"Just-in-Time"

Manufacturing
Systems:
A Literature
Review
A.Z. Keller and A. Kozazi

About the Authors

A. Z. Keller is Director of the Disaster Prevention and Limitation Unit, University
of Bradford, UK.
A. Kazazi is based at the School of Management, the University of Tehran, Iran.
2 "JUST-IN-TIME" MANUFACTURING SYSTEMS: A LITERATURE REVIEW

"Just-in-Time" Manufacturing Systems:

Abstract A Literature Review
and A.Z. Keller and A. Kazazi
Keywords Just-in-Time, Literature, Management Theory
Examines Just-in-Time (JIT) from its evolution as a
Japanese concept through to a review of its philosophy and
implementation. Cites several techniques of implementation.
Includes a review of the early work of various researchers
and practitioners. Concludes that JIT is a very effective
manufacturing philosophy which is universal in nature
encompassing all aspects of manufacturing. Suggests a few
deficiencies in current literature.

1. Introduction
Japanese products have come to dominate many world
markets in recent years. This success has, in turn, led
Western manufacturers to examine Japanese
manufacturing practices and, in many cases, attempt to
emulate them. Drucker[1] was the first academic who
recognized that Japan was a country from which Western
companies could learn. From the 1970s onward, a number
of articles have been published about Japanese
management, manufacturing, production systems and
culture, most of which paid attention only to Japanese
general management practices and their socio-cultural
environment.
The oil crisis in 1973 caused many companies to
recognize their needs for a new approach to control
declining economic growth through international
competition. The oil crisis created a major decline in
profitability for Japanese manufacturers, who
compensated for this by employing methods to improve
productivity and reduce the costs of products without
excessive additional capital investment.
Many consider that Japanese manufacturing
management techniques are among the several factors
which have contributed to the Japanese reputation for
superior product quality and their high growth in
productivity. "Just-in-Time" manufacturing is one of the
Japanese production management systems best known to
management in Western industry.
The basic concept of Just-in-Time (JIT) was first
introduced by Taiichi Ohno, Executive Vice-President of
the Toyota Motor Company[2]. His ideas were formalized
into a management system when Toyota wanted to meet
the precise demands of customers for various models and
colours of car with minimum delay. Toyota started to
INTRODUCTION 3
implement JIT in the early 1970s and it then spread to
other Japanese companies in the late 1970s. By the early
1980s, JIT became a very popular manufacturing
innovation in Western and Asian countries[3].
Just-in-Time systems (JIT) have also been adopted in the
USA under several different names, such as ZIPS (Zero
Inventory Production System) by Omark Industries,
MAN (Material as Needed) by Harley Davidson, MIPS
(Minimum Inventory Production System) by
Westinghouse, Stockless Production by Hewlett-Packard,
and Continuous Flow Manufacturing by IBM[4]. The JIT
philosophy embraces all aspects of manufacturing with a
central focus of ensuring that the needed items or
required quality are available in the precise quantity at
the right time in the right place.
In a sense, JIT production aims to make a variety of
products with the shortest lead times, lowest cost,
highest quality and minimum possible mistakes in
production. This philosophy involves a set of innovative
manufacturing strategies which can provide the basis of
synchronous manufacturing systems. Underpinning the
entire philosophy of JIT is a series of important factors
which include facility layout, product design, production
planning and scheduling, purchasing, material flow and
the usage of human resources.
This monograph reviews the philosophy of JIT and its
implementation, and includes a review of the early work
carried out by various researchers and practitioners. In
addition to a list of 199 references cited in this review a
bibliography of 220 other related works is included. For
the convenience of practitioners and researchers, a
glossary of 82 terms is also given.
 4 "JUST-IN-TIME" MANUFACTURING SYSTEMS: A LITERATURE REVIEW
2. Evolution and Overview
of JIT
The Just-in-Time (JIT) philosophy of manufacturing
management has received widespread attention over the
last two decades. The first article on JIT in
manufacturing appeared in the late 1970s[5]. Since then,
a proliferation of JIT papers has been published in the
professional literature.
Some authors suggest that JIT is not a new system, but is
an old production philosophy, with the same principles
which originated in the American automobile industry in
the early 1900s[6,7]. Many researchers argue that JIT is a
philosophy of production management[8,9] and others
claim it is only a concept[10,11].
The Japanese JIT concept has been described and
discussed by several authors[12-17]. Within the
discussion of JIT, there is often considerable
misunderstanding about the concept. According to
Gathang[18], 37 per cent of respondents in a survey of
over 200 manufacturing executives from four industrial
sectors reported that companies were utilizing some JIT
techniques, but had failed to adopt JIT totally, despite its
record of increasing a business's competitive edge. This
might be the result of a misunderstanding of JIT by
management because of the variety of definitions
available. In fact, this variety of definitions of JIT has
caused some problems in modelling implementation of
JIT. Schonberger[19] defines JIT as:
Produce and deliverfinishedgoods Just in Time to be sold,
sub assemblies Just-in-Time to be assembled into finished
goods, fabricated parts Just in Time to go into the sub
assemblies and purchased materials Just-in-Time to be
transformed into fabricated parts.
Potts[20] defines JIT as:
A philosophy directed towards the elimination of waste,
where waste is anything which adds cost but not value to a
product.
APICS[21] claims JIT is:
In the broad sense, an approach to achieving excellence in a
manufacturing company based on the continuing
elimination of waste. In the narrow sense, Just-in-Time
refers to the movement of material at the necessary place at
the necessary time.
Bicheno[22] defines JIT as:
To produce instantaneously with perfect quality and
minimum waste.
Grahame[23] says JIT is:
A management philosophy or toolbox of techniques. Based
on making a significant improvement in operating
efficiency through reduced inventory levels, lead times and
overheads.
Voss[24] claims:
JIT is a disciplined programme for improving overall
productivity and waste. It provides for cost-effective
production and delivery of only the necessary quality parts,
in therightquantity, at the right time and place, while using
a minimum amount of facilities, equipment, materials and
human resources.
Sohal et al.[25] believe:
Just-in-Time is essentially more of a philosophy than a
series of techniques, the basic tenet of which is to minimise
cost by restricting the commitment to expenditure in any
form, including manufacturing or ordering materials,
components, etc; until the last possible moment.
Heeley[26] states:
Just-in-Time is a state of mind for achieving competitive
excellence by creating an attention to continuous
improvement through 100 percent involvement to eliminate
all waste, institutionalizing only value adding activities
with 100 percent quality, nothing less.
Hunglin and Wang[27] claim that Just-in-time production
is a philosophy that calls for reducing work in progress
(WIP) inventory to aid process improvement and reduce
process variability.
Definitions of JIT are as varied as the companies or
authors who claim to use it. In a sense, JIT must be
understood as a philosophy which has to be adopted in a
project or programme form. Generally, the JIT
philosophy is a guide to continual improvement at all
company levels. It is not singularly an inventory
programme, scheduling technique, supplier relationship,
 EVOLUTION AND OVERVIEW OF JIT 5

a new method for material management, a replacement or
complement for MRP systems, or even a cultural
phenomenon. JIT is, in fact, a synergy of all the above
elements and others not listed. JIT seeks to find the
causes of problems, and their solutions, involving all
levels of managers and workforce working together.
