2. Examples JIT Manufacturing System Kanban System Six Sigma
3. JIT(Just-in-time manufacturingsystem) JIT can be defined as a “philosophy ofmanufacturing based on plannedelimination of all waste and continuousimprovement of productivity. JIT result in Zero defects, Zeroinventory, reduce lead times, reduce queuelengths & lot sizes.
4. Features Organize manufacturing in manufacturingcells. Hire & retain workers who are Multi-skilled. Total quality management to eliminate defects. Reducing both lead time & manufacturing leadtime. Carefully select suppliers who are capable ofdelivering quality materials in a timely manner.
5. PRE-REQUISITESOFJIT MANUFACTURING To reduce WIP inventories throughout theproduction system. Main Objectives is to reduce manufacturinglead times. Repetitive manufacturing. Accurate sale forecast must be available. Increasing Production capabilities ofmanufacturing work center.
6. Elements Of JIT Eliminating the waste. Enforced problem solving & continousimprovement. TQM Parallel Processing. Kanban Production system. JIT Purchasing Reducing Inventories.
7. Eliminating the waste JIT is a management philosophy thateliminates sources of manufacturing wasteby producing the right part in the right placeat right time. JIT concept applies to repetitivemanufacturing process in which the sameproducts & components are producedrepetitively.
8. How can reduce waste?? Only what is needed now is produced. Waiting is reducing by coordinating. Material handling & shipping reduced. Unneeded production steps are reduced. Defects are eliminated.
9. Enforced problem solving &continuous improvement. In JIT manufacturing ,the approach is tolower inventory gradually to expose theproblems & force their solution. Kaizen is to eliminate wasteful activity thusto increasing the productivity & reducingmanufacturing costs.
10. TQM There are 3 principles of TQM1.Customer focus.2.Continous improvement.3.Teamwork.
12. Parallel processingOP2OP1 OP3 OP4OP5Time saving can achieved usingparallel processing
13. Kanban Production system Kanban is the means of signaling to theupstreamworkstation that the downstream is ready forthe upstream workstation to produce anotherbatch of parts.2 types of Kanban cards:1.A conveyance card.2.A production card.
14. Process of Kanban involves Takes the C-Kanban from the containerjust emptied. Finds a full container . Places the C-Kanban in the full container& remove P-Kanban from full container &places it on previous work center. Takes the full container of parts with itsC-Kanban place back to work center.
15. JIT Purchasing To purchasing that requires long termagreements with few supplier. Supplier selection is based on not only price, but also delivery schedules, product quality,mutual trust. Purchase of goods or materials such thatdelivery immediately based on demand oruse.
16. Reducing Inventories Setup times & lot sizes are reduced. Factory layout is changed to allowstreamlined flows. Process-focused layout converted intocellular manufacturing. Installation of Flexible ManufacturingSystem.
17. Successful implementation ?? Reduce or eliminate setup times. Reduces lot sizes. Reduce lead-time. Preventive maintenance. Flexible workforce. Implement a Zero defects quality program. Small lot conveyance.
18. SIX SIGMA SYSTEM A powerful tool for management of quality. Six sigma is a quality system based onmeasurements of how well an organisationmeets customer requirements.
19. Project life cycle Identify/select project- meets 2M( i.e.meaningful & manageable). Form the six sigma team- Choose leader &5-6 members. Develop the charter-document evolvethrough project.
20. CONT.. Train the team-full week of training. Do the project and implement thesolution. Hand off solution-give to stakeholders
21. Roles in six sigmaMost critical roleProcess failwithout black beltServes 18months toPeople areskilledBlack belt
22. Roles in six sigmaCoach & mentor toblack beltPeople are expertOffers hands-on Help to Black beltsMasterBlack belt
23. Roles in six sigmaSimilar to blackbeltRegular positionwhile participatingGreen belt
24. Roles in six sigmaInitiates a BlackbeltAlign with projectbusiness goalDirectlyaccountable forproject resultssponsor
25. Roles in Six SigmaOrchestrates entire systemImplementation Leader
26. Six Sigma Tool KitProcess& dataDatagatheringtoolStatisticalanalysisImplementation & processmanagementIdeageneration tool
27. Kanban System Kanban system is best suited to productwith high volume sales of which have highstock turn & product of low complexity. Kanban concept is that a supplier shouldonly deliver components to the productionline as what they needed , so that there isno storage in the production area.
28. Elements Modular cell production. U-shaped production lines. Total preventive maintenance. Mass production of mixed models.
30. Advantage of Kanban System Simple & understandable process. Low costs associated with the transfer ofinformation. Limit of over-capacity Provides quick & precise information Minimizes the waste Avoids overproduction. Control can be maintained. Delegates responsibility to line workers.
31. Perpetual inventory perpetual inventory or continuousinventory describes systems of inventorywhere the information on inventory quantityand availability is updated on a continuousbasis as a function of doing business.
32. Definition A system of records maintained by thecontrolling department, which reflectsthephysical movement of stocks and theircurrent balances."
33. Comprises of: (a) Comparison of Bin Cards and StoresLedger Accounts. (b) Continuous Stock-Taking
34. Reason for differences betweenthe two records ?? (i) Omission of an item of store in bincard or stores ledger account. (ii) Wrong posting of an item of storeeither in bin card or in stores ledgeraccount. (iii)Arithmetical error in working outtheir balances.
35. Physical Stock Verification The perpetual inventory system is notcomplete without a systematic procedurefor physical verification of stores. The correctness of balances as shown inthe bin card or stores ledger accountshould be verified by means of physicalstock verification.
36. verification may be conducted inthe following two ways: (i) Periodic stock verification (ii) Continuous stock verification
37. Periodic stock verification physical stock verification is normallydone periodically, i.e., once or twice in ayear. Under this method. value of stock is determined by physicalcounting of the stock on a particulardate.
38. Advantage It Is a simple and economical method. verification is good only for the itemswhich do not find place in theperpetual inventory records.
39. Disadvantage Stores may be closed down due tofacilitate stock-taking. There is possibility of fraud.
40. Continuous stock verification counting and verifying number of itemsat random daily throughout the year. stores are verified several times duringthe year. Notice of the particular stock to beverified each day is given to the store-keeper only on the date of actualverification.
41. Advantage effective control over the items. does not necessitate the closing down ofthe stores. less possibility of fraud
42. Disadvantage The method is expensive. Adopted by big concerns only.
43. differences arise due to thefollowing reasons:?? (i) Breakage and wastage of materialsdue to improper handling. (ii) Shrinkage and evaporation. (iii) Losses due to accident, fire, etc. (iv) Losses arising out of breaking upbulk materials.
44. Cont.. (v) Losses due to theft. (vi) Misrouting in bin card or storesledger account. (vii) Over or short-issue.
45. Advantages :Perpetual Inventory System (i) Easy detection of errors. (ii) Better control over stores. (iii) No interruption of productionprocess. (iv) Acts as internal check. (v) Investment in materials kept undercontrol.
46. Cont.. (vi) Early detection of loss of stock. (vii) Accurate and up-to-dateaccounting records. (viii) Easy to prepare interim accounts.
47. Disadvantage (a) Loss of interest on capital locked up instock. (b) Loss through deterioration. (c) Risk of obsolescence. (d) Employment of specialized staff. (e) Moral check on employees.