Just in time in supply chain management &Presentation Transcript
Welingkar Institute of Management Development & ResearchGROUP MEMBERS• Uday virkar-095• Pemori waghmare-108• Pradeep deshmukh-082• Jitesh warik-099• Sandesh dha-105
What is JIT• Just-in-time (JIT) manufacturing is a way of managing manufacturing systems that could reduce waste, and lower cost, thus increasing profit• In its most basic explanation and principle JIT is every component in the manufacturing system arriving just in time for it to be used.• The most common industry using JIT manufacturing is the automobile industries.
• Many other companies of all sizes and products are currently using and transitioning to just-in-time manufacturing• Just-in-time manufacturing sounds like a very simple application, implementing it can be a very costly and difficult task.
History• JIT manufacturing can be traced back to the late 1700’s (Just In Time, Toyota). Eli Whitney contributed his concept of interchangeable parts to the idea of JIT manufacturing in 1799• This concept was developed when Whitney took a contract from the United States Army to manufacture 10,000 muskets at the low price of $13.40 each (Just In Time, Toyota)
JIT Manufacturing in Japan• To begin use of JIT manufacturing in Japan, they first researched American production methods focusing on Ford’s practices (Just In Time, Toyota)• In Japan JIT manufacturing is referred to as the Toyota Production System• The realization for the new system came after World War II when the Japanese automotive manufactures knew they were far behind the American motor companies
• The president of Toyota made a comment about the gap, "Catch up with America in three years, otherwise the automobile industry of Japan will not survive.• Ten years after the first introduction of the new production system Toyota successfully implemented this technique across the company. This began started to be implemented into the western world during the late 1970s to early 1980s
ObjectivesAn overall objective is to limit resources used in the manufacturing system to only those neededSix other objectives that are a key part to obtain the overall objective1. optimize each individual step of the manufacturing system2. make a product with no flaws or defects3. reduce the manufacturing cost4. to make a product that is demanded by consumers5. there needs to be flexibility in the system6. there needs to be a strong and reliable relationship between customers and suppliers
Benefit of JIT• Mainly JIT focuses to eliminate the waste or the non- value added. Thus there are several types of wastes categorised. JIT usually identifies seven prominent types of waste to be eliminated:• Waste from Overproduction• Transportation Waste• Processing Waste• Waste from Product Defects• Waste of waiting/idle time• Inventory Waste
Principles for Improvement1. Abolish old tradition concepts.2. Assume that new method will work.3. No excuses are accepted.4. It is not seeking for perfection, absolutely zero-defect process, few defects is acceptable.5. Correct mistakes immediately.6. Do not spend money on improvement.7. Use you brain to solve problem.8. Repeat to ask yourself 5 times before any decision.9. Gather information from several people, more is better!10. Remember that improvement has no limits.
5S principles• Seiri - Proper Arrangement means sorting what you have, identifying the needs and throwing out those unnecessary. One example is using red-tags. This is a little red-bordered paper saying what the production is, how many are accumulated and then stick these red tags onto every box of inventory . It enhances the easiness to know the inventory status and can reduce cost.• Seiton - Orderliness means making thing in order. Examples include keeping shelves in order, keeping storage areas in order, keeping workplace in order, keeping worktables in order and keeping the office in order.• Seiso - Cleanliness means having a clean workplace, equipment, etc.• Seiketsu - Cleanup mean maintaining equipment and tools.• Shitsuke - Discipline means following the rules and making them a habit.
Three Elements of JIT
Supplier Relationships and JIT• Use single-source suppliers when possible• Build long-term relationships• Work together to certify processes• Co-locate facilities to reduce transport if possible• Stabilize delivery schedules• Share cost & other information• Early involvement during new product designs
JIT and TQM- Partners• Build quality into all processes• Focus on continuous improvement - Kaizen• Quality at the source- sequential inspection• Jidoka (authority to stop line)• Poka-yoke (fail-safe all processes)• Preventive maintenance- scheduled• Work environment- everything in its place, a place for everything
Respect for People: The Role of Employees• Genuine and meaningful respect for associates• Willingness to develop cross-functional skills• JIT uses bottom-round management – consensus management by committees or teams• Actively engage in problem-solving (quality circles)• Everyone is empowered• Everyone is responsible for quality: understand both internal and external customer needs
The Role of Management• Responsible for culture of mutual trust• Serve as coaches & facilitators• Support culture with appropriate incentive system including non-monetary• Responsible for developing workers• Provide multi-functional training• Facilitate teamwork
JIT across the organization• JIT eliminates organizational barriers and improves communications – Accounting changes or relies on activity-based costing – Marketing by interfacing with the customers – Finance approves and evaluates financial investments – Information systems create the network of information necessary for JIT to function
JIT INVENTORY Sources of obstructions keepchanging and it could be any one ofthe factors of production and /or inany combination of the factors. Onegets eliminated and another one cropsup and therefore it has got to becontinuously attended to.