Recently, some authors have considered the application of
JIT for administration and service industries[28,29].
Collins[29] claims that JIT applied to administration can
provide an appropriate methodology for implementing
integration and management change in the business
function. While JIT in a manufacturing environment is
mainly focused on the movement of materials to achieve
continuous flow, JIT administration is concerned with the
availability and processing of the right information, at
the right place, at the right time. JIT administration also
results in the continuous flow of information and the
elimination of redundant data, the improvement of
communication, and enhanced customer satisfaction.
A cornerstone of JIT is the elimination of waste and
continual improvement of process[30-32]. A popular
definition of waste not only includes idle inventory and
defective parts but also materials, space, and workers'
time, which are not absolutely essential to add value to
the product[33]. According to Sandras[34], waste is not
only any activity which does not add value for the
customer, it is also the use of resources in excess of
minimum requirements (manpower, equipment, time,
space, energy). Gilbert[35] claims, "waste is defined as
any activity which does not advance the firm toward its
stated objectives". Taiichi Ohno[36], identifies seven
types of waste, and recommends methods for their
elimination:
(1) Over-production: Reduce set-up time, compact
layout and improve shopfloor visibility.
(2) Waiting: Synchronize work flow and balance loads
through flexible workers and equipment.
(3) Transportation: Establish layout to minimize
transport and handling.
(4) Processing: Use value analysis production.
Processing may be totally or partially unnecessary
and capable of being eliminated.
(5) Storage: Reduce the waste of stocks in all
production areas (raw material, work in progress,
finished goods).
(6) Motion: Study motion for improved economics,
productivity and quality.
(7) Making defective products: Build in processes to
eliminate defects in the process.
Younus[37], similarly to Ohno, identifies 12 types of
waste in his research:
(1) Handling.
(2) Movement.
(3) Over-production.
(4) Scrap and rework.
(5) Idle time.
(6) Set-up times.
(7) Transportation.
(8) The process itself.
(9) Material or sub-assemblies.
(10) Rework.
(11) Improper order and arrangement.
(12) Miscommunication.
Generally, waste is anything that does not add value to
the product. Counting, moving, extra transportation and
handling, unnecessary inspection, rework, storage, and
waiting are all wastes.
The concept of elimination of waste is achieved through
internal elements (manufacturing systems, human
resources) and external elements (suppliers, other
organizations with close relationships with the
manufacturer). In JIT, each of these elements is achieved
with specific procedures and techniques, as described in
the following section.
 6 "JUST-IN-TIME" MANUFACTURING SYSTEMS: A LITERATURE REVIEW
3. JIT Implementation
Techniques
The implementation of JIT programme differs widely
from one industry to another. Some companies, such as
Jaguar and Toyota, started from internal considerations,
such as improving the use of human resources,
improving layout, set-up reduction etc; whereas some
other companies, such as IBM and Ford, began from a
consideration of external factors, such as improving
relations with suppliers. The successful implementation
of JIT systems requires a precise investigation into all
aspects of a manufacturing system. JIT implementation
generally results in complex changes and modifications
within an organization.
Several articles have been written dealing with critical
variables associated with the successful adoption of the
JIT philosophy[38-43]. Finch and Cox[44] point out that
JIT consists of several components which include: plant
layout and engineering systems, set-up reduction, group
technology, total preventive maintenance, the cross-
training of employees, uniform work loads, JIT delivery
and adoption of kanban methods of production control.
Hall[13] and Ansari[45] recommend that the first step for
successfully adopting JIT is to reduce inventory levels
dramatically. Hall states that an inventory is evil and
that, in the ultimate JIT environment, there should be no
inventory.
Davis[46], Bockerstette[47], Wildemann[48], Williams
and Haslam[49] and Golhar et al.[50] consider the
inventory benefits of implementing JIT. Williams claims
that a reduction in inventory level of 90 per cent can be
obtained, together with such other benefits as:
(1) A 15-40 per cent reduction in production lead
times.
(2) A 50 per cent reduction in required manu-
facturing space.
(3) A 75-90 per cent improvement in quality.
Other studies by Toomey[51], Ramasesh[52] and
Silver[53] systematically compare JIT delivery in lot size
and the classical Economic Order Quantity (EOQ)
models.
Krupp[54] considers inventory as a current asset; he
argues that the value of inventory is relative, in that the
original value should be held in relation only to the extent
of its usefulness to the owners. Second, tying up cash in
the form of inventory reduces the flexibility of the
business on a day-to-day operating basis. Third, it
generates expenditure in the form of carrying costs for
financing, warehousing, taxes, security and accounting.
Kelle and Schneider[55] discuss a reliability-type
inventory model as an approximation for modelling JIT
production. Component availability times and quantity
are characterized, considering random effects such as
breakdowns and quality problems. The ultimate
objective of this reliability-type inventory model is to find
the minimal buffer stock or a safety lead time which will
provide the appropriate service level to maintain an
effective and smooth JIT production with minimum risk.
A large number of articles has been written regarding the
importance and reduction of work in progress (WIP)
(principal writers on the subject include Wild[56],
Hay[57], and Yeun Ding[58]). Sipper[59] points out that,
with the JIT philosophy, an attempt is made to eliminate
buffer stocks between successive processes by
introducing smoothing techniques and stabilizing
factors. He also claims that it is not important what
methodology or concept has been adopted, but that most
companies should try to minimize WIP. Some companies
are deliberately using WIP at work centres in order to
change management policies and to reduce uncertainties
in the work environment.
It is estimated that 70-80 per cent of manufacturing lead
times are of non-production value[60]. Therefore,
reducing the inventory, waiting time, WIP and
transportation time have significant influences in the
successful adoption of JIT systems.
From the above discussion, world-class manufacturing
considers that inventory has no legitimate function, and
it should be avoided at all levels of an organization
whenever possible.
On the topic of successfully implementing JIT to achieve
stockless production, both academics and practitioners,
as starting points, have cited that set-up time and lead
time reductions are essential. The set-up time is the time

it takes to set up the machine on which the job will be run
with proper tooling. Manufacturing lead time is the time
that is taken between the release of the shop order to the
factory and the time in which the order is completed.
Award and Wolfmeyer[61] state that the lead time
consists of five elements. These are set-up time, operation
time, move time, wait time and queue time. Traditionally,
set-up time has been accepted as a matter of fact, but the
JIT system focuses on maximizing the utilization of
machines and plant to reduce inventory, and improve
quality and customer service.
In Japanese industry, set-up time has been drastically
reduced. For example, the set-up time for a bonnet and
bumper stamping operation in a typical American
automobile plant is six hours. The same job takes only
four hours in Sweden and Germany, while Japanese
manufacturing has reduced this to as little as 12
minutes[62].
Recently, set-up time reduction has received much
attention in manufacturing industry, particularly by
Schonberger[3,19] and Hall[30] who describe the
advantages of set-up reduction and its impact on
inventory levels. Esrock[63], Porteus[64], Billington[65],
and Harris[66] have investigated the impact of set-up
reduction as a function of reducing the cost of product
and capital expenditure.
