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JS/CWCM 2
Logo
Delivery
Team
s-Insp
iration&Com
petit
ion
ShareholdersValue
Min
dse
t,Cu
lture
&Pass
ion
Visio
n,Mi
ssion,Strategy&Leadershi
p2
Work
Environment
(5S)
6
Quality First:
SQM and
Best Practices
5Customer
Driven:
Internal and
External
4
Equipment
Effectiveness/
TPM
3
JIT / Supply Chain
Management
1
Waste
(MUDA)
Elimination
8
Information,
Systems/BPR,
Technology and
Cash Flows
7Liaison,
Team Force
and Skill
Development
QualityCost
InnovationsProductivity
WCM Model for Excellence and Competitive Advantage
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3
JIT / Supply Chain
Management
JITAND SUPP Y CHAIN MANAGEMENT
A
KEY
TO
WOR D C ASS ORGANIZATION
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To cre te Su y h wh ch rovides st,
re iable and fle ible res onse to customer
requirement at least cost and minimal
de endence on inventory
The Grou s im
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Cust mers Expectati ns
80s 90s 00s
F
a
c
t
o
r
s
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Objectives
To provide inputs on various aspects of Just InTime approach to Management.The concepts
will be supported with case e amples from the
Group as well as renowned outside
organizations
To identify potential areas across the
organization(Throughout the Supply chain )
for JIT and select a Pilot area for immediate
implementation.This will be done through
Team e ercise
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Provide fast, reliable and fle ible response to customer
requirement at least cost and minimal dependence on
inventory not just within the confines of a single
organization, but ultimately throughout the entire supply
chain by creating a highly responsive organization which
is devoid of any waste
ims of JIT
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JS/CWCM9
Origin of JIT
Commenced at Toyota car plant in Japan and is thus
known as Toyota Production System ( T PS)
Taichi Ohno, & Shiego Shingo are two credited with JIT
approach
Japanese concept now widely used all over the world
Also referred to as, Lean Manufacturing / Time Based
Manufacturing /Agile Manufacturing / Toyota
Production system ( T PS)
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TPS TheFour Rules
Rule 1 All workshall behighlyspecified asto content,sequence,timing and outcome
Rule 2 Everycustomer supplier connection must be direct and
clear
Rule 3 The pathway forevery product and service must be
simple and direct
Rule 4 Any improvement must be made in accordancewiththe
scientific method underthe guidance of a teacher atthe lowest
possible levels in the organization
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JIT- Somecommon misunderstandings
Putting pressure on the suppliers / management ofsuppliers only
Getting deliveries at the last moment
Suppliers holding the stockfor us
JIT is applicable only in foreign countries like Japan
Not practical in remote units
Not applicable to process industries
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3 t 5 years re ate % nnual %
Mf ... CT reducti n 80-90 30-40
Invent ry reducti n M 35-70 10-30
WI 70-90 30-50
F 60-90 5-60
Space reducti n 40-80 5-50Quality C st reducti n 5-60 10-30
Typical JIT BenefitSummary
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Inventory in logistics chain represents stored
capacities
It is more profitable to store capacities in capital
assets than liquid assets
The goal is to aim for shortest throughput time
and high fle ibility.
JIT Says
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Inventory HidesInefficiencies
I
nv
e
n
t
ry
1=defects, =breakd wns,3=rew rk,4= r lay ut,5=plannin pr blem,6= ff
tandards.
1 3
4
56
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What DoesInventory Help Achieve? (Or
Hide )
Helps hide inefficiencies
Hides bottlenecks
Hides process problems & defect generation
Can get away with poor planning
Proliferate sluggish responses
Inaccuracies can continue
And so on
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Key Elements of JIT Philosophy
Expose and Eliminate Fundamental Problems
Reduce Manufacturing Throughput Time
Improve Supplier Performance
Improve Quality
Improve Flexibility
Create High Responsive Organization
EliminateWaste (Non Value Adding)
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Just In Time Approach means Challenge
theFollowing
Set up Time
Process Cycle Time
Batch Size
Planning System
Material Handling
In Short All Existing Practices !
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TRADITIONAL MFG
Inventory is necessary
to maintain an
interrupted supply tocustomers
Inventory is an asset.
In process inventory isnecessary for smooth
production
JIT MFG
Inventory is a
Liability
It hides operationalinefficiencies
It does not
guarantee
uninterrupted
supply to customers
JIT &Inventory
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TRADITIONAL MFG
Acceptable levels of
rejects and rework.
Quality is a specialist
function
An inevitability that
failures will occur
JIT MF
G
Right first time and
every time
Process
improvement is
constant and on
going
Every employee is
responsible for
Quality
JIT & Quality
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Exp se and Eliminate undamental Pr blems and c nvert
unreliability t reliability
Reduce Manufacturing Throughput Time
Impr ve Supplier Per rmance
Impr ve uality, Pr cess Capability, Six Si ma Appr ach
Improve Flexibility
Create High ResponsiveOrganization
Advanced Plannin & Schedulin
Eliminate Waste (N n Value Addin )
Manufacturing Strategiesto ensure an effective
Supply Chain
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Throughput Time - an Indicator of
Responsiveness
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Throughput time is an important
indicator of manufacturing effectiveness
and organizational responsiveness.
