refer to Manufacturing Resource Planning (MRP II).

Many MRP software companies fail to comprehend the overall picture, resulting in the
misconception that JIT will cut into their market share. The MRP gurus tend to view only
parts of the whole so that they fail to address the manufacturing process and master the
usefulness of both systems. JIT and MRP can and do work well together, but we must be
conscious of the fact that MRP wants to work with the scheduling system while JIT wants to
radically alter the manufacturing process.
12.1 Which System?
Many companies question whether to use JIT or MRP or both and if they use both, which
strategy should they implement first. If your company has deteriorated greatly, it may be
easier to implement a MRP system. The MRP system will allow you to get your process
under control without radically changing your manufacturing process. If the company is
fundamentally sound, a JIT system should be implemented first. If after JIT is in place it is
decided to have a more formal scheduling system, less time and money are required to
implement a simplified MRP system. This hybrid system can then be used to form an
enhanced manufacturing system.
Under a traditional MRP system there are three levels of scheduling (Hay, 155):
Master Schedule quantity and date for completion of end items.
Material Requirements Planning scheduling the completion and start dates of the
components and raw materials dependent on the master schedule.
Shop Floor Control scheduling the operations performed on a component between MRP
start and finish dates; often called priority sequencing.
The hybrid system where JIT and MRP are working together eliminates the need for Shop
Floor Control since parts flow from start to finish without being warehoused. MRP I becomes
more basic since parts go directly to the next user without traveling in and out of stock. Also,
remember that batch sizes are smaller or nonexistent, safety stock has been eliminated,
throughput has been speeded up and production rate equals the customer requirement rate via
the JIT segment of this hybrid system.
No matter how complex the manufacturing process, as lead time diminishes, the need for
MRP reduces. MRP becomes increasingly simplified and acts as the transition tool until its
scheduling function disappears as linking operations become feasible. In some job shop
situations implementing JIT fully may be impossible, thus opening the door for this hybrid
system. Even in an ideal JIT system, the benefits of MRP cannot be ignored.

CHAPTER 13
13. MANAGEMENT'S RESPONSIBILITY
The predominant reason for JIT failure is lack of commitment by top management. JIT must
be launched where there is absolutely no skepticism about managements long-term
commitment to JIT success. Employees recall managements past track record on flavor of
the month plans that died quietly with little or no fanfare. The first time management
compromises quality in favor of quantity it will devastate the morale of the shop floor
personnel. They sense that managements main emphasis is money for products shipped, not
customer satisfaction, thus relegating JIT to a quiet death.
JIT must have a champion for its cause within every organization. Ideally, this advocate
would be the highest ranking person who applies to your situation, i.e., the CEO at the
corporate level, the division manager at the division level or the plant manager at the plant
level. Typically, the consciousness of JIT penetrates the organization somewhere below this
top level of management. For the greatest chance of success, JIT should be presented to the
top manager as soon as possible. By initially teaming up with the top manager, he or she will
perceive ownership of the JIT concept, thus he or she will have a stronger commitment to JIT.
If the top management does not embrace the concept of JIT, but rather it develops at the
middle management level, the chance for failure increases.
There are two key elements that are management's responsibility: motivation and education.
Management must use these elements to overcome the reluctance to change by the employees
and the natural fear that accompanies change. Each level of the organization has different
fears about JIT so each level requires a different motivational approach. Management must
understand the apprehensions of people at every level and what actions can be taken to gain
their trust and commitment to join the JIT venture.
13.1 Motivation
Top managers should already be motivated by what they see as JITs ability to produce more
efficiently.Upper and middle managers often feel they are caught between a rock and a hard
place. Top management is angry because JIT is not progressing fast enough and the shop
floor employees are mad because they cannot perform the JIT miracles that middle
management expects of them. Middle managers have worked hard to gain the status that they
now have and feel threatened by the new JIT style. The means to conquer these fears is trust.
Middle management can be motivated by knowing that top management is 100 percent
dedicated to JIT, and that top management is aware of the problems and will help solve these
problems.
Finding these solutions often is not easy, but can be accomplished by a motivated
management staff working closely with top management.
Why is motivating the shop floor personnel so difficult? Isnt JIT involving them more in the
decision making process and making their jobs much easier? Until now shop floor personnel
have made no decisions, therefore have taken no risk of making the wrong decision.

