3. What Is JIT Management philosophy (produce only what is needed when it is needed) A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed Represents Pull type system
4. History of JIT Manufacturing Evolved in Japan after World War II, as a result of their diminishing market share in the auto industry. Toyota Motor Company- Birthplace of the JIT Philosophy Under Taiichi Ohno. JITis now on the rise in American Industries.
5. Definition JITis a manufacturing philosophy involving an integrated set of procedures/activities designed to achieve a high volume of production using minimal inventories
6. More Introduction Raw materials, parts & sub assemblies are pulled through the manufacturing process when they are needed. Simply put, JIT is a philosophy of “make what is needed … when it is needed”.
7. Goal of JIT The ultimate goal of JIT is a balanced system. Achieves a smooth, rapid flow of materials through the system Eliminate disruptions Make system flexible Eliminate waste, especially excess inventory
8. Summary of JIT Goals and Building Blocks Ultimate A Goal balanced rapid flowSupporting Goals Eliminate disruptions Make the system flexible Eliminate waste Product Process Personnel Manufactur- Building Design Design Elements ing Planning Blocks
9. Big vs. Little JIT Big JIT – broad focus Vendor relations Human relations Technology management Materials and inventory management Little JIT – narrow focus Scheduling materials Scheduling services of production
10. What JIT Does Eliminates waste Achieves streamlined production Eliminate disruptions in production … caused by poor quality, schedule changes, late deliveries. Makes the manufacturing delivery system flexible by allowing it to handle a variety of products and changes in the level of output Reduces setup and delivery times
11. Eight WastesTHE EIGHT TYPES OF WASTE OR MUDAWaste Definition1. Overproduction Manufacturing an item before it is needed.2. Inappropriate Using expensive high precision equipment when simpler machines Processing would suffice.3. Waiting Wasteful time incurred when product is not being moved or processed.4. Transportation Excessive movement and material handling of product between processes.5. Motion Unnecessary effort related to the ergonomics of bending, stretching, reaching, lifting, and walking.6. Inventory Excess inventory hides problems on the shop floor, consumes space, increases lead times, and inhibits communication.7. Defects Quality defects result in rework and scrap, and add wasteful costs to the system in the form of lost capacity, rescheduling effort, increased inspection, and loss of customer good will.8. Underutilization of Failure of the firm to learn from and capitalize on its employees’ Employees knowledge and creativity impedes long term efforts to eliminate waste.
12. Sources of Waste Overproduction Waiting time Unnecessary transportation Processing waste Inefficient work methods Product defects
13. Strategies For MinimizingWaste By Using JIT Manufacturing in smaller lot sizes reduces excess inventory Reducing inventory levels allows the problems to be uncovered … thus creating opportunities for manufacturing process improvement
14. Principles Of JIT Manufacturing Total Quality Management Production Management Supplier Management Inventory Management Human Resource Management
15. 1st Principle Of JIT Total Quality Management
16. Total Quality Management Seek long-term commitment to quality efforts with continuous improvement Quality must be a higher priority than cost Minimizing waste
17. Total Quality Management Eliminate Quality Inspectors Quality is everyone’s responsibility Do it right the first time
18. 2nd Principle Of JIT Production Management
19. Production Management Pull System vs. Push System Pull = Made to order Push = Made for inventory Flexibility of the system Design For Testability – In the process Poka-Yoke= Mistake-proofing Throughout entire process
20. Production Management Reduced lot sizes= Shorter cycle times Eliminate disruptions in the process Standardized Parts/ Simplicity
21. Production Management Communication Techniques Completion of task-Kanban Problem- Siren/light Stopping the process if something goes wrong =Jidoka Preventive Maintenance
22. 3rd Principle Of JIT Supplier Management
23. Supplier Management Establish Long Term Relationships with few suppliers. Delivery of Parts = 100% Defect Free Where they are needed When they are needed The exact quantity Work Together