Time Compression helps achieve
Throughput time reduction
THROUGHPUT TIME
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Time Compression
Applies to all the segments of value delivery
chain such as new product development,
manufacturing & distribution
Time compression like quality is free. It
provides the competitive edge both in domestic
and export market
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A B C D E G H
A receivin (NVA), B St re(NVA), C Pr cess(VA), D WIP st ra e(NVA),
E Pr cess(VA) Pr cess(VA),G G St ra e(NVA), H Despatch t cust mer.
TOTA CYC E TIME 39 DAYS. VA 3 DAYS, NVA 36 DAYS.
3 1 1 5 1 1 16 4
A B C D E G H
3 3 1 1 1 5 4
T tal Cycle Time
16 Days
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Production Cycle Time - How does it increase?
The non value adding activities significantly
add to the cycle time
The ideal cycle time would consist entirely of
value added activities
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Concept of 3 MUs
The rds strain, inc nsistency and aste are
expressi ns pr blems
1. MURI: - Excessive e rt, exerti n r tensi n
- Excessive demand n nes em ti ns
3 MUS
MURI - STRAIN
MU
RA - INCONSISTENCYMUDA - WASTE
LookforWaste in different forms
. MURA -Inc nsistency, Variability, ack
Uni rmity,
3. MUDA- N n Value Addin Activities,Material
Handlin , Waitin , ueuin , Delays,
Inspecti n, Rejecti n, Re rk,Invent ry
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1 Types Waste
1)1) UUntidinessntidiness)) EExcess Pr ducti nxcess Pr ducti n
3)3) ate delivery / Timin sate delivery / Timin s
4)4) IInvent rynvent ry
5)5) MM ti nti n
6)6) IImpedance / B ttlenecksmpedance / B ttlenecks
7)7) NNeedless Pr cessineedless Pr cessin
8)8) AAdministrati n / C mmunicati ndministrati n / C mmunicati n9)9) TTransp rtati n / C nveyanceransp rtati n / C nveyance
10)10) EErr rs / De ectsrr rs / De ects
11)11) IIdle / Waitindle / Waitin
1 )1 ) TTentative placemententative placement
MUDA can be found in the following
U EliminateIt!
Remember
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Process Throughput Efficiency
LEAD TIME TOWORK CONTENT
(Total CT to Value Adding)
TYPICAL > 10
GOOD < 3
IDEAL < 2
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Mana ement Manu acturin Thr u hput Time
A Maj r Step in Speedier Deliveries
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Thr u hput Time
FOCUSON THROUGHPUT TIME as a meanstoenhanceresponsiveness.
Institute Cycle Time measurementsystems in key
processes.
Calculate Process Efficiency by identifying Valueadding and non value adding activities.
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Speed The Time Dimensi n
Pr curement and Pr ducti n Time
Demand Time
P
D
Situati n: P > D
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Six Ways t Impr ve the Plan
Increase P/D ratiIncrease P/D ratiReduce the P TimeReduce the P Time
Increase D timeIncrease D time
StandardizeStandardize recast m re accuratelyrecast m re accurately
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Reduce P Time
Step 1Step 1 -- Map the Pr cessMap the Pr cessStepStep --Identi y the N n Value Addin ActivitiesIdenti y the N n Value Addin Activities
Step 3Step 3--Eliminate the NVAs systematically and c mpress theEliminate the NVAs systematically and c mpress the
time.( Exampletime.( Example Waitin Time)Waitin Time)
Step 4Step 4-- C ntr l time variability in the Pr cessesC ntr l time variability in the Pr cesses( Stretchin time)( Stretchin time)
Step 5Step 5 Simpli y the Pr cess Sta es ( C mbine pr cesses)Simpli y the Pr cess Sta es ( C mbine pr cesses)
Step 6Step 6 Enhance Speed at critical sta es ( Speed upEnhance Speed at critical sta es ( Speed up
reacti n times, mixin times,Evap rati n time etc.)reacti n times, mixin times,Evap rati n time etc.)
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Increase D Time
Cust mers ant sh rter D Times.H ever, they can beCust mers ant sh rter D Times.H ever, they can be
m tivated t rder ell in advance thereby enhancin Dm tivated t rder ell in advance thereby enhancin D
Times.Times.
This ives a l n er span time r hich clear plans canThis ives a l n er span time r hich clear plans can
be made.be made.
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Standardize
Pr duct varieties c uld be many.Pr duct varieties c uld be many.
H ever, i the inputs are standardized, they makeH ever, i the inputs are standardized, they make
plannin and pr curement easy.plannin and pr curement easy.
Ideal Desi n Strate yIdeal Desi n Strate y Pr vide varietiesPr vide varieties
pr ducts r m limited variety input materials.pr ducts r m limited variety input materials.
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Throughput Time Reduction Techniques
Cellular Manufacturing
Set up time reduction
Reduce manufacturing batch size / single piece
flow
Parallel instead ofsequential scheduling
De bottlenecking
Elimination of NVA (rework, inspection, MH &
Waiting)
Elimination of breakdowns
Elimination of defects
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Cellular Manufacturing
To achieve,
a logical arrangement and sequence of all
facets of company operation in order to bring
the benefits of mass production to high
variety,mixed quantity production
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L L
L L
GG
M
M
M
G
M
M
G
A
E
BB
E
D
DA
CC
ProcessLayout
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L
M
G
M
L
L
G
M
M
G
M
G
L
A B C D E
A B C D E
CellularLayout
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Categorize the parts/products into variousfamilies
Identify the machines/operations and form
machine groups
Allocate families of parts/products to diff erent
machine groups.As far as possible a product
should move within the cell allotted
The advantages are reduction in handling and
throughput time
Cellular Manufacturing
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Setup Time
The time required to make changes in the
machine / equipment / process in order to
enable it to produce a product of diff erent
variety than the one which it was producing
prior to the setup change
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Typical Setup Operation
Adjustment andtrial Process-
50%
Preparation- 30%
Setting 15%
Removal and Fitting 5%
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Setup Time Reduction / QuickChangeOverSteps
Separate internal activities from external
Convert as much of internal set up to external
Eliminate the adjustment process
Abolish the set up itself ( have uniform part for
all products, make multiple products at the same
time on a single machine)
P ll l S h d li / S i l S h d li
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Parallel Scheduling v/s Sequential Scheduling
Sequential Scheduling: Move from one
operation/Machine to next only after the entirelot is ready.This means waiting time for the lot.
