ROLE OF KANBAN IN JIT

SUBMITTED TO: PROF. NEHA MATHUR PRESENTED BY: HIMANSHU SEERVI

JUST IN TIME (JIT)

Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing inprocess inventory and associated carrying costs.

An operations system for producing the right goods and services in the right place, at the right time, in a quality manner.

JIT PHILOSOPHY

All waste must be eliminated. Broad view that entire organization must focus on serving customers JIT is built on simplicity - the simpler the better. Focuses on improving every operation Install simple, visible control systems Provide flexibility to produce different models/features

ADVANTAGES OF JIT

Lower stock holding means a reduction in storage space which saves rent and insurance costs As stock is only obtained when it is needed, less working capital is tied up in stock There is less likelihood of stock perishing, becoming obsolete or out of date Avoids the build-up of unsold finished product that can occur with sudden changes in demand Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time
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DISADVANTAGES OF JIT
Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed 2. There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders however, JIT is a very responsive method of production

THE KANBAN
Kanban (literally signboard or billboard) is a scheduling system for lean and just-in-time(JIT) production. Kanban is a system to control the logistical chain from a production point of view, and is not an inventory control system. Kanban was developed by Taiichi Ohno, at Toyota, to find a system to improve and maintain a high level of production.

ORIGIN OF KANBAN

In the late 1940s, Toyota started studying supermarkets with the idea of applying store and shelf-stocking techniques to the factory floor. In a supermarket, customers obtain the required quantity at the required time, no more and no less.

OPERATION OF KANBAN

A sequence of kanbans pulls material through the process

Many different sorts of signals are used, but the system is still called a kanban
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OPERATION OF KANBAN(CONTD.)
1. User removes a standard sized container
2. Signal is seen by the producing department as authorization to replenish
Signal marker on boxes Part numbers mark location

KANBAN CARDS

Kanban cards are a key component of kanban and signal the need to move materials within a manufacturing or production facility or move materials from an outside supplier in to the production facility. The kanban card is, in effect, a message that signals that there is a depletion of product, parts, or inventory that, when received, the kanban will trigger the replenishment of that product, part, or inventory.

Consumption therefore drives demand for more production, and demand for more product is signaled by the kanban card. Kanban cards therefore help create a demand-driven system.

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KANBAN CARDS

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KANBAN AND JIT

Kanban Work cell Ship Raw Material Supplier Kanban Kanban Final assembly Kanban Subassembly Kanban

Purchased Parts Supplier

Kanban

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ADVANTAGES OF KANBAN

Allow only limited amount of faulty or delayed material

Problems are immediately evident Puts downward pressure on bad aspects of inventory Standardized containers reduce weight, disposal costs, wasted space, and labor

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