Lean

manufacturing/JIT

Henry Fords production

line was developed in
1913. The idea was
inspired by a trip to an
abattoir.

1909 Model T Ford

Any colour you like provided it is Black! - Standardised

Any colour you like provided it is black!
Model T Ford
1909.

Vertically integrated
even farmed sheep!

Ford Mass Production

System

Minimised waste, maximised value

Workers paid $5 per day, more than double the

average

Model T cars were cheap for customers, by 1918,

half of all American cars were Model Ts.

By 1927, 15,007,034 had been produced, a record

which stood for the following 45 years.

Toyota Production System

After World War II, Toyota was almost bankrupt.

Post war demand was low and minimising the cost per unit
through economies of scale was inappropriate. This led to
the development of demand-led pull systems.

The Japanese could not afford the expensive mass

production facilities of the type used in the USA so they
instead focused on reducing waste and low cost
automation.

Likewise, Toyota could not afford to maintain high

inventory levels.

PUSH versus PULL systems

Raw
Material
Supplier

Final
Assembly

Customer
FGI

PUSH
Raw
Material
Supplier

Final
Assembly

Customer
FGI

PULL
Information Flow
Material Flow

PUSH system

Every worker maximizes own output, making as many

products as possible
Pros and cons:
Focuses on keeping individual operators and workstations busy
rather than efficient use of materials
Volumes of defective work may be produced
Throughput time will increase as work-in-process increases (Littles
Law)
Line bottlenecks and inventories of unfinished products will occur
Hard to respond to special orders and order changes due to long
throughput time

PULL system

Production line is controlled by the last operation, Kanban

cards control WIP

Pros and cons

Controls maximum WIP and eliminates WIP accumulating at
bottlenecks
Keeps materials busy, not operators. Operators work only
when there is a signal to produce.
If a problem arises, there is no slack in the system
Throughput time and WIP are decreased, faster reaction to
defects and less opportunity to create defects

Just-In-Time manufacturing

In the broad sense, an approach to achieving

excellence in a manufacturing company based upon
the continuing elimination of waste (waste being
considered as those things which do not add value to
the product). In the narrow sense, JIT refers to the
movement of material at the necessary time. The
implication is that each operation is closely
synchronised with subsequent ones to make that
possible APICS Dictionary 1987.

Features of Lean
manufacturing
WHAT IT IS

WHAT IT DOES

Attacks waste
Management philosophy

Pull system though the plant Exposes problems and bottlenecks

Achieves streamlined production

WHAT IT ASSUMES

WHAT IT REQUIRES

Employee participation

Industrial engineering/basics
Continuing improvement
Total quality control
Small lot sizes

Stable environment

Kaizen

Lean Manufacturing goals

Waller, D.L.,,1999,Operations Management: A Supply Chain Approach, (Thompson, London)

7 Forms of waste muda

Overproduction most serious waste because it discourages

the smooth flow of material and inhibits productivity and
quality.
Waiting wastes time and money.
Transport
Inappropriate processing e.g. use of complex processes
rather than simple ones. Over complexity encourages over
production to try and recover the investment in over complex
machines.
Unnecessary inventory increases lead-times and costs.
Unnecessary motion relates to poor ergonomics where
operators have to stretch, strain etc. This makes them tired.
Defects physical waste. Regarded as an opportunity to
improve. Defects are caused by poor processes.

Elimination of waste

5S

Cellular manufacturing or Group Technology

Set up time reduction

Quality at source

Kanban

JIT production

Fool proofing (Poka-yoke)

Pull scheduling

Uniform plant loading

Focused factory networks

5Ss
Waller, D.L.,,1999,Operations Management: A Supply Chain Approach, (Thompson, London)

Minimizing Waste: Group

Using
Departmental
Specialization
(Job
Shop)
for
plant
layout
Using
Departmental
Specialization
(Job
Shop)
for
plant
layout
Technology
can cause a lot of unnecessary material movement
can cause a lot of unnecessary material movement

Note
Notehow
howthe
theflow
flowlines
linesare
aregoing
goingback
backand
andforth
forth
Saw

Saw

Saw

Grinder

Grinder

Heat Treat

Lathe

Lathe

Lathe

Press

Press

Press

Minimizing Waste: Group

Technology
Revising by using Group Technology Cells can reduce

Revising by using Group Technology Cells can reduce

movement
movementand
andimprove
improveproduct
productflow
flow
Grinder

Saw

Lathe

Lathe

Press

Lathe

Press

Heat Treat

Grinder
Saw

Lathe

Functional layout

Siemens Power Generation Systems

Manufacturing
cells

Siemens Power Generation Systems

A single machine acting as a cell

Multifunction double gantry mill

Siemens Power Generation
Systems

Minimizing waste Setup

times
Single minute exchange of dies (SMED) - all changeovers <
10 minutes
1.

