Just In Time
НГУ
Group Members
Niaz Hussain (09-IME-71)
Salman Razaq (09-IME-72)
Muhammad Usman (09-IME-73)
Muhammad Waleed (09-IME-74)
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
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.
JIT is now on the rise in American
Industries.
Definition
JIT is a manufacturing philosophy
involving an integrated set of
procedures/activities designed to
achieve a high volume of production
using minimal inventories
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”.
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
Summary of JIT Goals and
Building Blocks
Product
Design
Process
Design
Personnel
Elements
Manufactur-
ing Planning
Eliminate disruptions
Make the system flexible Eliminate waste
A
balanced
rapid flow
Ultimate
Goal
Supporting
Goals
Building
Blocks
Big JIT – broad focus
 Vendor relations
 Human relations
 Technology management
 Materials and inventory management
Little JIT – narrow focus
 Scheduling materials
 Scheduling services of production
Big vs. Little JIT
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
Eight Wastes
THE EIGHT TYPES OF WASTE OR MUDA
Waste Definition
1. Overproduction Manufacturing an item before it is needed.
2. Inappropriate
Processing
Using expensive high precision equipment when simpler
machines 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
Employees
Failure of the firm to learn from and capitalize on its employees’
knowledge and creativity impedes long term efforts to eliminate
waste.
Sources of Waste
Overproduction
Waiting time
Unnecessary transportation
Processing waste
Inefficient work methods
Product defects
Strategies For Minimizing Waste
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
Principles Of JIT Manufacturing
Total Quality Management
Production Management
Supplier Management
Inventory Management
Human Resource Management
1st
Principle Of JIT
Total Quality Management
Total Quality Management
Seek long-term commitment to
quality efforts with continuous
improvement
Quality must be a higher priority than
cost
Minimizing waste
Total Quality Management
Eliminate Quality Inspectors
Quality is everyone’s responsibility
Do it right the first time
2nd
Principle Of JIT
Production Management
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
Production Management
Reduced lot sizes= Shorter cycle times
Eliminate disruptions in the process
Standardized Parts/ Simplicity
Production Management
 Communication Techniques
 Completion of task-Kanban
 Problem- Siren/light
Stopping the process if something
goes wrong =Jidoka
Preventive Maintenance
3rd
Principle Of JIT
Supplier Management
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
Supplier Management
Elimination inspection of parts
Communicate problems to suppliers
in a positive manner.
4th
Principle Of JIT
Inventory Management
Inventory Management
Eliminate Safety Stock = Zero Inventory
JIT is not an inventory control system
Reduction in inventory opens up
space
Inventory hides problems in a
process.
 Water Level = Inventory
 Rocks = Problems in the system
 Boat = Company Operations
5th
Principle Of JIT
Human Resource Management
Human Resource
Management
Company-wide Involvement
 Motivation for continuous improvement
 Problem Solving
 High Employee Interaction
Build Pride In Workmanship
Human Resource
Management
Self-Inspection of work
Diversified Employees
 Absenteeism
 To eliminate boredom in process
Management Support and
Empowerment of workforce
JIT Manufacturing Building Blocks
Product design
Process design
Personnel/organizational
elements
Manufacturing
planning and control
1. Product Design
Standard parts
Design Simplification
Highly capable production systems
Concurrent
engineering
Design Simplification
2. Process Design
Small lot sizes
Setup time reduction
Limited work in process
Quality improvement
Production flexibility
Little inventory storage
Benefits of Small Lot Sizes
Reduces inventory
Less storage space
Less rework
Problems are more apparent
Increases product flexibility
Easier to balance operations
Quality Improvement
Autonomation
 Automatic detection of defects during production
Jidoka
 Japanese term for autonomation
Production Flexibility
Reduce downtime by reducing
changeover time
Use preventive maintenance to
reduce breakdowns
Cross-train workers to help clear
bottlenecks
Use many small units of capacity
Reserve capacity for important
customers
3. Personnel/Organizational
Elements
Workers as assets
Cross-trained workers
Continuous improvement
Leadership
4. Manufacturing Planning
and Control
Pull systems
Visual systems (kanban)
Close vendor relationships
Reduced transaction
processing (delays in
delievery)
Preventive maintenance
 Evaluation and selection of vendor
(suppliers) network to develop a tiered
supplier network – reducing the number of
primary suppliers.
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
Obstacles to Conversion
Management may not be committed
Workers/management may not be
cooperative
Suppliers may resist
Comparison of JIT and Traditional
Factor Traditional JIT
Inventory Much to offset forecast
errors, late deliveries
Minimal necessary to operate
Deliveries Large Small
Lot sizes Large Small
Setup; runs Few, long runs Many, short runs
Vendors Long-term relationships
are unusual
Partners
Workers Necessary to do the
work
Assets
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
JIT in Services
The basic goal of the demand flow
technology in the service organization is
to provide optimum response to the
customer with the highest quality
service and lowest possible cost.
JIT Benefits
Reduced Inventory
Improved quality
Lower costs
Reduced space requirements
Shorter lead-time
Increased productivity
Greater flexibility
Improved vendor relations
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
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.)
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.

HaidarDiabnewpresentaationjitofproduction.pptx

  • 1.
