JUST IN TIME ANALYSIS Just-In-Time Manufacturing: A Definition. -Uses a systems approach to develop and operate a manufacturing system -Organizes the production process so that parts are available when they are needed. -A method for optimizing processes that involves continual reduction of waste.
Material is supplied at work station instead keeping in stock an then supply.
Finished goods are dispatched directly from production unit to the customer’s destinations.
The emphasis of JIT approach is to get defect free raw material components and also to produce free goods, so as to get advantage of inventory saving.
Central Themes Surrounding Just-In-Time
Elimination of Waste
Prerequisites for JIT Implementation
A Reason for Changing
Strategic Manufacturing Plan
Commitment to Action
Inventory Reduction as a Tool for Improvement
Uniform Plant Loading
Just-In-Time Techniques (cont’d
Reduced Setup Times ,Shop-Floor Layout and Production Cells
Total Quality Assurance
A Competitive Edge
Integrating and Optimizing
Understanding the Customer
The Major Misconceptions of JIT
JIT is Only an Inventory Control System
It is a Method to “Push” Inventory Back to the Supplier
JIT is a Quality Control Program
Goals of Just-In-Time Systems
Design for Optimum Quality and Cost
Minimize resources needed for Design and Manufacturing
Be Responsive to the Customers Needs
Goals of Just-In-Time Systems (cont’d
Develop Trust and Open Relationships with Suppliers and Customers
Develop a Commitment to Improve the Total Manufacturing System
Advantages of JIT Manufacturing
Materials Cost Savings
Manufacturing Cost Savings
Sales Cost Savings
Reduce inventory cost.
Lesser storage space.
No wastage, thereby higher profitability.
Defects are identified faster.
C0nsistency and improved quality.
Continuous improvement is assured.
Properly defined space for storage .
“ KAIZEN” SYSTEM
Continuous improvement in quality is also known as KAIZEN System. Greater awareness of problems and their causes un the organization, leads to generation of new idea of continuous improvement. This idea is called KAIZEN which literally improve in every sphere of activity.
Elements in Materials Cost Saving
Reduction of Suppliers
Reduce Order Scheduling
Simplify Receiving Systems
Eliminate inventory Stocking
Eliminate Excess Material
How Just-In-Time Systems Work
Requirements for JIT Manufacturing
Requirements for JIT
Respond to Customer Requirements
Integrate all Processes in the Manufacturing System
Employee Participation in Meeting Commitments
Company wide Commitment to education
Reduce all Inventory
Establish Continuous Improvement Goals
Use a pull Production System
Design products for Manufacturing
Develop Controllable Production Processes
Have a Defect Prevention Program
Reduce Setup Times
Build Products to Specification
JAPANESE (JIT) VS. U.S. SYSTEM
Small size purchasing of raw material
Inspection of Raw material at supplier’s end.
Zero defect in quality is required.
U. S. APPROACH
Bulk quantity of raw material .
Inspection of Raw material at buyer’s end.
2% defect in quality is acceptable.
Supplier is selected based on reasonable pricing as worked out in view quality consideration.
Long term agreement with suppliers.
Less paper formality.
Supplier is selected based on biding pricing for quoted quality.
Vary from consignment to consignment.
More paper formality as is based on tender system.
Minimum packing in handling of raw materials.
Transportation cost is less as supplier’s are located nearby.
More suitable for single product system.
Heavy packing in handling of raw materials as bulk purchases.
Transportation cost is more as supplier’s are scattered.