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CHAPTER 1 INTRODUCTION

Company Profile (Cipla Ltd.)


HISTORY:-

CIPLA
In 1935, set up The Chemical, Industrial & Pharmaceutical Laboratories, which came to
be popularly known as Cipla. He gave the company all his patent and proprietary
formulas for several drugs and medicines, without charging any royalty. On August 17,
1935, Cipla was registered as a public limited company with an authorised capital of Rs
6 lakhs.

The search for suitable premises ended at 289, Bellasis Road (the present corporate
office) where a small bungalow with a few rooms was taken on lease for 20 years for Rs
350 a month.

Cipla was officially opened on September 22, 1937 when the first products were ready
for the market. The Sunday Standard wrote: "The birth of Cipla which was launched into
the world by Dr K A Hamied will be a red letter day in the annals of Bombay Industries.
The first city in India can now boast of a concern, which will supersede all existing firms
in the magnitude of its operations. India has lagged behind in the march of science but
she is now awakening from her lethargy. The new company has mapped out an
ambitious programme and with intelligent direction and skillful production bids fair to
establish a great reputation in the East. "

July 4, 1939 was a red-letter day for Cipla, when the Father of the Nation, Mahatma
Gandhi, honoured the factory with a visit. He was "delighted to visit this Indian
enterprise", he noted later. From the time Cipla came to the aid of the nation gasping for
essential medicines during the Second World War, the company has been among the
leaders in the pharmaceutical industry in India.
VISITED BY MAHATMA GANDHI

July 4, 1939 was a red-letter day for Cipla, when the Father of the Nation, Mahatma
Gandhi, honoured the factory with a visit. He was "delighted to visit this Indian
enterprise", he noted later. From the time Cipla came to the aid of the nation gasping for
essential medicines during the Second World War, the company has been among the
leaders in the pharmaceutical industry in India.

On October 31, 1939, the books showed an alltime high loss of Rs 67,935.

That was the last time the company ever recorded a deficit.

In 1942, Dr Hamied's blueprint for a technical industrial research institute was accepted by
the government and led to the birth of the Council of Scientific and Industrial Research
(CSIR), which is today the apex research body in the country.

In 1944, the company bought the premises at Bombay Central and decided to put up a
"first class modern pharmaceutical works and laboratory." It was also decided to acquire
land and buildings at Vikhroli. With severe import restrictions hampering production, the
company decided to commence manufacturing the basic chemicals required for
pharmaceuticals.

In 1946, Cipla's product for hypertension, Serpinoid , was exported to the American
Roland Corporation, to the tune of Rs 8 lakhs. Five years later, the company entered into
an agreement with a Swiss firm for manufacturing foromycene.

.In 1961, the Vikhroli factory started manufacturing diosgenin. This heralded the
manufacture of several steroids and hormones derived from diosgenin
Global Presence

Exports for the financial year ended March 31, 2009 amounted to more than Rs. 27,500
million. Cipla exports raw materials, intermediates, prescription drugs, OTC products and
veterinary products. Cipla also offers technology for products and processes. Technical
know-how/fees received during the year 2008-09 amounted to about Rs. 2200 million
Cipla's manufacturing facilities have been approved by the following regulatory authorities
Food and Drug Administration (FDA), USA Medicines and Healthcare products
Regulatory Agency (MHRA), UK Therapeutic Goods Administration (TGA), Australia
Medicines Control Council (MCC), South Africa National Institute of Pharmacy (NIP),
Hungary Pharamaceutical Inspection Convention (PIC), Germany World Health
Organisation (WHO) Department of Health, Canada State Institute for the Control of
Drugs, Slovak Republic ANVISA, Brazil
IMPORTANT DAYS MILESTONE OF CIPLA

1935

Dr K A Hamied sets up "The Chemical, Industrial and Pharmaceutical Laboratories Ltd." in a


rented bungalow, at Bombay Central.

1941

As the Second World War cuts off drug supplies, the company starts producing fine chemicals,
dedicating all its facilities for the war effort.

1952

Sets up first research division for attaining self-sufficiency in technological development.

1960

Starts operations at second plant at Vikhroli, Mumbai, producing fine chemicals with special
emphasis on natural products.

1968

Cipla manufactures ampicillin for the first time in the country.

1972

Starts Agricultural Research Division at Bangalore, for scientific cultivation of medicinal plants.

1976

Cipla launches medicinal aerosols for asthma.

1980

Wins Chemexcil Award for Excellence for exports.