Relating to capacity management, Narasimhan and
Melnyk[67] suggests that:
by reducing set-ups, smaller run quantities become
economically feasible, manufacturing lead times fall, lead
times variability is reduced, quality is improved, and shop
floor flexibility is greatly enhanced. Through the set-up
reduction, that capacity previously consumed by set-ups
can be freed up and made available for production.
Some researchers have studied the impact of a set-up
reduction programme on lot sizes and WIP. Plenert[68]
believes that set-up time reduction automatically reduces
the production lot size, production lead times, WIP, and
finished goods inventory. To date, little has been reported
on analytical approaches to set-up reduction. Some
mathematical models have considered the minimization
of set-up time, lot size or optimal batch size, as elements
for optimal procurement policies for raw materials[69-72].
Olhager and Rapp[71], in his mathematical model,
investigated the relationship between lot sizes, inventory
turnover rate and set-up cost. His paper contributes to
the understanding of the importance of adjusting lot
sizes when reducing set-up time.
Set-up time reduction is a key aspect of successfully
implementing JIT, since it supports a reduction in
manufacturing lead times, inventory levels and the cost
of the product, and improves quality.
One method of reducing set-up time, cost and, as a
consequence, reducing holding costs, is by the use of
group technology (GT). Despite the importance of the
JIT IMPLEMENTATION TECHNIQUES 7
role of GT in a JIT environment, very little work has been
published on this aspect of JIT implementation.
According to McKinnon[73], an estimated 90 per cent of
all Britain's manufacturing, in common with many other
developed countries, is batch manufacturing. Batch
manufacturing creates widespread problems for
companies as it restricts the introduction of variations on
current product ranges or new products. In response to
these difficulties, much American and European
industry, since 1970, has adopted the group technology
(GT) approach to manufacturing.
Group technology was first discussed by Flanders[74];
since then, it has been extensively used and developed in
the former USSR, followed by Europe and Japan[75].
Group technology is an organization technique used to
improve manufacturing productivity by exploiting the
underlying commonality between parts and
manufacturing processes. In general, group technology
involves, among other changes, the adoption of a group
layout which is based on component families instead of
machine families, as in functional layouts[76].
One specific application of GT is cellular manufacturing.
Here, a portion of a firm's manufacturing system is
converted to a cell[77,78]. According to Ballahur and
Steudel[79],
Ideally, a cell is a group of dissimilar machines physically
located in close proximity such that a part is processed from
start to finish in a single or continuous flow.
Dicasali[80] and Welke and Overbecke[81] suggest that
cellular manufacturing is one of the best techniques with
which to implement JIT systems and total quality control.
Welke[80] argues that the aim of cellular manufacturing
is to reduce set-up and wait times and enhance the
flexibility of the manufacturing environment.
However, cell manufacturing does imply a major change
from a traditional layout. In GT, machines are arranged
to allow for a continuous workflow through the several
required operations. Distances between machines must
be minimized to allow for easy transfer of materials
within the cell. A useful machine arrangement for a cell is
a U-shape; this allows for entry at one end of the U and
exit at the other[82].
Wemmerlov and Hyer[83] studied 32 US firms which
introduced cellular manufacturing; they found that, as a
result of adopting cellular manufacturing, there was a
45.6 per cent reduction in throughput times, a 39.3 per
cent reduction in material handling, a 32 per cent
decrease in set-up time and a 29.6 per cent improvement
in quality. However, further studies are still needed to
examine the role of cellular manufacturing in a JIT
environment.
Another crucial step in successful JIT implementation is
the adoption of total quality management (TQM). Today,
product quality is widely recognized as being a critical
element in the competitive marketplace and international
8 "JUST-IN-TIME" MANUFACTURING SYSTEMS: A LITERATURE REVIEW
trade[84]. According to Aly et al.[85], total quality
management has been defined by the Department of
Defense (USA) as:
a management process directed at establishing organized
and continuous process improvement activities, involving
everyone in the organization in totally integrated effort
towards improving performance at every level.
There exists a considerable volume of literature dealing
with the importance of TQM, particularly its benefits and
the factors that affect its success[86]. The concept of
TQM has also received considerable attention in JIT
manufacturing philosophy in recent years[87-93].
Gozzo[94] suggests that several simultaneous efforts
must be made to achieve JIT/TQM objectives; these
include improved engineering design, the incorporation
of value engineering thrust, the control of changes and
the implementation of statistical process control (SPC),
both internally and externally. Hua Chung[95] claims that
the JIT manufacturing philosophy is not a management
system that can stand alone; it should be accompanied by
good quality management and persistent problem
solving. He also states that anything not absolutely
essential to ensure quality is waste and should be
eliminated. Therefore, as objectives, zero inspection
should be pursued together with zero inventory.
However, it can be justifiably claimed that quality is a key
element in JIT organization and customer satisfaction.
JIT saves costs on inventory, set-up and lead time
reduction, by taking the slack out of production lines; on
the other hand, TQM saves costs by making the product
right first time. Even without extensive automation, the
combination of JIT and TQM is a very powerful and
effective tool.
Kanban and MRP
Industrial material flow systems can be classified into
two types: "pull" or "push" systems. The Kanban system
is a typical "pull" system, while most conventional
systems are "push" systems. The basic difference
between "pull" and "push" is that a "pull" system
initiates production as a reaction to current demand,
whereas a "push" system initiates production in response
to expected, forecasted, future demand[96].
Kanban is a Japanese word meaning placard or visible
card. It serves as an information system for JIT practice.
Kanban authorizes, by a visual signal of a card, a square,
a disc, or a slot in a bin, the production or delivery of
more material as required[97]. The first kanban system
was developed in the 1950s by Taiichi Ohno in the Toyota
Motor Company, and is fully described by a number of
authors[97-100].
There are many alternative forms of kanban production
control in practice. Some companies use two kanban
cards, while others use only one card. Other
implementations use only material containers and no
card. The literature on kanban systems suggests that the
two kanban card methods have proved the most popular
for JIT environments; these cards are withdrawal kanban
and production order kanban[33]. A withdrawal kanban
authorizes the movement of one standard container,
holding a certain number of parts, from one work centre
to the next. Accordingly, a withdrawal kanban is used as
an information processing tool; it flows physically in the
reverse direction to the material flow. On the other hand,
the production order kanban authorizes a work centre to
produce one container of parts to replace the container
just taken. Several articles have proposed kanban as an
appropriate replacement for MRP and shopfloor control
see[88, 101-107].
According to Parnaby[108], the Group Director of
Manufacturing Technology at Lucas Industrial plc, the
kanban system will always result in lower stock and staff
costs than would arise from using MRP. Kanban also
facilitates the creation of simpler organizational systems
with less fragmentation.
MRP (materials requirement planning) was developed in
the mid-1960s and is described in detail by Orlicky[109].
It was popularized by professional groups such as the
American Production and Inventory Control Society
(APICS) and the British Production and Inventory
Control Society (BPICS). MRP is a "push" system, and is
essentially an information system which can be used to
plan and schedule raw material and component
requirements for manufacturing demands. The system
requires the co-ordination of three key functional
areas[110-112]:
(1) Master planning and scheduling.
(2) Inventory and material planning.
(3) Capacity planning.
