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7/31/2019 JIT & TQM in SCM1
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JIT & TQM IN SUPPLY CHAIN MANAGEMENT
Presenting by:
T.Ayyappa Naidu (m6-07)
B.Naren (m6-13)
B. Siva Prasad (m6-23)
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JIT
Just-in-time' is a management philosophy and
not a technique.
Just In Time (JIT) is a production and inventory
control system in which materials are purchased
and units are produced only as needed to meet
actual customer demand.
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JIT Emphasis
Continuous improvement. Attacking fundamental problems - anything that does not add value to
the product.
Devising systems to identify problems.
Striving for simplicity - simpler systems may be easier to understand,
easier to manage and less likely to go wrong. A product oriented layout - produces less time spent moving of
materials and parts.
Quality control at source - each worker is responsible for the quality oftheir own output.
Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes
Preventative maintenance, Total productive maintenance - ensuringmachinery and equipment functions perfectly when it is required, andcontinually improving it.
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JIT Emphasis
Eliminating waste. There are seven types ofwaste:
waste from overproduction.
waste of waiting time. transportation waste.
processing waste.
inventory waste. waste of motion.
waste from product defects.
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JIT Emphasis Good housekeeping - workplace cleanliness and
organisation. Set-up time reduction - increases flexibility and allows
smaller batches. Ideal batch size is 1item. Multi-processhandling - a multi-skilled workforce has greaterproductivity, flexibility and job satisfaction.
Levelled / mixed production - to smooth the flow ofproducts through the factory.
Kanbans - simple tools to `pull' products and componentsthrough the process.
Jidoka (Autonomation) - providing machines with theautonomous capability to use judgment, so workers can domore useful things than standing watching them work.
Andon (trouble lights) - to signal problems to initiatecorrective action.
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http://www.ifm.eng.cam.ac.uk/dstools/process/kanban.htmlhttp://www.ifm.eng.cam.ac.uk/dstools/process/kanban.html7/31/2019 JIT & TQM in SCM1
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JIT & Supply Chain Management- Cont.
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JIT in Supply Chain Evolution
During Stages 3 & 4 JIT principles were widely
used for Inventory Reductions &
Improvements on Supplier Relationships.
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JIT & Supply Chain Management- Cont.
The Elements of Just-in-Time
Waste Reduction
Firms reduce costs & add value by eliminating
waste from the productive system.
Waste encompasses wait times, inventories,
material & people movement, processing steps,
variability, any other non-value-adding activity.
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JIT & Supply Chain Management- Cont.
The Elements of Just-in-Time
Just-in-Time Partnerships
Suppliers & customers work to remove waste,
reduce cost, & improve quality & customer service. JIT purchasing includes delivering smaller
quantities, at right time, delivered to the rightlocation, in the right quantities.
Firms develop JIT partnerships with key customers.Mutual dependency & benefits occur among JITpartnerships.
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JIT & Supply Chain Management- Cont.
The Elements of Just-in-Time
Just-in-Time Layouts
Move people & materials when & where needed, ASAP.
Group technology (work cells)- process similar parts orcomponents saving duplication of equipment & labor
Work cells are often U-shaped to facilitate easieroperator & material movements.
JIT layouts are very visual (lines of visibility areunobstructed) with operators at one processing centerable to monitor work at another.
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JIT & Supply Chain Management- Cont.
The Elements of Just-in-Time
Just-in-Time Inventories
Reduction of inventory levels causes problems to
surface in the organization.
Once problems are detected, they can be solved.
The end result is a smoother running organization
with less inventory investment.
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JIT & Supply Chain Management- Cont.
The Elements of Just-in-Time
Just-in-Time Scheduling
Small batch scheduling drives down costs by:
Reducing purchased, WIP, & finished goods inventories Makes the firm more flexible to meet customer demand.
Small production batches are accomplished withthe use ofkanbansa Japanese word for card.
Although for JIT use, Kanbanhas come to mean asignal to order or release material in theproduction system.
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JIT & Supply Chain Management- Cont.
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JIT & Supply Chain Management- Cont.
The Elements of Just-in-Time
Continuous Improvement (Kaizen)
Continuous approach to reduce process, delivery, &
quality problems, such as machine breakdownproblems, setup problems, & internal quality problems.
Workforce Commitment
Managers must support JIT by providing subordinates
with the skill, tools, time, & other necessary resources
to identify problems & implement solutions.
