Just In Time - JIT


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Just In Time - JIT

  1. 1. 1 By:- Ashutosh Kumar Jha(91011) Deepinder Singh(91016) Divanshu Kapoor(91017) Harsh Agrawal(91022) Nishant Singh(91039) Sweta Agarwal(91059) JIT Just-in-Time (JIT)
  2. 2. 2 Definition JIT Just-in-time (JIT) is an inventory strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs.
  3. 3. 3 Goals JIT  Total quality control  Total elimination of waste  Zero inventory  Zero setup time  Zero lead time  Zero Transactions
  4. 4. 4 Toyota JIT  They produce 20000 cars per day  Two 8 hr shifts (separated by 4 hrs)  Daily schedule adherence @ 97%  Sheet steel to car, less than 16hrs  Average 6 hrs of component inventory  Delivery of components to plant organised by Toyota  No incoming inspection  As a general policy Toyota do not dual source Toyota: Derby
  5. 5. 5 Toyota Production System (TPS) JIT  It follows “Just In Time Production” approach created by the founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi Ohno.  Definition: The production system developed by Toyota Motor Corporation to provide best quality, lowest cost, and shortest lead time through the elimination of waste.  TPS is comprised of two pillars, Just-in-Time and Jidoka (autonomation).  TPS is maintained and improved through  Iterations of standardized work and kaizen (continuous improvement)  It follows Plan–Do-Check-Act (PDCA Cycle) or the scientific method.
  6. 6. 6 House of Toyota JIT
  7. 7. 7 TPS (contd) The main objectives of the TPS are to design out overburden (muri) and inconsistency (mura), and to eliminate waste (muda). There are seven kinds of muda that are addressed in the TPS:-  over-production  motion (of operator or machine)  waiting (of operator or machine)  conveyance  processing itself  inventory (raw material)  correction (rework and scrap)
  8. 8. 8 What it is •Management Philosophy •‘Pull’ system through the plant What it Does •Attacks waste (time, inventory, scrap) •Exposes problems & bottlenecks •Achieves streamline production What it require •Employee Participation •Industrial engineering •Continuing improvement •Total quality control •Small lot sizes What it assumes •Stable environment
  9. 9. 9 JIT Tactics by Toyota  Use pull system to move inventory  Reduce setup time  Reduce lot size
  10. 10. 10 Pull System  Toyota use a kanban system (pull-system) to pull parts to the next production stage only when they are needed.  A kanban is a card that is attached to a storage and transport container.  A sequence of kanbans pulls material through the process.
  11. 11. 11 Work cell Raw Material Supplier Kanban Purchased Parts Supplier Sub- assembly Ship Kanban Kanban Kanban Kanban Finished goods Customer order Final assembly Kanban Kanban
  12. 12. 12 Reducing Setup Time  More frequent orders require reducing setup costs, otherwise, inventory costs will rise. Setup cost is highly correlated with setup time.  Methods used to reduce setup time:-  organizing procedures  using carts  training workers to do their own setups  Toyota managed to slash setup times from months to hours and sometimes even minutes
  13. 13. 13 Reducing Lot Size JIT  With close cooperation with its suppliers and the implementation of Kaiban system lot sizes are reduced significantly. Toyota USA Sweden Germany Setup time 10 minutes 6 hours 4 hours 4 hours Lot size (inventory) 1 day* 10 days 1 month -
  14. 14. 14 Worker Characteristics  Employees are cross trained for flexibility and efficiency  Toyota use unskilled workers, preferring to train them itself  Improved communications facilitate the passing on of important information about the process.  Toyota designed the factory to be 30 percent more compact than other factories with similar output, to curb building and operating costs and enhance communication.  Each Toyota employees has right to stop production line when defect occur
  15. 15. 15 5S TPM SMED KANBAN POKAYOKE JIT techniques
  16. 16. 16 JIT Methods JIT  Total productive maintenance (TPM):Designed to ensure that every machine in a production process always performs its required task and its output rate is never disrupted  SMED (single minute exchange of dies): Lean production methods for reducing waste in a manufacturing process. It provides a rapid and efficient way of converting a manufacturing process from running the current product to running the next product. This rapid changeover is key to reducing production lot sizes and thereby improving flow which is a 'Lean' aim. It is also often referred to as Quick Changeover (QCO).
  17. 17. 17 JIT Methods JIT  Pokayoke: Poka Yoke is one of the main components of Shingo's Zero Defect Quality Control (ZQC) system . The idea being to produce zero defective products. One way this is achieved is through the use of Poka Yoke Multiple Devices that are used to either Detect or Prevent Defects from occurring in the First Place. These CIW Poka Yoke Multi-Patented Welding Methods are simple Real-Time Methods to help achieve Zero Defects.  Andon Lights: one of the visual management tools used in places which have adapted a lean manufacturing philosophy. When the term visual management is used, its main meaning is if you were to walk out on the production floor, and look around, you could visually see the status of the lines or work cells.