Management must motivate these people by assuring them that making a wrong decision is
permissible as long as they learn from it. Shop floor personnel also have major concerns
about job security. If operators are doing their own setups, where do the setup people go? If
top management says that everyone is responsible for quality, do the quality control people
lose their jobs? Top management should calm these fears through a no-layoff guarantee.
Management should also form a partnership with all employees to earn their trust and
motivate them by communicating to them that the whole organization must change, not just
the shop floor personnel.

13.2 Training
Management must convey to all employees why the organization is being restructured. If the
company is in trouble, management should be honest with the employees. All employees
should be trained in the reasons for and methods of JIT. Employees are more receptive to JIT
if they understand how pull systems, setup reduction, reduced
inventory, plant loading, shorter lead times, better quality, etc., can lead to a larger market
share, higher sales, and increased customer satisfaction. Management should devise a
structured approach for training all employees in the principles of JIT. An employee in
purchasing may not need to know how to reduce setup time on a particular machine but must
know why this time must be reduced.
Management must also participate in training. Other than a complete understanding of JIT
principles, managers will need training in modern management techniques, such as Total
Quality Management (TQM). Managers must develop the total quality mindset that will
allow them to lead the organization into JIT.

13.3 Leadership
Management must realize that actions speak louder than words. Any conflict between
managements words and managements actions will be noticed by employees. If
management feels that training is important but misses a training session in favor of a higher
priority, it has sent a negative message to the employees. Top management must demonstrate
its commitment to JIT through long hours and hard work. Managements actions should build
employee trust, and trust is the most important element of any plan.

CHAPTER 14
14. IMPLEMENTING JIT
JIT implementation must start by creating a suitable environment for JIT to flourish. A
structure must be established whereby responsibility for problem solving is appropriated to
all levels of the organization. Shop floor personnel will be asked to find solutions for shop
floor problems and so on throughout the organization. This reversal from traditional
management style to a Total Quality Management (TQM) style can only be accomplished
through Total Employee Involvement (TEI) and employee teams. TQM is a prerequisite to
JIT.

14.1 Forming Teams

The first team that should be established is the quality team sometimes called the Executive
Council or Quality Steering Committee. No matter what you call it, the objectives of the top
team will be the same. The Steering Committee will address the issues with TQM
implementation (you are not ready for JIT yet) while attending to everyday organizational
issues as well. If possible, Steering Committee members should be removed from the
interruptions of everyday organizational decisions. It is a proven fact that companies that
allow their Steering Committees to dedicate all their time to solving TQM/JIT
implementation problems have higher success rates and shorter implementation times.
The Steering Committee will be made up of high ranking officials within the organization.
They will assign teams from the workforce to solve various implementation problems. The
employees that constitute these teams now have the power to make decisions that directly
affect productivity at their level. Team logistics will not be discussed in this manual.

14.2 Developing A JIT Strategy

Now that you understand the basics of JIT, a specific implementation strategy must be
developed. There are no cookbook solutions for JIT implementation. Each Steering
Committee has a different vision and each company goes about implementation differently.
Below are examples of how JIT has been successfully applied in various types of
organizations.
Company 1 concentrated on finding the bottleneck in its manufacturing process and worked
to eliminate it through reducing setup times, forming machine cells, removing nonvalueadded steps, or whatever means required.

After each bottleneck had been eliminated, the company found the next largest bottleneck and
eliminated it, and so on, throughout the entire organization. Employees are still finding

