Developing the Justin-in-Time Production Process

Just-in-time

1. DEVELOPING OF JUST-IN-TIME PRODUCTION PROCESS BY,

2. 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. A highly coordinated processing system in which goods move through the system, and services are performed, just as they need.

3. HOW IT WORKS?

4. HISTORY 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. Basically implemented in Toyota plant 1950, well established after 1970.

5. FOLLOWERS Adopted by General Electrical in the USA in the 1980. Some companies referred JIT with different names: TOYOTA – ‘Toyota System’ IBM – ‘Continuous flow manufacturing’ GE- ‘ Management by sight’ HEWLETT- PACKARD- ‘ stockless production & repetitive manufacturing system’

6. 7 WASTES Waste of over production Waste of waiting Waste of transportation Waste of Underutilization of Employees Waste of Inventory Waste of motion Waste of making defective products

7. PRINCIPLES OF JIT PRODUCTION

8. TOTAL QUALITY MANAGEMENT Seek long-term commitment Quality must be a higher priority than cost Minimize Waste

9. PRODUCTION MANAGEMENT Pull System vs. Push System Pull = Made to order Push = Made for inventory Communication Techniques Completion of task- Kanban Problem- Andon or siren/light Flexibility of the system Design For Testability Poka -Yoke= Mistake-proofing

10. SUPPLIER MANAGEMENT Establish Long Term Relationships with few suppliers. Delivery of Parts = 100% Defect Free Where they are needed When they are needed The exact quantity Work Together Elimination of inspection of parts E.g. Toyota Productions

11. 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

12. 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.

13. 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 .

14. HUMAN RESOURCE MANAGEMENT Company-wide Involvement Motivation for continuous improvement Problem Solving Diversified Employees Management Support and Empowerment of workforce

15. 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

16. REQUIREMENTS OF JIT Respond to Customer Requirements Integrate all Processes Employee Participation Company wide Commitment to education Eliminate redundancy Reduce all Inventory Establish 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

17. OBSTACLES IN CONVERSION Management not committed Workers not cooperative Decide which parts need most effort Start by trying to reduce setup times Gradually convert operations Convert suppliers to JIT Prepare for obstacles Suppliers may resist

18. ADVANTAGES OF JIT High quality Flexibility Reduced setup times Reduced need for indirect labor Less waste Low warehouse cost Synchronization between production scheduling and work hour

19. DISADVANTAGES OF JIT Time consuming No spare product to meet un expected order Supply Shock : If products do not reach on time High risk factor

20. JIT IN GOODS : Leveraged JIT principles to make its manufacturing process a success Leverage their suppliers to achieve the JIT goal Provide exceptionally short set up times to their customers Suppliers carry inventory instead of carrying it themselves. Has dependable suppliers with the ability to meet its demanding lead time requirements.

21. Seamless system that allows it to transmit its component on requirements Willingness of suppliers to keep inventory on hand.

22. JIT IN SERVICES: MAC D McDonald’s is the best example of JIT in Services !

23. 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. Wastage is reduced along with an improvised taste that makes you want to scream out I’m Lovin ’ It !

24. THANK YOU!!