1982

Fourth factory begins operations at Patalganga, Maharashtra.

1984

Develops anti-cancer drugs, vinblastine and vincristine in collaboration with the National
Chemical Laboratory, Pune. Wins Sir P C Ray Award for developing inhouse technology for
indigenous manufacture of a number of basic drugs.
1985

US FDA approves Cipla's bulk drug manufacturing facilities.

1988

Cipla wins National Award for Successful Commercialisation of Publicly Funded R&D.

1991

Lauches etoposide, a breakthrough in cancer chemotherapy, in association with Indian Institute


of Chemical Technology.

The company pioneers the manufacture of the antiretroviral drug, zidovudine, in technological
collaboration with Indian Institute of Chemical Technology, Hyderabad.

1994

Cipla's fifth factory begins commercial production at Kurkumbh, Maharashtra.

1997

Launches transparent Rotahaler, the world's first such dry powder inhaler device now patented
by Cipla in India and abroad. The palliative cancer care centre set up by the Cipla Foundation,
begins offering free services at Warje, near Pune.

1998

Launches lamivudine, becoming one of the few companies in the world to offer all three
component drugs of retroviral combination therapy (zidovudine and stavudine already launched).

1999
Launches Nevirapine, antiretroviral drug, used to prevent the transmission of AIDS from mother
to child.

2000

Cipla became the first company, outside the USA and Europe to launch CFC-free inhalers – ten
years before the deadline to phase out use of CFC in medicinal products.
2002

Four state-of-the-art manufacturing facilities set up in Goa in a record time of less than twelve
months.

2003

Launches TIOVA (Tiotropium bromide), a novel inhaled, long-acting anti cholinergic


bronchodilator that is employed as a once-daily maintenance treatment for patients with chronic
obstructive pulmonary disease (COPD).Commissioned second phase of manufacturing
operations at Goa.

2005

Set-up state-of-the-art facility for manufacture of formulations at Badd , Himachal Pradesh.

2007

Set-up state-of-the-art facility for manufacture of formulations at Sikkim.


CHAPTER 2
INTRODUCTION ABOUT JIT

Introduction

Just-in-time (JIT) is a management philosophy that strives to eliminate sources of manufacturing


waste by producing the right part in the right place at the right time. Waste results from any
activity that adds cost without adding value, such as moving and storing.JIT (also known as lean
production or stockless production) should improve profits and return on investment by reducing
inventory levels (increasing the inventory turnover rate), reducing variability, improving product
quality, reducing production and delivery lead times, and reducing other costs (such as those
associated with machine setup and equipment breakdown). In a JIT system, underutilized
(excess) capacity is used instead of buffer inventories to hedge against problems that may arise.

JIT applies primarily to repetitive manufacturing processes in which the same products and
components are produced over and over again. The general idea is to establish flow processes
(even when the facility uses a jobbing or batch process layout) by linking work centers so that
there is an even, balanced flow of materials throughout the entire production process, similar to
that found in an assembly line. To accomplish this, an attempt is made to reach the goals of
driving all queues toward zero and achieving the ideal lot size of one unit. The goal of JIT,
therefore, is to minimize the presence of non-value-adding operations and non-moving
inventories in the production line. This will result in shorter throughput times, better on-time
delivery performance, higher equipment utilization, lesser space requirement, lower costs, and
greater profits.

JIT was developed as a means of meeting customer demands with minimum delays. Thus, in the
olden days, JIT is used not to reduce manufacturing wastage, but primarily to produce goods so
that customer orders are met exactly when they need the products.

JIT is also known as lean production or stockless production, since the key behind a
successful implementation of JIT is the reduction of inventory levels at the various stations of the
production line to the absolute minimum. This necessitates good coordination between stations
such that every station produces only the exact volume that the next station needs. On the other
hand, a station pulls in only the exact volume that it needs from the preceding station.

The JIT system consists of defining the production flow and setting up the production floor
such that the flow of materials as they get manufactured through the line is smooth and
unimpeded, thereby reducing material waiting time. This requires that the capacities of the
various workstations that the materials pass through are very evenly matched and balanced, such
that bottlenecks in the production line are eliminated. This set-up ensures that the materials will
undergo manufacturing without queuing or stoppage.

Another important aspect of JIT is the use of a 'pull' system to move inventories through
the production line. Under such a system, the requirements of the next station are what modulate
the production of a particular station. It is therefore necessary under JIT to define a process by
which the pulling of lots from one station to the next is facilitated.