MRP determines period-by-period plans for all
component parts and raw materials requirements in
order to formulate a master production schedule[113]. It
assumes that all parts pass through the stages of
production in a fixed-size batch mode. Because of the
assumption of economic batch quantities, computer-
planned batch sizes are larger than necessary to offset the
costs incurred by a large set-up time. All MRP systems
are highly oriented towards data processing and require
intensive computational processing[114].
Ashton et al.[115], from their own practical experience,
point out that, despite 20 years of trying, most plants
which use either MRP or MRP II still find shopfloor
management clinging to shortage lists and are still
plagued by numerous parts shortages that disrupt
operations, delay deliveries and increase production
costs. In his article, Ashton explains why the MRP
system cannot work for short-term shopfloor control in a

complicated manufacturing environment, particularly in
the case of job shops.
Today, a number of authors argue that a synchronized
hybrid system, consisting of kanban and MRP soft
systems, can provided material benefits[116-118]. Studies
by Discenza and McFadden[119] claim that many
manufacturers, today, are using both MRP and JIT in an
attempt to harness the advantages of both systems -
MRP for providing a stable master production schedule
(MPS), a visibility requirement and capacity planning;
the kanban system for controlling material flows and
sequencing job activities through sequential processes on
the shopfloor. Flapper et al.[120] claims that JIT can be
embedded in MRP as a subsystem. He states that MRP is
an ideal mechanism for planning and controlling
production activities, but is less useful as a mechanism
for reducing costs, lead times and improving quality. He
suggests that JIT is the best mechanism for doing so.
Human Resources in a JIT Organization
For full implementation, just-in-time requires the
commitment and involvement of every employee at all
levels of the organization. Everyone is required to work
towards the common goals of elimination of waste and
the continuous improvement of production and quality.
According to Imai[121], the Japanese standard dictionary
calls continuous improvement kaizen. Colloquially, this
continuous improvement applies to personal, social and
working life. When applied to the workplace, kaizen
means continuing improvement involving all employees,
managers and workers alike.
Billesbach and Schniederjans[122] argue that the
workforce is in the best position to identify which task or
activity is already being efficiently performed. The key
idea behind the JIT philosophy is to force all personnel to
assess whether or not an activity is necessary in the first
place. If an activity does not add value to the product, and
is not critical for operational success, then it should be
eliminated.
Employees play the most important role in successful JIT
implementation; this element has been considered by
several authors[123-131]. Finch identified seven
characteristics in the Japanese management of
companies:
(1) Lifetime employment.
(2) Evaluation and promotion processes.
(3) Non-specialized career paths and life-long job
rotation.
(4) Participative approach to decision making.
(5) Collective values.
(6) Collective sense of responsibility.
(7) Holistic concern for people.
JIT IMPLEMENTATION TECHNIQUES 9
He points out that Japanese labour always expresses a
strong commitment to company loyalty and good
organization performance.
01iver[132] discusses the experience of two UK factories
in their adoption of JIT systems. He claims that the multi-
skilling of the workforce and the flexibility of human
resources are the most significant factors in
implementing JIT. Production managers are required to
consider the best ways to change or modify the machines
and materials comprising the manufacturing process, to
meet the needs of JIT systems. A strategic approach to
the management of human resources is also clearly
required. In a JIT environment, the relationship between
management and employees must be based on mutual
trust, loyalty, respect and co-operation. According to
Zipkin[133], one of the important arguments for
introducing JIT is that it improves the morale of the
workforce while enlisting their efforts in the productivity
improvement process.
Most articles on human resources emphasize that
developing a problem-solving capability, training
manpower, quality circles and teamwork are critical for
the implementation of JIT. To date, few studies have been
reported in the literature which examine cultural changes
brought about by JIT in organizations.
Interpersonal relations, culture and management style in
Japanese industries are described by a number of authors
such as Drucker[134], Johnson and Ouchi[135], and
Florida and Kenney[136]. These authors discuss the
differences between Western and Japanese philosophy
with regard to interpersonal relations and management
style. According to Cooper[137], the main difference in
management style between Japan and the West includes:
(1) In Japan an employee enters a company, whereas
in America he/she takes a job. Security and
productivity are emphasized.
(2) In Japanese companies, the management style is
from the lowest level to the top and all decisions
are made by consensus.
(3) Training is mandated and continuous.
Cooper also recommends that the West must regard
Japanese industry not only as an important competitor,
supplier, and customer, but also as a teacher.
Stork[138] believes that JIT techniques are probably more
cultural than anything else. Macilwain[139] also
discusses JIT as a culture for excellence in every function,
in every aspect of business, which must start with the
development of the people in the organization.
Turnbull[140] believes that the important lesson drawn
from Japan, and one that many British firms appear to
have adopted, is that management must reassess the
nature and role of tasks and responsibilities in an
organization and restore their traditional hegemony in
the workplace.
 10 "JUST-IN-TIME" MANUFACTURING SYSTEMS: A LITERATURE REVIEW
Other studies by Hannah[141] and 01iver[142] argue that
most companies which have adopted JIT in the West have
demonstrated that existing organizational structures and
cultures pose some of the most difficult problems in
successful JIT implementation. Cultural change must
move the entire organizational focus from top
management to shopfloor worker in all aspects of the
manufacturing process.
Supplier Chains
One of the crucial and key activities in JIT
implementation is supplier management. Suppliers play
an extremely critical role in a JIT environment, and
particularly in production, with regard to reliable
delivery and quality of parts and materials[143-149].
According to the 1974 annual report of General Motors,
USA, 50 per cent of the total costs of their products were
accounted for by parts and materials provided by their
suppliers. Similarly, Nissan, Australia, claimed that in
1987 purchased parts accounted for 70 per cent of final
vehicle costs[150]. Accordingly, it is very important for
manufacturers to reconsider traditional relationships
with their suppliers.
Supplier relationships in JIT organizations have been
discussed extensively[151-156]. According to
Bartholomew[157], in Japan, supplier/customer
relationships are based on long-term agreements with
single sourcing; such relationships have strong effects and
are conducive to consistent productivity enhancements and
to developing a consequent competitive edge.
Manoochehri[158] comments that the philosophical
difference between Western industry and its Japanese
counterpart is easily demonstrated by comparing the
number of suppliers to Nissan Motors (460), Toyota (250),
Ford (2,500) and General Motors (3,500). The large
number of suppliers used by Ford and General Motors
creates specific problems:
(1) It is more difficult to manage the co-ordination of
production scheduling and relationships.
(2) When several suppliers are used for the same
parts, it becomes less practical for each supplier to
make frequent deliveries.
Further research by 0'Neal[159] reports that, in
conventional production systems, supplier relationships
involve multiple sourcing and competitive bargaining.
This system is often based on short-term agreements and
an adversarial negotiation approach, a lack of co-
operation, inefficient communication and poor product
quality and service.
Lee and Ansari[160] discuss other major activities of
JIT production and compare them with the traditional US
purchasing approach. However, another researcher,
Quayle[161], takes an opposite view and criticizes single
sourcing. He believes that single sourcing is perfectly
rational and desirable for Japan but that, in the West, it
can only be achieved by the creation of stable and secure
conditions in the Western economies. Moreover, Quayle
points out that the European car industry has already
demonstrated cost advantages by volume concentration
on a small number of suppliers but that "single sourcing
plus a JIT stock-holding policy looks like a recipe for
disaster". Finally, he argues that a rational policy of dual
sourcing, together with good planning and market
intelligence, is an essential part of overall purchasing.
