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Lean production and jit


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Lean production and jit

  2. 2. GROUP MEMBERS:- Names Roll no.Kusum Parmar 65Madhushree Rangrej 77Thrapti Shetty 91Pooja Singh 96Kajal Singh Yadav 110Sanjoli Bhageria 115 ACKNOWLEGEMENT
  3. 3. I would like to express my gratitude to all those who gave us thepossibility to complete this project. I want to thank prof. DiptiSoni for her suggestions and encouragement in all the timeresearch of the project which has helped us to acquire a totalinformation. I would here by like to thank my parents and groupmembers who helped me throughout the project. INDEX
  4. 4. 1. What is lean production?2. About lean production.3. JIT(just-in-time).4. History & development of JIT system.5. Concept of JIT6. Characteristics/features of JIT.7. Benefits of JIT.8. Research methodology.9. Introduction to Bisleri product.10. Application of lean production-Bisleri company.11. Analysis.12. Conclusion.13. Appendix WHAT IS LEAN PRODUCTION
  5. 5. Lean production has its roots in Toyota Automobiles Co. ofJapan, where waste was to be avoided at all costs: 1. The waste in time caused by having to repair faulty products. 2. The waste of investment in keeping high inventories and 3. The waste of having ideal workers. The elements of lean production are: 1. To consider the organization in terms of supply chain of value streams that extends from suppliers of raw materials, through transformation to the final customer. 2. To organize workers in terms and to have every one in the organization conscious of his or her work. 3. To produce products of perfect quality and to have continuous quality improvements as a goal.
  6. 6. 4. To organize the operation by product or cellular manufacturing, rather than using a functional or process lay-out. 5. To operate the facility in a just-in time mode.Just-in-time is a key element of lean production,(conceived byTaiichi Ohno, the former president of Toyota Motor Co. ofJapan in the 1980‘s). the Japanese manufacturing success, withincreased productivity, low product cost and often superiorquality products can very much be attributed to JITmanufacturing.The ultimate goal is to provide perfect value to the customerthrough perfect value creation process that has ZERO waste.Lean production has its key element that is -JIT (Just –In-Time) JIT (JUST IN TIME)
  7. 7. JIT is defined as ―a philosophy of manufacturing based onplanned elimination of all waste and continuous improvementsof productivity. It encompasses the successful execution of allmanufacturing activities required to produce a final product,from design engineering to delivery and including all stages ofconversation from raw materials onward. The primary elementsof JIT are to have only the required inventory when needed, toimprove quality to zero defects, to reduce lead times by reducingset up times, queue lengths and lot sizes, to incrementally revisethe operations themselves and to accomplish these things atminimum cost. In the broad sense, it applies to all forms ofmanufacturing, job-shop, process as well as repetitive‖.―JIT is an approach that seeks to eliminate all sources of wastein production activities by providing the right part at the rightplace at the right time.‖It is known by different names: - The Toyota system. - Zero Inventory. - Kan–Ban system. JIT means:
  8. 8. 1. Producing the quantity of units that is needed, no more. No less. 2. Producing term on the date and at the time required, not before an not after . 3. That a supplier delivers the exact quality demanded, at the scheduled time and date.Any deviations from these requirements means that eitherresources are being unnecessarily wasted or that customers‘needs are not being respected.JIT is simply an acronym for being efficient, organized andrigorous, having the ability to be flexible, with an ultimateobjective of satisfying the customers, respecting delivery time,having the specified quality and producing at minimum cost.Just-in-time Philosophy JIT is a philosophy of continuous and forced problemsolving. With JIT, supplies and components are ―pulled‖through a system to arrive where they are needed and when theyare needed. When good units do not arrive in time (just inneeded), a ―problem‖ has been identified. This makes JIT an
  9. 9. excellent tool help operations managers add value by drivingout waste and unwanted variability. Because there is no excessinventory or excess time in JIT system, cost associated withunneeded inventory are eliminated and throughput improved.Consequently, the benefits of JIT are particularly helpful insupporting strategies of rapid response and low cost.
