Management philosophy produce only what is needed when it is needed A highly coordinated processing system in which goods move through the system and services are performed just as they are ID: 1020838
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1. Just In Time
2. What Is JITManagement philosophy (produce only what is needed when it is needed)A highly coordinated processing system in which goods move through the system, and services are performed, just as they are neededRepresents Pull type system
3. History of JIT ManufacturingEvolved in Japan after World War II, as a result of their diminishing market share in the auto industry. Toyota Motor Company- Birthplace of the JIT Philosophy Under Taiichi Ohno.JIT is now on the rise in American Industries.
4. DefinitionJIT is a manufacturing philosophy involving an integrated set of procedures/activities designed to achieve a high volume of production using minimal inventories
5. More IntroductionRaw materials, parts & sub assemblies are pulled through the manufacturing process when they are needed. Simply put, JIT is a philosophy of “make what is needed … when it is needed”.
6. Goal of JITThe ultimate goal of JIT is a balanced system.Achieves a smooth, rapid flow of materials through the systemEliminate disruptionsMake system flexibleEliminate waste, especially excess inventory
7. Summary of JIT Goals and Building BlocksProduct DesignProcessDesignPersonnelElementsManufactur-ing PlanningEliminate disruptionsMake the system flexibleEliminate wasteAbalancedrapid flowUltimateGoalSupportingGoalsBuildingBlocks
8. Big JIT – broad focusVendor relationsHuman relationsTechnology managementMaterials and inventory managementLittle JIT – narrow focusScheduling materialsScheduling services of productionBig vs. Little JIT
9. What JIT Does Eliminates waste Achieves streamlined production Eliminate disruptions in production … caused by poor quality, schedule changes, late deliveries. Makes the manufacturing delivery system flexible by allowing it to handle a variety of products and changes in the level of outputReduces setup and delivery times
10. Eight WastesTHE EIGHT TYPES OF WASTE OR MUDAWasteDefinitionOverproductionManufacturing an item before it is needed.Inappropriate ProcessingUsing expensive high precision equipment when simpler machines would suffice. WaitingWasteful time incurred when product is not being moved or processed. TransportationExcessive movement and material handling of product between processes.MotionUnnecessary effort related to the ergonomics of bending, stretching, reaching, lifting, and walking.6. InventoryExcess inventory hides problems on the shop floor, consumes space, increases lead times, and inhibits communication.7. DefectsQuality defects result in rework and scrap, and add wasteful costs to the system in the form of lost capacity, rescheduling effort, increased inspection, and loss of customer good will.8. Underutilization of EmployeesFailure of the firm to learn from and capitalize on its employees’ knowledge and creativity impedes long term efforts to eliminate waste.
11. Sources of WasteOverproductionWaiting timeUnnecessary transportationProcessing wasteInefficient work methodsProduct defects
12. Strategies For Minimizing Waste By Using JIT Manufacturing in smaller lot sizes reduces excess inventoryReducing inventory levels allows the problems to be uncovered … thus creating opportunities for manufacturing process improvement
13. Principles Of JIT ManufacturingTotal Quality ManagementProduction ManagementSupplier ManagementInventory ManagementHuman Resource Management
14. 1st Principle Of JITTotal Quality Management
15. Total Quality ManagementSeek long-term commitment to quality efforts with continuous improvement Quality must be a higher priority than costMinimizing waste
16. Total Quality ManagementEliminate Quality InspectorsQuality is everyone’s responsibilityDo it right the first time
17. 2nd Principle Of JITProduction Management
18. Production ManagementPull System vs. Push SystemPull = Made to orderPush = Made for inventoryFlexibility of the systemDesign For Testability – In the processPoka-Yoke= Mistake-proofingThroughout entire process
19. Production ManagementReduced lot sizes= Shorter cycle timesEliminate disruptions in the processStandardized Parts/ Simplicity
20. Production Management Communication TechniquesCompletion of task-Kanban Problem- Siren/lightStopping the process if something goes wrong =JidokaPreventive Maintenance
21. 3rd Principle Of JITSupplier Management
22. Supplier ManagementEstablish Long Term Relationships with few suppliers.Delivery of Parts = 100% Defect FreeWhere they are neededWhen they are neededThe exact quantity Work Together
