Just in-time systems
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Just in-time systems

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Just in-time systems Just in-time systems Presentation Transcript

  • Just-in-Time SystemsJust-in-Time Systems Reducing Waste and Lead Time in the Supply ChainReducing Waste and Lead Time in the Supply Chain BYBY SUDHIR REDDY S.V.RSUDHIR REDDY S.V.R
  • Topics to be CoveredTopics to be Covered  Review of JIT & WasteReview of JIT & Waste  JIT PrinciplesJIT Principles  BENEFITS OF JITBENEFITS OF JIT  JIT RELATION TO F.M.SJIT RELATION TO F.M.S
  • WasteWaste is ‘anything other thanis ‘anything other than thethe minimumminimum amount ofamount of equipment, materials, parts,equipment, materials, parts, space, and worker’s time,space, and worker’s time, which are absolutelywhich are absolutely essential toessential to add valueadd value to theto the product.’product.’ —— Shoichiro ToyodaShoichiro Toyoda President, ToyotaPresident, Toyota © 1995 Corel Corp. Introductory QuotationIntroductory Quotation
  • What is JIT?What is JIT?  A corporate system designed to produceA corporate system designed to produce output within the minimum lead time and atoutput within the minimum lead time and at the lowest total cost by continuouslythe lowest total cost by continuously identifying and eliminating all forms ofidentifying and eliminating all forms of corporate waste.corporate waste.  It is used to describe stockless productionIt is used to describe stockless production manufacturing approach, where only rightmanufacturing approach, where only right parts are completed at right time.parts are completed at right time.  Focus of JIT:Focus of JIT: •• Stockless production.Stockless production.
  • Seven Basic Types of WasteSeven Basic Types of Waste  Transportation wasteTransportation waste  Process WasteProcess Waste  Inventory WasteInventory Waste  Waste of motionWaste of motion  Waste from product defectsWaste from product defects  Waiting timeWaiting time  OverproductionOverproduction
  • Push versus PullPush versus Pull  PushPush system: material issystem: material is pushedpushed intointo downstream workstations regardless ofdownstream workstations regardless of whether resources are availablewhether resources are available  PullPull system: material issystem: material is pulledpulled to ato a workstation just as it is neededworkstation just as it is needed JIT is a pull system.JIT is a pull system.
  • Pull System  Material is pulled through the system whenMaterial is pulled through the system when neededneeded  Reversal of traditional push system whereReversal of traditional push system where material is pushed according to a schedulematerial is pushed according to a schedule  Forces cooperationForces cooperation  Prevent over and underproductionPrevent over and underproduction  While push systems rely on a predetermined schedule, pull systems rely on customer requests.  Part is produced on the authorization referred to as a KANBAN is issued from the next workstation
  • What is kanban?What is kanban?  Developed at Toyota 1950s to manage lineDeveloped at Toyota 1950s to manage line material flows.material flows.  Kanban ( Kan=card, Ban= signal )Kanban ( Kan=card, Ban= signal )  simple movement systemsimple movement system  Boxes/containers to take “lots” of parts from one workBoxes/containers to take “lots” of parts from one work station to another (client-server).station to another (client-server).  ““Cards” to signal & communicate reorder informationCards” to signal & communicate reorder information
  • What is kanban?What is kanban?  Server only delivers components to client work station asServer only delivers components to client work station as & when needed (called/pulled).& when needed (called/pulled).  Minimise storage in the production area.Minimise storage in the production area.  Workstations only produce/deliver components whenWorkstations only produce/deliver components when called (they receive card + empty container).called (they receive card + empty container).  The work-station produces enough to fill the containerThe work-station produces enough to fill the container  Kanban = an authorization to produce more inventoryKanban = an authorization to produce more inventory  We thus limit the amount of inventory in process.We thus limit the amount of inventory in process.
  • BENEFITS OF JITBENEFITS OF JIT  Reduced inventoryReduced inventory  Reduced working progressReduced working progress  Improved qualityImproved quality  Reduced direct laborReduced direct labor  Reduced floor spaceReduced floor space  Minimum tool repair costMinimum tool repair cost  Reduced material handling and increaseReduced material handling and increase in overall through put.in overall through put.
  • JIT RELATION TO FMSJIT RELATION TO FMS  JIT can be either a cause or an effect ofJIT can be either a cause or an effect of F.M.SF.M.S  Achievement of true results of F.M.SAchievement of true results of F.M.S without implementing JIT is difficult.without implementing JIT is difficult.  Results due to incorporation of JIT inResults due to incorporation of JIT in F.M.S are decreased lead times, less workF.M.S are decreased lead times, less work in process on shop floor, smaller finishedin process on shop floor, smaller finished part inventory and increased customerpart inventory and increased customer satisfaction.satisfaction.
  • THANQTHANQ