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JIT & Supply Chain Management- Cont.
The Elements of Just-in-Time
Just-in-Time II
An extension of supplier partnerships & vendor-
managed inventories. A suppliers employee is housed in the purchasing
department of the buyers organization, acting as
both buyer & supplier representative. This
employee monitors inventory levels, placespurchase orders, & participates on product design& value analysis teams.
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TQM
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TQM Definition
Total quality management or TQM is an integrativephilosophy of management for continuously improvingthe quality of products and processes.
TQM functions on the premise that the quality ofproducts and processes is the responsibility ofeveryone who is involved with the creation orconsumption of the products or services offered by anorganization.
TQM capitalizes on the involvement of management,workforce, suppliers, and even customers, in order tomeet or exceed customer expectations.
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TQM is an enterprise-wide philosophy,
encompassing suppliers & customers.
The Elements of Total Quality Management Focus on the Customer
Meeting customer expectations applies to
external as well as to internal suppliers &
customers. Workforce Involvement
Top management commitment. New role asfacilitator.
Employee Empowerment - Think out of the box.
Teamwork is the quality circle concept
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Demings Way
1. Create constancy of purpose toimprove product & service.
2. Adopt the new philosophy.
3. Cease dependence on inspectionto improve quality.
4. End the practice of awardingbusiness on the basis of price.
5. Constantly improve theproduction & service system.
6. Institute training on the job.
7. Institute leadership.
8. Drive out fear.
9. Break down barriers betweendepartments.
10.Eliminate slogans & exhortations.
11.Eliminate quotas.
12.Remove barriers to pride of
workmanship.13.Institute program of self-improvement
14.Put everyone to work toaccomplish the transformation
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The Elements of Total Quality Management
The methods for implementing this approach come from the teachings of such
quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum,
Kaoru Ishikawa and Joseph M. Juran.
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The Elements of Total Quality Management
Crosbys Way-
Four Absolutes of Quality
1. The definition of quality is conformance to
requirements2. The system of quality is prevention.
3. Performance standard is zero defects.
4. The measure of quality is the price of non
conformance
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The Elements of Total Quality Management
Objectives
Stimulate firms to improve Recognize firms for quality
achievements,
Establish guidelines so thatorganizations can evaluate theirimprovement & provide
guidance to others
Categories Measured
1. Leadership2. Strategic planning
3. Customer & market focus
4. Information & analysis
5. Human resource focus
6. Process management
7. Business Results
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Malcolm Baldrige National Quality Award-
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ISO 9000 Eight-Quality Management Principles
1. Customer focus
2. Leadership
3. Involvement of people
4. Process approach5. System approach to management
6. Continual improvement
7. Factual approach to decision making
8. Mutually beneficial supplier relationships
A Supply Chain Quality Management System builtusing the above Eight ISO 9000 principlescanpromote improvement of operation efficiency
and competition advantage. 22
Total Quality Management & Supply Chain
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TQM Tools
Pareto Analysis
Flow Chart Check Sheet
Histogram
Scatter Diagram
SPC Chart Cause-and-Effect
Diagram
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The Tools of TQMFlow Diagrams- Annotated boxes representing process to show the flow ofproducts or customers.
Check Sheets- to determine frequencies for specific problems.
Pareto Charts- for presenting data in an organized fashion, indicating processproblems from most to least severe.
Cause-and-Effect Diagrams (Fishbone or Ishikawa diagrams) used to aid inbrainstorming and isolating the causes of a problem.
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Histograms
A histogram is a chart showing the number of occurrences in
rank order Scatter Diagrams
Scatter diagrams helps us recognize & understand causal
relationships
Statistical Process Control (SPC)
Allows firms to visually monitor process performance, comparethe performance to desired levels or standards, and takecorrective steps quickly before process variability gets out ofcontrol and damages products, services, and customers
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CONCLUSION
In todays world of ever-increasing consumer demand,dense competition, and globalization, companies need to
ensure that an effective quality program is in place.
Consumers are demanding more and more that products
meet high-levels of performance and reliability but at
the same time remain cost-effective.
Total Quality Management (TQM) provides for continuous
improvement through formalized, methodological steps.
In order for TQM to work however, organizational-wide
adoption must take place.
Through training, patience and determination TQM can
transform a mediocre company into a world class
enterprise.26
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