For e.g.. Lot size 500. Operation 1 time is 1
minute per piece,operation 2 time per piece is 1.5
mts,operation 3 time per piece is 2 minutes perpiece. The total lot throughput time is 2250
minutes
Parallel Scheduling :The component is moved
from one operation/Machine to next on single
piece basis.This way the lot is moving paralleland the total throughput time for the entire lot
will be considerably less. The total lot throughput
time is 1002.5 minutes
P ll l S h d li / S i l S h d li
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Parallel Scheduling v/s Sequential Scheduling
A
B
C
10
64
Sequential Scheduling Total Cycle time for Batch is 20 days.
A
B
C
Parallel Scheduling Cycle time for
batch = 10 Days
M
A
C
H
I
N
E
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JIT Effect on BatchSizes
TRADITIONAL MFG
An Economic
Batch Quantity
can be worked
out to show
balance between
set up times and
Production runs
JIT MF
G
Batch Size should be as
small as possible
aiming towards a batch
size of 1(Single Piece
Flow)
Set up time can be
considerably reduced
leading to lowering of
Batch sizes
JIT Eff t B ttl k
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TRADITIONAL MFG
Bottlenecks are
inevitable
MachineUtilizationmust behigh
JIT MFG
No queues
Bottleneckseliminated
Emphasis on timely
delivery and
throughputtimerather
than mere Machine
Utilization
JIT Effect on Bottlenecks
M i l H dli
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Material Handling
Movement of material within the plant is a
wasteful activity
It does not add value but adds to delays
Traditional layout is functional while JIT layout
is based on flow line principles
Workout distance moved in Tonne Metre for the
products for a given time bracket say a week
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Typical Major Non Value Adding Activities
Inspection, 100% inspection
Rework/ reprocessing
Rejects
Inventory (RM, WIP, FG) holding, handling,
transporting
N V l Addi A ti iti
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Non Value Adding Activities
First try to eliminate
Then lookfor improvement only ifcannot be
eliminated
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JIT P h i F t
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JIT Purchasing Features
Preferably single source for each item
Long term contacts
Very short lead times
Frequent deliveries ofsmall lots
100% good qualityClose interaction with supplier
Proper delivery schedules and plans to
supplier
Local source as far as possibleTraining assistance in SQC, JIT & Technical
Assistance
Treat the supplier as CO-MAKER
JIT Effect on MaterialOrdering
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TRADITIONAL MFG
Orderquantity is
determined bythe
EconomicOrder
Quantity
JIT MFG
Supplyexactly meets
demand.Delivery is
when required
JIT Effect on MaterialOrdering
JIT Eff t P h i
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TRADITIO
NAL MF
G
Large,JustIn Case
coversseveral weeks
production
Deliveries are notlinked to manufacture
and are in bulk.
Relationship is
adversarial
Multiplesuppliers.
ST Agreements
JIT MFG
Small,JIT For daily
production
Deliveries are
synchronized withproduction
Relationship is based
on Co Maker
principle.
Singlesupplier.
LT Agreements
JIT Effect on Purchasing
SUPP IER PARTNERSHIP
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SUPP IER PARTNERSHIP
Supplier partnership is here cust mers and
suppliers devel p such a cl se and l n term
relati nship that the t rk t ether as partners.It
is n t philanthr py.The aim is t secure the best
p ssible c mmercial advanta e.The principle isteam rk is better than c mbat.
B th must WIN
JIT P rchasing ( item attrib tes) Slide 1
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JIT Purchasing ( item attributes) Slide 1
ShortShelf lifeFairlystable price
LessSeasonality
Short lead time
Degree ofcompetition high
Effectivecommunication systems
Lesstransportation time
Criticality of items: essential/desirable
Low levels ofrejection
Engineering changes Less or nil
Disposable value less
JIT Purchasing ( item attributes) Slide 2
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JIT Purchasing ( item attributes) Slide 2
Low variation in demand
Highconsumption rate
Forecasteasy
Potential to substituteshould be less
High value purchase itemLimited Product variety
End use packaging or Manufacturing
Sources ofsupply less
Difficultto storeEasyto transport
Relati nship Trans rmati n Buildin
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Relati nship Trans rmati n Buildin
Traditional Relationship Partnership Relationship
Sh rt term/Pr ject Based
Pass/ ail Measures
Price
Secretive
u te t Dra in
Parallel W rkin
Hidden A enda
C n r ntati n
Adherence t
Speci icati n
n Term
C ntinu us Impr vement
C st
Open B k C stin
Early Inv lvement
Team W rkin
C mm n Objectives
C - Operati n
Cust mer Satis acti n
Purchase Strategies
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PurchaseStrategies
Rationalization ofSuppliers ( Reducing thesize ofthe
supply base, at least forstrategicsupplies)
Tiers in theSupplychain ( Each firsttiersupplierhas
theresponsibilityto co ordinatesupplies from the
second tiersuppliers)
SUPP IER PARTNERSHIP
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SUPP IER PARTNERSHIP
Purp se is t secure a c mpetitive ed e in terms
uality,Desi n input and C st Structure.