Separate internal set-up from external set-up. Internal

set-up must have machine turned off.

2.

Convert as many tasks as possible from being internal

to external
3.

Eliminate adjustment processes within set-up

4.

Abolish set-up where feasible

Shingo, S. (1985),A Revolution in Manufacturing: the SMED

System, The Productivity Press, USA.

Single Minute Exchange of Dies

(SMED)
Increases flexibility
Makes it easier to reduce batch size
Reduces waste

Waller, D.L., 2003,Operations Management: a Supply Chain Perspective 2nd Edition, Thompson,
London

Minimizing waste Quality at

source

Do it right the first time

Call for help

Immediately stop the process and correct it vs.

passing it on to inspection or repair

Jidoka Line stopping

Minimizing waste Kanban

Signaling device to control flow of material

Cards
Empty containers
Lights
Colored golf balls etc.,

Minimizing waste JIT

Only produce whats needed

The opposite of Just In Case philosophy

Ideal lot size is one

Minimize transit time

Frequent small deliveries

Pros

Cons

Minimal inventory

Requires discipline

Less space

Requires good problem solving

More visual

Suppliers or warehouses must be close

Easier to spot quality issues

Requires high quality

Operations Management II

Demand Forecasting

Aggregate Planning

Master Production Schedule

Inventory Control

Quality Control

Scheduling

Operations Management II

Demand Forecasting

Aggregate Planning

Master Production Schedule

Inventory Control

Quality Control

Scheduling

Sequencing & Scheduling

Sequencing: The order in which jobs are to be

processed

Scheduling: Allocation of resources over time to

process set of jobs

Broad classification:
- Single machine scheduling problems
- Flow-shop scheduling problems
- Job shop scheduling problems

Generic assumptions in
scheduling

A set of n independent, single/multiple operation jobs is

available for processing at time zero

Setup times for the jobs are independent of job sequence

and can be included in processing times

Job description is known in advance

Machine(s) are continuously available and are never kept

idle while work is waiting

Once processing begins on a job, it is processed to

completion without interruption

Relevant Terminology

Processing time (tj): Amount of processing required by job j

Ready time (rj): Point in time at which job j is available for

processing

Due date (dj): Point in time at which the processing of job j is

due to be completed

Completion time (Cj): Time at which the processing of job j is

finished

Flow-time (Fj): Amount of time job j spends in the system

Lateness (Lj): Difference between Cj and dj

Tardiness (Tj): Positive lateness. Tj = max (0, Cj dj)

Measures of performance

Mean flow time

Maximum flow time

Mean tardiness

Maximum tardiness

Number of tardy jobs

Make-span

Example 1: Minimizing mean

flow time
Job (J)

Processing
time (hours)

15

14

Example 2: Minimizing maximum

tardiness
Job (J)

Processing
time (hours)

10

12

15

Due date

15

10

12

11

18

25

Example 3: Minimizing no. of

tardy jobs
A team of four computer science students, graduated recently from
IIT Delhi, start a software firm. Through alumni network, they
manage to bag seven projects from large MNCs based in the US.
Under the terms of contract, the firm will receive INR 2500000 as
bonus for each project completed on time, but will incur INR
1000000 in penalties for each project completed late. How should
the projects be sequenced in order to maximize the net revenues
Job (J)

Processin
g time
(months)

10

12

14

Due date

12

30

19

12

18

24

Example 3: Minimizing no. of

tardy jobs
Step 1: Arrange the jobs in EDD order and assume this as set
E. Let Set L be empty.
Step 2: If no jobs in E are late, then stop. Find the union of E
and L (The remaining jobs in E should be in EDD order.

But

the jobs in L can be in any order);

Otherwise, identify the first late job in E. Let it be job K.
Step 3: Identify the longest job, among the first K jobs in
sequence. Remove this job from E and place it in L.
the completion times of the jobs remaining in E
to Step 2.

Revise

and return

Example 4: Minimizing no. of

tardy jobs
Job (J)

Processing
time
(months)

15

17

12

Due date

20

15

30

17

25

Example 5: Minimizing makespan

Consider the following two machines and six jobs flow shop
scheduling problem. Obtain the optimal sequence which will
minimize the make-span
Job

Machine 1

Machine 2

13

14

10

12

11

Example 6: Minimizing makespan

Job

Machine 1

Machine 2

Machine 3

10

11

Example 7: Minimizing makespan

Job

Machine 1

Machine 2

Machine 3

Machine 4