Paragon Apparel is a part of Arihant Group of Companies, the group turnover is USD 45.25 Million, which has interest in various fields like automotive parts/edible oil extraction/garment exports/confectionary. Paragon Apparel is promoted by Mr. Roshan Baid & Mr. Sidharth Baid. Both promoters hold degrees in garment manufacturing and merchandising from National Institute of Fashion Technology, India’s premier institute of fashion technology.
Make all you can just in case you run out of material. Just in case the machine goes down, just in case you run into a quality problem.
Approximate production based on what the customer anticipates they will need.
Large lots lead to high inventories which hide problems and cause quality problems to increase because bad parts are found later and there are more of them.
Make only what the customer needs when they need it.
More precise production based on what the customer has actually consumed. Customer and supplier agree upon a buffer size they would like to keep between them. As the customer pulls apart from the buffer, the supplier is authorized to put that quantity.
Smaller lots lower inventory level and drive problem resolution. Quality problems are contained with less parts to sort.
Waste time and resources running parts that are not necessary. May be more effective for the long term to shut down the machine and do planned maintenance or send an operator to training, solve quality problems.
Always in firefighting mode trying to determine what is hot, how much inventory is there.
Reduces waste and provides time to do things we typically do not make time to do. preventative maintenance, housekeeping, training, problem solving, team meetings.
System is controlled by visual management. Communication improved by gradual feedback the supplier receives from the customer in the form of a pull signal rather than finding out as the customer runs or is running out of parts, leaving little or no time
MRP is the classic push system. The MRP system computes production schedules for all levels based on forecasts of sales of end items. Once produced, subassemblies are pushed to next level whether needed or not.
JIT is the classic pull system. The basic mechanism is that production at one level only happens when initiated by a request at the higher level. That is, units are pulled through the system by request.
Advantages Requirements PULL system Limited and known Final Inventory Every job is a ‘High Stress’ Rush order, hence one can never relax and take it easy. Worker only consume their time & Raw Materials on what is actually needed Balanced systems MUST be in place. Quality MUST be High – each piece has a definite place to go – else immediate feedback is given Mistake-proofing (poka-yoke) should be there as one can not afford to make mistakes. Any problem will lead to unhappy customers (either internal or external) Quick changeover. 6S and SMED.
Inventory Hides Problems Just as Water in a Lake Hides Rocks Inventory level Inventory level Scrap Setup time Late deliveries Quality problems Process downtime Scrap Setup time Late deliveries Quality problems Process downtime
Unlike a predictive system, kanban immediately reacts to the environment. By responding to clearly and easily read kanban cards the lag time between a shift in demand and a shift in production is almost non-existent.
Provides quick and precise information
Low costs associated with the transfer of information
Delegates responsibility to line workers
Minimize risk of obsolete inventory, because inventory is only created as it is needed