JUST-IN-TIME MANUFACTURING A PowerPoint Presentation WHAT IS JIT? JIT is a manufacturing philosophy involving an integrated set of procedures/activities designed to achieve a volume of production using minimal inventories.JIT is a manufacturing philosophy involving an integrated set of procedures/activities designed to achieve a volume of production using minimal inventories. A highly coordinated processing system in which goods move through the system, and services are performed, just as they need.A highly coordinated processing system in which goods move through the system, and services are performed, just as they need. HOW IT WORKS? HISTORY Evolved in Japan after World War II, as a result of their diminishing market share in the auto industry.Evolved in Japan after World War II, as a result of their diminishing market share in the auto industry. Founded by Taiichi Ohno, a vice president of Toyota.Founded by Taiichi Ohno, a vice president of Toyota. Basically implemented in Toyota plant 1950, well established after 1970.Basically implemented in Toyota plant 1950, well established after 1970. FOLLOWERS Adopted by General Electrical in the USA in the 1980.Adopted by General Electrical in the USA in the Some companies referred JIT with different names:Some companies referred JIT with different names: i.TOYOTA Toyota System ii.IBM Continuous flow manufacturing iii.GE- Management by sight iv.HEWLETT- PACKARD- stockless production & repetitive manufacturing system 7 WASTES 1)Waste of over production 2)Waste of waiting 3)Waste of transportation 4)Waste of Underutilization of Employees 5)Waste of Inventory 6)Waste of motion 7)Waste of making defective products PRINCIPLES OF JIT PRODUCTION TOTAL QUALITY MANAGEMENT TOTAL QUALITY MANAGEMENT Seek long-termSeek long-termcommitment Quality must be aQuality must be a higher priority than cost Minimize WasteMinimize Waste PRODUCTION MANAGEMENT PRODUCTION MANAGEMENT Pull System vs. Push SystemPull System vs. Push System Pull = Made to order Push = Made for inventory Communication TechniquesCommunication Techniques Completion of task-Kanban Problem- Andon or siren/light Flexibility of the systemFlexibility of the system Design For TestabilityDesign For Testability Poka-Yoke= Mistake-proofing SUPPLIER MANAGEMENT SUPPLIER MANAGEMENT Establish Long Term Relationships with few suppliers.Establish Long Term Relationships with few suppliers. Delivery of Parts = 100% Defect FreeDelivery of Parts = 100% Defect Free Where they are needed When they are needed The exact quantity Work TogetherWork Together Elimination of inspection of partsElimination of inspection of parts E.g. Toyota Productions Material quality problems Long setups Poor training Break downs Material handling Traditional systems use inventory (water) to buffer the process from problems (rocks) that cause disruption. Water = Inventory INVENTORY MANAGEMENT Eliminate Safety Stock = Zero Inventory Inventory is Evil Material quality problems Long setups Poor training Break downs Material handling JIT systems view inventory as waste and work to lower inventory levels to expose and correct the problems (rocks) that cause disruption. Material quality problems Long setups Poor training Break downs Material handling Lowering the level of inventory is relatively easy to do. However, the problems that arise must be corrected quickly Otherwise, the process will flounder. HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE MANAGEMENT Company-wide InvolvementCompany-wide Involvement Motivation for continuousimprovement Problem Solving Diversified EmployeesDiversified Employees Management Support andManagement Support and Empowerment of workforce JIT MANUFACTURING BUILDING BLOCKS Product Design Process Design Personnel Elements Manufactur- ing Planning Eliminate disruptions Make the system flexible Reduce setup and lead times Eliminate waste Minimize inventories A balanced rapid flow Ultimate Goal Supporting Goals REQUIREMENTS OF JIT Respond to Customer RequirementsRespond to Customer Requirements Integrate all ProcessesIntegrate all Processes Employee ParticipationEmployee Participation Company wide Commitment to educationCompany wide Commitment to education Eliminate redundancyEliminate redundancy Reduce all InventoryReduce all Inventory Establish Continuous Improvement GoalsEstablish Continuous Improvement Goals Use a pull Production System Design products for Manufacturing Develop Controllable Production Processes Have Defect Prevention Program Reduce Setup Times Build Products to Specification OBSTACLES IN CONVERSION Management not committedManagement not committed Workers not cooperativeWorkers not cooperative Decide which parts need most effortDecide which parts need most effort Start by trying to reduce setup timesStart by trying to reduce setup times Gradually convert operationsGradually convert operations Convert suppliers to JITConvert suppliers to JIT Prepare for obstaclesPrepare for obstacles Suppliers may resistSuppliers may resist ADVANTAGES OF JIT High qualityHigh quality FlexibilityFlexibility Reduced setup timesReduced setup times Reduced need for indirect laborReduced need for indirect labor Less wasteLess waste Low warehouse costLow warehouse cost Synchronization between production scheduling and work hourSynchronization between production scheduling and work hour DISADVANTAGES OF JIT Time consumingTime consuming No spare product to meet un expected orderNo spare product to meet un expected order Supply Shock : If products do not reach on timeSupply Shock : If products do not reach on time High risk factorHigh risk factor JIT IN GOODS : Leveraged JIT principles to make its manufacturing process a successLeveraged JIT principles to make its manufacturing process a success Leverage their suppliers to achieve the JIT goalLeverage their suppliers to achieve the JIT goal Provide exceptionally short set up times to their customersProvide exceptionally short set up times to their customers Suppliers carry inventory instead of carrying it themselves.Suppliers carry inventory instead of carrying it themselves. Has dependable suppliers with the ability to meet its demanding lead time requirements.Has dependable suppliers with the ability to meet its demanding lead time requirements. Seamless system that allows it to transmit its component on requirementsSeamless system that allows it to transmit its component on requirements Willingness of suppliers to keep inventory on hand.Willingness of suppliers to keep inventory on hand. JIT IN SERVICES: MAC D McDonalds is the best example of JIT in Services ! McDonald's doesn't begin to cook until a customer has placed a specific order.McDonald's doesn't begin to cook until a customer has placed a specific order. The major benefits are better food at a lower cost.The major benefits are better food at a lower cost. Wastage is reduced along with an improvised taste that makes you want to scream out Im Lovin It !Wastage is reduced along with an improvised taste that makes you want to scream out Im Lovin It ! THANK YOU!!