JIT PPT

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