Presentation on Kanban and Just In Time concepts

2. ABHISHEK SAKHARKAR
ANAM KAZI
DARSHANA GUPTA
GAURI SANKHE
HUSSAIN NAGREE

3. WHAT IS JIT
• “A PHILOSOPHY OF MANUFACTURING BASED ON PLANNED ELIMINATION
OF ALL WASTE & ON CONTINUOUS IMPROVEMENT OF PRODUCTIVITY”
• A PRODUCTION STRATEGY THAT STRIVES TO IMPROVE A
BUSINESS RETURN ON INVESTMENT BY REDUCING
1. IN-PROCESS INVENTORY
2. ASSOCIATED CARRYING COSTS

4. FUNCTIONING OF JIT
 INVOLVES KEEPING STOCK LEVELS TO A MINIMUM
 STOCK ARRIVES JUST IN TIME TO BE USED IN PRODUCTION
 WORKS BEST WHERE THERE IS A CLOSE RELATIONSHIP BETWEEN
MANUFACTURER AND SUPPLIERS
 GOODS NOT PRODUCED UNLESS FIRM HAS AN ORDER FROM A CUSTOMER
 AIMS TO GET HIGHEST VOLUME OF OUTPUT AT THE LOWEST UNIT
COST.

5. FUNCTIONING OF JIT
• A METHOD OF PRODUCTION CONTROL.
• NO DEMAND - NO PRODUCTION!
• ANTICIPATED/PLANNED CONSUMER DEMAND TRIGGERS PRODUCTION
• FINISHED GOODS ASSEMBLED JUST IN TIME TO BE SOLD TO CUSTOMER
• COMPONENT PARTS ASSEMBLED JUST IN TIME TO BECOME FINISHED GOODS
• MATERIALS PURCHASED JUST IN TIME TO MAKE COMPONENT PARTS.

6. COMPONENTS OF JIT
• A PULL SYSTEM
• CONTINUOUS FLOW PROCESSING
• ADHERENCE TO TAKT TIMES

7. PULL SYSTEMS
• PULL SYSTEMS ARE MANUFACTURING SYSTEMS THAT REQUIRE THAT
PRODUCTS TO BE PRODUCED ONLY WHEN NEEDED BY A CUSTOMER.

8. CONTINUOUS FLOW PROCESSING
• CONTINUOUS FLOW PROCESSING FOCUSES ON ONE-PIECE-AT-A-TIME
PRODUCTION.
• STAGNATION OF WORK-IN-PROCESS INVENTORY IN AND BETWEEN
PROCESSES MUST BE ELIMINATED.

9. TAKT TIME
• TAKT TIME
• THE RATE A PROCESS MUST PRODUCE AN ITEM IN ORDER TO MEET
CUSTOMER DEMAND.
• TAKT TIME IS DEFINED AS:
AVAILABLE WORKING TIME PER DAY
TAKT TIME = --------------------------------------------
CUSTOMER DEMAND RATE PER DAY

10. OBJECTIVES OF JIT
• TO REDUCE ALL NON-VALUE-ADDED ACTIVITIES.
• ELIMINATION OF IN-PLANT INVENTORY.
• ELIMINATION OF IN-TRANSIT INVENTORY
• QUALITY AND RELIABILITY IMPROVEMENT

11. FOUNDER OF JIT
• FOUNDED BY TAIICHI OHNO
• A VICE PRESIDENT OF TOYOTA
• BASICALLY IMPLEMENTED IN TOYOTA PLANT 1950, WELL
ESTABLISHED AFTER 1970
• WELL KNOWN AS TOYOTA PRODUCTION SYSTEM

12. FOLLOWERS OF JIT
• ADOPTED BY GENERAL ELECTRICAL IN THE USA IN THE 1980
• SOME COMPANIES REFERRED JIT WITH DIFFERENT NAMES;
• TOYOTA = ‘TOYOTA SYSTEM’
• IBM = ‘CONTINUOUS FLOW MANUFACTURING’
• HEWLETT-PACKARD = ‘STOCKLESS PRODUCTION & REPETITIVE MANUFACTURING SYSTEM’
• GE = ‘MANAGEMENT BY SIGHT’