23. Supplier ManagementElimination inspection of parts Communicate problems to suppliers in a positive manner.
24. 4th Principle Of JITInventory Management
25. Inventory ManagementEliminate Safety Stock = Zero InventoryJIT is not an inventory control systemReduction in inventory opens up space
26. Inventory hides problems in a process.Water Level = InventoryRocks = Problems in the systemBoat = Company Operations
27. 5th Principle Of JITHuman Resource Management
28. Human Resource ManagementCompany-wide InvolvementMotivation for continuous improvementProblem SolvingHigh Employee InteractionBuild Pride In Workmanship
29. Human Resource ManagementSelf-Inspection of workDiversified EmployeesAbsenteeismTo eliminate boredom in processManagement Support and Empowerment of workforce
30. JIT Manufacturing Building BlocksProduct designProcess designPersonnel/organizationalelementsManufacturing planning and control
31. 1. Product DesignStandard partsDesign SimplificationHighly capable production systemsConcurrentengineering
32. Design Simplification
33. 2. Process DesignSmall lot sizesSetup time reductionLimited work in processQuality improvementProduction flexibilityLittle inventory storage
34. Benefits of Small Lot SizesReduces inventoryLess storage spaceLess reworkProblems are more apparentIncreases product flexibilityEasier to balance operations
35. Quality ImprovementAutonomation Automatic detection of defects during productionJidokaJapanese term for autonomation
36. Production FlexibilityReduce downtime by reducing changeover timeUse preventive maintenance to reduce breakdownsCross-train workers to help clear bottlenecksUse many small units of capacityReserve capacity for important customers
37. 3. Personnel/Organizational ElementsWorkers as assetsCross-trained workersContinuous improvementLeadership
38. 4. Manufacturing Planning and ControlPull systemsVisual systems (kanban)Close vendor relationshipsReduced transaction processing (delays in delievery)Preventive maintenance
39. Evaluation and selection of vendor (suppliers) network to develop a tiered supplier network – reducing the number of primary suppliers.
40. Transitioning to a Successful JIT SystemGet top management commitmentDecide which parts need most effortObtain support of workersStart by trying to reduce setup timesGradually convert operationsConvert suppliers to JITPrepare for obstacles
41. Obstacles to ConversionManagement may not be committedWorkers/management may not be cooperativeSuppliers may resist
42. Comparison of JIT and TraditionalFactorTraditionalJITInventoryMuch to offset forecast errors, late deliveriesMinimal necessary to operateDeliveriesLargeSmallLot sizesLargeSmallSetup; runsFew, long runsMany, short runsVendorsLong-term relationships are unusualPartnersWorkersNecessary to do the workAssets
43. Comparison Of JIT & MRPJIT Repetitive production Minimal shop floor control Simpler Relies on visual or audible signals to trigger production and inventory (e.g. auto carpets) Lower inventories related to need “at the time” MRP Lot size or batch production Extensive shop floor control More complex Relies on computer system to trigger production and order inventory Inventories related to batch or lot sizes
44. JIT in Services The basic goal of the demand flow technology in the service organization is to provide optimum response to the customer with the highest quality service and lowest possible cost.
45. JIT Benefits Reduced InventoryImproved qualityLower costsReduced space requirementsShorter lead-timeIncreased productivityGreater flexibility Improved vendor relations
46. JIT Benefits (contd.)Simplified scheduling & controlIncreased capacityBetter utilization of personnelMore product varietyIncreased equipment utilizationReduced paperworkValid production prioritiesWork force participation
47. JIT … Not For Everyone JIT concepts work best when goods can be produced in response to consumer demand (e.g. automobiles, etc.) JIT is less effective for the production of standardized consumer goods (e.g. basic clothing, food, soft drinks, toasters, etc.)There are cases where JIT concepts apply to sub-processes of a make to stock environment. (e.g. computers etc.)
48. ReferencesCammaranano, J. Lessons to be Learned: JIT. Atlanta, Georgia: Engineering and Management Press, 1997. Dear, A. Working toward JIT: Management Technology. London: Derek Doyle and Associates, 1988.Fisher, D. The JIT Self Test: Success Through Assesment and Implementation. Chicago, IL: Irwin Inc., 1995. Hernandez, A. JIT Quality: A Practical Approach. Englewood Cliffs, NJ: Prentice-Hall, 1993.Hutchins, D. Just-In-Time: Inventory Control. Brookfield, VT: Gower Publishing, 1988.O’Grady, P.J. Putting the JIT Philosophy Into Practice. New York, NY: Nichols Publishing, 1988.Reinfeld, N.V. Handbook of Production and Inventory Control. Englewood Cliffs, NJ: Prentice-Hall, 1987.Schneiderjans, M.J. Advanced Topics In JIT Management: JIT Systems. Westport, CT: Greenwood Publishing Group, 1999.Taver, R.W. Manufacturing Solutions for Consistent Quality and Reliability: The 9 Step Problem Solving Process. New York, NY: AMACON, 1995.Wesner, J.W., Hiatt, J.M., and Trimble, D.C. Winning with Quality: Applying Quality Principles in Product Development. Reading, MASS: Addison-Wesley Publishing Co., 1995.