Unit 5: Just-In-Time and Lean Systems
Would you order a delivery pizza for dinner from a restaurant advertising delivery in 6 hours? How about a restaurant that can bring you a cold, stale pizza in only 5 minutes? To meet the consumer's needs, the pizza shop must be able to give customers the number of pizzas they want when they want it. Preparing pizzas in advance is too wasteful because most consumers are not likely to buy a stale pizza. Meanwhile, if you take too long to deliver the pizza, you will lose customers to a more responsive competitor. The concept of just-in-time focuses on making what you need to meet customer demand only when you need it. For a pizza delivery shop, that probably means a fresh pizza at the customer's door in around 30 minutes. This philosophy can apply to a range of operations, from simply washing a car to manufacturing a complex aircraft.
Similarly, the concept of lean manufacturing refers to eliminating waste in the manufacturing process. The Toyota Product System is the model for modern manufacturers that want to control waste. In this unit, we will look at seven types of waste and processes for controlling them. In addition, we will explore the origins of the "Just-in-Time" (JIT) philosophy and the use of pull systems to control inventory.
Completing this unit should take you approximately 4 hours.
Upon successful completion of this unit, you will be able to:
- discuss the origin of the "just-in-time" (JIT) philosophy;
- apply continuous quality improvement strategies to improve organization processes;
- categorize non value-adding activities into eight types of waste;
- explain the use of "kanbans" in JIT pull systems; and
- describe the strategic elements in Lean for the use in manufacturing and service organizations.
- discuss the origin of the "just-in-time" (JIT) philosophy;
5.1: Lean Manufacturing
In this article, you will explore the 5S method of workplace organization and how it enables workers to focus on the elimination of waste. It also discusses the Kaizen approach, which focuses on continuous improvement. A lean strategy enables companies to respond to consumer demand, take a long-term view, eliminate mistakes, all while valuing the input of the employee.
Watch this video to review the use of Lean methods in the manufacturing process to reduce waste and increase continuous quality improvement. Waste can be placed in eight different categories. This video is useful because of the guidance it provides in avoiding pitfalls that have hindered organizations from successfully using Lean methods to increase CQI.
- Read this section to better understand the application of Lean. Pay particular attention to the five core principles of Lean. This starts by defining value from the customer’s perspective. Lean methods are not hard, but require that you truly understand what waste is within your organization. This provides the foundation for choices that improve efficiency and effectiveness. Complete exercise five at the end of the section. This is a self-graded activity.
Read this brief description of Kanban, which is a visual method of controlling production processes.
Watch this video to explore how Kanban is used in organizations to increase effectiveness in IT projects. Kanban is a less complex method to apply Lean within the organization. This is also is designed to be agile and easily adapted to the needs of the organization. Pay attention to how you might adapt this method to work in your organization in improving quality and reducing waste in a way that does not relate to an IT project.
5.2: Eliminating Waste
Read this article. Pay particular attention to the examples of the eight wastes. These eight types of waste should be understood and evaluated. Take time to consider your workplace. Identify each type of waste within your organization. Where does it occur? Why does it occur? Is it required waste (regulatory or quality assurance step)? Answers to these questions are a precursor to making sound decisions related to the elimination of waste and changes in process.
Watch this slideshow to explore how waste can be found throughout the work done in the office processes. Often, Lean methods are considered only applicable in a manufacturing context. Sometimes, Lean methods are applied in a service industry when there is direct contact with customers. However, this slide show provides some examples of how waste (as identified by Lean) can be found throughout all parts of an organization.
Watch this slideshow to explore the eight wastes defined in Lean. Pay close attention to the differences between value-added activities and non-value added activities. Value added activities create value for the customer/client/patient. Non-value added activities are often pure waste within the system.
5.3: Continuous Improvement
Read this overview of continuous improvement in the context of education. Education is a service. Therefore, operations management concepts apply in the education industry. Keep in mind; some would argue that students are a product manufactured by the education system. This can create a different perspective when reviewing this process in relation to education.
Watch this video about the use of Kaizen events to increase the quality of your process. Kaizen is one tool that is used when practicing Lean methods. This provides you with background information on the development of this tool.
Consider the importance of creating a culture focused on continuous improvement within both service and manufacturing organizations. This is important because the culture either supports or hinders any initiative started within an organization. If the culture does not support continuous quality improvement, then either the CQI process will fail or the culture must be shifted.
After you review what you've learned in this unit so far, post and respond to this topic on the discussion forum.
All of us are familiar with the education system. This might be through our personal experience with K-12 or post K-12 education or our children’s experience. Using information in this unit, evaluate the operations of an education system. You may choose a K-12 system, a Higher Education (community college, college, or university) program, or a technical institute that you are familiar with to complete this evaluation. Discuss how and where continuous quality improvement processes could be embedded within the system to increase the quality of the outcomes.
5.4: JIT Pull Systems
Read this page and explore the just-in-time manufacturing systems. Just-in-time inventory principle is designed to reduce waste associated to maintaining inventory or inputs. Consider the impact of a just-in-time approach to the reduction of waste in your inventory system.
Review these brief comments about the origins of the JIT strategy. Consider ways in which companies in different industries can apply this method to improve operations.
Unit 5 Activity and Assessment
In this activity, you will continue working on your operations management plan. As part of your continuing development of your operations management plan, you will discuss the goal of supply chain management and its application within your business.
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.