JUST IN TIME

GROUP

ABHIMANYU PANDIT KUNDAN KUMAR LALIT KUMAR MAHALAKHSMI S. GOWTHAM REDDY

Reducing Variance, Waste and Lead Time in the Supply Chain

Topics to be Covered
Review of JIT & Waste
Objectives of JIT JIT Principles JIT Tools and Procedures

What is 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 production method is also called the Toyota Production System. To meet JIT objectives, the process relies on signals orKanban ( Kanban) between different points in the process, which tell production when to make the next part.

Contd..
JIT focuses on continuous improvement and can improve a

manufacturing organization's return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality.

Objective of JIT
Produce only the products the customer wants. Produce products only at the rate that the customer

wants them. Produce with perfect quality Produce with minimum lead time. Produce products with only those features the customer wants.

Objectives
Produce with no waste of labor, material or equipment

-- every movement must have a purpose so that there is zero idle inventory. Produce with methods that allow for the development

of people

Seven Basic Types of Waste

Transportation waste Process Waste

Inventory Waste
Waste of motion Waste from product defects

Waiting time
Overproduction

Common Causes of Waste

Layout (distance)
Long setup time Incapable processes

Inconsistent

Poor maintenance
Poor work methods Lack of training

performance measures Ineffective production planning Lack of workplace organization Poor supply quality/reliability

JIT Principles
Create flow production

one piece flow machines in order of processes small and inexpensive equipment U cell layout, counter clockwise multi-process handling workers easy moving/standing operations standard operations defined

JIT Principles:
Establish TAKT time

rate at which the customer buys a product Build Pull Product use of kanban system

Push Vs. Pull Scheduling

Push Scheduling traditional approach move the job on when finished problems - creates excessive inventory Pull scheduling coordinated production driven by demand (pulled through system) extensive use of visual triggers (production/withdrawal kanbans)

Visual Control
A system for making problems obvious without the need for sophisticated monitoring computer systems

Andon light system Kanbans Create a sense of urgency Clearly identify where the problems are located

Supplier Partnerships
Reliance on suppliers for

problem solving expertise quality at the source timely communication participants in cost reduction programs Increased reliance on supplier certification

Standardization/Simplification
Eliminate inherent sources of variance eliminate opportunity for human discretion error Examples Container sizes MacDonalds with interaction with customers Consistent with Deming Wheel Standarize expose problems solve problems implement new methods

Other Techniques
Milk runs
Poka-Yoke Systems Continuous Improvement Programs (CIP)

JIT in Services
Service Traits

strong emphasis on process avoidance of inventory emphasis on people and their importance to process recognition of need for continuous improvement defects are treasures

JIT in Services
Key Issues

Equipment/people focus Customer contact per transaction Degree of discretion Degree of customization Location of value-added processes Product/process focus

JIT in Services
Elements of JIT most applicable

Synchronization and balance of information and work flows Total visibility of all components of the process Continuous improvement of the process Holistic approach to the elimination of waste Flexibility in use of resources Respect for people

JIT & Lean Manufacturing

Lean Manufacturing

Doing more with less Less of:

materials, time, resources overhead, people waste money

JIT is a subset of Lean Manufacturing Now seen as most applicable to mass production

settings

Benefits of JIT
Unpleasant surprises Less pressure on receiving

eliminated docks and incoming inspection areas Less computerization Lower costs visual control Change in attitude Improved quality Defects are treasures WIP reduced Better communications

Limitations of JIT
Preconditions to JIT

trust must be present

labor/management suppliers/consumers

recognition of processes familiarity with problem solving quality at the source agreement over value and waste

Limitations of JIT
Right Settings

applicable in growth to maturity phases of Product Life Cycle standard product standard/fixed pay-rate
problems with piece-rate scheme

Universal agreement that change needed