13. BENEFIT OF JIT

14. OPTIMUM UTILISATION

16. WASTE ACCORDING TO TAICHI OHNO

17. ADVANTAGES OF JIT
• CAPITAL NOT TIED UP IN STOCKS
• LESS SPACE REQUIRED FOR STOCK
• BETTER RELATIONSHIPS WITH SUPPLIERS
• REDUCED DETERIORATION
• LESS VULNERABILITY TO FASHION AND TECHNOLOGY CHANGES
• REDUCTION IN STOCKHOLDING COSTS
• INCREASE IN CASH FLOW
• LESS WASTE
• REDUCED WAREHOUSING COSTS

18. DISADVANTAGES OF JIT
 DANGER OF DISRUPTED PRODUCTION DUE TO NON-ARRIVAL/NON-
AVAILABILITY OF SUPPLIES
 DANGER OF LOST SALES
 HIGH DEPENDENCE ON SUPPLIERS
 LESS TIME FOR QUALITY CONTROL ON ARRIVAL OF MATERIALS
 INCREASED ORDERING AND ADMIN COSTS
 MAY LOSE BULK-BUYING DISCOUNTS
 TIME CONSUMING

19. KAN=CARD BAN=SIGNAL
署名する ボード
+
+
=
“Signboard”

20. WHAT IS KANBAN
• SCHEDULING SYSTEM USED IN MANUFACTURING TO HELP COMPANIES IMPROVE
THEIR PRODUCTION PROCESS.
• ADOPTED BY COMPANIES FOR JIT DELIVERY WITHOUT BURDENING
• IT TRIES TO LIMIT AMOUNT OF WORK AT ANY STAGE
• AIMS AT MINIMIZING WASTE
• IT IDENTIFIES BOTTLENECKS AND HELPS ALLEVIATE THEM
• EXPOSES PROBLEMS

21. CORE PRINCIPLES
• VISUALIZE WORK
• LIMIT WORK IN PROGRESS (WIP)
• MANAGE FLOW
• IMPROVE COLLABORATIVELY

22. ILLUSTRATION

24. HOW TO GET STARTED WITH KANBAN?
•DEFINE THE START AND END POINTS FOR THE KANBAN SYSTEM.
•AGREE: SELECTING FEATURES AND PRIORITIZING
•DRAW UP A KANBAN BOARD.
•START USING IT.
•EMPIRICALLY ADJUST.

25. STEP 1
Visualize

26. STEP 2
Get a Whiteboard

27. STEP 3
Get Your Stick-Ons

28. STEP 4
Color coding

29. STEP 5
Gotta paste ‘em all

30. BOARD
•I T ALLOWS EASY VISUALIZATION FEATURES AND
PRIORITIZING
•EACH COLUMN REPRESENTS ONE PHASE IN YOUR EXISTING
DEVELOPMENT PROCESS
•THE NUMBER OF TASKS IN EACH PHASE IS BY THE WIP LIMITS
SPECIFIED

31. PUSH (SCRUM)

32. PULL (KANBAN)

33. CUMULATIVE FLOW CHART

34. ADVANTAGES
▪ LIMIT WIP
▪ APPLIES LIMITS ON WIP IN EACH PHASE OF DEVELOPMENT
▪ WORK IS PULLED INTO THE NEXT PHASE ONCE CAPACITY IS AVAILABLE
▪ IMPROVES QUALITY BY FOCUSING ON SMALLER TASKS
▪ REDUCES LEAD TIME FOR WORK

35. DISADVANTAGES
• WIDE DEMAND FLUCTUATION
• LARGE SCALED PRODUCTION
• MISINTERPRETATION OF SIGNALS
• QUALITY MISCUES
• BREAKDOWN