Meth d l y:
1) Establish Supplier Partnership as a strate ic
impr vement initiative
) Establish status basic supplier relati nship
3)Evaluate supplier base
4) Reduce Supplier Base ( Rati nalize)
5) Establish advanced uality plannin meetin s
JIT Supplier Selection Criteria
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Close to plant
Quality product
Good industrial relations
Reduce total number ofsuppliers
JIT SupplierSelection Criteria
JIT between Factory & Supplier
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Extend JIT to selected purchased items through
application of Pareto Analysis and involve
suppliers
Preferably single supplier with long term
contracts,treat him as co-maker
Improve logistics, smaller lot, more frequent
supplies
Reduce supply chain lead time( both internal &
external)
JIT between Factory&Supplier
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Pull System of Manufacturing
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PUSH
PU
Supplier /
Manu acturer
Cust mer /
Buyer
Buyer /
Cust mer
Supplier /
Manu acturer.
Pull System of Manufacturing
Demand Pull System - Features
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Produce what is required and NOT what may
be required
Build high responsiveness in the entire system
by improving capacity to respond
Build in total employee involvement
Demand Pull System Features
Demand Pull System - Features
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Eliminate / reduce transport / handling by
improving layouts
Cut production cycle times through eliminating
delays and reducing set up times
Apply POKA YOKE, ANDON, JIDOKA,
SPECTRUM to achieve Zero Defects
Demand Pull System Features
KANBAN
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KANBAN
KANBAN is a Japanese word for CARD used
as a means of communicating a need for
materials in between production
departments,Production to Stores and Factory to
Suppliers and Sub Contractors
Different Kind of KANBAN of tailor made
design is used for different applications.
KANBAN is often supported with special
containers which hold specified quantities
JIT Implementation Between Factory& Customer
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p y
Produce to Demand ( Pull system)
Production Smoothing
Eliminate NVA and reduce production/process
lead times
Minimize changeover times, minimize the Batch
size
Approach SP
F( Single piece flow)
Kanban in Operation
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Kanban in Operation
FU CONTAINER
USERDAI Y
SCHEDU E
C ntainer
Kanban and
PRODUCER
EMPTY CONTAINER
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Responsiveness A Critical Cust mer Expectati n
Resp nsiveness is a uncti n Speed Orientationin the Or anizati n
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OTIF
OnTimeIn Full isa Maj rMeasure of
Responsiveness.
OTIF
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TheProportion ofPerfect ordersexecutedto totalTheProportion ofPerfect ordersexecutedto total
numberof orders.numberof orders.ThePerfectOrdermeansmeetin the followin ThePerfectOrdermeansmeetin the followin Criteria:Criteria:
Deliveredcompleteto thequantity orderedDeliveredcompleteto thequantity ordered
Deliveredexactlyto customersrequested dateDelivered exactlyto customersrequested dateand timeand time
No deliveryproblems(Dama e,Shorta e,Refusal)No deliveryproblems(Dama e,Shorta e,Refusal)
Accurateand complete delivery documentationAccurateand complete delivery documentation
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OTIF AnExample
Delivered onTime(Mutuallya reed dates)Delivered onTime(Mutuallya reed dates) 9090Fullquantity delivered (Ifquantity delivered isexcess orFullquantity delivered (Ifquantity delivered isexcess or
shortsay withinaccepted ran eincase ofbulksupplies)shortsay withinaccepted ran eincase ofbulksupplies)
8585
OTIF = 90x85 = 76.5OTIF = 90x85 = 76.5
OTIF Pointstoponder
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p
How do youcalculate,OnTime ?How do youcalculate,OnTime ?Promised delivery dateVsactual orcustomersrequestPromised delivery dateVsactual orcustomersrequest
dateVsactualdateVsactual
The date ofreceipt of goodsatcustomerend orthe date ofThe date ofreceipt of goodsatcustomerend orthe date of
dispatch ?dispatch ?
OTIF
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Delivering 100 ontimeto a datethat doesnotmatchtheDelivering 100 ontimeto a datethat doesnotmatchthecustomersneed isnot good customerservice.customersneed isnot good customerservice.
Delivering morethan whatthecustomerwanted isnotDelivering morethan whatthecustomerwanted isnotbetterservicebutin factabad service.betterservicebutin factabad service.
In Full doesnotmeantotalquantity onamonthlybasisbutIn Full doesnotmeantotalquantity onamonthlybasisbutforeachshipment.foreachshipment.
OTIF
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Differentapproaches:Differentapproaches:
Customerwise(Measured fora giventimebucketsayaCustomerwise(Measured fora giventimebucketsayamonth.Itcouldbe weekly/Fortnightlyalso depending onmonth.Itcouldbe weekly/Fortnightlyalso depending onthecustomer)thecustomer)
Product wise(Notspecificto anyparticularcustomerbutProduct wise(Notspecificto anyparticularcustomerbutassessed fora givenproduct fora giventimebracketsayaassessed fora givenproduct fora giventimebracketsaya
month)month)Orderwise(Each ordersOTIFperformanceistrackedOrderwise(Each ordersOTIFperformanceistracked
Reported assoonasan orderiscompleted)Reported assoonasan orderiscompleted)
ProductGroup wise(SimilarProductsare groupedProductGroup wise(SimilarProductsare groupedtogetherand thisisassessed fora giventimebracketsayatogetherand thisisassessed fora giventimebracketsaya
month)month)
How to increaseOTIF ?