Despite Quayle's arguments, most authors and
practitioners believe that long-term relationships and the
reduction of the number of suppliers are essential. This
can encourage suppliers to be committed to engage in
long-term research and development and to obtain
further capital equipment.
Macbeth et al.[162] believe that a lack of trust in a
supplier leads manufacturers to spread the risk by multi-
sourcing which forces the price of materials to go down
by playing off one supplier against the other. Such a
practice may have short-term and immediate advantages
in obtaining cheaper parts and materials. However, this
approach is wasteful in many ways, and a JIT approach
insists that manufacturers develop a collaboration
between their suppliers and themselves, built on mutual
trust and interests.
Much of the JIT literature refers to the major benefits
which can accrue to suppliers by provisional long-term
contracts and the guarantee of future business. For
example, Xerox (USA) has gained much advantage after
focusing on supply management as the heart of its
strategy. As a result, Xerox has[163]:
(1) reduced its supplier base, over a five-year period,
from 5,000 to 180;
(2) reduced lead times from suppliers by 50 per cent;
(3) cut inbound logistics costs by 50 per cent;
(4) improved part quality by 85 per cent.
Turnbull etal.[164]discuss the possible adoption of the
Japanese model of purchasing by the UK motor industry
and, in particular, that of Japanese buyer/supplier
relationships. They argue that the Japanese motor industry
has a largely dedicated supplier base consisting of an
industrial grouping of affiliated companies. There are 500
part suppliers which support more than 85 per cent of the
parts needed by 11 motor manufacturers. They are also
closely involved, as sole suppliers, in product development
work, design, and technology transfer. For example, Nissan
and Toyota share 45 suppliers out of 105. In contrast, the
UK motor industry is so structured that each manufacturer
has its own dedicated chain of suppliers and very few
suppliers supply more than one manufacturer. This is a
severe obstacle with regard to long-term research and

development, which requires a degree of direct or indirect
co-operation between different manufacturers and
suppliers.
Gunter and Resse[165], and Golhar and Sarrer[166], list
some of the disadvantages associated with JIT
purchasing systems for parts and materials. Gunter and
Resse[165] studied the problem of the transfer of costs
from manufacturer to supplier with regard to inventory
holdings. This results in suppliers having increased set-
up times, holding and distribution costs. In other words,
savings obtained by the manufacture are achieved by
transferring inventory costs to the suppliers. Gunter and
Resse[165] suggest that the development of relationships
by the manufacture with the supplier could be of mutual
benefit. Such relationships could include joint production
planning and distribution, the introduction of improved
common information and communication systems, and
bearing a share of the supplier's costs.
Further studies by Jick[167] examine an approach for
breaking down interorganizational boundaries between a
JIT IMPLEMENTATION TECHNIQUES 11
company and its suppliers by developing mutual trust
relationships.
In a sense, JIT implies that suppliers should be
geographically located in close proximity to the
manufacturers, and this is discussed by Wilson[168],
Crawford et al.[169], and Burton[170]. In Japan, most
suppliers are located close to their customer's plant. In
contrast, in the UK, suppliers may be scattered
throughout the entire country and are often overseas.
Such long transportation lines increase transportation
time and the cost of inventory in transit; this clearly
decreases the reliability of critically scheduled deliveries.
Transportation logistics issues that relate to JIT
purchasing have been discussed by a number of
authors[171-174]. Clouse et al.[174] studied the critical
nature of efficient transportation in the successful
implementation of JIT. They argue that JIT cannot be
successful if transportation aspects are not managed
properly.
 12 "JUST-IN-TIME" MANUFACTURING SYSTEMS: A LITERATURE REVIEW
4. Mathematical and
Simulation Modelling
To date, little research has been reported on the
quantitative analysis of JIT manufacturing systems.
Most analytical modelling of these systems is concerned
with the analysis of inventory control and a comparative
analysis of "pull" and "push" systems[175-182]. Kimura
and Terada[183] study a mathematical model of a "pull"
system and determine ultimate production capacity. A
simulation model was developed to investigate the effect
of lot size on amplification of demand variation through
the system. The simulation results indicated that demand
variations at the final production stage are amplified
exponentially through the production load time growth.
They point out that the "pull" system helps prevent the
transmission of demand variation through the
production stages if implemented with small lot sizes
relative to demand level.
Others have investigated the optimum number of
kanbans required between two workstations[184-187].
Monden[33] provided a mathematical model for
computing the total number of kanbans in JIT systems,
which contains the formula,
where:
NK - Number of kanbans.
Cn = Container capacity.
D = Demand per unit time.
S = Safety period (this corresponds to the stock
kept at the store for determining the level of
safety inventory).
Tp = Lead times.
Tw = Waiting time for kanban.
The above model is very useful if it is possible to obtain
the data for elements such as Tw, S, TP, D, before the
implementation of JIT systems. Because several elements
are involved in the production and manufacturing
process, such as process sequence, set-up and lead times,
breakdown period, maintenance policy, and number of
machines in a cell, the model is only applicable in firms
which have already implemented JIT and have the
required data.
Kim[188] describes an alternative to the kanban system,
called a periodic "pull" system (PPS). The essence of PPS
is to review periodically the status of material flow in all
production stages using a computerized material
management system. In Kim's model, only the exact
amount of material which has been consumed in the last
process is allowed to be withdrawn by the succeeding
stage. This manual information processing method is
replaced with an on-line computerized processing
system, and material lead times are therefore shorter
because of the shorter information processing time.
Huang et al.[189] developed a simulation model of the
Kanban process by using Q-Gert, a multi-line, multi-stage
production system. Q-Gert is a network modelling
technique written in ANSI Fortran, and can be operated
using any Fortran compiler. The authors investigated the
effects of variable processing times on the variable master
production schedules, and the imbalances between stages
in the process line. The simulation model has been used
to conduct experiments on required kanban levels and
variations in the process line. In general, it appears that
large companies, in terms of size, resources and market
share (such as the large car manufacturers, electronic
firms and appliance manufacturers), have the best
opportunities for successfully implementing a JIT
system. Small companies with diverse product lines and
variable demands can expect less success.
Another simulation model of a JIT system has been
reported by Schroer etal.[190]and McKey and Rooks[191].
Schroer's model was developed using the SIMAN
simulation language and, in his model, the primary
emphasis is given to the kanban inventory control system.
Two-card and one-card kanban systems are simulated.
McKey and Rooks[191] review the different types of
simulation tools available to support JIT manufacturing
systems. Such tools include a range of relatively low
languages such as GPSS/H, SIMAN, SLAM II w/MHEX,
and integrated systems such as GENETIK, WITNESS,
PCMODEL. McKey and Rooks identify each tool's
individual strengths and weaknesses, depending on the
context of who is doing the work and the type of work
required. Mejabi and Wasserman[192] discuss the effect
of the SIMAN simulation language on JIT modelling.