bottlenecks (albeit much smaller ones), and will continue to do so through the process of
continuous improvement.
Company 2 implemented JIT at its final operation and progressed in reverse order
throughout the plant until reaching incoming raw materials. The idea behind this strategy is
that as you implement JIT, you eliminate the need for excess inventory for the succeeding
process or processes down the line. Suppose a plant has nine operations to perform before a
part is shipped. If you optimize step nine first, parts can be pulled from step eight to step nine
after eight has been optimized. When you reach step five, parts will flow from five to nine in
a true JIT fashion.
Company 3 started by removing as many nonvalue-adding steps from the manufacturing
process as possible without moving any machines. Employee teams solved as many problems
as they could while leaving machines in the traditional configuration. Machines were then
relocated into cells and the teams went back to work to eliminate waste in the new
configuration. The teams will now continually move machines and optimize the process.
Opposite to company 3, company 4s Steering Committee moved machines into cells to
improve product flow. Employee teams were then tasked with removing as much waste from
the process in the current configuration. When teams recommended, machines were moved
again. Company 4 moved machines frequently while company 3 rarely moved machines.
Company 5 used what we will call the shotgun approach. Teams were tasked with
implementing JIT as fast as possible with no visible structured approach. Machines were
moved and inventory reduced and then it was up to the teams to implement JIT. Problems
were solved on a priority basis as determined by the Steering Committee. A word of warning:
this approach cannot happen if quality will not allow smaller inventories. On the positive
side, employees were assured of managements commitment because the conversion to JIT
happened fast.
Similar to company 2, company 6 initiated JIT one cell at a time, but not at the last
operation. Pilot projects were selected by the Steering Committee on the basis of success
probability. Since the pilot project set the tone for the entire JIT effort, a project was chosen
that would get the best results. Company 6 continued to add projects until the entire
organization was converted to JIT.
These six companies used six comparable but different approaches to achieve the same
results. You may choose a method similar to one of these, a combination of these, or a
completely different method to implement JIT. How you accomplish JIT is not as important
as when you do it.

CHAPTER 15
15. A Case Study of Just-In-Time System in Service Industry
15.1 Abstract
Waiting in lines are experienced in our daily schedule. Waiting lines or queues cause
inconvenience to customers. Just-In-Time (JIT), the dignified process of waste reduction and
has been a very popular operational strategy because of its success in the manufacturing and
production industry over many years. Various benefits like, improved operational efficiency,
waste reduction, and faster response have been widely observed by previous researchers.
Services are much like manufacturing. Therefore, successful implementation of JIT is vital to
manufacturing as well as service industries. JIT focuses on the process, not on product.
Therefore it can be applied to every process within manufacturing or service industry. The
main objective of this research is to make use of a case study to present various issues
regarding implementation of JIT for a service industry. This case study also shows the
benefits of reduction in waiting period by employing JIT. The conclusion of this research
indicates that JIT system is successful and operating JIT system leads to many advantages to
the case industry.

15.2 Introduction
Traditionally, manufacturing industries compete on price, variety and after sell service. Now,
these conditions are merely fundamentals. Few service industries exist today without offering
these requirements but the key competitive factor has become speed. Many industries have
been trying to adopt few new business tactics in order to stay alive in the new competitive
market, and there is no question that the elimination of waste is an upcoming and essential
constituent for survival in today's world. The traditional inventory systems based on long
production runs, stock based inventories and uninterrupted production needed to be replaced
by more flexible systems in order to meet new competitive and economic challenges. Lean
manufacturing or also known as lean production has been one of the most popular paradigms
in waste elimination in the manufacturing and service industry.
A just-in-time (JIT) inventory system was introduced as a substitute for the traditional
inventory systems. Just-in time production system is one of these initiatives that focus on
reduction in wastage by eliminating non-value added activities. The tools and techniques of
JIT have been widely used in both production and service industries starting with the
introduction of the original Toyota production system.
Taylor introduce the simple concept of lower inventories with deliveries supplied just-in-time
(JIT) for manufacturing process has vital effects internal to
the organisation and externally throughout the supply chain. Commonly used classic lotsizing models (EMQ models, etc) do not reflect current just-in-time (JIT) lot-sizing models. A
multiple-objective genetic algorithm based system is developed to determine the optimal

number of kanban and its size and is applied in a JIT-oriented manufacturing company to
express its feasibility. In the integrated system, a simulation based model is designed to
simulate the multi-stage JIT production system of the firm.
The basic aim behind the JIT is waste elimination. Waste is defined as everything that does
not add value to the end product from the user's perspective. The basic objective of JIT
system is to assist manufacturers who have an aspiration to improve the companys
operations to become more competitive through the implementation of JIT system tools. JIT
is to provide only what is needed by customer, when it is needed and in the quantities
ordered. The manufacturing of goods is done in a way that minimizes the time taken to
deliver the finished goods, the man-power required, the work-space required, and it is done
with the highest quality, and usually at the lowest cost. To remain alive in the fast growing
global market, JIT discipline has to work in each aspect for waste reduction in order to
optimize the cost. The most important source of waste is inventory, work in process material
and finished parts do not add value to a product and they should be either eliminated or
reduced. It is found that reduction in the inventory causes reduction in the sources of waste.
The activities developed during the implementation process of JIT are investigated and
grouped as latent independent variables of these companies.JIT production systems has five
major benefits as reduction in inventory, improved quality, productivity improvement,
increased profit margin, and increased competition position. Just-in-time is a control
technique and also a way to improve the production environment. The benefits from the JIT
are only possible under JIT environment only. The JIT system guides the foundation for
implementing the JIT control techniques and improvement of the JIT environment. In a JIT
system it is very essential to shift to a higher degree of process control in order to strive to
reduce waste.

