just in time

ROHAN AHIR PRANITA ANCHAN AVINASH JANARDANAN HEMANGI DHONDESUMEET LAMBAFORUM GATHANI

• JIT- A philosophy of continuous improvement that puts emphasis on prevention rather than correction, and demands a company wide focus on quality.

• JIT- operational management approach to achieve world class manufacturing.

• JIT- production is based on demand

• JIT philosophy means getting the right quantity of goods at the right place and the right time

• JIT exceeds the concept of inventory reduction; it is an all-encompassing philosophy geared to eliminate waste, anything that does not add value

• A broad JIT view – or lean production/lean systems - is one that encompasses the entire organization

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• Evolved 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.

• JIT originated in Japan at Toyota Motor Co, fueled by a need to survive the devastation post WWII

• JIT gained worldwide prominence in the 1970s

• Often termed “Lean Production” or “Lean Systems”

• Broad view that entire organization has the same goal - to serve customers

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• JIT is built on simplicity - simpler is better.

• Continuous improvement

• Visibility – all waste must be visible to be identified and eliminated

• Flexibility - to adapt to changes in environment7

• Total Quality Management

• Production Management

• Supplier Management

• Inventory Management

• Human Resource Management

Flow with JIT

Traditional Flow

CustomersSuppliers

Customers

Suppliers

Production Process (stream of water)

Inventory (stagnant ponds) Material

(water in stream)

• Total Quality Management

• Production Management

• Supplier Management

• Inventory Management

• Human Resource Management

• Communication Techniques• Completion of task-Kanban • Problem- Andon or siren/light

• Stopping the process if something goes wrong =Jidoka

• Preventive Maintenance

Waste (“muda” in Japanese) is ‘anything other than the minimum amount of equipment, materials, parts, space, and worker’s time, which are absolutely essential to add value to the product.’

— Shoichiro Toyoda Founder, Toyota

© 1995 Corel Corp.

• Dual card• Move only container with C- kanban

• Produce only when authorized by P (Production)- kanban

• e.g.: Toyota

• Single card• Move only containers with C (Conveyance)-kanban)

• e.g.: Kawasaki

• Total Quality Management

• Production Management

• Supplier Management

• Inventory Management

• Human Resource Management

Toyota communicates their demand for parts 20 days in advance to their suppliers, with the right to change the forecast up to the 10th day.

• Total Quality Management

• Production Management

• Supplier Management

• Inventory Management

• Human Resource Management

• Inventory = Lead Time (less is better)• Inventory hides problems

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• When inventory levels are low, quality problems become very visible.

• Self-Inspection of work

• Diversified Employees• Absenteeism• To eliminate boredom in process

• Management Support and Empowerment of workforce

In 1986 from a labor force of 60,000 Toyota received 2.6 million improvement proposals, 96% of which were implemented by either management or the employees themselves.

• Worker resistance

• Lack of top management support

• Lack of communication

• Lack of formal training

• What phrase best describes the Just-In-Time philosophy?

Continuous Improvement

There are so many companies that are using JIT planning. Any car, motorbike or aircraft manufacture uses JIT. This means that the examples are countless. For example,

• Toyota• Dell• Harley Davidson• Walmart• McDonalds• Xerox

• Dell has also leveraged JIT principles to make its manufacturing process a success.

• Dell’s approach to JIT is different in that they leverage their suppliers to achieve the JIT goal.

• Dependable suppliers with the ability to meet Dell’s demanding lead time requirements.

• A seamless system that allows Dell to transmit its component requirements so that they will arrive at Dell in time to fulfill its lead times.

• A willingness of suppliers to keep inventory on hand allowing Dell to be free of this responsibility.

• Harley Davidson’s use of JIT is mostly characterized by its transformation in the late World War 2 era from an inefficient manufacturer that solved all of its problems with extra inventory to a nimble manufacturer able to meet demand and provide short lead times.

• Inventory levels decreased 75 percent.• Increased productivity.

Harley Davidson’s success with the implementation of JIT had a lot to do with the fact that when JIT was put into practice, process problems could no longer be hidden by costly inventory that helped to meet ship dates. The inefficiencies in the processes were quickly identified and solved.

 The main BENEFITS of JIT are the following:Funds that were tied up in inventories can be used elsewhere.Areas previously used to store inventories can be used for other more productive uses.Throughput time is reduced, resulting in greater potential output and quicker response to customers.Defect rates are reduced, resulting in less waste and greater customer satisfaction.  A real business example: Dell Computer Corporation

DISADVANTAGES of JIT:

Implementing thorough JIT procedures can involve a major overhaul of business systems -it may be difficult and expensive to introduce.JIT manufacturing also opens businesses to a number of risks, notably those associated with the supply chain. With no stocks to fall back on, a minor disruption in supplies to the business from just one supplier could force production to cease at very short notice. A real business example: Toyota

What have been the experiences of JIT

implementers so far? 22 companies had underrtaken JIT efforts at the

time of the study. While 13 of them reported some efforts such as experimental and ad hoc modification of systems, 9 reported major JIT efforts in place.

Most of the firms with some JIT efforts reported starting their efforts only recently. Those with major JIT pro-grammes had started their efforts as early as in 1986.

Firms with major JIT programmes indicated an implementation lead time of more than three years.

Supplier development, Employee involvement, and Top Management commitment were prominently listed as critical success factors.

Training, task force formation, re-layout, and pilot study were indicated as among the first five steps taken in JIT implementation.

Three most important reasons for embarking upon a JIT implementation programme were gaining competitive advantage in the market place, simplifying production planning & control, and curbing rising inventory levels.

Proximity of suppliers, stable production plan, or high volume repetitive manufacturing were never mentioned among the main reasons for JIT implementation.

Firms reporting major JIT efforts have done so after carefully evaluating this strategic nature. On the contrary, firms reporting some ad hoc modification and experimental efforts did not do any strategic planning exercise. JIT efforts were initiated by middle management because the top management asked them to do so.

JIT- A philosophy of continuous improvement that puts emphasis on prevention rather than correction, and demands a company wide focus on quality.