Modul e

10
JIT AND
LEAN
OPERATION
 JIT AND LEAN OPERATION

MODULE 10 OUTLINE

OVERVIEW CBME1
Operations
Management/TQM
This module will help you understand Just-in-time (JIT) as a system of lean production which requires the elimination of
sources of disruption to the even flow of work, and tasks are completed just in time to maintain schedule. It will also explain the key
benefits and the risks involved in a lean operation system, and identify the ultimate goal and supporting goals making the system
flexible.
As a business student you will admire JIT/Lean Operation as a balanced and smooth flow of production where quality is
essential, disruptions are reduced to make the system more efficient, and working towards continual improvement.
to your 10th
module!

MODULE DURATION
This module is a
combination of
I. One week only.
synchronous &
asynchronous
learning
and will last for
one week
Pretest will be
given via
Google Form in
LEARNING OBJECTIVES asynchronous
test

After completing this module, you are expected to:

I. understand the concept of JIT and lean systems as a balanced and smooth-flowing production systems; C_Overview
II. describe the key benefits of JIT/lean operation systems and the risks involve;
III. identify the goals of JIT process system and the kinds of waste according to its philosophy;
IV. explain the terms commonly associated with lean operations; and
V. determine and apply the principles of 5S to your everyday life.

Virgilio L. Matias, DBA

Course Coach

LEARNING ACTIVITIES

No part of this module may be

reproduced
Individual activity: These are the questions that will be asked during the recitation. in any
Prepare to beform without
called.
prior permission in writing from
1. Explain the difference between pull and push basis of operations. the Instructor.

San Mateo Municipal College Module 12/JITNovember 16, 2

and Lean Operation/Page
2020
College of Business and Accountancy DatePrepared
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by Dr. Virgilio L. Matias
November 21,
2020
Date of Completion
 2. Do the benefits of JIT/lean operation systems outweigh the risks associated with them? Expound.
3. Which among the terms commonly associated with lean operation contributes the most to the realization of its goals?
Justify.
4. How can you apply housekeeping and 5S to your daily life as a student during this time of pandemic? Cite situations.

ASSESSMENT/EVALUATION

Identify/Fill in the blanks with the correct word / phrase.

1. __________ require the elimination of sources of potential disruption to the even flow of work. __________is essential
because problems with quality can disrupt the process.
2. The ultimate goal of a __________ is to achieve a balanced, smooth flow of production. Supporting goals include
___________ disruptions to the system, making the system flexible, and eliminating waste.
3. The ___________ stem from the absence of buffers, such as extra personnel and inventory stockpiles to fall back on if
something goes wrong. The possible result of risks includes _________ and lost customers.
4. ___________ involves keeping the workplace clean as well as keeping it free from any materials that are not needed for
production, because those materials take up space and may cause ________ to the workflow.
5. A __________ is one that is robust enough to handle a mix of products, often on a daily basis, and to handle changes in
the level of output while still ____________ balance and throughput speed.

ASSIGNMENT

Be sure to answer the questions given in the learning activity. This will enable you to assess your understanding of the topics
herein contained. It will form part of my evaluation of the efforts you’ve exerted on this very important segment of the course, JIT
and Lean Operation.
Take note also of the highlighted terminologies. Be sure to write them in your notebook for they will be included in your quiz
and examination.

Module 11 covers the detailed discussion of Total Quality Management (TQM). This will be sent through our Group Chat
(GC).

1. Read Module 11.

2. Comprehend its contents and write in your notebook the highlighted terminologies, and important information that you think
will be included in the examinations.
3. Using the available resources, search for the meaning of the words unfamiliar to you
4. Answer the questions at the end of the module.

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College of Business and Accountancy Prepared by Dr. Virgilio L. Matias

 LEARNING RESOURCES

Books:

● Production Operations Management; McGraw Hill Education. 2016

● Production and Operations Management; Stevenson, Sum. McGraw Hill. 2012

● Operation Management; Stevenson, William J. McGraw Hill 2009

Internet source:

https://slideplayer.com/slide/17897829/

JIT AND LEAN OPERATION

MODULE 10

INTRODUCTION
Just-in-time (JIT) is a system of lean production used mainly in repetitive operations in which goods move through the system and
tasks are completed just in time to maintain the schedule. JIT systems require very little inventory because excessive operations are

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College of Business and Accountancy Prepared by Dr. Virgilio L. Matias

closely coordinated. The ultimate goal of a JIT system is to achieve a balanced, smooth flow of production. Supporting goals include
eliminating disruptions to the system, making the system flexible, and eliminating waste.
Lean systems require the elimination of sources of potential disruption to the even flow of work. High quality is essential because
problems with quality can disrupt the process. Quick, low-cost setups, special layouts, allowing work to be pulled through the system
rather than pushed through, and a spirit of cooperation, are important features of a lean system. So, too, are problem solving aimed at
reducing disruptions and making the system more efficient, and an attitude of working toward continual improvement.