JIT is most applicable to operations or production flows that do not change, i.e., those that
are simply repeated over and over again. An example of this would be an automobile assembly
line, wherein every car undergoes the same production process as the one before it.

Some semiconductor companies have likewise practiced JIT successfully. Still, there are some
semiconductor companies that don’t practice JIT for the simple reason that their operations are
too complex for JIT application. On the other hand, that’s precisely the challenge of JIT –
creation of a production set-up that is simple enough to allow JIT. (find a semi conductor
factory)

Inventory stocks allow production process to continue even when some problem occurs. In a
way, inventory stocks act like a buffers to hide any problem that may occur. But, with JIT, there
are no buffers to hide problems and thus, occurrence of problem can shut down the entire
production process. Thus, JIT philosophy helps organization to prominently expose problems
and thus, bring a clear focus on removal of it at source, by eliminating the cause, rather than
effects, of problem. With JIT, it is believed that the root causes of most problems are due to
faulty production process design. Hence, with JIT, nothing is taken for granted, everything is
subject to analysis. Each activity is identified as either “Value-Added” or “ Non-Value-Added”.
The reduction of “Non-Value-Added” activities is achieved mainly through increasing
manufacturing flexibility and improved quality. JIT is an extremely powerful tool to identify
where improvements should be made. It helps you to identify cause (not the effect) of problem
and its elimination. Failures and exceptions are treated as opportunities to improve the system. In
fact, JIT initiates failures due to problems to expose them. It is a system of trouble-shooting,
within a culture of constant analysis and improvement. It is clear, as an attitude and approach,
JIT and TQM are perfectly complimentary to each other, to expose and correct problems at
source, so as to avoid wasting resources on production of defective products.

Just-in-time manufacturing is a process where suppliers deliver inventory to the factory


only when it's needed for assembly. Companies are beginning to turn to Internet-based
technologies to communicate with their suppliers, making the just-in-time ordering and delivery
process speedier and more flexible.
CHAPTER3
Just in time Production

Just in time- background and history

Just-In-Time is a Japanese manufacturing management method developed in 1970s. It was first


adopted by Toyota manufacturing plants by Taiichi Ohno. The main concern at that time was to
meet consumer demands. Because of the success of JIT management, Taiichi Ohno was named
the Father of JIT.

After the first introduction of JIT by Toyota, many companies followed up and around
mid 1970s‟, it gained extended support and widely used by many companies. One motivated
reason for developing JIT and some other better production techniques was that after World War
II, Japanese people had a very strong incentive to develop a good manufacturing technique to
help them rebuilding the economy. They also had a strong working ethnic which was
concentrated on work rather than leisure, seeked continuous improvement, life commitment to
work, group conscious rather than individualism and achieved common goal. This kind of
motivation had driven Japanese economy to succeed. Because of the natural constraints and the
economy constraints after World War II, Japanese Manufacturers looked for a way to gain the
most efficient use of limited resources. They worked on "optimal cost/quality relationship".
Before the introduction of JIT, there were a lot of manufacturing defects for the existing
system at that time. According to Hirano, this included inventory problem, product defects, risen
cost, large lot production and delivery delays. The inventory problems included the unused
accumulated inventory that was not only unproductive, but also required a lot of effort in storing
and managing them. Other implied problems such as parts storage, equipment breakdowns, and
uneven production levels. For the product defects, manufacturers knew that only one single
product defects can destroy the producer‟s creditability. They must create a "defect-free"
process. Instead of large lot production - producing one type of products, they awaked that they
should produce more diversified goods. There was also a problem of rising cost, the existing
system could not reduce cost any further but remember improvement always leads to cost
reduction.

Lastly, the existing system did not manage well for fast delivery request, so, there was a need to
have a faster and reliable delivery system in order to handle customers‟ needs. Thus, JIT
manufacturing management was developed based on these problems.
Focus of JIT

Mainly JIT focuses to eliminate the waste or the non-value added. Thus there are several types of
wastes categorised. JIT usually identifies seven prominent types of waste to be eliminated:

 Waste from Overproduction

 Transportation Waste

 Processing Waste

 Waste from Product Defects

 Waste of waiting/idle time

 Inventory Waste
Phase for Just in Time:

According to Hirano, the introductory phases of JIT involve 5 steps.