  10. 10. HISTORY AND DEVELOPMENT OF JITSYSTEMThe JIT system was developed at the Toyota Motor Company inJapan. Even though JIT might be traced back to the Japaneseshipbuilding industry, the modern application of JIT waspopularized in the mid 1970‘s by Toyota, by Taiichi Ohno andhis colleagues. The JIT concept was then transferred to the U.S.about 1980 at Kawasaki‘s Licoln, Nebraska plant. Since then,many leading cooperations in the US have implemented JIT andit has achieved widespread use around the world.The roots of the JIT system can probably be traced to theJapanese environment. Owing to lack of space and lack ofnatural resources, the Japanese have developed an aversion towaste. They view scrap and rework as waste and thus strive forperfect quality. They also believe that inventory storage wastespace and ties up valuable materials. Anything that does notcontribute to value to the product is viewed as waste. U.S.companies, with wide open space and vast supply of rawmaterial, have not viewed waste in the same way as theJapanese. As a result, naturally, JIT philosophy developed inJapan. Yet, there is nothing cultural inherent in the JIT systemthat prevents companies anywhere in the world from using it orimproving on it.
  11. 11. CONCEPTS OF JITThe three fundamental concepts of JIT are: i. Elimination of waste and variabilityii. ―pull‖ versus ―push‖ system andiii. Manufacturing cycle time (or ―throughput‖ time)These concepts are discussed below:Waste reduction and variability reductionWaste reduction: ‗Any thing that does not add value‘ isdescribed as a waste in the production of goods or services.Products being stored, inspected or delayed, products waiting inqueue and defective products do not add value and hence, theyare 100 percent waste. Moreover, any activity that does not addvalue to product from the customer‘s perspective is waste. JITspeeds throughout, allowing faster delivery times and reducingwork-in-process. Reduced work-in-process releases capital tiedup in inventory for other more productive purposes.Variability reduction: To achieve just-in-time materialmovement, it is necessary that variability caused by both internaland external factors are reduced. Variability is any deviation
  12. 12. from the optimum process that delivers perfect product on time,everytime. Inventory hides variability or in other wordsproblems. The less variability in a system, the less waste in thesystem. Most of the variability is caused by tolerating waste orby poor management. Reasons for occurrence of variability are: 1. Employees, machines and suppliers produce units that do not conform to standards, are late or not of the proper quantity. 2. Engineering drawings or specifications are inaccurate. 3. Production personal try to produce before drawing or specification are complete. 4. Customer demands are unknown.Variability may often go unseen when inventory exists. The JITphilosophy of continuous improvements removes variability,which allows movement of good materials just-in-time for use.JIT reduce materials throughout the supply chain.Push versus Pull system:The concept behind JIT is that of a pull system. It is a JITconcept that results in material being produced or supplied onlywhen requested and moved to where it is needed just as it is
  13. 13. needed. A pull system uses signals to request production anddelivery from upstream sections to the stations that hasproduction capacity available. This concept is used both withinthe immediate production process and with suppliers. By pullingthe material through the system in very small lots, just as it isneeded. The cushion by inventory that hides problems isremoved, problems becomes evident and continuousimprovement is emphasized. Removing the cushion of inventoryalso reduces both investment in inventory and manufacturingcycle time.Push system is system that pushes materials into downstreamworkstations regardless of their timelines or availability ofresources to perform the work. Push system are antithesis of JIT.Manufacturing cycle time is the time between the arrival of rawmaterial and then shipping of finished products. JIT helps inreducing the manufacturing cycle time.