JUST-IN-TIME AND LEAN OPERATION

The term just-in-time (JIT) is used to refer to an operations system in which materials are moved through the system and services are
delivered with precise timing so that they are delivered at each of the processes just as they are needed – hence the name just-in-time.
Initially the term JIT referred to the movement of materials, parts, and semi-finished goods within a production system. Over time, the
scope of JIT broadened and the term became associated with lean operations. Now the two terms are often used interchangeably to
refer to a highly coordinated, repetitive manufacturing or service system designed to produce a high volume of output with fewer
resources than more traditional repetitive systems, but with the ability to accommodate more variety than traditional systems.
Just-in-Time is a highly coordinated processing system in which goods move through the system, and services are performed, just as
they are needed. It involves production planning and control, relies on visual or audible signals to trigger production and deliveries, and
operates on a “pull” or demand basis whereby work is pulled from each step in the process to the next step when the next step has a
demand for it, rather than pushed onto the next step when work is completed at the current step.
Lean operation is a highly coordinated system that uses minimal resources and produces high quality goods or services. Lean
operation depends on having high quality processes in place. Quality is an integral part of lean operation; without high process quality,
lean operation cannot exist.
The key benefits of JIT/lean operation systems are reduced inventory levels, high quality, flexibility, reduced lead times, increased
productivity and equipment utilization, reduced amounts of scrap and rework, and reduced space requirements. The risks stem from
the absence of buffers, such as extra personnel and inventory stockpiles to fall back on if something goes wrong. The possible result of
risks includes lost sales and lost customers.
A widely held view of JIT/lean production is that it is simply a system for scheduling production that results in low levels of work-in-
process and inventory. But in its truest sense, JIT/lean production represents a philosophy that encompasses every aspect of the
process, from design to after the sale of the product.

JUST-IN-TIME PROCESS SYSTEM

The ultimate goal of JIT is a balanced system, one that achieves a smooth, rapid flow of materials and/or work through the system.
The idea is to make the process time as short as possible by using resources in the best possible way. The degree to which the overall
goal is achieved depends on how well certain supporting goals are achieved. Those goals are to:
1. Eliminate disruptions. Disruptions have a negative influence on the system by upsetting the smooth flow of products through
the system and should be eliminated. Disruptions are caused by a variety of factors, such as poor quality, equipment
breakdowns, changes to the schedule, and late deliveries.
2. Make the system flexible. A flexible system is one that is robust enough to handle a mix of products, often on a daily basis,
and to handle changes in the level of output while still maintaining balance and throughput speed.
3. Eliminate waste, especially excess inventory.

In the JIT philosophy, waste represents unproductive resources. Eliminating waste can free up resources and enhance
production. Inventory is an idle resource, taking up space and adding cost to the system. Other wastes include:
1. Overproduction – involves excessive use of manufacturing resources.
2. Waiting time – requires space and adds no value.
3. Unnecessary transporting – increases handling, increases WIP inventory.
4. Processing waste – makes unnecessary production steps, scrap.
5. Inefficient work methods – reduce productivity, increase scrap, increase WIP inventory.
6. Product defects – require rework costs and possible lost sales due to customer dissatisfaction.
The building blocks of the JIT system are:

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College of Business and Accountancy Prepared by Dr. Virgilio L. Matias

 1. Product design
2. Process design
3. Personnel/organizational elements
4. Manufacturing planning and control

TERMS COMMONLY ASSOCIATED WITH LEAN OPERATION

Lean operations began as lean manufacturing in the mid-1900s. It was developed by the Japanese automobile manufacturer, Toyota.
The development in Japan was influenced by the limited resources available at the time. Many of the methods that are common to lean
operations were part of Toyota’s approach to manufacturing. You can get a sense of that approach from some of the terms commonly
associated with lean operations:

● Muda: Waste and efficiency. Perhaps the driving philosophy. Waste and efficiency can be minimized by using the following
tactics:
o Kanban: A manual system used for controlling the movements of parts and materials that responds to signals of the
need (i.e., demand) for delivery of parts or materials. This applies both to delivery to the factory and delivery to each
workstation. The result is the delivery of a steady stream of containers of parts throughout the workday. Each
container holds a small supply of parts or materials. New containers are delivered to replace empty containers.

2 Main Types of Kanban:

1. Production Kanban – signals the need to produce parts.
2. Conveyance Kanban – signals the need to deliver parts to the next work center.

o Pull system: Replacing material or parts based on demand; produced only what is needed.
o Heijunka: Variations in production volume lead to waste. The workload must be leveled; volume and variety must be
averaged to achieve a steady flow of work.
o Kaizen: Continuous improvement of the system. There is always room for improvement, so this effort must be
ongoing.
o Jidoka: Quality at the source. Each worker is expected to perform ongoing quality assurance. The objective is to
avoid passing defective products to following work stations, and to make workers aware of quality.
o Poka-yoke: Safeguards built into a process to reduce the possibility of committing an error.
o Team concept: Use a small team of workers for process improvement.

HOUSEKEEPING AND 5S
Housekeeping involves keeping the workplace clean as well as keeping it free from any materials that are not needed for production,
because those materials take up space and may cause disruptions to the workflow. Housekeeping is part of what is often referred to as
5S, which are five behaviors intended to make the workplace effective.

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College of Business and Accountancy Prepared by Dr. Virgilio L. Matias

Among the benefits of 5S are increased productivity, improved employee morale, decreased risk of accidents, and improved
appearance for visitors.

1. Seiri (Sort). Decide which items are needed to accomplish the work, and keep only those items.
2. Seiton (Straighten). Organize the workplace so that the needed items can be accessed quickly and easily.
3. Seiso (Sweep). Keep the workplace clean and ready for work. Perform equipment maintenance regularly.
4. Seiketsu (Standardize). Use standard instructions and procedures for all work.
5. Shitsuke (Self-discipline). Make sure that employees understand the need for an uncluttered workplace.

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College of Business and Accountancy Prepared by Dr. Virgilio L. Matias