They state that the SIMAN constructs for JIT simulation

enhance the ability of companies to do detailed analyses
to determine the effects different JIT configurations will
have on manufacturing operations. Another benefit of
this language is the degree to which a deeper insight into
JIT system characteristics can be obtained. Enhancement
of SEMANwould allow considerably more straightforward,
and efficient, modelling of JIT systems.
The results indicate that
WIP inventory has a
minimal impact
Spence and Porteus[193] studied the relationships
between set-up time and capacity planning in JIT
environments. They introduce a model of the increased
effective capacity that is created by investing in set-up
reduction. However, the model has a number of
limitations, such that it takes no account of uncertainty
and all demands and costs are stationary over time.
Lulu and Black[194], using simulation, investigated the
effect of process unreliability on the performance of a JIT
system with two fabrication cells and an assembly line.
The results of this research indicate that WIP inventory
has a minimal impact in improving the system
utilization.
Grout and Seastrand[195] developed a mathematical
model similar to the classical optimal order quantity for
reducing the holding cost, set-up cost, and optimum lot-
sizing decision:
Grout's model is described by,
where:
D - Daily schedule.
L = The labour time.
M = Cost of material.
N = The number of lots in queue.
P = The number of lots in process.
Q = The lot size.
R = The holding cost rate.
S = The set-up time.
V = The value of parts.
MATHEMATICAL AND SIMULATION MODELLING 13
Miltenburg and Sinnamon[196] developed a further
model for reducing set-up time for small lot sizes, and
deals with the problem of sequencing products on a
mixed-model assembly line in a multi-level production
system. Miltenburg and Sinnamon[196] point out that
maintaining a constant rate of usage of all parts used in
the system is the most important factor, but not the only
goal in the JIT technique. Other goals, such as levelling
the load at each station on the final assembly line and not
exceeding equipment demands, also have to be
considered.
Chengalvarayn and Parker[197] give a short description
of the simulation analysis of a JIT feasibility study in a
manufacturing environment. The emphasis of this study
is on increasing the product line utilization and reducing
the WIP inventory. In Chengalvarayn's simulation,
machine set up and machine breakdown times were high,
and the production schedule issued to the production
floor was very dynamic, i.e. the schedule was modified
every two days on average.
The production schedule
issued was very
dynamic
Sumichrast et al.[198] have developed procedures for
sequencing products on mixed-model assembly lines in
JIT production systems. Their model is based on
heuristics developed at Toyota that focus on constant
component usage to achieve a uniform production rate.
The basis for the Toyota procedure is as follows:
where:
Aj(k - 1) = Quantity of the fabricated component part;
required to assemble the first (k -1) units of
actual sequence of end items.
bij = Quantity of component; required to
assemble one end item, i.
c = Number of different components.
k = Current position in the sequence.
M' = Set of models which require production,
then scheduled in the sequence to position
k - 1. M' is updated each time an item is
added to the sequence.
Nj = Total quantity of the fabricated component
part; required to produce all Q items in the
sequence.
Q = Total production of all models.
Sumichrast et al.[198] developed a time-spread method
that smooths the work-load at each assembly-line station
 14 "JUST-IN-TIME" MANUFACTURING SYSTEMS: A LITERATURE REVIEW

and a batch sequencing procedure frequently used in
practice. The mathematical expression for Sumichrast's
improved procedure is:
where:
ATl(k - 1) = Actual time required at station 1 to
assemble the first k - 1 units of the
sequence.
s = Number of assembly stations.
til = Assembly time required by modeliat station 1.
T = Total time to assemble all items in the
sequence at all stations.
Tl = Total time to assemble all items in the
sequence at station 1.
Muralidhar et al.[199] study the effect of using different
probability density distributions in their simulation of a
process in a JIT environment. Three distributions that are
representative of the requirements for describing
processing times are identified - namely, the truncated
normal, the gamma and log normal distributions. Their
research shows that no significant differences arise from
the choice of distribution. Muralidhar et al.[199]
specifically recommend using the gamma distribution,
since it meets physical requirements for describing JIT
processing times.

5. Conclusions
From the literature survey described here, it can be seen
that there is a general consensus that JIT is a very
effective manufacturing philosophy. The philosophy is
universal in nature and encompasses all aspects of
manufacturing. These include the generation of an
appropriate cultural environment, which includes total
commitment at all levels of management and within the
workforce. It also requires establishing appropriate
relationships with selected suppliers and encouraging the
"conversion" of all these suppliers to the JIT philosophy.
In order of priority of implementation of techniques, JIT
first requires a commitment to the introduction and
practice of Total Quality Management (TQM) throughout
the organization and the minimization or, preferably, total
elimination of all inventories and buffer stocks. The
culture also requires every single member of the
organization to take responsibility and act accordingly,
when required, on their own initiative to ensure that
products are of required quality and that factors that can
impede production or quality are eliminated immediately
at source. Everyone must strive to fulfil the principle,
"Right first time"; they must also put away past dogma
regarding fixed job descriptions as being "cast in stone",
and must be prepared to exercise maximum flexibility in
CONCLUSIONS 15
their work activities and duties as required. To achieve
these objectives, companies must make financial
resources available for the education and training of all
members of staff, as regards JIT principles. Again, all
members of staff, individually, have a major
responsibility to take maximum advantage of these
education and training programmes.
JIT is not an easy option to implement fully; in particular,
it requires the adoption of many new critical elements,
such as Andon, Jidoka, Kaizan, Mum, Muri and Poka
Yoka (brief descriptions of these are given in the
glossary). A further problem which emerges from a study
of the literature is that there is no general consensus
among practitioners and researchers regarding a
particular recommended route to JIT implementation.
A deficiency present in the current literature is the
relative absence of references to quantitative assessment
of benefits. In particular, there is a singular absence of
attention given to identifying, quantitatively, correlations
that may exist between critical variables relating to JIT
implementation. We strongly believe that this area is one
worthy of particular attention in future research and will
be rich in rewards.
16 "JUST-IN-TIME" MANUFACTURING SYSTEMS: A LITERATURE REVIEW.
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Further Reading
Aggarwal, S.C., "MRP, JIT, FMS? Making Sense of
Production Operations Systems", Harvard Business
Review, Vol. 63 No. 5, 1985, pp. 8-16.
Albino, V., Carella, G. and Okogbaa, O.G., "Maintenance
Policies in Just in Time Manufacturing Lines",
International Journal of Production Research, Vol. 30 No.
2, 1992, pp. 369-82.
Anlong, L.I. and Henry, C, "A Dynamic Programming Model
for the Kanban Assignment Problem in a Multistage Multi-
period Production System", International Journal of
Production Research, Vol. 29 No. 1, 1991, pp. 1-16.
Ansari, A., "Strategies for the Implementation of JIT
Purchasing", International Journal of Physical Distribution
and Materials Management, Vol. 16, 1986, pp. 5-12.
Ansari, A. and Modarress, B., "JIT Purchasing as a Quality and
Productivity Centre", International Journal of Production
Research, Vol. 26 No. 1, 1988, pp. 19-26.
Ansari, A., "Identifying Factors Critical to Success in
Implementing Just in Time Technique", Industrial
Engineering, Vol. 18 No. 10, 1986, pp. 44-52.