FIVE STEPS IN THE INTRODUCTORY PHASE OF JIT

Step 1: Awareness Revolution

It means giving up old concept of managing and adopting JIT way of


Thinking . There are 10 principles for improvement:

1. Abolish old tradition concepts.


2. Assume that new method will work.
3. No excuses are accepted.

4. It is not seeking for perfection, absolutely zero-defect process, few defects is acceptable.

5. Correct mistakes immediately.


6. Do not spend money on improvement.

7. Use you brain to solve problem.


8. Repeat to ask yourself 5 times before any decision.

9. Gather information from several people, more is better!


10. Remember that improvement has no limits.

The idea of giving up old concept was especially for the large lot production, The lot production
was felt that "having fewer changeover was better", but it was no longer true. Whereas JIT is a
one-piece flow manufacturing. To compare the two, Hirano had this idea:

Lot production: "Unneeded goods...In unneeded quantities...At unneeded times..." JIT: "Needed
goods...In needed quantities...At needed times..."

The main point here is to have an awareness of the need of throwing out old system and adopting
a new one.
Step 2: 5S’s For Workplace Improvement

The 5S’s stand for:

Seiri - Proper Arrangement


Seiton - Orderliness
Seiso - Cleanliness
Seiketsu - Cleanup
Shitsuke – Discipline

This 5S‟s should be implemented company-wide and this should be part of a total improvement
program.

Seiri - Proper Arrangement means sorting what you have, identifying the needs and throwing out
those unnecessary. One example is using red-tags. This is a little red-bordered paper saying what
the production is, how many are accumulated and then stick these red tags onto every box of
inventory . It enhances the easiness to know the inventory status and can reduce cost.

Seiton - Orderliness means making thing in order. Examples include keeping shelves in order,
keeping storage areas in order, keeping workplace in order, keeping worktables in order and
keeping the office in order.

Seiso - Cleanliness means having a clean workplace, equipment, etc.

Seiketsu - Cleanup mean maintaining equipment and tools.

Shitsuke - Discipline means following the rules and making them a habit.
Step 3: Flow Manufacturing

Flow manufacturing means producing one single piece of product at a time but multi-handling
which follows the process sequence.

There are several main points concerning flow manufacturing:

1. Arrange machines in sequence.


2. U-shaped production line (Cellular Manufacturing).
3. Produce one-piece at a time.
4. Train workers to be multi-skilled.
5. Follow the cycle time.
6. Let the workers standing and walking around while working.
7. Use small and dedicated machines.

Step 4: Standard Operations

Standard Operation means to produce quality safely and less expensively through efficient rules
and methods of arranging people, products and machines.

The basis of standard operations is:

1. Cycle time It means how long it would take to "carry out part all the way through the cell".
Following are the equations for calculating cycle time.
Daily Quantity Required = Monthly Quantity Needed / Working Days per month

Cycle Time = Working Hours per day / Daily Quantity Required

2. Work sequence

3. Standard stock-on-hand

4. Use operation charts

Step 5: Multi-Process Handling

Multi-process handling means one worker is responsible for several processes in a cell.

Some points that should be aware:

· Clearly assign jobs to machines and workers.


· Make a good use of U-shaped cell manufacturing.
· Multi-skilled workers

· Operation should be able to perform multi-machine handling and multi process handling.

Multi-machine handling - a worker should handle several machines at once, this is also called
"horizontal handling".

Multi-process handling - a worker should handle several different processes at once, this is also
called "vertical handling" and this is the basis for JIT production.
· Uses casters extensively as author written, "Floor bolts are our enemies! Machines must be
movable."
CHAPTER4
Elements of Just in Time

According to Cheng, the basic elements of JIT manufacturing are:

· People Involvement
· Plants
· System

People Involvement

Maintaining a good support and agreement from people involved in production. This is not only
reduce the time and effort in implementation of JIT, but also minimize the chance of creating
implementation problem. The attempt to maximize people‟s involvement may carry through the
introduction of quality circle and total involvement concept.

Manufacturers can gain support from 4 sources.

1. Stockholders and owners of the company - should maintain a good long-term relationship among
them.

2. Labor organization - all labors should be well-informed about the goals of JIT, this is crucial in
gaining support from the them.

3. Management support - support from all level of management. The ideas of continuous
improvement should spread all over the factory, managers and all shop-floor labor.

4. Government support - government can show their support by extending tax and other financial
help. This can enhance the motivation, and also help in financing the implementation of JIT.
Plants

Certain requirements are needed to implement JIT, there are:

1. Plant layout - the plant layout is mainly focus on maximizing working flexibility. It requires
the use of "multi-function workers".

2. Demand pull production - it means to produce when the order is received. This can manage
the quantity and time more appropriately.