  14. 14. CHARACTERISTICS OF JUST-IN –TIMESYSTEM:JIT system focus on reducing inefficiency and unproductivetime in production process to improve continuously the processand quality of the products or services. Employee involvementand inventory reduction are essential to JIT operations. Thesalient characteristics of JIT are: 1. Pull method of material flow. 2. Constantly high quality. 3. Small lot sizes. 4. Uniform workstation loads. 5. Standardized components and work methods. 6. Close supplier ties. 7. Flexible workforce. 8. Line flow strategy. 9. Automated production and 10. Preventive maintenance.
  15. 15. The above characteristics are discussed in the followingparagraphs. 1. Pull Method of Materials flow: In the pull method, the customer demand activates production of the item. The concept behind JIT is that of a pull system, which is a system that pulls a unit to where it is needed just as it is needed. A pull system uses signals to request production and delivery from stations upstream to the station that has production capacity available. The ―pull‖ concept is used both within the immediate production process and with suppliers. By pulling material through the system in very small lots just as it is needed, the cushion of inventory that hides problems is removed, problems become evident and a continuous improvements emphasized. Removing the cushion of inventory also reduces both investments in inventory and manufacturing cycle time. 2. Consistent high quality: JIT systems seek to eliminate scrap and rework in order to achieve a uniform flow of materials. Efficient JIT operations require conformation to product or services specification and implementation of behavioural and statistical methods of TQM. JIT system control quality at the source, with workers acting as their own quality inspector.
  16. 16. Management must realise the enormous responsibility this method places on the workers and must prepare them for the same in one division of general motors (GM), when JIT was implemented in 1985, management authorized its workers to stop the production line by pulling a cord if quality problem arose at their stations- a practice the Japanese call ―andon‖. GM also eliminated production line inspectors and cut the number of supervisors by half. Later, the ―andon‖ system was modified to include a yellow warning cord so that workers can call for help without stopping the line.3. Small lot sizes: Rather than building up a cushion of inventory, users of JIT system maintain inventory with lot sizes that are as small as possible. The benefits of lot sizes are: a. Reduction of cycle inventory (work-in-process). The average cycle inventory equals one-half the lot size. Reducing lot size reduces the cycle inventory which in turn reduces the time and space involved in manufacturing and holding inventory. b. Small lot sizes help reduce lead times. A decline in lead in turn reduces WIP inventory because the total processing time at each workstation is greater for large lots than for small lots. Also, a large lot has to wait longer to be processed at the next workstation while that workstation finishes working on another large lot. In
  17. 17. addition, if any defective items are discovered, large lots cause longer delay because the entire lot must be inspected to find all the items that need rework. c. Small lots help achieve a uniform operating system workload. Large lots consume large chunks of processing time on workstations and therefore complicate scheduling. Small lots can be processed more effectively, enabling utilization of capacities more efficiently. However, the disadvantages of small lot sizes is increases in the frequency of set-ups. For operations having sizeable set-up times, small lots may result in waste of employees and equipment time due to repetitive set-up. Hence, in JIT production , the operations must reduce the set-up time to realize the benefits of small-lot production.4. Uniform workstation loads: The JIT system works best if the daily load on individual workstation is relatively uniform. Uniform loads can be achieved by assembling the same type and number of products each day, thus creating a uniform daily demand at all workstations. Capacity planning which recognize capacity constraints at critical workstations and line balancing are used to develop the monthly master production schedule.