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Bring inspeed OrientationinternallyBring inspeed Orientationinternally
Sound Planning and ReviewSound Planning and Review
EarlyWarning SystemsEarlyWarning Systems
Control onManufacturing Lead TimeControl onManufacturing Lead Time
FlexibilityinManufacturingFlexibilityinManufacturingQuickchangeoversQuickchangeovers
LogisticsSupportLogisticsSupport
Salesand OperationsPlanning Process
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APrerequisite forOTIF ImprovementsAPrerequisite forOTIF Improvements
PlanningprovidesthelinkagebetweencustomerdeliveryPlanningprovidesthelinkagebetweencustomerdeliveryrequirementand Manufacturingrequirementand Manufacturing
CustomerDeliveryRequirementsareconverted toCustomerDeliveryRequirementsareconverted toManufacturingplanand Schedule.Manufacturingplanand Schedule.
ResourcePlanning and allocationResourcePlanning and allocation
ProcurementPlanning and schedulingProcurementPlanning and scheduling
Shortcycleplanning as opposed to traditionalmonthlyShortcycleplanning as opposed to traditionalmonthlyplanning cycles.planning cycles.
IT forDecisionMaking
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Effectiveleveraging ofIThelpsinOTIF ImprovementEffectiveleveraging ofIThelpsinOTIF Improvement
Decisionsupportsystems facilitatemanagersintakingDecisionsupportsystems facilitatemanagersintaking
timely decision withallrelevantinformation.(Exampletimely decision withallrelevantinformation.(Example
computersimulationmodels forarriving atDeliverDates)computersimulationmodels forarriving atDeliverDates)
SupplychainintegrationthroughITisaneffective way ofSupplychainintegrationthroughITisaneffective way ofproviding arealtimelinkageproviding arealtimelinkage Onlinesystems to induceOnlinesystems to induce
speed intheSupplyChain.speed intheSupplyChain.
Delivery Failures EarlyWarning Systems
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Reviews withPlanReviews withPlandetectpotential deviations.detectpotential deviations.
Linkdailyproduction with orderdeliveriesLinkdailyproduction with orderdeliveries
LeverageVisualmanagementSystemsLeverageVisualmanagementSystems
AdoptAirlinesApproachAdoptAirlinesApproach Estimated date of deliveryandEstimated date of deliveryand
rescheduleprioritiesreschedulepriorities
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Company wide Speed Orientation A Recipe for
OTIF Deliveries
Responsiveness Role of Leaders
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The Leadershavetoplayacriticalrolebypromoting andThe Leadershavetoplayacriticalrolebypromoting and
demonstrating Speed Orientationacrossthe organization.demonstrating Speed Orientationacrossthe organization.
Theyhaveto evolveStrategiesatBusinesslevelandTheyhaveto evolveStrategiesatBusinessleveland
Operational LevelOperational Level
Technologyand SpeedSomeExamples
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Example ofprocessstepeliminationExample ofprocessstepelimination
BeforeBefore
Filmphotography,development,printing,scanning andFilmphotography,development,printing,scanning and
copying intoNewslettercopying intoNewsletter
NowNowDirect digitalcamera,photograph directlycopied intoDirect digitalcamera,photograph directlycopied into
newsletter.newsletter.
Technologyand Speed SomeExamples
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ExampleExample-- CombineProcessstepsCombineProcesssteps
BeforeBefore
Photocopying,sorting,Grouping and staplingPhotocopying,sorting,Grouping and stapling
NowNow
Combined operationinasinglemachineCombined operationinasinglemachine
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Manufacturing Flexibility Keyto Speedier
deliveries
Flexibility
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y
Flexibilityinmanufacturing meansFlexibilityinmanufacturing means-- Capability ofCapability ofmachines,materialhandling,productionprocesses,routingsmachines,materialhandling,productionprocesses,routingsandpeopletoproduce differentthingsand in differentandpeopletoproduce differentthingsand in differentquantities.quantities.
FlexibilityinMarketing meansFlexibilityinMarketing means Supplychainmatching toSupplychainmatching tomeetthechanging demand requirements fordifferentmeetthechanging demand requirements fordifferentproductsand volumes.productsand volumes.
Flexibilityhelpsin achieving speed.Absence of flexibilityFlexibilityhelpsin achieving speed.Absence of flexibilitymeanslongerwait.meanslongerwait.
Flexibility
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Doesa fast food restauranthave flexibility ?Doesa fast food restauranthave flexibility ?Doesitservecustomers withSpeed tojustifyitsname ?Doesitservecustomers withSpeed tojustifyitsname ?
What doesit do to enablethis ?What doesit do to enablethis ?
Areasthatinfluence Flexibility
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LayoutLayout
Equipmentand MachineryEquipmentand Machinery
Manufacturing ProcessesManufacturing Processes
ChangeOversChangeOvers
Operational FlexibilityOperational Flexibility
UnpredictableProblemsUnpredictableProblems
SystemsSystems
OrganizationOrganization
MeasurementsMeasurements
Layouts& Flexibility
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Shift from Functionallayoutsto CellularLayoutsShift from Functionallayoutsto CellularLayoutsPutmachines onWheels ?Putmachines onWheels ?