3. Kanban - a Japanese term for card or tag. Special inventory and process information are
written on the card. This helps tying and linking the process more efficiently.

4.Self-inspection - it is carried out by the workers at catch mistakes immediately.

5. Continuous improvement - this concept should be adopted by every members in the


organization in order to carry out JIT. This is the most important concept of JIT. This can allow
an organization to improve its productivity, service, operation and even customer satisfaction in
an on-going basis.

System

This refers to the technology and process that combines the different processes and activities
together. Two major types are MRP (Material Requirement Planning) and MRP II
(Manufacturing Resource Planning).

MRP is a computer-based, bottom-up manufacturing approach. This involves two plans,


production plan and master production schedule. Production plan involves the management and
planning of resources through the available capacity. Master production schedule involves what
products to be produced in what time.
MRP II is mainly involved the management or planning of financial resources in order to carry
out the operation.

Goal of Just in Time

According to Cheng in Just-In-Time Manufacturing – An Introduction, he explains the objectives


of JIT. There are three main objectives:

1.Increasing the organization‟s ability to compete with others and remain competitive over the
long run. The competitiveness of the firms is increased by the use of JIT manufacturing process
as they can develop a more optimal Process for their firms.

2. Increasing efficiency within the production process. Efficiency is obtained through the
increase of productivity and decrease of cost.
3. Reducing wasted materials, time and effort. It can help to reduce the costs.

Other short-term and long-term objectives are:-

1. Identify and response to consumers needs. Customers‟ needs and wants seem to be the major
focus for business now, this objective will help the firm on what is demanded from customers,
and what is required of production.

2. Optimal quality/cost relationship. The organization should focus on zero-defect production


process. Although it seems to be unrealistic, in the long run, it will eliminate a huge amount of
resources and effort in inspecting,Reworking and the production of defected goods.

3. Reduce unwanted wastes. Wastes that do not add value to the products itself should be
eliminated.
4. Develop a reliable relationship between the suppliers. A good and long-term relationship
between organization and its suppliers helps to manage a more efficient process in inventory
management, material management and delivery system. It will also assure that the supply is
stable and available when needed.

5. Plant design for maximizing efficiency. The design of plant is essential in terms of
manufacturing efficiency and utility of resources.

6. Adopt the work ethnic of Japanese workers for continuous improvement.


Commit a long-term continuous improvement throughout the organization. It
will help the organization to remain competitive in the long run.

Other Similar Ideas

1.Reduction of Inventory. JIT reduces inventory at all level of the organization.

2.Reduction of Lead Time. Lead time such as setup time and move time and waiting time is
reduced.

3.Quality Control. JIT improves the quality control by increasing its efficiency of managing shop
floor production and increasing its commitment to its suppliers.

4.Improvement for Performance. In JIT manufacturing, the organization can obtain a greater
impact/control over its suppliers. With fewer suppliers, organizations have larger control because
the amount purchased is usually large. And, organizations can obtain a tighter requirement on
products from their suppliers.

5.Total Preventive Maintenance. JIT provides preventive maintenance to lessen the risk of
machine breakdowns.

6.Continuous Improvement. JIT is a never-ending method in operation management.


7.Strategic Gain. JIT helps organization to remain competitive in the market place.
8. Reduction of Wastes. JIT helps significantly in reducing wastes.

JIT can help organization remains competitive by offering consumers higher quality of products
than their competitors, it is very important in the survival in the market place.

These major objectives are suitable for all organizations. But each organization is unique in some
way, adjustments of JIT objectives for each form should be made in order to complement the
overall production process

Limitation of Just in Time

Regardless of the great benefits of JIT, it has its limitations, the following are the major
limitations.

· Culture Differences The organizational cultures vary from firm to firm. There are some cultures
that tie to JIT success but it is difficult for an organization to change its cultures within a short
time.
·Traditional Approach The traditional approach in manufacturing is to store up a large amount of
inventory in the means of backing up during bad time. Those companies rely on safety stocks
may have a problem with the use of JIT.

· Difference in implementation of JIT Because JIT was originally established in Japanese, it is


somehow different for implementing in western countries.
The benefits may vary.

· Loss of individual autonomy. This is mainly due to the shorter cycle times which adds
pressures and stress on the workers.

· Loss of team autonomy. This is the result of decreasing buffer inventories which lead to a lower
flexibility of the workers to solve problem individually.
· Loss of method autonomy. It means the workers must act some way when problems occur, this
does not allow them to have their own method to solve a problem.