  18. 18. 5. Standardized components and work methods: The standardization of components called part commonality or modularity increase repeatability. For example, a firm producing 10 products from 1000 different components could redesign its products so that they consist of only 100 different components with longer daily requirements. Because the requirements per components increases, so does repeatability, that is, each worker performs a standardized tasks or work method more often each day. Productivity tends to increase because with increased repetition, workers learn to do tasks more repetition, workers learn to do tasks more efficiently. Standardized of components and work methods aid in achieving the high productivity, low inventory objectives of JIT systems. 6. Close suppliers ties: Because JIT system operates with very low levels of inventory, close relationships with suppliers are necessary. Stock shipments must be frequent, have short lead times, arrive on schedule and be of high quality. A supplier may have to deliver goods to factory as often as several times per day. Purchasing managers focus on reducing the number of suppliers, using local suppliers and improving supplier relations.Manufacturers using JIT system generally utilize local suppliers.Firms that have no suppliers close by must rely on a finely tuned
  19. 19. supplier delivery system. Geographic proximity of suppliersenable the firms to reduce the need for stocks.Firms implementing JIT system reduces the number of theirsuppliers considerably. This approach puts a lot of pressure onthese suppliers to deliver high quality components on time. JITusers extend their contract with their suppliers and give themfirm advances order information. In addition, they include theirsuppliers in the early phases of product design to avoid problemsafter production has begun. They also work with their suppliers,vendors to achieve JIT inventory flows throughout the entiresupply chain. 7. Flexible Workforce: Workers in a flexible work force can be trained to perform more than one job. When the skill levels required to perform most tasks are low, a high degree of flexibility in the workforce can be achieved with little training. In situations requiring higher skills levels, shifting workers to other jobs may require extensive, costly training. Flexibility can be very beneficial: workers can be shifted among workstations to help relive bottle-necks as they arise without resolving to inventory buffers — an important aspects to uniform flow of JIT system. Multi- skilled workers may do the job of those who are on vacation or who are absent due to sickness. 8. Line Flow Strategy: A line flow strategy can reduce frequency of set-ups. If volume of specific products are
  20. 20. large enough(mass production), groups of machines and workers can be organized into a products lay-out to eliminate set-ups entirely. If volume is insufficient to keep a line of similar products busy, group technology can be used to design small products lines that manufactures, in volume, families of components with common attributes. Change over from components in one product family to the next components in the same family are minimal. 9. Automated high quality: Automation plays a big role in JIT system and is key to low cost production. Money freed up because of JIT inventory reduction can be invested in automation to reduce costs. The benefits, of course are greater profits, greater market share or both. However, automation should be planned carefully. 10. Preventive Maintenance: Because JIT emphasis finely tuned flows of materials and little buffer inventory between workstation, unplanned machine down time can be disruptive. Preventive maintenance can reduce the frequency and duration of machine down time. Maintenance is done on a scheduled (frequency) that balances the cost of the preventive maintenance program against the risks and costs of machine failure.Total preventive/productive maintenance concept makesworkers responsible for routinely maintaining their own
  21. 21. equipment and to develop employee pride in keeping theirmachines in top condition. This is however restricted for simplemaintenance tasks such as lubrication, cleaning and minoradjustment of the machines. Maintenance of high-tech machinesneed trained specialists.
  22. 22. BENIFTS OF JIT SYSTEM:Some of the benefits claimed for JIT systems are: i. Inventory levels are drastically reduced. Inventory turnover as high as 50 to 100 times per year have been achieved. The raw material inventory, work-in-process inventory and finished goods inventories have been reduced considerably. ii. The time taken for products to get through the factory(product throughout time or production cycle time) is greatly reduced, thus enabling manufacturers to engage in time-based competitions, using speed as a weapon to capture market share.iii. Product quality is improved and hence the cost of scrap is reduced. Product quality improves because of workers involvement in solving the causes of production problems.iv. Because the focus in manufacturing is on finding and correcting the causes of production problems, manufacturing operations are streamlined and problem free. v. With less-in-process inventory inventory, less space is taken up by inventory and materials handling Multi-skilled, flexible workforce brought benefits like less worker idle time, reduced overheads, fewer lay-offs due to demand fluctuation in specific product lines and increased responsiveness.Some additional benefits of JIT system are:
  23. 23. Elimination of unpleasant suppliers such as those with latedeliveries and unacceptable quality.Reduction in customer-related problems.Significant improvements in quality(near to zero defects).Improvements in communication.Reduction in floor space needs due to lesser work-in-process inventory and smaller lot sizes.Shorter lead times of suppliers, allowing them to respondmore quickly to changing customers needs.Improvements in employee morale due to higher employeeinvolvement and employee empowerment.Reduced pressure on inwards goods receiving andincoming inspection areas.