Change Layoutto suitProductVariety,Mixetc.UseChange Layoutto suitProductVariety,Mixetc.Use
Machines/WorkBenches/Fixtures onWheels.Machines/WorkBenches/Fixtures onWheels.
EmulateCircus,HotelConferenceRooms forflexibilityinEmulateCircus,HotelConferenceRooms forflexibilityinLayouts.Layouts.
Equipment/Machinery Flexibility
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Advanced Productiontechnology( FlexibleMachiningAdvanced Productiontechnology( FlexibleMachining
Centers,CNCMachines,MovablemachinesCenters,CNCMachines,Movablemachines
ForkLift with differentattachmentsForkLift with differentattachments
Manufacturing Processes
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Evaporatorthatcanhandle different differentmaterialEvaporatorthatcanhandle different differentmaterial
requiring differentprocesssettingsrequiring differentprocesssettings
ACookerwithalow turn downratio ( which givesvolumeACookerwithalow turn downratio ( which givesvolume
flexibility withoutaffectingperformance)flexibility withoutaffectingperformance)
Flexibilityand Changeovers
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SetUp orMakeReady operationscould adverselyimpactSetUp orMakeReady operationscould adverselyimpact
flexibilityiftheytaketoo muchtime ortoo cumbersometoflexibilityiftheytaketoo muchtime ortoo cumbersometocarryout.carryout.
Flexibility demandsthatChangeoversbesimplified andFlexibility demandsthatChangeoversbesimplified andachieved quickly.achieved quickly.
MoreVariety fromalineispossible withlow changeoverMoreVariety fromalineispossible withlow changeovertimes.times.
Application of QuickChangeOvertechniquesisthekeyApplication of QuickChangeOvertechniquesisthekey
Operational Flexibility
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Production scheduling ( Advanced Schedulingsystemssuch assynchronized manufacturing)
Multi Skilled Employees also give flexibility in
Operations.
UnpredictableProblems
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Flexibility ofan organizationcouldbeaffected adverselyFlexibility ofan organizationcouldbeaffected adverselydueto the following unpredictableproblems:dueto the following unpredictableproblems:
MachineBreakdowns(TPM)MachineBreakdowns(TPM)
Latevendordelivery(ReliableSuppliers/Partnerships)Latevendordelivery(ReliableSuppliers/Partnerships)
Heavyrejections(SixSigmaApproach)Heavyrejections(SixSigmaApproach)
AttacktheabovethroughappropriatetechniquesAttacktheabovethroughappropriatetechniques
mentioned withinbrackets.mentioned withinbrackets.
Theycanbe overcome.Theycanbe overcome.
Systems
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The fixed frequency ofprocessing dictatesthe flexibility.The fixed frequency ofprocessing dictatesthe flexibility.
ThecustomeristoldThecustomeristold SorryyourordercanbescheduledSorryyourordercanbescheduled
nextmonth only.nextmonth only.
Can wereducethe frequency ofprocessing to dailyinsteadCan wereducethe frequency ofprocessing to dailyinstead
of weekly/Fortnightly/Monthly ?of weekly/Fortnightly/Monthly ?
Organization
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TraditionalOrganizationsarestrong compartments ofTraditionalOrganizationsarestrong compartments of
Functions.Flexibilityisapipe dreamhere.Functions.Flexibilityisapipe dreamhere.Processcentered organizationsconsisting ofcrossProcesscentered organizationsconsisting ofcross
functionalteamsmakethe organizationmore flexible.functionalteamsmakethe organizationmore flexible.
Shift focus fromsingle function/Skillspecialiststo multiShift focus fromsingle function/Skillspecialiststo multi
skilled employeesto enhance flexibilityskilled employeesto enhance flexibility
Measurementsand Flexibility
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Sometypicaltraditionalmeasurements whichaffectSometypicaltraditionalmeasurements whichaffect
flexibilityare,flexibilityare,Focus onTimeutilization ofanequipment(forceslongerFocus onTimeutilization ofanequipment(forceslonger
runto reducethenumberofchangeovers).runto reducethenumberofchangeovers).
Focus on LocalOptimizationsuchasTonnageproduced (Focus on LocalOptimizationsuchasTonnageproduced (inducestendencyto takeuphightonnage ordersininducestendencyto takeuphightonnage ordersin
preferenceto low tonnage orders)preferenceto low tonnage orders)
To achieve flexibilityand speed shiftemphasis fromTo achieve flexibilityand speed shiftemphasis frominternalmeasuresto externalmeasures:internalmeasuresto externalmeasures:
Focus onOrderDeliveryinsteadpromotes frequentchangeFocus onOrderDeliveryinsteadpromotes frequentchangeoverand reducing thetimeperchange over.overand reducing thetimeperchange over.
Measures of Flexibility
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Measure ofreadiness(MeanDeliverytime,Lead timeMeasure ofreadiness(MeanDeliverytime,Lead time
to accept ordersetc.)to accept ordersetc.)FlexibilityinProducts(No ofvarieties,TimetoFlexibilityinProducts(No ofvarieties,Timeto
introducenewproducts/variantsetc.)introducenewproducts/variantsetc.)
Flexibilityinvolume/Scale of operations(Turn downFlexibilityinvolume/Scale of operations(Turn downratio,Outsourcing forvolumescaleup/downetc.)ratio,Outsourcing forvolumescaleup/downetc.)