24. Supplier Management Elimination inspection of parts Communicate problems to suppliers in a positive manner.
25. 4th Principle Of JIT Inventory Management
26. Inventory Management Eliminate Safety Stock = Zero Inventory JIT is not an inventory control system Reduction in inventory opens up space
27. Inventory hides problems in a process. Water Level = Inventory Rocks = Problems in the system Boat = Company Operations
28. 5th Principle Of JITHuman Resource Management
29. Human ResourceManagement Company-wide Involvement Motivation for continuous improvement Problem Solving High Employee Interaction Build Pride In Workmanship
30. Human ResourceManagement Self-Inspection of work Diversified Employees Absenteeism To eliminate boredom in process ManagementSupport and Empowerment of workforce
31. JIT Manufacturing Building Blocks Product design Process design Personnel/organizational elements Manufacturing planning and control
32. 1. Product Design Standard parts Design Simplification Highly capable production systems Concurrent engineering
33. Design Simplification
34. 2. Process Design Small lot sizes Setup time reduction Limited work in process Quality improvement Production flexibility Little inventory storage
35. Benefits of Small Lot Sizes Reduces inventory Less rework Less storage space Problems are more apparent Increases product flexibility Easier to balance operations
36. Quality Improvement Autonomation Automatic detection of defects during production Jidoka Japanese term for autonomation
37. Production Flexibility Reduce downtime by reducing changeover time Usepreventive maintenance to reduce breakdowns Cross-train workers to help clear bottlenecks Use many small units of capacity Reserve capacity for important customers
39. 4. Manufacturing Planningand Control Pull systems Visual systems (kanban) Close vendor relationships Reduced transaction processing (delays in delievery) Preventive maintenance
40. Evaluation and selection of vendor (suppliers) network to develop a tiered supplier network – reducing the number of primary suppliers.
41. Transitioning to a Successful JIT System Get top management commitment Decide which parts need most effort Obtain support of workers Start by trying to reduce setup times Gradually convert operations Convert suppliers to JIT Prepare for obstacles
42. Obstacles to Conversion Management may not be committed Workers/management may not be cooperative Suppliers may resist
43. Comparison of JIT and TraditionalFactor Traditional JITInventory Much to offset forecast Minimal necessary to operate errors, late deliveriesDeliveries Large SmallLot sizes Large SmallSetup; runs Few, long runs Many, short runsVendors Long-term relationships Partners are unusualWorkers Necessary to do the Assets work
44. Comparison Of JIT & MRP JIT Repetitive production Minimal shop floor control Simpler Relies on visual or audible signals to trigger production and inventory (e.g. auto carpets) Lower inventories related to need “at the time” MRP Lot size or batch production Extensive shop floor control More complex Relies on computer system to trigger production and order inventory Inventories related to batch or lot sizes
45. JIT in ServicesThe basic goal of the demand flowtechnology in the service organizationis to provide optimum response to thecustomer with the highest qualityservice and lowest possible cost.
47. JIT Benefits (contd.) Simplified scheduling & control Increased capacity Better utilization of personnel More product variety Increased equipment utilization Reduced paperwork Valid production priorities Work force participation
48. JIT … Not For Everyone JIT concepts work best when goods can be produced in response to consumer demand (e.g. automobiles, etc.) JIT is less effective for the production of standardized consumer goods (e.g. basic clothing, food, soft drinks, toasters, etc.) There are cases where JIT concepts apply to sub-processes of a make to stock environment. (e.g. computers etc.)
49. References Cammaranano, J. Lessons to be Learned: JIT. Atlanta, Georgia: Engineering and Management Press, 1997. Dear, A. Working toward JIT: Management Technology. London: Derek Doyle and Associates, 1988. Fisher, D. The JIT Self Test: Success Through Assesment and Implementation. Chicago, IL: Irwin Inc., 1995. Hernandez, A. JIT Quality: A Practical Approach. Englewood Cliffs, NJ: Prentice-Hall, 1993. Hutchins, D. Just-In-Time: Inventory Control. Brookfield, VT: Gower Publishing, 1988. O’Grady, P.J. Putting the JIT Philosophy Into Practice. New York, NY: Nichols Publishing, 1988. Reinfeld, N.V. Handbook of Production and Inventory Control. Englewood Cliffs, NJ: Prentice-Hall, 1987. Schneiderjans, M.J. Advanced Topics In JIT Management: JIT Systems. Westport, CT: Greenwood Publishing Group, 1999. Taver, R.W. Manufacturing Solutions for Consistent Quality and Reliability: The 9 Step Problem Solving Process. New York, NY: AMACON, 1995. Wesner, J.W., Hiatt, J.M., and Trimble, D.C. Winning with Quality: Applying Quality Principles in Product Development. Reading, MASS: Addison- Wesley Publishing Co., 1995.