Just In Time

ACMA Presentation

Group Members

• SUBMITTED TO:• PROF Faisal Abbas

• SUBMITTED by• ZUL-NU-RAIN 0009• WAQAR SALEEM 0079• ZAFAR IQBAL 0087

What Is JIT

• Management philosophy (produce only what is needed when it is needed)

• A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed

• Represents Pull type system e.g kanban

History of JIT Manufacturing

• Evolved in Japan after World War II, as a result of their diminishing market share in the auto industry.

• Toyota Motor Company- Birthplace of the JIT Philosophy Under Taiichi Ohno.

• JIT is now on the rise in American Industries.

Definition

• JIT is a manufacturing philosophy involving an integrated set of procedures/activities designed to achieve a high volume of production using minimal inventories

More Introduction

• Raw materials, parts & sub assemblies are pulled through the manufacturing process when they are needed.

• Simply put, JIT is a philosophy of “make what is needed … when it is needed”.

Goal of JIT

• The ultimate goal of JIT is a balanced system.

• Achieves a smooth, rapid flow of materials through the system

• Eliminate disruptions• Make system flexible• Eliminate waste, especially excess

inventory

Big vs. Little JIT

• Big JIT – broad focus– Vendor relations– Human relations– Technology management– Materials and inventory management

• Little JIT – narrow focus– Scheduling materials– Scheduling services of production

What JIT Does

• 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

SEVEN WastesTHE SEVEN TYPES OF WASTE OR MUDA

Waste Definition

Overproduction Manufacturing an item before it is needed.

3. Waiting Wasteful time incurred when product is not being moved or processed.

4. Transportation Excessive movement and material handling of product between processes.

5. Motion Unnecessary effort related to the ergonomics of bending, stretching, reaching, lifting, and walking.

Inventory Excess inventory hides problems on the shop floor, consumes space, increases lead times, and inhibits communication.

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.

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.

Sources of Waste

• Overproduction

• Waiting time

• Unnecessary transportation

• Processing waste

• Inefficient work methods

• Product defects

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

Principles Of JIT Manufacturing

• Total Quality Management

• Production Management

• Supplier Management

• Inventory Management

1st Principle Of JIT

Total Quality Management

Total Quality Management

• Seek long-term commitment to quality efforts with continuous improvement

• Quality must be a higher priority than cost

• Minimizing waste

Total Quality Management• Eliminate Quality Inspectors

• Quality is everyone’s responsibility

• Do it right the first time

2nd Principle Of JIT

Production Management

Production Management

• Pull System vs. Push System– Pull = Made to order– Push = Made for inventory

• Flexibility of the system

• Design For Testability – In the process– Poka-Yoke= Mistake-proofing– Throughout entire process

Production Management

• Reduced lot sizes= Shorter cycle times

• Eliminate disruptions in the process

• Standardized Parts/ Simplicity

Production Management

• Communication Techniques– Completion of task-Kanban – Problem- Siren/light

• Stopping the process if something goes wrong =Jidoka

• Preventive Maintenance

3rd Principle Of JIT

Supplier Management

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

Supplier Management

• Elimination inspection of parts

• Communicate problems to suppliers in a positive manner.

4th Principle Of JIT

Inventory Management

Inventory Management

• Eliminate Safety Stock = Zero Inventory

• JIT is not an inventory control system

• Reduction in inventory opens up space

• Inventory hides problems in a process.

• Water Level = Inventory• Rocks = Problems in the

system• Boat = Company Operations

JIT Manufacturing Building Blocks

• Product design

• Process design

• Personnel/organizationalelements

• Manufacturing planning and control

1. Product Design• Standard parts

• Design Simplification

• Highly capable production systems

• Concurrentengineering

Design Simplification

2. Process Design

• Small lot sizes

• Setup time reduction

• Limited work in process

• Quality improvement

• Production flexibility

• Little inventory storage

Quality Improvement

• Autonomation

– Automatic detection of defects during production

• Jidoka

– Japanese term for autonomation

Production Flexibility• Reduce downtime by reducing changeover

time

• Use preventive maintenance to reduce breakdowns

• Cross-train workers to help clear bottlenecks

• Use many small units of capacity• Reserve capacity for important customers

3. Personnel/Organizational Elements

• Workers as assets

• Cross-trained workers

• Continuous improvement

• Leadership

4. Manufacturing Planning and Control

• Pull systems

• Visual systems (kanban)

• Close vendor relationships

• Reduced transaction processing (delays in delievery)

• Preventive maintenance

Comparison of JIT and Traditional

Factor Traditional JIT

Inventory Much to offset forecast errors, late deliveries

Minimal necessary to operate

Deliveries Large Small

Lot sizes Large Small

Setup; runs Few, long runs Many, short runs

Vendors Long-term relationships are unusual

Partners

Workers Necessary to do the work

Assets

JIT in Services

The basic goal of the demand flow technology in the service organization is to provide optimum response to the customer with the highest quality service and lowest possible cost.

Benefits of JIT Systems

• Increased equipment utilization

• Reduced scrap and rework

• Reduced space requirements

• Pressure for good vendor relationships

• Reduced need for indirect labor

ADVANTAGES

• Reduced Setup time , also known as ‘Changeover’ time.

• Funds tied up in inventories can be used elsewhere.

• Storage area used up can be utilized.

• Throughput Time is reduced resulting in greater output

• Production scheduling and work hour consistency is synchronized with demand.

• Supplies come in regular intervals throughout the production day

• The risk of inventory breaking/expiring is reduced largely.

• Inventory flow becomes simpler and easier to manage due to smaller lot sizes.

• Cuts the risk of supply system problems.

Disadvantages

• Every job is a ‘High Stress’ Rush order

• Balanced systems MUST be in place

• Setup times will greatly impact throughput

• Any problem will lead to unhappy customers (either internal or external)

THANK YOU!!!