Best Practices for Managing Just-in-Time (JIT) Production?

Hello Michael,

First, let me explain what I mean when I talk about managing. I believe that John Kotter has the best description of contemporary management and he breaks it out into 3 double barreled tasks. Planning-budgeting, Organizing-staffing and Controlling-problem solving.

To manage well in a JIT environment, the on-floor activities must be managed by the folks there on the floor and this means a new style of delegating which many companies find very difficult to attain, yet they typically have all the necessary resources to accomplish it -- they just struggle with how to "give up the reins".

With the majority of the hour by hour management of the process turned over to the line employees, I find the good JIT manager must make sure:
1- His people know what to do, when to do it and how to do it, including being skilled at problem solving. This is largely a function of training, standard work, and an escalation process.
2-The information systems are in place that give the line employees the facts they need to understand and respond to the plant status and needs. This is first and foremost a set of meaningful goals, well understood and well deployed -- as well as a sound system of transparency
3-He/she has time to spend on the floor and the skills and inclination to supply the daily management to observe, investigate, analyze and support the systems everyone is using as well as make ad-hoc observations so he/she might further improve the systems

Lonnie Wilson
law@qc-ep.com

When I think about managing JIT production, I like to focus within my 4 walls first.

1. Stability in my production operations is a requirement. To achieve stability, I have to reduce or eliminate variability in my manufacturing operations and in my delivery processes. Standardized work, SMED, 6 sigma, and other Lean tools can be used to help eliminate variability.

2. Visual controls are an important element to managing JIT production. The simpler, the better. If operations can be arranged such that they can see each other, I use small inventory buffers between operations that provide visual production signals. The upstream operation only produces parts if there is an empty space in the inventory buffer.

If they are not close enough to see each other, I introduce kanban cards to serve the same purpose. The upstream operation only produces parts for which it has kanban cards. Kanban cards must be managed. They can easily get misplaced, destroyed, or held up in their movement. I have added a kanban card scanning activity to help track the cards and quickly show if any are missing.

If the inventory storage location is offsite, you experience the additional complication of signal stagnation as it may take several hours to get the kanban cards back to the operation after the parts have been consumed. I have reduced this affect by introducing electronic kanban signals. As parts are consumed, a signal is sent to the supplying operation/storage location indicating replacements are needed. Here, I have added simple visual controls to validate that the electronic signals are valid. In example, red tape on a flow rack indicating that the inventory at that level should have generated an electronic signal if all was working as planned.

3. A flexible work force and flexible machines are both important to achieving JIT production. As end customer demand and product mix can vary considerably, it is important that I can quickly adjust what I am producing to match the demand. This requires creativity in machine design, comprehensive training on the standardized work developed in 1. and a workforce that is open and willing to be involved in making it happen.

All of the above take a high level of commitment and work by all involved to make them work. The basic concept is simple, but the application is challenging.

Sorry for the confusion, we are looking for best practices on managing JIT production. Thank you for bringing this to our attention, I will change the question so that it isn't so confusing.

JIT is not procrastination but making a commitment once the scales are tipped in the favor of certainty. Sometimes used as an excuse for not doing something many a company has fallen prey to decision failures. Therefore as requested: 1. JIT requires decisions made based on certainty or time threshold requirements, 2. JIT requires an understanding what these decision elements are and must involve governance/accountabilities and 3. JIT necessitates one critically evaluating what can be postponed and what cannot (including the determination of causal effects).

BTW.. the concept of Best Practices must be taken within the context to which it is applied. For this reason the best of practice will fail when applied to the wrong circumstance. Thus... there BEST is conditional upon the situation.

Hi Michael - the previous respondents are accurate. "JIT is not procrastination but making a commitment". It's not an accident but a highly engineered and precise supply chain solution. The point of execution shifts directly to the production floor requiring an engineered process that mandates, as noted above, "know[ing] what to do, when to do it, and how to do it...[all] largely a function of training, standard work, and an escalation process."
The best place to see it in action is within the auto industry where complex hihgly engineered JIT delivery solutions have been an intergral part of the supply chain since the early 80's.

Barry Griesinger
barryg@mmsolutions.us.com

"Developing just in time supply chains requires stability, levelling, flow and syncronization of the whole supply chain with demand.
Production capabilities to enable JIT must include:
1) high reliable production & information systems
2) short manufacturing cycles enabled by rapid change overs capabilities
3) planned vs. unplanned through standardized work and methods.
4) supply chain capacity vs. demand ratio sized to absorb standard demand fluctuation
The Jit journey inlcudes the development of the right organizational culture and capable and agile team/people/leaders "

Michele Tomasicchio

JIT is a strong manufacturing management tool I have implemented a number of times over my career. It has assisted in reducing or completely solving these issues: lenthly setups, long queues at work centers, material waiting to be moved to next step in operation or production, long distances between work centers, uneven loads from one period to the next, unexpected equipment failure and large safety stock to cover scrap. In order for JIT to be implemented successfuly the following must occur:
1- A project team should be formed from purchasing, manufacturing engineering, manufacturing management, production control, quality control and operations. This project team must stand out a champions of change.
2- Evaluation & Assessment where a company makes a thorough assessment of its' environment, decide on strategic objectives and evaluate present operating conditions relative to JIT.
3-Plan & Execution in the initial plan by obtaining commitment of top management and immediately to follow is educational ortraining programs for entire employees. In my experience we stressed qulaity improvement at the start of JIT. Improved quality reduces inventory requirements, reduces scheduling problems and improves equipment capability.

While JIT takes commitment and time, well managed systems will achieve a flow of inventory from raw materials to the customer without machine breakdowns or other problems.