Environmental Impacts of Justin-Time: Effects of Altered Supplier Transportationby Sarah Nathan

Presented by G.Devi Shobana Roll no- PGDMb11/69

Just-In-Time Manufacturing?

What is Just in Time ?Where did it come from- history & Development?

What are the main principles?Its Implementation .. Overall Environmental Impacts of Just-in-Time Gap Analysis and Conclusion

What is Just-In Time ?

Just-in-time (JIT) is a production strategy that strives to achieve world class manufacturing by reducing in-process inventory and associated carrying costs. Developed by the Toyota Motor Corporation, which has been widely adopted around the world. Just-in-time production method is also called the Toyoto Production 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 by Taiichi Ohno, VP of Toyota Motor Company W. Edwards Deming 14 points for Management

JIT spread throughout Japan and is now on the rise in American Industries as well.

JIT COMPARED WITH TRADITIONAL MANUFACTURINGJIT1) Pull system 2) Insignificant or Zero inventories 3) Manufacturing Cells 4) Multi functioning labour 5) Total quality control (TQC) 6) Decentralized services 7) Complex cost accounting 1) Push system 2) Significant inventories 3) Process Structure 4) Specialized labour 5) Acceptable quality level (AQL) 6) Centralized services 7) Simple cost accounting

Traditional

Principles Of JIT Manufacturing

Total Quality Management

Production ManagementSupplier Management Inventory Management

Human Resource Management

Implementation

Implementation Problems Worker resistance Lack of top management support

Lack of communication Lack of formal training Environmental Concerns

Environmental Impacts of JIT Three groups, based on source change:

a) Production -- decreased waste and emissions due to increased efficiency and reduced overproduction; b) Personnel -- increased ability to make environmental improvements due to better integration and training of personnel; and c) Suppliers increased energy use and emissions due to increased transportation requirements.

Literature Review

King and Lenox (2001) -conducted a statistical analysis of whether being lean was associated with the following indicators of environmental management and performance: adoption of ISO 14001, total waste generation,onsite waste treatment, and toxic emissions. In their analysis, they found evidence that ISO9001 adoption predicts future ISO 14001 adoption. They did, however, find that facilities that were ISO 9001 certified and facilities with lower maximum inventory levels generated less waste and had lower total toxic emissions. lean is green overall.

Klassen (2000) - found that there was statistical evidence that greater investment in JIT- significantly lowered releases and transfers of toxic chemicals Rothenberg et al. (2001) -performed statistical regression analysis- found lean production to be slightly correlated with reduced water and energy use, also found- a significant relationship between lean production and increased VOC emissions. Overall, they found that lean production techniques could have both positive and negative environmental impacts, without evidence of either effect being predominant.

Zhu and Sarkis(2004) - surveyed Chinese manufacturing firms to determine interaction between environmental performance and operations management philosophies. they broke down the environmental effects into two categories internal and external. They point out that inventory reductions within the factory may produce internal benefits, but may also simply produce increased inventory held by suppliers. They conclude that JIT programs with internal environmental management practices may cause further degradation of environmental performance and careshould be taken when implementing GSCM programs in manufacturing organizations with JIT philosophies

Gap AnalysisAnnual Emissions = Tot Miles/Fuel Economy * Emissions/gallon E = [2D*(R/Q)] / FE * E (2) D = one-way distance from the supplier to the manufacturer, R =total annual requirement of the product being ordered, Q = order quantity in units, FE = calculated fuel economy, E =emissions per gallon of fuel. R/Q =the non-integer value for the total number of trips.

It is assumed that trucks are equally loaded on both the initial and the return trip.

The following table is then used to determine the appropriate truck size:

Results

Questions..???