15.3 Background Of The Case And Research Method

Waiting and queuing problems are most common features not only in daily-life situations
such as at a restaurant, public transportation, bank or postal office, seaport, healthcare, call
center but also in more technical environments such as in production, computer networking
and telecommunications. It shows that waiting time can be reduced by keen services for both
short and long-term projects to improve customer satisfaction. Generally, however, the
application of such techniques for daily-life problems has remained rather restricted.
This paper is about an innovative approach to reduce waiting time of pilgrim at Pandharpur,
an important pilgrimage center in India. This center is located at the bank of holy river Bhima
and is popularly known as Dakshin Kashi. It is considered to be the abode of Lord Vishnu in
the form of Vitthal. This center attracts a large number of visitors (million a year) from all
over the country irrespective of their caste, religion, belief, social status and professional
affiliation. The main objectives of any pilgrim are to have bath in the holy river i.e. Bhima
and then darshan by touching the feet of principal deity i.e. Lord Vitthal. Over a period of 400
years the number of visitors to the temple town has increased by many folds. Pandharpur is

the pilgrimage center where pilgrims visit all over year but mostly it is a periodical
pilgrimage center. The pilgrims are coming in number of batches from 2 lacks up to 5 lacks.
Such a huge traffic generates tremendous stress on the physical and social infrastructure of
the temple town. Being tradition bound institute; certain modifications on layout, procedure,
etc are not acceptable. The pilgrims, exposed to modern society norms, who came to the
temple, expect a better service quality, and shorter waiting time. Thus, the challenge is to
balance the tradition, operational easiness and increasing pilgrims expectations.
As pilgrims are coming in batches, they have to wait hours together for darshan of Lord
Vitthal. As they came for darshan of Lord Vitthal, there is very less chances of balking, means
no pilgrim will leave the queue as the queue is long than expected and there is no chance to
change the queue because only single queue is present as there is only one deity (one server)
i.e. Lord Vitthal. There is no chance of more queues as we observe in multi server queuing
theory. It is observed that pilgrims have to walk about seven kilometers in the same queue.
And within the long queue there are so many environmental problems such as uncomfortable
facilities like drinking water, natural duties, etc. The old pilgrims as well as pilgrims with
children found it very difficult to walk within the long queue. There are number of over
bridges in the queue so it is very difficult for the old or aged pilgrims to step up and down.
Again they have to walk in sunshine or few times in the rain also. In periodical pilgrimage,
the Vitthal Rukmini Mandir Samity set up the infrastructure for the queue on the predefined
roads for seven kilometers. In such periods, pilgrims have to wait for more than 24 hours for
the darshan, which is approximately one second. Whether it is necessary to wait for so long
for darshan is the answerless question at this time. For many pilgrims, waiting in lines or
queuing is frustrating or negative experience. Long waiting will affect service evaluation
negatively.

15.4 Need of Research

To most pilgrims, the waiting experience is that most matters. The real reason why pilgrims
are not prepared to wait too long is that the average workload per week has increased. In
addition, the tremendous growth in the service sector has turned weekends into working days
and working days into 24-hour operations.
It concludes that as pilgrims are cautious about their time, waits seem more wasteful than
ever.
Long waiting time in any servicing station is considered as an indicator of poor quality and
needs improvement. Every customer also did not like to wait for long time. If the waiting
time or service time is found more customers may leave the queue prematurely and this in
turn results in customer dissatisfaction. The waiting has significant impact on pilgrims
satisfaction. The time pilgrims spending on waiting influence their satisfaction. Research has
demonstrated that satisfaction of customers is affected not just by waiting time but also by
their expectations or attribution of the causes for the waiting. As a result, one of the issues in
management of queue is not only the actual amount of time the pilgrim has to wait, but also

their perceptions of that wait also. The prime goal is to maximize the level of pilgrim
satisfaction with the service provided.