Flexibilityinsupplying differentmixes(AbilitytoFlexibilityinsupplying differentmixes(Abilitytovarytheproductmix)varytheproductmix)
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ResponsivenessMeasures AStimulus for
enhancing Speed Orientation
Appliesto all functions/AllTeamsand everyone
ResponsivenessMeasure
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Haveyouidentified yourresponsivenessMeasure ?Haveyouidentified yourresponsivenessMeasure ?Did youinvolve/consultyourcustomerinidentifying theDid youinvolve/consultyourcustomerinidentifying the
measure ?measure ?
TypicalResponsivenessMeasures
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Sales (Sales (Timeto respond to customercalls,Timeto respond to customercalls,
Meantimebetweencustomercontacts)Meantimebetweencustomercontacts)
Production(Production(ChangeoverTime,BatchProcessing Time,CycleChangeoverTime,BatchProcessing Time,Cycle
Time)Time)
Maintenance(Maintenance(MeanTimeto Repair,Responsetimeto attend toMeanTimeto Repair,Responsetimeto attend to
servicecalls)servicecalls)
TypicalResponsivenessMeasures
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Purchase(Purchase(Lead timeto convertindentto PO,Lead time ofLead timeto convertindentto PO,Lead time of
deliveries,Documentclearing time)deliveries,Documentclearing time)
Laboratory(Laboratory(Timebetweensampling and analysisTimebetweensampling and analysis
feedback,TimetoprovideInformation oncriticalprocessfeedback,TimetoprovideInformation oncriticalprocess
parameters)parameters)
Personnel(Timetoprovideinformation onleaveetc.Personnel(Timetoprovideinformation onleaveetc.
Waiting time forrecording attendance,GrievancehandlingWaiting time forrecording attendance,Grievancehandling
time,Cycletime fornew recruitment)time,Cycletime fornew recruitment)
TypicalResponsivenessMeasures
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Marketing(Marketing(Timeto MarketNew Product,Timeto launchTimeto MarketNew Product,Timeto launchnew Promotions,Responseto Customernew Promotions,Responseto Customercomplaints,Customerinquiryresponsetime)complaints,Customerinquiryresponsetime)
Logistics(Logistics(Truck/Containerturnaround times,Loading cycleTruck/Containerturnaround times,Loading cycle
times,Timeto changevarietyinloading/deliveriestimes,Timeto changevarietyinloading/deliveries
SecuritySecurity(Visitorhandling time,Responseto emergency(Visitorhandling time,Responseto emergencysituations)situations)
Finance andFinance and Accounts(Accounts(CashpaymentCycletime,SupplierCashpaymentCycletime,Supplierbillpaymentcycletime,Time forretrieval ofcriticalbillpaymentcycletime,Time forretrieval ofcriticalinformation,CashTo CashCycleTime)information,CashTo CashCycleTime)
JIT Implementation Within Factory Through
DOL Delivery
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DOL Delivery
DOL Delivery ( Direct On Line Delivery) for
delivery from one shop to another instead of
material traveling through warehouse
Will cut WIP s and also considerably reduce
throughput time
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The Fact That a Company Feels It Is Likely to Be
Difficult and Long Term Process to Get Its
Suppliers Operating JIT Is No Excuse for Not
implementing internally.
JIT Sub committee
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Leader -- Purchase Manager/Marketing
Members - Production, Sales, QC, IT Planning
Plant Manager, Marketing
JIT Pitfalls
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Lackoftop management commitment
Inadequate education
Lackofexternal assistance
Lackofunderstanding
Failure to integrate process & control
Lackof it support
Rushing vendor links
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Team Exercises
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Manufacturing Throughput Time Analysis andManufacturing Throughput Time Analysis and
ReductionReduction
Application ofQuickChangeOver (QCO)Application ofQuickChangeOver (QCO)
TechniqueTechnique
DirectOn Line Delivery ( DOL)DirectOn Line Delivery ( DOL)
Supplier RationalizationSupplier Rationalization
JIT PurchasingJIT Purchasing
ResponsivenessResponsiveness
Exercise No. 1-
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THROUGHPUT TIME COMPRESSION
Identify Product varieties manufactured
Identify stage by stage process of manufacture
including intermediate waiting/storing etc and
the time taken at each stage
Separate Value added and Non Value Added
and compute Process Efficiency
Identify potential areas for Throughput Time
Compression
Exercise No. 2
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QUICKCHANGE OVER
Identify Major Change Over Activities in the
Plant both from Process and Utilities.
List the activities involved in the Changeover.
Categorize them into Value Adding and Non
Value Adding as well as Inside activity / Outside
activity along with time taken for each.
Develop action plan for reducing the Cycle Time
of Change over with targets
Exercise No. 3
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DIRECTON LINE DELIVERY
Identify and prepare a list of WIPs that are
being packed and sent to intermediate stores
and later issued to some in house Department
for further processing.
Assess the quantity handled, resources spent
( packing, handling, manpower, inventory etc.)
Design a system of Direct On Line Delivery to
User .
Identify bulky purchased items where theapproach can be extended.
Prepare an action plan for implementation with
projected savings
Exercise No 4
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Supplier Rationalization
Identify various key input materials/families of items
and analyze the present number of suppliers/ the
business breakup and supplier wise performances.
Identifies scope and recommends items for supplier
rationalization with targets for average number of
suppliers per item on an aggregate basis.
