JIT is a MPR philosophy that is designed to help an organization eliminate all types of waste such as those that result from carrying too much materials and the ones associated with long lead times. Below is a sample presentation on the Just In Time (JIT) inventory management method to improve your understanding.
3. JUST-IN-TIME
JIT is a MPR philosophy that is designed to help an organization
eliminate all types of waste such as those that result from
carrying too much materials and the ones associated with long
lead times.
Like the name suggest, JIT is based on the idea of replenishing
material buffers jus at the time when they are required, not after
or before as is the case of EOQ.
This method was developed and applied by Toyota Motor
Company in mid-1970s with huge success in terms of cost
reduction and increased efficiency at the manufacturing floor due
to making the floor more visible which helped reduce wastages
since mistakes in the production process could be identified more
easily and rectified before they went to far down the production
process.
The method is best applied in repetitive production processes
similar to that used in automobile assembly line and where the
lot size is small.
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4. PHILOSOPHY BEHIND JIT
JIT is build around three main tenants
a) To minimize all wastes: JIT seeks to reduces wastage of
space, labor, and material used in the production process.
To ensure that this remains so, JIT calls for constant
evaluation of the production process to remove all manner
of inefficiencies associated with overproduction, defects,
waiting times and unnecessary transportation.
b) Process of continuous improvement or processes and
systems: although JIT seeks to reduce the inefficiencies of
a system from a sloppy to an efficient one, it also seeks to
build a process of feedback mechanism through which
improvements can be made that makes the entire firm
more competitive and profitable.
c) Respect for workers: under JIT: the system seeks to
reduce status in order to improve respect for all workers
regardless of the work that they do.
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5. ELEMENTS OF JIT
1. Stabilization of MPS to match plant loading- this is done by creation
of uniform loads through constant production, mixed model assembly
to eliminate the need for collecting data on the production flow
2. Reduce set-up time to below ten minutes- this is done through better
planning.
3. Reduce lot sizes- this make it possible to make the production more
economical.
4. Reduce lead times- done by moving workstations together and
improving the process of succession from one process to the next.
5. Preventive maintenance- done by using machine during idle time to
prevent breakdowns.
6. Flexible workforce- employees trained too operate different machines
and perform tasks done by others in the production process to
prevent disruption of a process incase a person leave.
7. Supplier assurance- enter into a supply contract to ensure supply
instead of pilling up suppliers which reduces the floor.
8. Small lot sizes- employ systems like Kanban to convey work between
stations in small quantities.
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6. KANBAN SYSTEM
A Kanban, also called a “pull” production process relies on
simple visual signs to control movement of material and finished
goods between work centers as well as to signal the need for
replenishment of the material. This system therefore is based on
both upstream and downstream feedback.
Kanban comes from the Japanese word which means “signal” or
“visible record.”
In the Toyota Dual card Kanban system, the two main types of
Kanban are production Kanban and withdrawal Kanban.
The production Kanban are used to denote the need for
production of more units while withdraw Kanbans signal
withdrawal of parts from a work centre.
Signaling can also be used instead of Kanbans. For instance, an
empty can may be used to signal replenishment while a covered
or colored can may indicate move parts forward.
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7. WORKING OF A KANBAN SYSTEM
A kanbans can be a computer order, card, labeled or container, or other
devices that can be used in a production process that additional
products or parts should be transferred from the previous process. The
kanbans bears the description and number of exact items that should
be transferred so as to smoothen the process of producing goods and
acquiring new inventory.
Kanbans therefore assist JIT in its quest to eliminate inefficiencies
through overproduction or stocking too much materials.
A successful Kanban system is based on well known rules.
The system works upstream to downstream (from customer order) and
only the Kanban specified number of units are withdrawn from each
process.
The upstream process work to replenish what has been used up in
production. Each step reduces the defective parts from the kanbans
and allows for more products to replace these to begin.
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9. WHY USE KANBANS ?
When used together with JIT, kanbans have the
following benefits :
Decrease the number of items to be scrapped as waste
Decrease raw material used in production
Reduces amount of energy, wastes and emissions.
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10. REFERENCES
Grossly, J. M., & McInnis, K. R. (2003). Kanban Made
Simple: Demystifying and Applying Toyota's Legendary
Manufacturing Process. New York, NY: AMACOM Div
American Mgmt Assn.
Lu, D. J., & Kyōkai, N. N. (2000). Kanban Just-in Time at
Toyota: Management Begins at the Workplace. New
York: Productivity Press,.
Vollmann, T. E., Berry, W. L., & Whybark, C. D. (1997).
Manufacturing Planning and Control Systems. Irwin
Professional Publishing.
Xue-tao, P., & Zhong, Z. (2011). On Solving JIT Production
Problems for Small Batch Orders Based on E-Kanban
Visualization. Changzhou, China : Changzhou Inst. of
Technol.
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Editor's Notes
The world today Is highly competitive and dynamic. As a result, firms need to be flexible to the customer’s need and at the same time attain their main objective of making profit. This has brought about the talk of lean manufacturing. Lean manufacturing, also referred as lean enterprise or simply lean is a production philosophy based on the concept that dedicating resources to anything else than that which increases the satisfaction of the customer is wasteful expenditure. This brought about the concept of ERP which is concerned with MRPII & MRP, the scheduling and inventory management portion of any MRP. The main function of MRP is to determine the amount and quantity of materials required in production. Until recently, JIT was regarded as the best MRP. However, it has been found week in a number of areas and add on to it called Kanban system, which is inspired by the Toyota Production system, developed to streamline these weaknesses. I have been as asked to talk about the concept of JIT and Kanban system and I shall do that here.
Traditionally, holding an optimal amount of inventory at every time was regarded as the best manufacturing because it helped protect the manufacturer from uncertainties in supply or to take advantage of quantity discount. However, this method of inventory management was replaced with JIT. This method was successfully used by Japanese industries with huge success.
The elements within which JIT is built were derived from the Toyota production system
The main disadvantage of making everything work in order is that the process leaves little room for alteration. This presents a major challenge when change is required. For instance, since parts are not stockpiled, when there is need for quality improvement, the parts that had gone through the process would have to be thrown away and new ones started from the beginning. In addition, traditional JIT method is not suitable for small batches of production. This problem is solved using such problems, the kanbans system is used. In addition, JIT relies on mass production of a large number of identical products, which are then stored until ordered by the customers. Kanban can be used to make the entire process more smooth.
The figure represents the kanbans process where an empty can represents “replenish stock” while a closed can represents withdraw or move item forward to another work station.
