Transcript
JUST IN TIME
GROUP 1
ABHIMANYU PANDIT KUNDAN KUMAR LALIT KUMAR MAHALAKHSMI S. GOWTHAM REDDY
Reducing Variance, Waste and Lead Time in the Supply Chain
Topics to be Covered Review of JIT & Waste Objectives of JIT JIT PrinciplesJIT Tools and Procedures
What is JIT?Just-in-Time (JIT) is a production strategy that
strives to improve a business' return on investment by reducing in-process inventory and associated carrying costs. Just In Time production method is also called the Toyota Production System.
To meet JIT objectives, the process relies on signals orKanban ( 看 板 Kanban) between different points in the process, which tell production when to make the next part.
Contd..JIT focuses on continuous improvement and can improve a
manufacturing organization's return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality.
Objective of JIT Produce only the products the customer
wants. Produce products only at the rate that the
customer wants them. Produce with perfect qualityProduce with minimum lead time.Produce products with only those features
the customer wants.
ObjectivesProduce with no waste of labor, material or
equipment -- every movement must have a purpose so that there is zero idle inventory.
Produce with methods that allow for the
development of people
Seven Basic Types of Waste
Transportation waste Process WasteInventory WasteWaste of motionWaste from product defectsWaiting timeOverproduction
Common Causes of Waste Layout (distance)Long setup timeIncapable processesPoor maintenancePoor work methodsLack of training
Inconsistent performance measures
Ineffective production planning
Lack of workplace organization
Poor supply quality/reliability
JIT Principles Create flow production • one piece flow
• machines in order of processes • small and inexpensive equipment • U cell layout, counter clockwise • multi-process handling workers • easy moving/standing operations • standard operations defined
JIT Principles:Establish “TAKT” time • rate at which the customer buys a product Build Pull Product • use of kanban system
Push Vs. Pull Scheduling Push Scheduling • traditional approach • “move the job on when finished” • problems - creates excessive inventory Pull scheduling • coordinated production • driven by demand (pulled through
system) • extensive use of visual triggers (production/withdrawal kanbans)
Visual Control A system for making problems obvious
without the need for sophisticated monitoring computer systems
• Andon light system • Kanbans Create a sense of urgencyClearly identify where the problems are
located
Supplier Partnerships Reliance on suppliers for • problem solving expertise • quality at the source • timely communication • participants in cost reduction programs Increased reliance on supplier certification
Standardization/Simplification Eliminate inherent sources of variance eliminate opportunity for human
discretion error Examples • Container sizes • MacDonalds with interaction with
customers Consistent with Deming Wheel • Standarize expose problems solve problems implement new methods
Other Techniques Milk runs Poka-Yoke SystemsContinuous Improvement Programs (CIP)
JIT in Services Service Traits
• strong emphasis on process • avoidance of inventory • emphasis on people and their
importance to process • recognition of need for continuous
improvement • “defects are treasures”
JIT in Services Key Issues
• Equipment/people focus • Customer contact per transaction • Degree of discretion • Degree of customization • Location of value-added processes • Product/process focus
JIT in Services Elements of JIT most applicable • Synchronization and balance of
information and work flows • Total visibility of all components of the
process • Continuous improvement of the
process • Holistic approach to the elimination of
waste • Flexibility in use of resources • Respect for people
JIT & Lean Manufacturing Lean Manufacturing • Doing more with less • Less of: • materials, time, resources • overhead, people • waste • money JIT is a subset of Lean Manufacturing Now seen as most applicable to mass
production settings
Benefits of JIT Unpleasant surprises
eliminated Less computerization • visual control Improved qualityWIP reducedBetter
communications
Less pressure on receiving docks and incoming inspection areas
Lower costs Change in attitude • Defects are treasures
Limitations of JIT Preconditions to JIT • trust must be present • labor/management • suppliers/consumers
• recognition of processes • familiarity with problem solving • quality at the source • agreement over value and waste
Limitations of JIT Right Settings • applicable in growth to maturity
phases of Product Life Cycle • standard product • standard/fixed pay-rate • problems with piece-rate scheme Universal agreement that change needed
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