15.5 Problem Definition

Darshan is the prime purpose for which a pilgrim visits the Pandharpur in the pilgrimage
period. The output per day is fixed and is a combination of the processing rate and the
darshan duration available. The current processing rate of 40 pilgrims per minute translates to
2,400 pilgrims an hour. At pilgrimage period, darshan may be kept open for 14.5 hours. This
would provide a processing capacity of 34,800 per day. It may be noticed that the output rate
is constant and arrival process is stochastic. When the number of arrivals per hour is more
than 2400, wait would occur. The actual waiting time would be proportional to the number of
pilgrims in the queue. The waiting duration in hours would be the number of pilgrims in the
queue divided by a hourly output of 2400. The number waiting in the system would decrease
proportionately when the arrival rate is less than 2400 per hour.
The greatest disadvantage of the current system is that a particular pilgrim did not know how
long it will take him to reach in front of deity, how many individuals are ahead and should
there be an interruption in service (why and how long). Because of the great privilege and
tolerance required in undertaking such pilgrimages, the pilgrims at large are willing to
undergo the excessive and unexplained delay.
Pilgrims average waiting time of darshan can vary from 1 hour to 5 hours in regular days.
And it may be increased up to 24 hours in the pilgrimage period. There is anxiety as how
many pilgrims are ahead. There is also tremendous uncertainty as when one would reach in
front of deity. Finally by First In First Out (FIFO), pilgrims arrive in front of the deity. The
actual darshan time is about 1.5 to 2 seconds. The darshan time of pilgrim in front of deity
cannot be increased. The number of queues also cannot be increased as only one deity is
present. It is only possible to apply selected management / industrial engineering tools to
reduce the waiting period of pilgrim as well as to make waiting time enjoyable.

15.6 Methodology
The JIT approach enables to achieve high product quality with optimum resources in
manufacturing industry. JIT approach is based on lean manufacturing system which develops
to improve and optimize manufacturing efficiency by reducing lead time through waste
elimination and kanban.Kanban system achieves minimum level of inventory. It ensures the
supply of right part, at the right time, in the right place and in right quantity. Kanban system
is system to manage and control flow of material in manufacturing industry. Cards are used to
regulate material flow throughout process. JIT concepts are originally developed in the
manufacturing domain. It can be identified, analyzed and altered to fit and benefit service
organizations. If the service organizations apply JIT techniques to reduce non-value added

activities, they will have more time to focus on value added activities, which will improve
service to their customers and provide better operating environment for the organization.

15.7 Result and Discussion

This case study is done within a pilgrimage period at Pandharpur. A software based program
is uploaded on the official site of Shree Vitthal Rukmini Mandir Samity, Pandharpur. The
slots were provided day wise and at a frequency of two hours. At this level, the queuing
system can be modeled by a G / D /1 queue, with stochastic arrival and deterministic service
time and only one server. The darshan rate is 2400 pilgrims per hour. As this system is
introduced first time and the pilgrims are mostly from rural area, only 500 availabilities were
opened within two hours. The number of JIT booking per hour will be increased in future.

FIG-15.1 Waiting time in hours per day in the month of April 2014

Also the data of pilgrims waiting time for all the days is collected and tabulated below. From
this it is observed that minimum average waiting time is 3 hours in the normal days. It goes
on increasing up to 8 hours in the pilgrimage days. From this it is clear that there is very rush
for darshan in the pilgrimage period and JIT system was partially utilized by pilgrims. The
waiting period for the pilgrims was reduced by almost seven hours by using JIT system.
Figure 15.1 shows the average waiting time in hours per pilgrim for darshan day wise. The
pilgrims had chosen their date and time according to their availability. Pilgrims registered
through web site. After successful registration, individual got a ticket indicating Name, Place
of living, Date and time of Darshan. Thus the pilgrim booked his or her time of darshan.
These pilgrims have to produce the tickets at Tukaram Bhavan half hour before the darshan
time. After verification of photograph on the ticket and date &time, these pilgrims are
allowed to enter the queue of darshan. Hereafter within 15 minutes he or she gets darshan,
thus reducing waiting time. Thus waiting time for the pilgrims, who have utilized JIT facility,
is maximum 30 minutes.