Ansari, A. and Modarress, B., "The Potential Benefits of Just
in Time Purchasing for US Manufacturing", Production
and Inventory Management Journal, Second Quarter,
1987, pp. 30-5.
Bagchi, P.K., Raghunathan, T.S. and Bardi, E.J., "The
Implications of Just in Time Inventory Policies on Carrier
Selection", Logistics and Transportation Review, Vol. 23 No. Blenkhorn, D.L. and Noori, H., "What It Takes to Supply
4, 1987, pp. 373-84.
Bagchi, P.K., "Management of Materials under Just in Time
Inventory System: A New Look", Journal of Business
Logistics, Vol. 9 No. 2, 1988, pp. 63-73.
Baker, R.C., "The Marriage of Zero Inventories and Conditional
Sampling Procedures", Production and Inventory
Management Journal, Third Quarter, 1987, pp. 27-9.
Balsmeier, P.W., "Just in Time: Implications and Applications
for Purchasing", Arkansas Business Economic Review, Vol. Brown, J.T., "JIT Update: A Japan Study Mission Report",
21 No. 2, 1988, pp. 28-33.
Bandyopadhyay, J., "Product Design to Facilitate JIT
Production", Production and Inventory Management
Journal, Fourth Quarter, 1990, pp. 71-6.
Bartezzaghi, E., Francesco, T. and Spina, G., "The Impact of the
Just in Time Approach on Production System Performance:
FURTHER READING 23
A Survey of Italian Industry", International Journal of
Operations & Production Management, Vol. 12 No. 1, 1992,
pp. 5-17.
Bartezzaghi, E. and Turco, F., "Impact of JIT on Production
System Performance: An Analytical Framework",
International Journal of Operations & Production
Management, Vol. 9 No. 8, 1989, pp. 40-62.
Bear, D.L., "JIT: Just in Time or Just Inviting Trouble?", American
Production and Inventory Control Society Conference
Proceedings, Falls Church, VA, 1986, pp. 366-8.
Bicheno, J., Implementing JIT, How to Cut out Waste and Delay i
Any Manufacturing Operation, IFS, London, 1991.
Bilecki, T. and Kumar, P.R., "Optimality of Zero Inventory
Policies for Unreliable Manufacturing Systems", Operation
Research, Vol. 36 No. 4, Falls Church, VA, 1988, pp. 532-41.
Billesbach, T, Harrison, A. and Morgan, S.C., "Just in Time: A
United States-United Kingdom Comparison", International
Journal of Operations & Production Management, Vol. 11
No. 10, 1991, pp. 44-57.
Bishop, S.J.E., "Just in Time Purchasing", MSc dissertation,
School of Management and Business Administration,
University of Bradford, 1989.
Bitran, G.R. and Chang, L., "A Mathematical Programming
Approach to Deterministic Kanban System", Management
Science, Vol. 33 No. 4, 1987, pp. 42741.
Japanese OEMs", Industrial Marketing Management, Vol.
19 No. 1, February 1990, pp. 21-30.
Bookbinder, J.H. and Locke, T.D., "Simulation Analysis of
Just in Time Distribution", International Journal of
Physical Distribution and Materials Management, Vol. 16,
1986, pp. 31-45.
Branam, J.W., "JIT vs FMS - Which Will Top Management
Buy?", Autofact, Detroit, MI, 12-14 November 1986, pp. 423-30.
American Production and Inventory Control Society Confere
Proceedings, Falls Church, VA, 1986, pp. 694-5.
Burgam, P., "JIT: On the Move and out of the Aisles",
Manufacturing Engineering, June 1984, pp. 65-71.
Burnham, O.M., "Some Conclusions about JIT Manufacturing",
Production and Inventory Management Journal, Third
Quarter, 1987, pp. 7-10.
 24 "JUST-IN-TIME" MANUFACTURING SYSTEMS: A LITERATURE REVIEW
Burnham,J.M.,Just in Time in a Major Process Industry: A Case Duncan,W.L.,Just in Time, in American Manufacturing, The
Study of JIT Implementation at ALOCA, American
Production and Inventory Control Society, 1986.
Carr, C.H., "Lessons from Nissan's British Suppliers",
International Journal of Operations & Production
Management, Vol. 12 No. 2, pp. 49-57.
Carson, J.G., "JIT Applications to Warehousing Operations",
Engineering Costs & Production Economics, Vol. 17 No. 2,
1989, pp. 315-22.
Celley, A.F, Cleg, W.H., Smith, A.W. and Vonderembse, M.A.,
"Implementation of JIT in the United States", Journal of
Purchasing and Materials Management, Vol. 22 No. 4, 1986,
pp. 9-15.
Chan, J.S., "An Integrative Model of Japanese Manufacturing
Technique We Copy to Compete?", Automation, May 1990,
pp. 60-1.
Changchit, C. and Kung, H., "Effect of Learning in JIT
Production System: A Simulation Experiment on
Microcomputer", Computers and Industrial Engineering,
Vol. 15 No. 3, 1988, pp. 172-8.
Chapman, S.N., "Just in Time Supplier Inventory: An Empirical
Implementation Model", International Journal of Production
Research, Vol. 27 No. 12, 1989, pp. 1993-2007.
Chapman, S.N. and Carter, P.L., "Supplier/Customer Inventory
Relationships under Just in Time", Decision Science, Vol. 21
No. 1, 1990, pp. 35-51.
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Production Management, Vol. 8 No. 4, 1988, pp. 5-21.
Wiegand, H.A., "So much for Yankee Ingenuity", Mechanical
Engineering, October 1988, pp. 64-9.
Wildemann, H., "Implementation Strategies for the Integration
of Japanese Kanban - Principles in German Companies",
FURTHER READING 29
Engineering Costs and Production Economics, Vol. 9 No. 2,
1985, pp. 305-19.
Wilkinson, B. and Oliver, N., "Power, Control and
Kanban", Journal of Management Studies, Vol. 26 No.
1, 1989, pp. 47-58.
Willis, T.H. and Suter, W.C, "The Five M's of Manufacturing: A
JIT Conversion Life Cycle", Production and Inventory
Management Journal, First Quarter, 1989, pp. 53-7.
Winkler, D., "Dynamic Union of SPC and JIT", The 6th Annual
Conference of Control Engineering, Rosemont, IL, 19-21 May
1987.
Witt, C.E., "Managing JIT", Material Handling Engineering,
Vol. 45, July 1990, pp. 48-52.
Wordsworth, A.G., "JIT Needs Total Commitment for Success",
Modern Material Handling, January 1986, p. 11.
Zangwill, W., "Eliminating Inventory in a Series Facility
Production System", Management Science, Vol. 33 No. 9,
1987, pp. 1150-65.
Zangwill, W.I., "From EOQ towards ZI", Management Science,
Vol. 33 No. 10, 1987, pp. 1209-23.
 30 "JUST-IN-TIME" MANUFACTURING SYSTEMS: A LITERATURE REVIEW
Glossary
Andon: A signal or warning light in three colours: green
(running), red (stop), and yellow (attention). This is a visible
shopfloor signal for operators to indicate the condition of
the equipment and process at each stage.
APICS: American Production and Inventory Control Society.
Assembly line: A production system with various process
stages which are performed in a set sequence.
