PPT ON Just in time technique (JIT)

Just in time (JIT) is a production strategy that strives to improve a business' return on investment by reducing in-process inventory and associated carrying costs. Just in time is a type of operations management approach which originated in Japan in the 1950s. It was adopted by Toyota and other Japanese manufacturing firms, with excellent results: Toyota and other companies that adopted the approach ended up raising productivity (through the elimination of waste) significantly.

1. By : Ankit saxena A Presentation on JIT(JUST-IN-TIME)

2. “ A philosophy of manufacturing based on planned elimination of waste and continuous improvement of productivity ……” JIT?

3. Evolved in Japan after World War II, as a result of their diminishing market share in the auto industry. Toyota Motor Company - first to implement fully functioning and successful JIT system, in 1970’s. Japanese Manufacturers looked for a way to gain the most efficient use of limited resources. They worked on "optimal cost/quality relationship. History of JIT

4. JUST-IN-TIME PHILOSOPHY The philosophy of JIT can be traced back to Henry Ford, but formalized JIT originated in Japan as the Toyota Production System. W. Edwards Deming’s lesson of variability reduction was a huge influence . The focus of JIT is to improve the system of production by eliminating all forms of waste .

5. JIT FUNCTIONS

6. Eliminates waste . Achieves streamlined production . Eliminate disruptions in production … caused by poor quality, schedule changes, late deliveries. Makes the manufacturing delivery system flexible by allowing it to handle a variety of products and changes in the level of output. Reduces setup and delivery times .

7. Waste Definition Overproduction Manufacturing an item before it is needed. Inappropriate Processing Using expensive high precision equipment when simpler machines would suffice. Waiting Wasteful time incurred when product is not being moved or processed. Transportation Excessive movement and material handling of product between processes. Motion Unnecessary effort related to the ergonomics of bending, stretching, reaching, lifting, and walking. 6. Inventory Excess inventory hides problems on the shop floor, consumes space, increases lead times, and inhibits communication. 7. Defects Quality defects result in rework and scrap, and add wasteful costs to the system in the form of lost capacity, rescheduling effort, increased inspection, and loss of customer good will. 8. Underutilization of Employees Failure of the firm to learn from and capitalize on its employees’ knowledge and creativity impedes long term efforts to eliminate waste. THE EIGHT TYPES OF WASTE

8. Sources of Waste Overproduction Waiting time Unnecessary transportation Processing waste Inefficient work methods Product defects

9. Strategies For Minimizing Waste By Using JIT Manufacturing in smaller lot sizes reduces excess inventory Reducing inventory levels allows the problems to be uncovered … thus creating opportunities for manufacturing process improvement

10. Principles Of JIT Manufacturing Total quality Management Production Management Supplier Management Inventory Management Human Resource Management

11. JIT Manufacturing Building Blocks Product design Process design Personnel/organizational elements Manufacturing planning and control

12. 1. Product Design Standard parts Design Simplification Highly capable production systems Concurrent engineering

13. 2. Process Design Small lot sizes Setup time reduction Limited work in process Quality improvement Production flexibility Little inventory storage

14. Benefits of Small Lot Sizes

15. 3. Personnel/Organizational Elements Workers as assets Cross-trained workers Continuous improvement Leadership

16. 4. Manufacturing Planning and Control Pull systems Visual systems (kanban) Close vendor relationships Reduced transaction processing (delays in delivery) Preventive maintenance

17. Evaluation and selection of vendor (suppliers) network to develop a tiered supplier network – reducing the number of primary suppliers Traditional supplier Network Tiered S upplier Network

18. APPLICATIONS OF JIT

19. In McDonald’s

20. In McDonald’s High holding costs are the nature of the fast food industries. Wastage. Time.

21. In McDonald’s JIT system wherein McDonald's doesn't begin to cook its orders until a customer has placed a specific order.

22. Implementation of JIT Sophisticated burger-making technology (including a record-breaking bun toaster) McDonald's is able to make food fast enough to wait until it's been ordered. Reduction in wastage.

23. Implementing in JIT Production Systems Criteria for success Service Quality People Food preparation Profitability .

24. Supply Chain Integration

25. Benefits     Improved Quality – The burgers are prepared freshly and hence the quality has improved.      Customer service – As the burger is made only after the order is placed, making special orders is not an issue.      Cost Reduction – Due to significant reduction in wastage as uncooked material has a higher shelf life. Reduction in waiting – Customer’s waiting time reduce 11 min. to just 1 and half min.

