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Chapter 12 Just-In-Time and Lean Manufacturing Overview The Just-in-Time Manufacturing Philosophy Prerequisites for JIT Manufacturing Elements of JIT Manufacturing Benefits of JIT Manufacturing Success and JIT Manufacturing JIT in Services Wrap-Up: What World-Class Companies Do APICS Definition of JIT “A philosophy of manufacturing based on planned elimination of waste and continuous improvement of productivity ……” APICS Definition of JIT “The primary elements of Just-in-Time are: to have only the required inventory when needed; to improve quality to zero defects; to reduce lead times by reducing setup times, queue lengths, and lot sizes; to incrementally revise the operations themselves; and to accomplish these things at minimum cost”. JIT Synonyms IBM - Continuous Flow Manufacturing HP - Stockless Production - Repetitive Manufacturing System GE - Management by Sight Motorola - Short Cycle Manufacturing Japanese - The Toyota System Boeing - Lean Manufacturing APICS Definition of Lean Manufacturing “A philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise. It involves: … identifying and eliminating non-value-adding activities, … employing teams of multi-skilled workers, … using highly flexible, automated machines” Time-Based Competition It is no longer good enough for firms to be high-quality and low-cost producers. To succeed today, they must also be first in getting products and services to the customer fast. To compete in this new environment, the order-to-delivery cycle must be drastically reduced. JIT is the weapon of choice today in reducing the elapsed time of this cycle. Traditional View of Manufacturing A key objective was to fully utilize production capacity so that more products were produced with fewer workers and machines. This thinking led to large queues of in-process inventory waiting at work centers. Large queues meant work