Batch production: Processing where components or units are
manufactured in discrete lots, based on a quantity of
material or components which are used to produce a fixed
number of particular items.
BPICS: British Production and Inventory Control Society.
Buffer stock: The quantity of goods, raw materials or parts held
in inventory to guard against fluctuations of demands or
danger of stockouts.
CAD: Computer-aided design.
CAM: Computer-aided manufacturing.
CAPM: Computer-aided production management.
CAPP: Computer-aided process planning.
CIM: Computer-integrated manufacturing.
CNC: Computer numerical control.
Demand: A requirement for resources, such as raw materials,
components, or finished assemblies.
Dock to stock deliveries: Deliveries of raw materials and
components from suppliers directly to production areas.
EOQ (Economic order quantity): A mathematical model to
determine the size of batch order with regard to determining
the economic cost or minimum set-up time.
Fabrication: A term used to distinguish manufacturing
operations for components as opposed to an assembly
operation.
FIFO: First in first out: a material costing system in which the
unit cost of the oldest extant material is used first.
FMC: Flexible manufacturing cell.
FMS (Flexible manufacturing system): A manufacturing
system which contains several automated machine tools,
handling and transportation. In this system, most aspects of
manufacturing are co-ordinated by an integrated computer
system.
GT (Group technology): A manufacturing philosophy which
is based on grouping machines together into a cell with due
attention to component families instead of machine families.
Heijunka: Method used by Toyota for smoothing production
systems based on using kanban systems.
Idle time: Time when a machine is not being used because of
set-up, maintenance, lack of material, or tooling.
Inventory control: Activities and techniques employed in
maintaining stocks of components, raw materials and
finished goods at acceptable levels and minimum cost.
Inventory: The stock of materials, parts or finished products
held to facilitate production of finished goods to satisfy
customer orders.
Jidoka (Autonomation): Stopping of the production
equipment automatically or by the operator when some
abnormality is sensed.
Job shop: A manufacturing technique organized to produce
individual or very small quantities of items.
Just in Case: A conventional manufacturing philosophy where
additional stocks are held to guard against unexpected
demands.
Just in Time(JIT):A manufacturing philosophy, developed by
the Toyota Motor Company in the 1970s. The basic
definition is producing the necessary items in the necessary
quantity at the necessary time.
Kaizen: Part of the JIT philosophy and means continuous
improvement in all aspects of manufacturing.
Kanban: Meaning placard or visible card. Serves as an
information system for controlling production and materials
in a JIT environment.
Layout: Locating of a number of machines and equipment on
the basis of GT or common function for making goods.
Lead (cycle) time: Time taken between receipt of shop order to
factory and the time the order is completed.

LIFO: Last in first out: a material costing system in which the
latest costs of materials are used.
Lot size: Number of units produced in a batch.
Maintenance: Repair or attention given to machines and
equipment to ensure proper operation.
Make to stock: A production system based on forecasted
demand and where production is supplied to stock.
Make to order: A production system where products are
manufactured only in response to specific orders.
Manufacturing: A series of processes and techniques which
transforms raw materials and components into finished
products with enhanced value.
Mass production: High volume manufacturing of a single
product.
Master production scheduling: The planning for materials or
components to be available for final assembly in the
necessary quantities at therighttime. It is based on capacity
planning and forecasting customers' demands.
Material management: The functions connected with flow of
materials, components from purchasing, store, material in
WIP, warehousing and distribution.
Minimum stock points: The minimum necessary material or
parts for work in progress.
MRP (Material requirement planning): A set of techniques to
calculate requirements for materials: Essentially a "push"
system for manufacturing planning and control.
MRP II (Manufacturing resources planning): A more
comprehensive technique than MRP for planning and
control of all resources. It seeks to balance demand by the
use of advanced integrated systems throughout
manufacturing and logistic channels.
Muda: Waste; anything that does not add value to the product.
Mura: Associated with variable waste in manufacturing.
Muri: Unreasonably excessive work; excessive or inefficient
performance, such as poor quality.
Poka Yoka: Fool-proof devices, usually very simple in concept,
installed on manufacturing equipment to prevent operator
errors.
Preventive maintenance: Maintenance which is carried out on
plant or equipment to prevent unwanted breakdowns or
malfunctions.
Productivity: A ratio of output to input. Input includes, labour,
energy, materials and capital.
Pull scheduling: The triggering of production for items only
as demanded for use through a signal for assembly rather
than a prepared production schedule.
GLOSSARY 31
Push system: Production of items co-ordinated by a master
schedule.
Quality at source: Supplier's responsibility to provide 100 per
cent acceptable quality materials or components to the
manufacturer.
Quality assurance (QA): Activity associated with the
creation and maintenance of the overall quality system
within an organization.
Quality circle: A small group of people, usually at the work
level, who gather regularly to obtain continuous
improvement in quality of products.
Quality: Fitness for use, conformance to requirements.
Queue time: See Wait time.
Raw material: Items which are bought for converting to
products through the manufacturing process.
Reorder quantity: Quantity of a material or item of stock
ordered when the reorder point is reached or at the
appropriate point in the reorder cycle.
Reorder point: Level in a stock control system which triggers
the authorization of a purchasing order for new stock.
Resources: Anything which is available or required for a
company to achieve its purposes.
Rework: Product or component manufactured below standard
which is transferred to a further process to salvage defective
parts or products.
Safety stock: See Buffer stock.
Scrap: Product or component manufactured below standard
which cannot be used in the final product or transferred to
inventory and has to be disposed of.
Set-up time: The time allowed to prepare a production facility
to carry out a manufacturing operation.
Single sourcing: Purchasing an item from a single supplier
only.
Soifufu: Encouragement of creative thinking to improve
production and quality.
SPC: Statistical process control.
Total quality control (TQC): An integrated system to develop,
maintain, and improve quality at all levels of an
organization.
U-lines: Production lines shaped as the letter "U". This shape
allows workers to perform several different tasks easily
with minimum material handling.
Vendor: Supplier.
Visual control: Used in a JIT environment. An approach to
production management which requires making flow and
 32 "JUST-IN-TIME" MANUFACTURING SYSTEMS: A LITERATURE REVIEW
operations clearly visible by reducing inventory and other
elements likely to obscure a clear overview of what is
happening. Under such a system it is possible to see quickly
where and when problems occur.
Wait time: The period an item remains at a work centre after an
operation is completed until it is moved to the next
operation.
Waste: Materials, components, space and labour time, which
are not absolutely essential to add value to the product.
Work in process (WW): Jobs which have been started in a
production cycle but are not yet finished.
Work in progress: See Work in process.
Workstation: A location where an operative performs his/her
job, either with a machine or at a work bench.
World-class manufacturing: Global presence and the
achievement and sustaining of competitive advantage
in delivery of manufactured products throughout the
world.
Yield: The ratio of output from a process to its input.
Yo-i-dan: Meaning "ready, set, go". It is used in Toyota Motor
Company to mean balancing or synchronizing various
processes where there is no conveyor belt to provide the
physical link.
Zero inventory: An objective of JIT production systems to
eliminate all kinds of inventories in the manufacturing
process.
Zero defect: A quality policy which aims to eliminate all
defective items from production and ensure that all products
are of the correct quality.