The following table indicates the date at which JIT darshan facility was made available and
accordingly the number of pilgrims booked their names. It also shows the total number of
pilgrims took darshan on that day. This data was gathered in the pilgrimage period in the
month of February 2014.
Sr. No.

Date

February 07. 2014

Number of
Pilgrims Booked
through JIT
1348

Number of
Pilgrims by
physical queue
27454

1
2

February 08. 2014

4000

30462

February 09. 2014

4000

30975

February 10. 2014

4000

31115

February 11. 2014

3925

28469

February 12. 2014

625

25737

February 13. 2014

113

25394

February 14. 2014

124

22097

TABLE-15.1 Date wise number of pilgrims through JIT & Physical Queue (54)

FIG-15.2 Number of pilgrims through JIT and Physical Queue

15.8 Conclusions
The case study is done in the pilgrimage period. In this period, the average waiting period of
the pilgrims, who have taken darshan in physical queue was recorded as 8 hours whereas it is
about 30 minutes for those who use Just In Time facility. It clearly indicates that waiting
period is reduced by Just In Time. Moreover the pilgrims had already booked their return
journey tickets prior to darshan as they were aware about the exact time of darshan. This is
not possible for the pilgrims who took darshan being in queue as uncertainty about the
waiting period. It is also found that donation collection within this period was increased as
compared to last pilgrimage period. Looking to all these advantages, management has
decided to increase the quota for Just In Time in the next pilgrimage period.
15.9 References
[1] Chandera Subhash & Rambabu Kodali, Implementation of Just-in-Time manufacturing:
An overview, vol.38, no.2, 1997. [2] Tung-Hsu (Tony) Hou, An integrated MOGA
approach to determine the Pareto-optimal kanban number and size for a JIT system, Expert

CHAPTER 16
16. GLOLOSSARY
Batch Size The number of duplicate parts, components or finished goods produced before a
process is changed to produce different parts. Also known as Lot Size.
Changeover Time The time it takes to go from production of one product to production of
a different product with acceptable quality, i.e., Setup Time.
Cross-training Educating employees to perform more than one job, therefore, increasing
flexibility in the workforce.
CRP Capacity Requirement Planning
Cycle Time The total time for a worker to complete one cycle of operations, including
walking, loading/unloading, inspecting, etc.
EOQ Economical Order Quantity
External Customer A person who has purchased a product from a company; usually the
end user of a product.
External Setup Setup steps done while the machine or system is producing.
Flexible Changeover The capability to manufacture what you want, when you want, in
whatever batch size you require.
Heisenberg Principle The idea that a phenomenon that is observed is changed merely by
the fact that it is being observed.
Internal Setup Setup steps done only when the machine or system is idle.
Internal Customer The next person or process that receives product from a preceding
process within an organization, i.e., the next person down the line.
JIT (Just-In-Time) Producing the minimum number of units in the smallest possible
quantities at the latest possible time, which in turn eliminates the need for inventory. Such
production reduces waste and improves quality.
Job Shop An organization that produces short runs of similar parts and specialized one-ofa-kind parts.
Kanban Any visual device that strictly limits length of a waiting line (inventory) and
authorizes work. An example of this is a kanban card.
Level Loading The production of products at the proper frequency. Products are made at
the customer requirement rate. In theory, if a product is sold every day, it should be made
every day.

Machine Cell Machines grouped together for the purpose of producing a product one at a
time from machine to machine while having the flexibility to produce different products and
operate at different output rates and with different crew sizes (cycle time). Also known as
work cells.
Malcolm Baldrige National Quality Award Annual award recognizing U.S. companies
that excel in quality achievement/management. Founded in 1987 and administered by
Department of Commerces Technology Administration.
MRP I (Material Requirement Planning) Scheduling the completion and start dates of
components and raw materials.
MRP II (Manufacturing Resource Planning) Arranging material requirements while
maintaining the due date for each component supply order so that each order will arrive just
in time for the next process.
Nonvalue-adding Operation A function that adds cost to a product, not value; such as
inspecting or moving.
Pareto Chart A bar chart that arranges data in order of importance. The bar representing
the item that occurs or costs most is placed on the left-hand side the horizontal axis. The
remaining items are placed on the axis in descending order. Typically a few causes account
for most of the output; hence the phrase vital few and trivial many.
Poka-yoke Devices used to prevent defects from occurring in the manufacturing process.
Also known as fail-safing or fool-proofing.
Process Any set of conditions or causes working toward an outcome.
Pull System The manufacturing process whereby each operation uses parts as needed,
therefore releasing a production authorization signal to the preceding operation. No parts are
produced until needed and no extra parts are produced. Also called the supermarket system or
kanban system.
Push System The manufacturing process by which each operation works independently
and pushes its parts on to the next operation by a certain date.
Quality Fitness for use. Product performance resulting in customer satisfaction. Freedom
from product deficiencies which avoids customer dissatisfaction.
Repetitive manufacturing The process in which large numbers of the same parts or family
of parts are made.
ROP Reorder Point
Setup Time The interval between the production of one good part and the production of
another good but dissimilar part.