  • 2.
    Group Members Niaz Hussain(09-IME-71) Salman Razaq (09-IME-72) Muhammad Usman (09-IME-73) Muhammad Waleed (09-IME-74)
  • 3.
    What Is JIT Managementphilosophy (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 JITManufacturing 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. JIT is now on the rise in American Industries.
  • 5.
    Definition JIT is amanufacturing 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 JITGoals and Building Blocks Product Design Process Design Personnel Elements Manufactur- ing Planning Eliminate disruptions Make the system flexible Eliminate waste A balanced rapid flow Ultimate Goal Supporting Goals Building Blocks
  • 9.
    Big JIT –broad focus  Vendor relations  Human relations  Technology management  Materials and inventory management Little JIT – narrow focus  Scheduling materials  Scheduling services of production Big vs. Little JIT
  • 10.
    What JIT Does Eliminateswaste 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 Wastes THE EIGHTTYPES OF WASTE OR MUDA Waste Definition 1. Overproduction Manufacturing an item before it is needed. 2. Inappropriate Processing Using expensive high precision equipment when simpler machines 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 Employees Failure of the firm to learn from and capitalize on its employees’ knowledge and creativity impedes long term efforts to eliminate waste.
  • 12.
    Sources of Waste Overproduction Waitingtime 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 JITManufacturing Total Quality Management Production Management Supplier Management Inventory Management Human Resource Management
  • 15.
    1st Principle Of JIT TotalQuality Management
  • 16.
    Total Quality Management Seeklong-term commitment to quality efforts with continuous improvement Quality must be a higher priority than cost Minimizing waste
  • 17.
    Total Quality Management EliminateQuality Inspectors Quality is everyone’s responsibility Do it right the first time
  • 18.
  • 19.
    Production Management Pull Systemvs. 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 lotsizes= Shorter cycle times Eliminate disruptions in the process Standardized Parts/ Simplicity
  • 21.
    Production Management  CommunicationTechniques  Completion of task-Kanban  Problem- Siren/light Stopping the process if something goes wrong =Jidoka Preventive Maintenance
  • 22.
  • 23.
    Supplier Management  EstablishLong 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 inspectionof parts Communicate problems to suppliers in a positive manner.
  • 25.
  • 26.
    Inventory Management Eliminate SafetyStock = Zero Inventory JIT is not an inventory control system Reduction in inventory opens up space
  • 27.
    Inventory hides problemsin a process.  Water Level = Inventory  Rocks = Problems in the system  Boat = Company Operations
  • 28.
    5th Principle Of JIT HumanResource Management
  • 29.
    Human Resource Management Company-wide Involvement Motivation for continuous improvement  Problem Solving  High Employee Interaction Build Pride In Workmanship
  • 30.
    Human Resource Management Self-Inspection ofwork Diversified Employees  Absenteeism  To eliminate boredom in process Management Support and Empowerment of workforce
  • 31.
    JIT Manufacturing BuildingBlocks Product design Process design Personnel/organizational elements Manufacturing planning and control
  • 32.
    1. Product Design Standardparts Design Simplification Highly capable production systems Concurrent engineering
  • 33.
  • 34.
    2. Process Design Smalllot sizes Setup time reduction Limited work in process Quality improvement Production flexibility Little inventory storage
  • 35.
    Benefits of SmallLot Sizes Reduces inventory Less storage space Less rework Problems are more apparent Increases product flexibility Easier to balance operations
  • 36.
    Quality Improvement Autonomation  Automaticdetection of defects during production Jidoka  Japanese term for autonomation
  • 37.
    Production Flexibility Reduce downtimeby reducing changeover time Use preventive maintenance to reduce breakdowns Cross-train workers to help clear bottlenecks Use many small units of capacity Reserve capacity for important customers
  • 38.
    3. Personnel/Organizational Elements Workers asassets Cross-trained workers Continuous improvement Leadership
  • 39.
    4. Manufacturing Planning andControl Pull systems Visual systems (kanban) Close vendor relationships Reduced transaction processing (delays in delievery) Preventive maintenance
  • 40.
     Evaluation andselection of vendor (suppliers) network to develop a tiered supplier network – reducing the number of primary suppliers.
  • 41.
    Transitioning to aSuccessful 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 Managementmay not be committed Workers/management may not be cooperative Suppliers may resist
  • 43.
    Comparison of JITand Traditional Factor Traditional JIT Inventory Much to offset forecast errors, late deliveries Minimal necessary to operate Deliveries Large Small Lot sizes Large Small Setup; runs Few, long runs Many, short runs Vendors Long-term relationships are unusual Partners Workers Necessary to do the work Assets
  • 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 Services Thebasic goal of the demand flow technology in the service organization is to provide optimum response to the customer with the highest quality service and lowest possible cost.
  • 46.
    JIT Benefits Reduced Inventory Improvedquality Lower costs Reduced space requirements Shorter lead-time Increased productivity Greater flexibility Improved vendor relations
  • 47.
    JIT Benefits (contd.) Simplifiedscheduling & control Increased capacity Better utilization of personnel More product variety Increased equipment utilization Reduced paperwork Valid production priorities Work force participation
  • 48.
    JIT … NotFor 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.