  18. 18. 18 Contd.. JIT  5s: 5S is a system of workplace organization. It is fundamental to the implementation of the Lean Manufacturing principles.  The 5S are :  Sort  Set in Order  Shine  Standardize  Sustain  Each component of the 5S is necessary to derive the benefits and sustain workplace organization.
  19. 19. 19 The 5-S Program JIT  Seiri  segregate and discard  get rid of what is not needed  Seiton  arrange and identify for ease of use  a place for everything and everything in its place  Seiso  Clean Daily  clean work place enhances quality  Seiketsu  Revisit frequently  revisit the first 3 steps to maintain workplace safety and effectiveness  Shitsuki  Motivate to sustain  promote adherence through visual  performance measurement tools
  20. 20. 20 Companies Currently using JIT JIT  Xerox  Harley Davidson  Toyota Motor Company  General Motors  Ford Motor Company  Manufacturing Magic  Hawthorne Management Consulting  Strategy Manufacturing Inc.  And Many more…
  21. 21. 21 JIT at Xerox JIT  Rank Xerox Manufacturing (Netherlands)  Largest Xerox company outside US.  Produces and refurbished mid-volume copier equipment for distribution throughout the world.  Implemented JIT ~1980s.  Part of JIT program:-  Installed an automated materials handling system and information processing system  Production procedures were modified
  22. 22. 22 Xerox-Result of Implementing JIT JIT  Warehouse stock 3-month  ½ month supply  Supplier base 3000  300  98% on-time inbound delivery, 70% materials arriving within an hour  Overall material costs reduce 40%  Most inbound product inspection stations were eliminated because of higher-quality materials from suppliers.
  23. 23. 23 Contd… JIT  Inbound transportation costs were reduced 40%  Reject levels for defective or inferior materials 17%  0.8%  Positions for 40 repack people were eliminated because of standardized shipment-packaging criteria  On-time inbound delivery performance improved 28%
  25. 25. 25 JIT at McDonald’s (Contd..) JIT  After JIT:  Burger assembled when order is placed  Raised quality and reduced costs  Higher quality customer service  Adapt to demand in a better manner
  26. 26. 26 JIT and Lean Management JIT  JIT can be divided into two terms: “Big JIT” and “Little JIT”  Big JIT (also called Lean Management) is a philosophy of operations management that seeks to eliminate waste in all aspects of a firm’s production activities:  human relations  vendor relations  technology, and  Materials and inventory management  Little JIT – narrow focus  Scheduling materials  Scheduling services of production
  27. 27. 27 JIT at Harley Davidson JIT  Just-in-time inventory was the driving force of Harley's quality-improvement program  Harley trusted its partners to deliver the quantities it needed  Suppliers of Harley had to implement JIT into their production process to compliment Harley's system
  28. 28. 28 Outcomes JIT  Inventory levels down 75 %.  Percentage of motorcycles coming off the line completed up from 76% to 99%  Scrap and rework reduced by 68 %.  Productivity up by 50 %.  Space requirements down by 25 %.
  29. 29. 29 Comparison of MRP (Material Requirements Planning), JIT, and TOC (Theory of Constraints) JIT MRP JIT TOC Loading of operations Checked by capacity requirements Planning afterward Controlled by kanban system Controlled by bottleneck operation Batch sizes One week or more Small as possible Variable to exploit constraint Importance of data accuracy Critical Unnecessar y Critical for bottleneck and feeder operations Speed of scheduled development Slow Very fast Fast
  30. 30. 30 Contd… JIT MRP JIT TOC Flexibility Lowest Highest Moderate Cost Highest Lowest Moderate Goals Meet demand Have doable plan Meet demand Eliminate waste Meet demand Maximize profits Planning focus Master schedule Final assembly schedule Bottleneck Production basis Plan Need Need and plan
  31. 31. 31 Advantages JIT  Higher profits and improved customer satisfaction.  Waste Reduction.  Stronger and more reliable working relations with suppliers.  Improved working relations between employees.
  32. 32. 32 Limitations JIT  Loss of individual autonomy  Resistance to change  Success varies from industry to industry  Employee commitment  Limited to Japanese environment:  Participation resulting from the use of quality circles.  Participation involves empowering the workforce with respect to decision making.
  33. 33. 33 Contd... JIT  It is prone to inventory shortage which may result in reducing efficiency of whole process.  High cost of training the employees is involved.  Leaves consumers and suppliers open to supply shocks.  Strategy is heavily dependent on the demand curve of the time when it is applied.
  34. 34. 34 THANK YOU JIT