Just In Time

PRESENTED BY: Dalela R.K.

6.10.2010

Just-In-Time (JIT)
Learning objectives: Understanding the theory behind just-intime. Understanding when just-in-time is a suitable production system to use. Understanding the advantages of using just-in-time.

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What is just-in-time?
Just-in-time is an easy concept to understand. If you think about someone's journey to work, they could leave the house just-in-time to cycle to the train station, just-in-time to catch their train, which would get them to their place of work just-in-time, allowing them to be at their desk just-in-time to start work. Think about your journey here today. Could this be applied? 09:39 3 06/27/13 There is no problem with this concept;

What is just-in-time?
In engineering, using the just-in-time theory would allow the components that are needed to produce a product to be delivered to the worker, just-in-time. The products can then be made available for the customers just-in-time. This process allows for all types of stock, including materials and finished products, to be eliminated. Implementing a just-in-time structure can mean a company is adopting a lean 06/27/13 09:39 4 production system.

History of JIT
Ford Motor Company
Concept of dock to factory floor Required effective Freight Management System

Toyota Motor Corporation

JIT aka Toyota Production System

1980s conclusion
Japanese industry worked smart - JIT Western industry worked JUST IN CASE
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Why use just-in-time?

There are several aspects in engineering processes that are often deemed as wasteful, which can be eliminated using a just-in-time approach. These include: Time spent waiting for example, when a worker is waiting for items to be delivered to them. Over production waste from producing more than is needed. Inventory waste arising from keeping lots of stock.
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When is JIT a suitable system to use?

JIT is a suitable production system when: The engineering manufacturer has a standard product that is steadily produced in practical amounts. The product is of high value. The workforce producing the product is a disciplined one. Flexible working practices are maintained. Machinery does not demand lengthy set up times. Quality can be guaranteed through either a 06/27/13 09:39 7 cost penalty for defects or good working

Goals of a JIT System

Zero defectsreducing defects Zero inventoryStockless production Zero setup time SMED---Single Minute Exchange of Dies Zero handling Zero break down Zero lead time Zero Transactionsreduced paperwork Zero disturbancesroutine execution of schedules 06/27/13 09:39 8

JIT & Supply Chain Management

In 1990s, supply chain management combined:

Quick response (QR)- speed & flexibility Efficient Consumer Response (ECR)- speed & flexibility JIT Continuous reduction of waste Keiretsu Relationships- Including suppliers in JIT/TQM efforts
Quality is a necessary element and outcome of JIT to achieve low cost, high quality, & reduced lead times.

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JIT & TQM are required throughout the supply chain!!!

Implementation Stages in JIT & Supply Chain Management

Stage 1- Firm is internally focused & functions managed separately. Silo effect is reactive & short-term goal oriented. Stage 2- Firm integrates efforts & resources among internal functions. Stage 3- Firm links suppliers/customers with firms processes. Stage 4- Firm broadens supply chain influence beyond immediate or first-tier suppliers & customers.
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The Elements of Just-in-Time

Waste Reduction Firms reduce costs & add value by eliminating waste from the productive system. Waste encompasses

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Waste from Overproduction Waste of waiting/idle time Transportation Waste Inventory Waste Processing Waste Waste of Motion Waste from Product Defects
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The Elements of Just-in-Time

Just-in-Time Partnerships Suppliers & customers work to remove waste, reduce cost, & improve quality & customer service. JIT purchasing includes delivering smaller quantities, at right time, delivered to the right location, in the right quantities. Firms develop JIT partnerships with key customers. Mutual dependency & benefits occur among JIT partnerships.
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The Elements of Just-in-Time

Just-in-Time Layouts Move people & materials when & where needed, ASAP. Group technology (work cells)process similar parts or components saving duplication of equipment & labor Work cells are often U-shaped to facilitate easier operator & material movements. JIT layouts are very visual (lines of visibility are unobstructed) with operators at one processing center able to monitor work at another.
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The Elements of Just-in-Time

Just-in-Time Inventories Reduction of inventory levels causes problems to surface in the organization. Once problems are detected, they can be solved. The end result is a smoother running organization with less inventory investment.

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The Elements of Just-in-Time

Just-in-Time Scheduling Small batch scheduling drives down costs by:
Reducing purchased, WIP, & finished goods inventories Makes the firm more flexible to meet customer demand.

Small production batches are accomplished with the use of kanbans a Japanese word for card. Although for JIT use, Kanban has come to mean a 06/27/13 09:39 15 signal to order or release material in the

The Elements of Just-in-Time

Continuous Improvement (Kaizen) Continuous approach to reduce process, delivery, & quality problems, such as machine breakdown problems, setup problems, & internal quality problems. Workforce Commitment Managers must support JIT by providing subordinates with the skill, tools, time, & other necessary resources to identify problems & implement solutions.
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The Elements of Just-in-Time

Just-in-Time II An extension of supplier partnerships & vendor-managed inventories. A suppliers employee is housed in the purchasing department of the buyers organization, acting as both buyer & supplier representative. This employee monitors inventory levels, places purchase orders, & participates on product design & value analysis teams.
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Kanban
Kanban is the Japanese word for card The card is an authorization for the next container of material to be produced 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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Kanban
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

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Withdrawal Kanban

Production ordering Kanban

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Kanban
Kanban Work cell Ship Raw Material Supplier Kanban Kanban Purchased Parts Supplier Subassembly Final assembly Kanban Kanban Finished goods Customer order

Kanban

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More Kanban
When the producer and user are not in visual contact, a card can be used When the producer and user are in visual contact, a light or flag or empty spot on the floor may be adequate Since several components may be required, several different kanban techniques may be employed
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More Kanban
Usually each card controls a specific quantity or parts Multiple card systems may be used if there are several components or different lot sizes In an MRP system, the schedule can be thought of as a build authorization and the kanban a type of pull system that initiates actual production
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The Number of Kanban Cards or Containers

Need to know the lead time needed to produce a container of parts Need to know the amount of safety stock needed Number of kanbans (containers) Demand during Safety lead time + stock = Size of container
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Number of Kanbans Example

Daily demand Production lead time (Wait time + Material handling time + Processing time) Safety stock Container size = 500 cakes = 2 days

= 1/2 day = 250 cakes

Demand during lead time = 2 days x 500 cakes = 1,000 Number of kanbans =
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1,000 + 250 =5 250

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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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Main Advantages of using a JIT system

Products are of a better standard. Less waste and, in turn, less rework. Set up times are reduced. Production flow is improved. Less stock. Less Working Capital Overall savings. Efficiency is increased. Relations with suppliers are enhanced. Avoids buildup of unsold finished goods Plus many more

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Disadvantages of JIT
1.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
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Waste Reduction @ Dell

Waste from Overproduction Waste of waiting/idle time Transportation Waste Inventory Waste Processing Waste Waste of Motion Waste from Product Defects
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