  24. 24. INTODUCTION TO THE BISLERIPRODUCT:I have visited Bisleri factory for my production and qualitymanagement project this data is primary data which help you tounderstand the process of production.M.R RAMESH CHAUHAN is the vintage boss of the 250 crorePARLE BISLERI LIMITED. The brand has some 18manufacturing locations spread across the country. Themainstream competition is in the form of coca-cola India‘sKinley, Acquafina from Pepsi foods and nestle India‘s pure.Bisleri continues to lead in the Rs 700-1,000 crore organized,packaged water market with an estimated 40 per cent marketshare, followed by Kinley at 28 per cent and Aquafina with an11 per cent share. In terms of volumes, the North and Westremain Bisleri‘s biggest performing markets, despite the brand‘ssustained national-level presence.OPERATION OF BISLERI: –The Bisleri bottled water range comprises the conventional 500ml, one litre, 1.2 litre and two litre bottles; five litre and 20 litrejars for the home segment, and smaller packs sizes of 250 mlcups and 330 ml bottles, though in very limited numbers fornow. Among all pack sizes the brand straddles, it is the one-litrenon-returnable bottles priced at Rs 10 each, and the 20-litre jarsfor Rs 40 aimed at the home segment that are Bisleri‘sbestsellers at present. While the 20-litre jar comprises about 40per cent of overall Bisleri sales, the one-litre bottles account for
  25. 25. approximately 25 per cent brand sales. The main source of wateris bore wells from where they get thee water. Then the rawmaterials required for the bottle is PET i.e. poly ethyleneterephatalable. There are 250 workers working in mumbai and3000 all over India. The production process adopted by bisleri isbatch production. The time taken to fill one bottle isapproximately 5 minutes. The workers work in 3 shifts whichcomprises of 60-70 workers per shift. The maintenance of themachines is done every month and every 45 days there issanitation and cleaning of the machine.PRODUCTION CYCLE:There are mainly three stages in the production cycle: 1. Disinfection: In this stage, water is collected from bore wells which are then disinfected using chemicals. 2. Filterization: In this stage, water is passed through different filters to kill the bacteria present in it. Then, the water is passed on to the next level for filling up. 3. Filling: In this stage, the bottles are ozonated and then the water is filled in the bottles.
  26. 26. PRODUCTION PROCESS:1.Quality management of water:Raw water which is collected from the wells is stored in a tankwhich has a capacity to store 1 lakh liters of water. Then thewater is chlorinated to kill the bacteria present in the waterwhich is passed through 20 micro arcal filters. Then it is passedthrough carbon filter which is used for removing activatedcarbon and odor and also acts as chlorine remover. Then it ispassed through 10-micron filter. Then it goes throughREVERSE AUSMOSES PLANT, which contains semi-pomitable membrane which removes dissolved solids andbacteria of size 0.001 micron. It is passed through 1 micron and0.5-micron filters. T hen the water gets ozonated and passedthrough SS 316 MACHINE. Water is stored in 10000 liter tanks.2. Blowing of Bottles:The bottles in this factory are given the desired shape by the useof blowing machines. These machines blow at a temperature of300 degrees Celsius. The machine used for the blowing purposeis known as the AOKI MACHINE. This machine has a blowingcapacity of 10 bottles per minute.3.Filling of Bottles: There are three types of filling machines,which are used for the filling purpose. The different sizes ofbottles that are filed are of 500ml, 1liter, 1.2liters and 2litersrespectively. First the bottle gets ozonized when it is passedthrough JET MACHINES. In this the bottle gets integrated and
  27. 27. disintegrated, it gets rinsed, and then the water is filled into thebottles.4. Filling of Jars: The different sizes of jars are 5liters, 10litersand 20liters. The jars are cleaned manually by soap and water.Then it is cleaned with sodium hypo-chloride and virosin, whichare disinfectors. When jars are passed through washing machinefirst it is rinsed with hot water, then disinfected and then it isozonated. Then jars are passed on to jar fillers where it getsfilled and the packing of sealed jars into boxes is done manually.5. Laboratory Testing: Every hour samples of water that arefilled in to the bottles are taken and various testing is done. Firstit is checked for odor if any, presence of alkanity, chlorine andcalcium. The water is also checked in machines like PHMETER, TDS(TOTAL DISSLOVE SOLIDS) METER,NEPHLOMETER, SPECTROPHOTOMETER ANDMEASURING OF TUBILITY. They also do aerobic microbialcount and pathogen testing.6.FURURE PLANS: Bisleri have been the market leaders inIndia as far as mineral waters are concerned. Every time theirbottle and waters are checked and rechecked for its purity. Theirmain aim is to stay ahead of the main rivals i.e. Pepsi and CocaCola. Their raw material comes from reliance industries limitedwho are their main suppliers of the raw material i.e. PET.