· JIT success is varied from industry to industry. Some industries are benefit more from JIT
while others do not.

· Resistance to change JIT involves a change throughout the whole organization, but human
nature resists to changes. The most common resistances are emotional resistance and rational
resistance. Emotional resistance are those psychological feeling which hinder performance such
as anxiety. Rational resistance is the deficient of the needed information for the workers to
perform the job well.

Some other limitations:-

· Relationship between management and employees is important .A mutual trust must be built
between management and employees in order to have effective decision making.

· Employee commitment Employees must commit to JIT, to enhance the quality as their ultimate
goal, and to see JIT as a way to compete rather than method used by managers to increase their
workload.

· Production level JIT works best for medium to high range of production volume.

·Employee skill JIT requires workers to be multi-skilled and flexible to change.

· Compensation should be set on time-based wages. This allows the workers to concentrate on
building what the customers wants.
Chapter5
JIT - PHILOSOPHY OR TECHNIQUE

Just In Time is a philosophy and not the technique for elimination of wastes. The JIT strategy is
to have "the right product at the right place at the right time."

The Just-in-time philosophy that emerged, is a management logic based on simplicity and
continuous improvement. It may be applied to any process where it will aim to make
improvements through elimination of excess, waste and unevenness.

The Just-in-Time concept comprises methods and techniques that aim to increase the potential
for short times to delivery.

Production system in which both the movement of goods during production and deliveries from
suppliers are carefully timed so that at each step of the process the next (usually small) batch
arrives for processing just as the proceeding batch is completed

The "Just in time" (JIT.) inventory concept, also called Kanban, asserts that just enough
inventories, arriving just in time to replace that which was just used, is all the inventory that is
necessary at any given time. Excessive inventory unnecessarily ties up money, adds warehousing
costs, increases risk of damage and risks obsolescence, and most of all, can possibly obscure
opportunities for operational improvements.

Storing inventory is still the basics of warehousing, but in today‟s business it constitutes only
part of the total. A modern thought on warehousing is that large inventories are really not as
necessary as once believed.

To some companies storing large quantities of inventory is detrimental to business because it ties
up capital and can also disguise poor management practices. The JIT philosophy emphasizes
flow flexibility and developing supply chains to reduce all excess and waste
Implementation Of JIT

Although the just-in-time (JIT) concept is very young, perhaps 10 to 15 years old in this country,
it is so widespread in American manufacturing and service. Perhaps this is because the idea is so
simple and so appealing. In short, the JIT strategy is to have "the right product at the right place
at the right time." It implies that in manufacturing or service, each stages of the process produces
exactly the amount that is required for the next step in the process. This notion holds true for all
steps within the system.

Suppose, for example, that all products pass through a drilling operation and then a milling
operation. With JIT, the drill produces only what the mill will need next. It also holds for the last
step that is, the system produces only what the customer desires
Implementation of a JIT system typically includes emphasis on the following aspects of the
production process:

 Production Smoothing

 Capacity Buffers

 Set-up Reduction

 Cross Training and Plant Layout

 Total Quality Management


Most of the companies today seek this method of implementation:

Form a top-level team:

This team‟s responsibilities include deciding upon an organizational structure and developing a
plan to implement JIT within the company. This plan should include the company‟s goals
concerning production, as well as how to establish this plan among all employees (i.e. motivation
& discipline) This plan then be used to establish the overall philosophy of the company
concerning JIT

To train the top management in the basic concepts of JIT:

This is the first step of the implementation process. It is very important to educate and train the
top-level management, as they are the ones who frame policies and get things moving. This
being a new idea, getting this into practice will need full support & cooperation from these
people.

To implement this system to every aspect of the company from supplier to distributors:

First of all each department should establish its goals and a specific problem to attack. Then a
team should be chosen by each department and establish team leaders. The teams should focus
on the reduction of costs and the elimination of wastes. Data must then be collected on the
team‟s problems.
This data should be plotted in order to find excess waste or costs. Once this is done,
measurement should be plotted in order to find excess waste or costs. Once this is done,
measurement should be made. Manipulation of this data should show at least some apparent
problems in the current system. Further analysis should help in the implementation of JIT by
showing problem areas. In addition, the data the data could be used to show the effects of
implementing JIT into the company.
Guidelines for Successful JIT Implementation