SFC (Shop Floor Control) Scheduling the operations performed on a component between
MRP II and finish dates; often called priority sequencing.
SMED Single-Minute Exchange of Die A procedure for performing setup operations in
less than 10 minutes, i.e., in a single-digit number of minutes. Not all setups can be
completed in single-digit minutes, but this is the goal.
SPC (Statistical Process Control) A method of managing a process by gathering
information about it and using that information to correct the process to prevent the same
problem from happening again.
System Any organizational method, procedure or function for accomplishing work.
Takt Time The total daily operating time divided by the total daily requirement, usually
expressed in hours, minutes or seconds per part.
TEI (Total Employee Involvement) 100% of workforce is placed on teams formed to
continuously improve quality in all aspects of an organization.
TQM Organized, continuous process improvement activities involving an entire
organization, managers and workers, in a totally integrated effort to improve performance at
every level focusing on customer satisfaction (quality).
Value-adding Operation A function that adds value to a product, such as milling and
assembling.
Value Analysis A process for evaluating the interrelationships among the functions
performed by the product features and the associated costs.
Vendor Certification The procedure by which a partnership is formed between the buyer
and seller of a product. Strict criteria are established for the seller and when these criteria are
met the seller becomes certified.
Waste Anything other than the minimum amount of equipment, materials, parts, space and
worker time, which are absolutely essential to production.
WIP Work-In-Process Xenons Paradox A mathematical paradox which states
that if a person walks toward a wall, each step being half as large as the previous one, that
person will never reach the wall. Zero Defects (Zero Quality Control) The objective of
defect-free production where zero defects is defined as meeting product specifications.

CHAPTER 17
17. CONCLUSION
The JIT philosophy has evolved from a manufacturing-focused management approach to a set
of management principles that can be applied to any organization. Lean operations is a term
that is replacing JIT, especially in service environments. Lean operations captures the true
essence and power of how a culture built around continuous improvement and the pursuit of
value-added activities leads directly to competitive advantage in the marketplace. Lean
operations is a management philosophy for any organization to achieve higher quality,
increased productivity, improved delivery speed, greater responsiveness to changing markets,
and increased customer satisfaction.
Just-in-time manufacturing is a philosophy that has been successfully implemented in many
manufacturing organizations.
It is an optimal system that reduces inventory whilst being increasingly responsive to
customer needs, this is not to say that it is not without its pitfalls.
However, these disadvantages can be overcome with a little forethought and a lot of
commitment at all levels of the organization.

CHAPTER 18
18. REFERENCES AND RECOMMENDED READINGS
The Design of a Factory with a Future
by J.T. Black
Director of Advanced Manufacturing/Technology Center Auburn University
Copies are available from the publisher (or by calling 1-800-334-7344):
McGraw Hill Book Company
P.O. Box 18122
Newark, N.J. 07191
Library of Congress Catalog Number: 90-19991
ISBN: 0-07-005551-3 (hard cover)
0-07-005550-5 (soft cover)
Introduction to TPM: Total Productive Maintenance
by Seiichi Nakajima
Copies are available from the publisher (or by calling 1-800-274-9911):
Productivity Press, Inc.
P.O. Box 3007
Cambridge, MA 02140 (617) 497-5146
Library of Congress Catalog Card Number: 88-61394
ISBN: 0-915299-23-2
Jurans Quality Control Handbook
by J.M. Juran
Copies are available from the publisher (or by calling 1-800-952-6587):
American Society for Quality Control (ASQC) Customer Service Department