  28. 28. APPLICATION OF LEAN PRODUCTION-BISLERI COPMANY: 1. At the bisleri production plant situated in Mumbai near Andheri East, the production line has been designed using the principles of lean production. 2. In the ‗old days‘ bisleri production took up much more factory space because of lot stocks and suppliers were kept on the factory floor. 3. Now-a-days all stocks are kept in a separate a separate storage area where they are delivered just-in-time to feed the production process. 4. On the production line operative‘s work with the minimum required quantity of stocks. When more are needed, production line workers use a ‗KANBAN‘ signalling system to inform that they need more suppliers.
  29. 29. ANALYSISWe visited the bisleri company which is located in Andheri(E). Mr. Wahid Patel the sales officer of BisleriInternational. Pvt. Ltd. told us that how they supply theirproduct to retailers in time.They told that there are many company salesman whocomes in daily morning and collects some bottles, jars ofbisleri and goes to the retailers shop.If the retailer is in need and place the order, then at thesame time they supply the order for which the retailer hasasked. The area in Mumbai where the product is much demandedis Andheri.The company salesman is the one who is link between theretailer and the suppliers.There products are always just on time.
  30. 30. CONCLUSION Today more and more companies are coming up in thepackage drinking water market as there is a lot of scope in bottlewater market as seeing the increase in Indian population. Todaythe people of India are very hygienic and only prefer bottlewater which increases in the scope of bottle water market. Bylooking at the increasing demand of bottle water companieshave to see that they use modern marketing strategies and alsocome up with trendy bottles and satisfy the wants of theconsumer.Till today bisleri company has used so many different marketingand production technologies and systems. Today the company isat its topmost level trying to expand it to international level thatis because of the different technologies used by it. Over the period of time it has reduced its cost of productionand have established good reputation in the market. Because ofits product, quality level, good supply chain and that is wherewe call it JIT. The product is just in time in the market.
  31. 31. APPENDIX1. How do you supply the product?2. What is the supply chain of the product?3. Is the product supplied or reached to the market every-day?4. In which area is the product supplied first and foremost?5. Is supply according to the demand of the retailer?6. Does the product reaches market Just- in-time?
  32. 32. BIBLIOGRAPHYFor the information we referred to the Himalaya PublishingHouse‘s Production Management & Materials Managementbook by Prof. K. Shridhara Bhat. We referred to page no.333-361.While working on this project we did a lot of surveys by askingpeople personally about the brand of package drinking waterthey prefer; as well as caring on survey by questionnaires.we personally visited the BISLERI plant at Western ExpressHighway Andheri East, visiting the plan was an experience of alife time we saw the whole manufacturing process and how thewater is purified and then packed. We personally talked to thesales officer of BISLERI where he told us about their marketingstrategies and how they carried on their distribution and howBISLERI is able to maintain its standard at the market. Apartfrom this I visited sites like—