Just in Time ManufacturingJust in Time Manufacturing

Buy it if we need it, Buy it if we need it,

make it if itmake it if it i is solds sold..

Stock arrives when needed in the Stock arrives when needed in the production process. Goods are production process. Goods are

made ready for delivery to made ready for delivery to customers.customers.

JIT Building Blocks

Product design

Incentive Systems

Personnel/Worker skills

Qualitycontrol

Relationships with

suppliers

Understanding of

productionprocess

• Waste from overproduction

• Waste from holding WIP

• Transportation waste

• Stock holding waste

• Processing waste

• Waste from product defects

• Waste from not using workers skills

Types of Waste without JIT (JIC)

Reduce costs of stock hold

Minimize Work In ProgressMinimize buffer stocksSmoother production flowIncreased productivity levelsWorker participation in problem solvingGood customer relationships

Benefits of JIT

• Reduced space requirements

• Increased product quality

• Reduced lead times

• Greater flexibility in product mix

Benefits of JIT

What Must You Have for JIT?What Must You Have for JIT?

• Management understanding of production process– walk Management understanding of production process– walk the linethe line

• Effective relationship with customers- efficient EPOS Effective relationship with customers- efficient EPOS ordering systemsordering systems

• Relationship with suppliersRelationship with suppliers - - frequent deliveries, frequent deliveries, effective effective understanding of ordering and supply systemsunderstanding of ordering and supply systems

• Product designProduct design - -standardization, fewer partsstandardization, fewer parts• Incentive systems for workersIncentive systems for workers - -skills, reward for skills, reward for

improved trends in quality and input of ideasimproved trends in quality and input of ideas

• Management may not be committed

• Lack of understanding of production process

• Workers/management may not be cooperative

• Suppliers may resist

• Long supply chains

• Cost of implementing systems

• Lack of skills / cost of training

Obstacles to Conversion to JIT