26. Companies adopted JIT

27. TOYOTA PRODUCTION SYSTEM

28. Minimizing Waste: Focused Factory Networks Coordination System Integration These are small specialized plants that limit the range of products produced (sometimes only one type of product for an entire facility) Some plants in Japan have as few as 30 and as many as 1000 employees

29. Minimizing Waste: Group Technology (Part 1) Using Departmental Specialization for plant layout can cause a lot of unnecessary material movement Saw Saw Lathe Press Press Grinder Lathe Lathe Saw Press Heat Treat Grinder Note how the flow lines are going back and forth

30. Minimizing Waste: Group Technology (Part 2) Revising by using Group Technology Cells can reduce movement and improve product flow . Press Lathe Grinder Grinder A 2 B Saw Heat Treat Lathe Saw Lathe Press Lathe 1

31. Minimizing Waste: Just-In-Time Production Management philosophy “Pull” system though the plant Hydraulic Push Systems WHAT IT IS Employee participation Industrial engineering/basics Continuing improvement Total quality control Small lot sizes WHAT IT REQUIRES Attacks waste Exposes problems and bottlenecks Achieves streamlined production WHAT IT DOES Stable environment WHAT IT ASSUMES

32. Minimizing Waste: Inventory Hides Problems Work in process queues (banks) Change orders Engineering design redundancies Vendor delinquencies Scrap Design backlogs Machine downtime Decision backlogs Inspection backlogs Paperwork backlog Example: By identifying defective items from a vendor early in the production process the downstream work is saved Example: By identifying defective work by employees upstream, the downstream work is saved

33. Minimizing Waste: Kanban Production Control Systems Storage Part A Storage Part A Machine Center Assembly Line Material Flow Card (signal) Flow Withdrawal kanban Once the Production kanban is received, the Machine Center produces a unit to replace the one taken by the Assembly Line people in the first place This puts the system back were it was before the item was pulled The process begins by the Assembly Line people pulling Part A from Storage Production kanban

34. Determining the Number of Kanban Needed Setting up a kanban system requires determining the number of kanban cards (or containers) needed. Each container represents the minimum production lot size. An accurate estimate of the lead time required to produce a container is key to determining how many kanban are required. Side Bar – In Japan space is a very important consideration since there is so little of it. This process saves on space requirements.

35. Example of Kanban Card Determination: Problem Data A switch assembly is assembled in batches of 4 units from an “upstream” assembly area and delivered in a special container to a “downstream” control-panel assembly operation. The control-panel assembly area requires 5 switch assemblies per hour. The switch assembly area can produce a container of switch assemblies in 2 hours. Safety stock has been set at 10% of needed inventory.

36. Example of Kanban Card Determination: Calculations Always round up!

37. A.gunasekaran and J.lyu in their research implementation of just-in-time in a small company has depicted its advantage in SMEs. he depicted that implementation of JIT in SMEs should start with layout revision, schedule stability and the development of long-term supplier-customer relationships. A new purchasing policy supporting frequent purchases of small lot sizes may help SMEs in implementing a JIT system. Education and training of workers in SMEs about JIT concept and their high leverage opportunity would tremendously support the implementation of JIT system in SMEs.

38. Requirement for the implementation of JIT in Indian industry

39. Management Support And Understanding Of the System. Management And Labour Responsibilities. Training. Supplier Management. Production Layout And Work Flow. Long‐term Planning. Government Support .

40. JIT Benefits Reduced Inventory Improved quality Lower costs Reduced space requirements Shorter lead-time Increased productivity Greater flexibility Improved vendor relations

41. JIT Benefits (contd.) Simplified scheduling & control Increased capacity Better utilization of personnel More product variety Increased equipment utilization Reduced paperwork Valid production priorities Work force participation

42. Disadvantages of JIT Danger of disrupted production due to non-arrival of supplies. Danger of lost sales. High dependence on suppliers. Less time for quality control on arrival of materials. Increased ordering and admin costs. May lose bulk-buying discounts.

43. JIT … Not For Everyone JIT concepts work best when goods can be produced in response to consumer demand (e.g . automobiles, etc.) JIT is less effective for the production of standardized consumer goods (e.g. basic clothing, food, soft drinks, toasters, etc.) There are cases where JIT concepts apply to sub-processes of a make to stock environment. (e.g. computers etc.)