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Program : MBA
Semester : II
Subject Code : MB0028
Subject Name : Production and Operations Management
Unit number : 13
Unit Title : Just in Time
Lecture Number : 13
Lecture Title : Just in Time
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Objectives :
Define Just In Time
Identify the characteristics of JIT
Explain the Seven wastes according to JIT
Explain JIT Implementation
Discuss Kanban
Identify JIT Techniques and Components
Explain Total Productive Maintenance
Identify Advantages and Disadvantages of JIT
Identify the application area
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Lecture Outline
Definition JIT
Elimination of Wastes using JIT
JIT Implementation-Prerequisites, Requirements & Guidelines
Kanban
JIT Techniques
JIT Components
Supplier as Partners
Total Productive Maintenance
Advantages & Disadvantages of JIT
Application
Summary
Check Your Learning
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Introduction
Definition JIT
It is a management philosophy aimed at eliminating manufacturing wastes by
producing only the right amount and combination of parts at the right place
at the right time.
This is based on the fact that wastes result from any activity that adds cost
without adding value to the product, such as transferring of inventories from
one place to another or even the mere act of storing them.
The Goal of JIT is to minimize the presence of non-value-adding operations
(wastes) and non-moving inventories in the production line. This results in
shorter throughput times, better on-time delivery performance, higher
equipment utilization, lesser space requirement, lower costs, and greater
profits.
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Elimination of Wastes (non value adding operations)
Waste is defined as any activity that increases cost but does not add value to
the product.
Following are the wastes which need to be eliminated
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Prerequisites for JIT Implementation
A reason for Changing
Executive Commitment
Strategic Manufacturing Plan
Commitment to Action
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Cont.
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Source: www.beyondlean.com
Unit-13 Just In Time
Requirements for JIT Implementation
Respond to Customer Requirements
Integrate all Processes in the Manufacturing System
Employee Participation in Meeting Commitments
Company wide Commitment to education
Eliminate redundancy
Reduce all Inventory
Establish Continuous Improvement Goals
Use a Pull Production System (see speaker notes for details)
Design products for Manufacturing
Develop Controllable Production Processes
Have a Defect Prevention Program
Reduce Setup Times
Build Products to Specification Cont.
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Reduce equipment downtimes through good preventive maintenance.
Cross-train personnel to achieve a very flexible work force.
Require stringent supplier quality assurance since an operation under JIT
can not afford to incur errors due to defects.
Use a control system to convey lots between workstations efficiently; the
use of a kanban system is an example of this.
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Guidelines for successful implementation of JIT (Cont)
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Kanban
A kanban is a card attached to the carrier or container of a lot used to match what
needs to be produced in a work station and what needs to be delivered to the next
station.
Kanbans, which contain information about the lots and quantities involved, are
therefore used to facilitate the execution of this 'pull' system. With this 'pull'
system, no parts that can not be processed in succeeding stations will be
produced.
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Kanban (Cont)
There are two types of kanban assigned to every lot, namely, a production kanban
(P-kanban) and a conveyance kanban (C-kanban). The P-kanban denotes the
need to produce more parts while the C-kanban denotes the need to deliver more
parts to the next station.
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JIT Techniques
Inventory Reduction as a Tool for Improvement
Supplier Relationships
Inventory Pull
Uniform Plant Loading
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Note: For details kindly go through thespeaker notes
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JIT Techniques
Reduced Setup Times
Shop-Floor Layout and Production Cells
Total Quality Assurance
Preventive Maintenance
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Note: For details kindly go through thespeaker notes
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JIT Components
Production Leveling
Pull System
Kanban (label or signboard) system
Good Housekeeping
Small Lot Production
Setup Time Reduction
Total Preventive Maintenance (TPM)
Total Quality Control (TQC)
JIT Purchasing
Line Balancing
Flexible Manufacturing
Small-group Activities (SGA)
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Suppliers as partners
Since JIT is a stockless production and does not allow room for defects orerror having trustworthy reliable suppliers is an important factor.
Once a reliable supplier is found creating a good relationship is the next step.
For a a quality partnership, the company should get products or material with
no errors or defects, and should get everything on time according to delivery
schedules.
Also the supplier must have a back-up plan incase for emergencies such as
strike, weather conditions, and any other problem that many arise.
Trust and open relationships are very important in a JIT atmosphere because
the customer and the supplier must set long-term goals and very precise
shipment and delivery dates
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Total Productive Maintenance
It refers to a management system for optimizing the productivity of
manufacturing equipment through systematic equipment maintenance involving
employees at all levels. Under TPM, everyone is involved in keeping the
equipment in good working order to minimize production losses from
equipment repairs, assists, set-ups, and the like.
Under TPM, zero breakdowns, maximum productivity, and zero defects are
goals to be shared by everyone.
TPM goals:
Improvement of personnel effectiveness and sense of ownership.
reduction of operational costs
reduction of throughput times, and
customer satisfaction down the road.
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TPM has 8 key strategies:
Focused Improvements (Kaizen);
Autonomous Maintenance;
Planned Maintenance;
Technical Training;
Early Equipment Management;
Quality Maintenance;
Administrative and Support Functions Management;
Safety and Environmental Management.
TPM eliminates 6 big losses:
Breakdowns, which can result in long, expensive repairs;
Set-ups, conversions, and changeovers; Idling and minor stoppages;
Reduced equipment speed;
Defects and Rework;
Start-up Losses.
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TPM Pillars:
Preventive Maintenance to prevent breakdowns.
Corrective Maintenance to modify or improve equipment for increased reliability
and easier maintenance.
Maintenance Prevention to design and install equipment that are maintenance-
free.
Breakdown Maintenance to repair equipment quickly after they break down.
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Advantages of JIT
Possible increase in profits
Quality products
Quicker setup
Eliminates costs of storage facilities
More flexible employees
Quality relationships with suppliers
Elimination of waste
No down time
Disadvantages of JIT
Long term commitment
Possible large initial cost with no short term returns
Problems with supplier can cost company large amounts of money
Risk of never successfully implementing JIT
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Companies Currently using JIT
Harley Davidson
Toyota Motor Company
General Motors
Ford Motor Company
Manufacturing Magic
Hawthorne Management Consulting
Strategy Manufacturing Inc.
Application
JIT is most applicable to operations or production flows that do not change, i.e.,
those that are simply repeated over and over again. An example of this would
be an automobile assembly line, wherein every car undergoes the same
production process as the one before it.
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Summary:
JIT is a system that lays emphasis in achieving cost efficiencies by
the principles of waste reduction.
JIT depends on the pull system of supply, manufacture, and delivery
to reduce inventory stage.
JIT requires the use of a flexible force to overcome production hold
ups, even with lesser number of workers.
JIT is possible only when parts and products are of high quality so
that all those produced are fit for use.
Total productive maintenance is one of the essential requirements for
JIT.
Economy of movement is necessary ensuring smooth throughput
which helps in reducing inventory.
Cooperation of suppliers is vital for the success of JIT and they help
in managing inventories.
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Check Your Learning
1. Who is referred to as the Father of JIT?
Ans. Taiichi Ohno
2. Name the two types of Kanban?
Ans. P - Kanban or Production Kanban & C- Kanban or Conveyance
Kanban
3. What is TPM?
Ans. Total Productive Maintenance.
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