Make the factory loadings uniform, linear, and stable. Fluctuations in manufacturing loadings
will result in bottlenecks. Reduce, if not eliminate, conversion and set-up times. Reduce lot sizes.
This will smoothen out the flow of inventories from one station to another, although this may
necessitate more frequent deliveries or transfers. Reduce lead times by moving work stations
closer together and streamlining the production floor lay-out, applying cellular manufacturing
concepts, using technology to automate processes and improve coordination. Reduce equipment
downtimes through good preventive maintenance. Cross-train personnel to achieve a very
flexible work force require stringent supplier quality assurance since an operation under JIT can
not afford to incur errors due to defects. Use a control system to convey lots between
workstations efficiently; the use of a kanban system is an example of this

Benefits of JIT

Perhaps, the most significant benefit of JIT is to improve the responsiveness of the firms to the
market place thereby affording it an overwhelming advantage in competition. Specific benefits
will depend upon size of the market, technology of processes etc. Therefore, they vary from
organizations to organization.

One of the benefits of JIT is that with raw materials and WIP being processed in smaller batches,
errors can be easily identified and corrected quickly, during each stage of the production process.
This in turn has the ‘knock-on’ effects of reducing non-value added costs

Conceptually, the JIT benefits could be grouped into the following categories;

Product Cost: This is greatly reduced of manufacturing cycle time, reduction of scraps,
inventories, space requirement, and material handling and eliminations of non-value adding
operations.

Quality: It has greatly improved due to fast detection and correction of defects, use of automatic
stop devices, higher quality of purchased parts, worker centered quality control and statistical
process control. Total preventive maintenance an d lower inventory levels also help in quality
improvements.

Design: Due to fast response to engineering change, alternative designs can be quickly brought
on the shop floor.

Productivity: Order magnitude productivity improvements are obtained due to the use of
flexible workforce, reduced rework, reduced inspection, reduced part delay and reduced
throughout time. Workers acquire multiple skills and become highly productive.
Chapter6
Just in Time-----Manufacturing

(1) Introduction

Just in Time---manufacturing is a systems method to develop and operate a factory system. It is


mainly basis on the total Decrease of waste. As you know, many people think JIT is not a new
knowledge field. As a matter of fact, it has been part and plays an important role of the Japanese
manufacturing industry adopted method for a long time. It requires all the materials such as
equipment, human resources, and management skills are made available only in the amount
required and at the time required to do the job. It is based on producing only the necessary units
in the necessary quantities at the necessary time by bringing production rates exactly in line with
market demand. Generally speaking, JIT means making what the
market wants. JIT has been found to be so effective that it increases

productivity, work performance and product quality. What‟s even more, it plays a vital role to
increase productivity and decrease the total cost of manufacturing production.

(2) Planning for JIT

Since each manufacturing process is different, it is up to the individual company to determine the
degree of appropriateness and the final application of JIT. However, it is very important to define
the plan and objectives before setting up a JIT manufacturing system. It is impossible to establish
a new JIT system that can be used successfully without change. Therefore, we should take
serious consideration to make a plan for Just-In-Time, which will benefit to our factory
performance.

(3) Defining the Planning

JIT manufacturing system requires an understanding of the objectives of JIT, and objectives of
the JIT system. After the objectives are set up for the manufacturing, the process of planning
becomes one of determining what is required to meet those objectives. The goal of a JIT
approach is to develop a system that allows a factory to have only the materials equipment and
people by hand required doing the some plan. T o achieve this goal, we should have equipped
with at least five fundamental plan:

· Integrating and optimizing every step of the manufacturing process · Reducing manufacturing
cost · Producing product on demand · Developing manufacturing flexibility · Produce quality
product to maintain commitments and links made between Customers and Suppliers

We also should keep in mind that achieving these obtaining targets does not automatically make
a company a JIT manufacturer. On the contrary, it will lead to achieve even one of these
objectives will prevent a manufacturer from establishing a successful JIT system. According to
Common Wealth on
May, 1996 report, it said that “A company cannot decide to implement JIT; they must earn the
right to use JIT by revising their quality for system."

(4) Reducing Manufacturing Cost

If we can design products that it will speed up and decrease manufacturing processes. Gradually,
it will help us to reduce the cost of manufacturing and building the product to specifications
benefit. One aspect in designing products for manufacture ability is the need to set up a good
boss and employee relationship. At least, this is to cultivate and procure the resources of the
production experts, and the line employees to develop cost saving solutions. Participatory quality
programs utilize employee knowledge about their job functions and review the department
performance. It will, finally, encourage with rewards for suggested total cost saving.

