Just-In-TimeJust-In-TimeManufacturingManufacturing

A PowerPoint PresentationA PowerPoint Presentation

ByBy

Stephen D. SpanglerStephen D. Spangler

A Brief OverviewA Brief Overview

• Central ThemesCentral Themes• Prerequisites for ImplementationPrerequisites for Implementation• Just-In-Time TechniquesJust-In-Time Techniques• A Brainstorming ExerciseA Brainstorming Exercise• A Competitive EdgeA Competitive Edge• Major Misconceptions of JITMajor Misconceptions of JIT

A Brief Overview A Brief Overview (cont’d.)(cont’d.)

• Goals of Just-In-Time ManufacturingGoals of Just-In-Time Manufacturing• Advantages of Just-In-Time Advantages of Just-In-Time

ManufacturingManufacturing• How JIT WorksHow JIT Works• A Real World ExampleA Real World Example• An ExerciseAn Exercise• SummarySummary

Just-In-Time Manufacturing:Just-In-Time Manufacturing:A DefinitionA Definition

• Uses a systems approach to develop and Uses a systems approach to develop and operate a manufacturing systemoperate a manufacturing system

• Organizes the production process so Organizes the production process so that parts are available when they are that parts are available when they are neededneeded

• A method for optimizing processes that A method for optimizing processes that involves continual reduction of wasteinvolves continual reduction of waste

Central Themes SurroundingCentral Themes SurroundingJust-In-TimeJust-In-Time

• SimplicitySimplicity

• QualityQuality

• Elimination of WasteElimination of Waste

Prerequisites for JITPrerequisites for JITImplementationImplementation

• A Reason for ChangingA Reason for Changing• Executive CommitmentExecutive Commitment• Strategic Manufacturing PlanStrategic Manufacturing Plan• Commitment to ActionCommitment to Action

Just-In-TimeJust-In-TimeTechniquesTechniques

• Inventory Reduction as a Tool for Inventory Reduction as a Tool for ImprovementImprovement

• Supplier RelationshipsSupplier Relationships• Inventory “Pull”Inventory “Pull”• Uniform Plant LoadingUniform Plant Loading

Just-In-TimeJust-In-TimeTechniquesTechniques(cont’d)(cont’d)

• Reduced Setup TimesReduced Setup Times• Shop-Floor Layout and Production Shop-Floor Layout and Production

CellsCells• Total Quality AssuranceTotal Quality Assurance• Preventive MaintenancePreventive Maintenance

Brainstorming Exercise:Brainstorming Exercise:

• How can Just-In-Time How can Just-In-Time Manufacturing be Effective in your Manufacturing be Effective in your Business?Business?

A Competitive EdgeA Competitive Edge

• Integrating and OptimizingIntegrating and Optimizing

• Improve ContinuouslyImprove Continuously

• Understanding the CustomerUnderstanding the Customer

The Major Misconceptions The Major Misconceptions of JITof JIT

• JIT is Only an Inventory Control JIT is Only an Inventory Control SystemSystem

• It is a Method to “Push” Inventory It is a Method to “Push” Inventory Back to the SupplierBack to the Supplier

• JIT is a Quality Control ProgramJIT is a Quality Control Program

Goals of Just-In-Time Goals of Just-In-Time SystemsSystems

• Design for Optimum Quality and Design for Optimum Quality and CostCost

• Minimize resources needed for Minimize resources needed for Design and ManufacturingDesign and Manufacturing

• Be Responsive to the Customers Be Responsive to the Customers NeedsNeeds

Goals of Just-In-TimeGoals of Just-In-TimeSystemsSystems(cont’d)(cont’d)

• Develop Trust and Open Develop Trust and Open Relationships with Suppliers and Relationships with Suppliers and CustomersCustomers

• Develop a Commitment to Improve Develop a Commitment to Improve the Total Manufacturing Systemthe Total Manufacturing System

Advantages of JIT Advantages of JIT ManufacturingManufacturing

• Materials Cost SavingsMaterials Cost Savings

• Manufacturing Cost SavingsManufacturing Cost Savings

• Sales Cost SavingsSales Cost Savings

Elements in Materials Cost Elements in Materials Cost SavingSaving

• Reduction of Reduction of SuppliersSuppliers

• Long-term Long-term ContractsContracts

• Reduce Order Reduce Order SchedulingScheduling

• Simplify Receiving Simplify Receiving SystemsSystems

• Eliminate Eliminate unpackingunpacking

• Eliminate Eliminate InspectionInspection

• Eliminate Eliminate inventory inventory StockingStocking

• Eliminate Excess Eliminate Excess MaterialMaterial

How Just-In-Time Systems How Just-In-Time Systems WorkWork

• Requirements for JIT ManufacturingRequirements for JIT Manufacturing

• Firm-wide CommitmentFirm-wide Commitment

• Knowledgeable ManagementKnowledgeable Management

Requirements for JITRequirements for JIT

• Respond to Customer Respond to Customer RequirementsRequirements

• Integrate all Integrate all Processes in the Processes in the Manufacturing Manufacturing SystemSystem

• Employee Employee Participation in Participation in Meeting Meeting CommitmentsCommitments

• Company wide Company wide Commitment to Commitment to educationeducation

• Eliminate Eliminate redundancyredundancy

• Reduce all InventoryReduce all Inventory• Establish Continuous Establish Continuous

Improvement GoalsImprovement Goals

Requirements for JITRequirements for JIT(cont’d)(cont’d)

• Use a pull Use a pull Production Production SystemSystem

• Design products Design products for Manufacturingfor Manufacturing

• Develop Develop Controllable Controllable Production Production ProcessesProcesses

• Have a Defect Have a Defect Prevention Prevention ProgramProgram

• Reduce Setup Reduce Setup TimesTimes

• Build Products to Build Products to SpecificationSpecification

A Real World ExampleA Real World Example

• The Toyota Production SystemThe Toyota Production System

A JIT ExerciseA JIT Exercise

• Q: What are the three central Q: What are the three central themes surrounding Just-In-Time themes surrounding Just-In-Time Manufacturing and why are they Manufacturing and why are they important?important?

SummarySummary

• A review of Just-In-Time A review of Just-In-Time Manufacturing SystemsManufacturing Systems

BibliographyBibliography

• Mito, Setsuo and Ohno, Taiichi.Mito, Setsuo and Ohno, Taiichi. Just-In-TimeJust-In-Time For For

Today And Tomorrow. Today And Tomorrow. Cambridge:Cambridge: Productivity Productivity Press, Inc., 1986.Press, Inc., 1986.

• Lubben, Richard T.. Lubben, Richard T.. Just-In-Time Just-In-Time Manufacturing. Manufacturing. New York: McGraw-Hill Book New York: McGraw-Hill Book Co., 1988.Co., 1988.

• Maskell, Brian H.. Maskell, Brian H.. Just In Time. Just In Time. Carol Stream: Carol Stream: Hitchcock Publishing Co., 1989.Hitchcock Publishing Co., 1989.