P.O. Box 3066

Milwaukee, WI 53201

Library of Congress Catalog Card Number: 86-18762

ISBN: 0-13-1983441-1
The Just-In-Time Breakthrough
Implementing the New Manufacturing Basics
by Edward J. Hay
Copies are available from the publisher (or by calling (212)850-6354):
John Wiley and Sons
Business/Law/General Books Division
605 Third Avenue
New York, N.Y. 10158-0012
Library of Congress Catalog Card Number: 87-25315
ISBN: 0-471-85413-1
Just-In-Time: Alive and Well in the South
by Dr. Anthony Inman
Article published in Southern Business and Economic Journal, April 1991, Vol. 14, No, 3,
155-167.
Out of the Crisis
by Edward Deming
Copies are available from the publisher (or by calling 1-800-952-6587):
American Society for Quality Control (ASQC)
Customer Service Department
P.O. Box 3066 Milwaulkee, WI 53201

Library of Congress Catalog Card Number: 86-18762

ISBN: 0-13-198441-1
Poka-yoke: Improving Product Quality By Preventing Defects
by Hiroyuki Hirano

Copies are available from the publisher (or by calling 1-800-274-9911):

Productivity Press, Inc.
P.O. Box 3007
Cambridge, MA 02140 (617) 497-5146
Library of Congress Catalog Card Number: 88-62593
ISBN: 0-915299-31-3
Quality Without Tears
by Phillip Crosby
Copies are available from the publisher (or by calling 1-800-952-6587):
American Society for Quality Control (ASQC)
Customer Service Department
P.O. Box 3066
Milwaulkee, WI 53201
Library of Congress Catalog Card Number: 86-18762
ISBN: 0-13-198441-1
Reinventing the Factory:
Productivity Breakthroughs in Manufacturing
by Roy L. Harmon and Leroy D. Peterson
Copies are available from the publisher (or by calling 1-800-274-9911):
Productivity Press, Inc. P.O. Box 3007

Cambridge, MA 02140, (617) 497-5146

Library of Congress Catalog Card Number: 88-62593
ISBN: 0-915299-31-3
A Revolution In Manufacturing: The SMED System
by Shigeo Shingo
Copies are available from the publisher (or by calling 1-800-274-9911):

Productivity Press, Inc.

P.O. Box 3007
Cambridge, MA 02140, (617) 497-5146
Library of Congress Catalog Card Number: 84-61450
ISBN: 0-915299-03-8
Statistical Process Control Methods
by Gary K. Griffith
Copies are available from the publisher (or by calling 1-800-952-6587):
American Society for Quality Control (ASQC)
Customer Service Department
P.O. Box 3066
Milwaukee, WI 53201
Library of Congress Catalog Card Number: 86-18762
ISBN: 0-13-198441-1
The Team Handbook
by Peter Scholtes
Copies are available from the publisher (or by calling 1-80-952-6587):
American Society for Quality Control (ASQC) Customer Service Department

P.O. Box 3066

Milwaukee, WI 53201
Library of Congress Catalog Card Number: 86:18762
ISBN: 0-13-198441-1
Training: Quality Supplement. "Is 99.9% Good Enough"
by Natalie Gabel
March, 1991. 40-41.
World Class Manufacturing: The Lessons Of Simplicity Applied

by Richard J. Schonberger
Copies available from the publisher (or by calling 1-800-274-9911):
Productivity Press, Inc.
P.O. Box 3007
Cambridge, MA 02140, (617) 49705146
Library of Congress Catalog Card Number: 85-24719
ISBN: 0-02-929270-0
World-Class Manufacturing Casebook: Implementing JIT and TQC
by Richard J. Schonberger
Copies available from the publisher (or by calling 1-800-274-9911):
Productivity Press, Inc.
P.O. Box 3007
Cambridge, MA 02140 (617) 49705146
Library of Congress Catalogue Card Number: 86-25822
ISBN: 0-02-920340-5

JIT Factory Revolution:

A Pictorial Guide to Factory Design of the Future
by Hiroyuki Hirano
Copies available from the publisher (or by calling 1-800-274-9911):
Productivity Press, Inc.
P.O. Box 3007
Cambridge, MA 02140, (617) 49705146
Library of Congress 88-29007
ISBN: 0-915299-44-5