(5) Manufacturing Flexibility

According to China time report on August 1996. "Manufacturing flexibility is the ability to start
new projects or the rate at which the production mix can be adjusted to meet customer demand."
Planning for manufacturing flexibility requires the understanding of the elements in the
manufacturing process and understanding elements in the process that restrict flexibility and
improving on these areas. The unique feature of Just-In-Time is the modification from between
pull and push systems. The main idea behind these approaches is that "work should not be
pushed on to the next worker until that worker is ready for it." (Hauser, J.R.) As a result,
manufacturing flexibility requires production managers to consider the some important factors,
such as supplier lead time, production process time, process setup time and so forth.

(6) Keep in touch between customers and suppliers

For factory main commitment to achieving the internal structures, both customer and supplier are
also playing a vital role to support JIT manufacturing. Because it is the primary requirement for
developing the JIT system, each other can establish trust and honest between the supplier and the
customer which is a must, since every Just-in-Time operation depends on it. Supposed, finally, it
leads to failure to keep the commitments each other. Finally, it will be result to a serious form of
breakdown manufacturing systems. Therefore, we should pay attention to this kind of serious
call. Never be ignorant of this commitment. If we can make use of Just-In-Time (manufacturing
approaches), it, eventually, will attain those goal, which are the fundamental concept of
producing product only as needed or on demand.
Chapter7
KANBAN JUST-IN-TIME AT TOYOTA

INTRODUCTION:

When we talk about Kanban Just-In-Time, you maybe have a question which company set a very
good example to fulfill this approach. The answer is Japanese company ------Toyota. Not only
did Toyota take advantage of Kanban Just-In-Time, but it also get a very good benefit to operate
its company. Kanban just-In-Time helps companies solving many Manufacturing problems.
Kanban derives it name from the manufacturing systems and processes implemented at Toyota
Motor Manufacturing that are so effective at producing at low cost, high quality, and short cycle
times. As a consequence, these systems are highly flexible and responsive to customer
requirements. Toyota capabilities are listed below. Kanban Just-In-Time impact on whole Toyota
production approach as following:

(a) Standardized work

Manufacturing Cells

Manufacturing Lines

Facility Layout

Technology Development

Simulation of processes and systems

(b) Quality Improvement In Process Inspection Experimental Design Process Development

(c) Continuous Improvement

Example:

Toyota manufacturing processes route the product around the plant to various work centers
where work is staged to be processed. Implementing manufacturing cells typically increases net
income dramatically and reduces cycle time over 50%. The cost of design and implementation is
usually recovered within the first year from inventory savings. In this paper, we present the
benefits of bringing the processes to the product and discuss the value of simulation as a tool to
design and predict cell performance prior to implementation; therefore, reducing financial and
technical risk to the company.

On September 10, 1997, Mr. Hoskins presented on "Improve Profits and Reduce Cycle Time
with Manufacturing Cells and Simulation" for the National Technology University series on
Kanban just-In-Time Manufacturing of this series. On October 27 - 28, 1996 Jerry Hoskins,
President presented a paper titled "Developing a Lean Implementation Roadmap" at the SME
Kanban Manufacturing Conference in Dearborn, Michigan. The intent of this paper is to provide
information to companies on where to start with a Kanban implementation based on where one is
currently manufacturing operation. His theory help our many manufactures implement all the
elements of Kanban Manufacturing directed at elimination of manufacturing waste as defined by
the Toyota Production System. These systems are more flexible, responsive, and profitable than
traditional manufacturing systems. And, its theory also help our many participate determine
where best to start with a Kanban implementation which usually involves an assessment of
current operations. Once plan is developed we design the system to be implemented which may
involve layout, cells, JIT, process technology, and process simulation.

Conclusion:

To sum up, we should make fully use of Kanban in order to improve the performance of a
production line which is under controlled by Kanban. Generally speaking, Kanban is combined
with base stock or immediately improvement to create a hybrid production control system.
Simulation results based on a Toyota factory show that this policy meets throughput targets with
significantly lower inventories than Kanban alone. As a result, Toyota research considers a line
production system which purchases raw materials from a supplier, processes them into finished
products and delivers them to a buyer just in time. This study focuses on finding the optimal
number of raw material orders, finished goods deliveries and Kanbans between work stations for
a time-proportionate demand of finished goo
REFERENCES

www.google.com

www.bdaconnect.com/india/ficci

www.wikipedia.org

www.ibef.org

www.trai.gov.in

www.networkcomputing.in/Connectivity-Convergence-012Dec008/3G-
Services

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