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Supply Chain Mgmt Jit


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  • 1. Just-In-Time (JIT)
    • JIT : an integrated set of activities designed to
    • achieve high-volume production using minimal
    • inventories of raw materials, finished goods &
    • work in process.
  • 2. Just-In-Time (JIT) (Cont.)
    • Management philosophy…Nothing produce until needed.
    • Encompasses the successful execution of all production activities required from design to delivery of products.
    • Common sense based/simple techniques
  • 3. Just-In-Time (JIT) (Cont.)
    • Minimize waste of time, energy, material & errors
    • Minimize waste…in both factories: Manufacturing product & “Hidden”
    • Attack/eliminate waste
    • Value added to the final product philosophy … from customer ’s point of view
  • 4. Just-In-Time (JIT) (Cont.)
    • Expose problems
    • Continuous improvement/ change
    • Enforced problem solving approach
  • 5. Goals
    • Zero defects …reducing defects
    • Zero inventory …Stockless production
    • Zero setup time … SMED ---Single Minute Exchange of Dies
    • Zero handling
    • Zero break down
  • 6. Goals (Cont.)
    • Zero lead time
    • Zero Transactions …reduced paperwork
    • Zero disturbances …routine execution of schedules
  • 7. Elements addressing Elimination of Waste
    • Focused Factory …specialized
    • Group Technology …Eliminate movement & queue time between operations
    • Jidoka …Quality at the source stop line if necessary
      • Total quality: an approach that encompasses all phases of a manufacturing organization.
  • 8. Elements addressing Elimination of Waste (Cont.)
    • Quality …Meeting a specific set of customer
    • expectations
    • Fitness for use, reliability, consistency, etc.
    • Customer…external & internal
  • 9. JIT Manufacturing
    • JIT Manufacturing :
    • Executing linear production : Production of necessary units in the necessary time with the objective of  0 Variance W.R.T. the schedule.
  • 10. JIT Manufacturing (Cont.)
      • No Inventories, No queues
      • Minimum schedule variation
      • Uniform plant loading
      • Uninterrupted flow of materials
      • Flow paced by market demands
      • Flexibility, Visual Control (make problems visible to everyone), Reliability (of materials, people & equipment)
  • 11. JIT Manufacturing (Cont.)
      • Inventory hides problems such as poor quality, break downs, late deliveries, workers absence & tardiness, etc.
    • Tightening the production system :
      • Reducing the amount of inventory in the system
      • “One less at a time”…(reducing the lot size)
        • expose eliminate constraints
  • 12. Pull System
    • Produce only when material is needed downstream…(cue from the user not the planning source)
    • Pull materials sequentially through the factory.
    • Orders placed at end item level.
    • Idle material is waste.
    • Need discipline…(Good practices reinforced through training)
  • 13. Push System
    • Production authorized in anticipation of needs downstream…(cue is a work order from the planning system)
    • Orders launched to meet due dates.
    • Keep machines & people busy.
    • NOTE : Planning is necessary under JIT to ensure the right amount of productive resources are
    • scheduled/available to satisfy MPS/FAS
  • 14. Kanban Production Control Systems
    • Simple, paperless procedures
    • Signals/visual systems
      • Posted schedules
    • Containers
      • Standard size , small
        • Factors: Material Handling consideration proximity of work centers
  • 15. Kanban Production Control Systems (Cont.)
    • Kanban…Cards
        • Production Card---”P” Card:
          • Part #, Quantity to be produced, Supply work center #, etc.
        • Conveyance (Move) Card---”C” Card :
          • Part #, Container Capacity, Source, Destination, etc.
    • 1-card system : Move card and an empty space
    2-card system
  • 16. Setup Reduction
    • Setup reduction is the process of reducing the time required to convert from production of the last good piece of unit A to the first good piece of unit B .
    • use methods engineering/common sense.
    • Ideal lot size = 1.
  • 17. Setup Reduction (Cont.)
    • Setup activities:
      • External: Operations performed while the machine is running.
      • Internal: Operations performed after the machine is stopped.
    • Setup…responsibility of the operator.