Exercise No.5
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JIT PURCHASING
Identify A Category items.Compare each item
systematically with the attributes for JIT items and
prepare a list of potential items.
Gather their purchase lot quantities, No of
Suppliers, Order share per supplier, Lead Time
etc, Consumption quantity and rate
Pick item (s) for developing JIT Supplier from
either the existing or consider options of developing
one close to the Plant.
TeamExercise- Flexibility
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Identifyareas wherelackof flexibilityisaffecting theIdentifyareas wherelackof flexibilityisaffecting the
customerDelivery.customerDelivery.
Tobegin with focus onexternalcustomerdelivery.Tobegin with focus onexternalcustomerdelivery.
Identifymajordelivery failure orrefusal ofacustomerIdentifymajordelivery failure orrefusal ofacustomer
order.Examinethe failure fromthepoint ofview oforder.Examinethe failure fromthepoint ofview of
flexibility.flexibility.
Slide 1
TeamExercise- Flexibility
AreaArea Problem ( DescribeProblem ( Describe Remedy suggested/Remedy suggested/
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AreaArea Problem ( DescribeProblem ( Describe
the lackofthe lackof
flexibilityflexibility
Remedysuggested/Remedysuggested/
ActionAction
LayoutLayout
Equipment/MacEquipment/Mac
hineryhinery
ProcessProcess
ChangeoversChangeovers
OperationalOperational
SystemsSystems
OrganizationOrganization
UnplannedUnplanned
ProblemsProblems
MeasurementsMeasurementsSlide 2
TeamExercise -Responsiveness
Id tif h l k f d / i iId tif h l k f d / i i
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Identifyareas wherelackofspeed /responsivenessisIdentifyareas wherelackofspeed /responsivenessisaffecting yourperformanceinterms of Q,C,D,I,Paffecting yourperformanceinterms of Q,C,D,I,P
Example:Example:
Delayin getting a gasketiscausing leakage ofchemicalDelayin getting a gasketiscausing leakage ofchemicaland affecting Costand affecting Cost
Not getting emptybasketsiscausing delaysinunloadingNot getting emptybasketsiscausing delaysinunloadingmaterialaffecting deliveryto nextprocessmaterialaffecting deliveryto nextprocess
Delayin deliveryrequirementscausing difficultiesinDelayin deliveryrequirementscausing difficultiesin
transportplanningtransportplanning
DelayinPaymentscausing customercomplaintsDelayinPaymentscausing customercomplaints
Orderfinalizing takestoo long atimeOrderfinalizing takestoo long atime
Slide 1
TeamExercise- Responsiveness
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WhereWhere
Speed isSpeed is
lackinglacking
SupplierSupplier AffectsAffects
AffectsCAffectsC AffectsDAffectsD AffectsIAffectsI AffectsPAffectsP
Team No: Ownership Process: Equipment:
Slide 2
TeamExerciseResponsivenessMeasure
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IdentifyresponsivenessmeasuresinyourIdentifyresponsivenessmeasuresinyour
ownershiparea.Rankthemin orderofpriorityownershiparea.Rankthemin orderofpriority
Example:Example:
Timeto deliversamplesto labTimeto deliversamplesto labRetrieval ofInformation onProcess performanceRetrieval ofInformation onProcess performance
TeamExerciseResponsivenessMeasure
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S.NoS.NoResponsivenessMeasureResponsivenessMeasure
MachineMachine
MaterialMaterial
/Utilities/UtilitiesProcessProcess
QualityQuality
InformationInformation
TeamExercise ResponsivenessMeasureTarget
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setting
Gatherpresentperformancerelated to thetopthreeGatherpresentperformancerelated to thetopthreemeasureschosen.Arriveattargetasateam.Identifythemeasureschosen.Arriveattargetasateam.Identifytheimpedimentsand actionsto overcometheimpediments.impedimentsand actionsto overcometheimpediments.
ExampleExampleTimeto deliversamplesto lab.Timeto deliversamplesto lab.
PresentPerformance:Varies from30minutesto 2 hoursPresentPerformance:Varies from30minutesto 2 hours
TargetTarget 30Minutes30Minutes
Slide 1
TeamExercise ResponsivenessMeasureTarget
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setting
ResponsivenessResponsivenessMeasureMeasure
PresentPresentPerformancePerformance
TargetTarget ImpedimentsImpediments
Slide 2
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JIT Bibliography
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Putting the Just In Time philosophy into practice by P J
OGRADY
Cell System o f production by David Jackson
Just In Time Manufacturing Proceedings of the III
International Conference
JIT The Management of Manufacturing by Roland Toone
& Dave Jackson
Working towards JIT by Anthony Dear
Just In Time by David Hutchins
World Class Manufacturing - Implementing JIT & TQC
by Richard J Schonberger
Toyota Production Systems by Yashuhiro Monden The Just In Time Breakthrough ( Implementing the new
manufacturing basics) by Edward J H ay
JIT Bibliography
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World Class Manufacturing by JIM TODD
Manufacturing Planning &Control Systems by Thomas
Vollmann,William Berry
Time Based Competition (The next battleground in
American manufacturing.)by Joseph D Blackburn. The Race by Dr Goldratt.
Just In Time Manufacturing An aggressive
manufacturing strategy by Richard T Lubber
Just In Time Manufacturing An Introduction by TC E
Cheng and S Polosky
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WeWish You All The Best In
Your Journey Towards JIT
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Thank You
WCM