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Just-in-Time (JIT) Systems
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People Potential
The talents of our people are greatly
underestimated, and their skills are underutilized.Our biggest task is to fundamentally redefine our
relationships with our employees.Jack Welch,
Chairman, General Electric
(From 1981 to 2001)
Message from Tom Peters*
From: Change is the Only Constant
To : Revolution is the Only Constant
Imagination as the Source of Value!
Get and be: Excited/Obsessed/Supercharged!
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A Simple Definition of JIT
A philosophy of manufacturingbased on planned elimination of ALLWASTE,
and improvement of productivity andcustomer value,
throughContinuous Improvement(orKaizen)
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Waste is anything other than the
minimum amount ofequipment,
materials, parts, space, and
workers time, which are
absolutely essential to add value
to the product.
Shoichiro Toyoda
President, Toyota
Introductory Quotation
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Waste in Operations
Examples of Waste
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Examples of Waste
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Traditional View
To meet variations in demand
To smooth out production requirement
To allow flexibility in the production system
To maintain independence of operations To protect against stock outs
To take advantage of low price/quantity discounts
Inventory is good:
Inventory is bad:
Its costly
Inventory exists, in case problems arise
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It is costly
It hides problems
Inventory is evil because:
JIT View
So produce only when needed
Eliminate Inventory
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Inventory Hides ProblemsInventory Hides Problems
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Less Inventory Exposes ProblemsLess Inventory Exposes Problems
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Inventory Hides Problems
PoorQuality
UnreliableSupplier
MachineBreakdownInefficientLayout
BadDesign
LengthySetups
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To Expose Problems:
Reduce Inventory Levels
PoorQuality
UnreliableSupplier
MachineBreakdown
InefficientLayout
BadDesign
LengthySetups
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Remove Sources of Problems and
Repeat the Process
Poor
Quality
UnreliableSupplier
MachineBreakdown
InefficientLayout
BadDesign
LengthySetups
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Push System versus Pull System
Push System (Traditional) (MRP Approach)
Central planning approach determines &disseminates production schedules to all processessimultaneously
An item is released for production at a specified
time, with an associated due date The item moves through a sequence of operations
When one operation is finished, the item is pushed tothe next operation
Finally, the product is pushed to inventory, to meet
forecast demand
Inventory often used as a cushion against lapses incoordination and inventory can be huge.
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Push System versus Pull System
Pull System (JIT)
It focuses on the output of the system rather thanthe input
Do not produce more than that can be used / sold
Finished products are pulled from the final
operation in response to firm customer orders This leads to a chain reaction, with each station
pulling material from its preceding station
JIT uses the Kanban system to control the flow of
material with very little work-in-process inventory
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Flow with JIT
Traditional Flow
CustomersSuppliers
Customers
Suppliers
Production Process
(stream of water)
Inventory (stagnant
ponds) Material
(water in
stream)
Push System versus Pull System
Streamlined Production
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Traditional FirmPush System (Material Requirements Planning)
Lot arrivals trigger production
WS 1 WS 2 WS 3
MaterialInformation (Production Schedule)
Material is pushed into downstream workstationsregardless of whether resources are available
Excess -Inventory, Equipment, Workers & Overproduction
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Withdrawals trigger production
WS 1 WS 2 WS 3
MaterialInformation (via Kanban/Card)
JIT SystemPull System (Just In Time)
Material is pulled to a workstation just as it isneeded
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Pull System Production Control
Production at Step 2 in controlled by step 3
Production
Step 3
Production
Step 2
Here they come
Production
Step1
Send more widgets Send more widgets
Here they come
Production at Step 1 in controlled by step 2
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How JIT works
FinalAssembly
SubAssembly
SubAssembly
Suppliers
Suppliers
Suppliers
1.1. Production PlannerProduction Planner
gives a schedule togives a schedule to
final assemblyfinal assembly
2.2. Final assembly withdrawsFinal assembly withdraws
part from stations thatpart from stations that
feed it (subassembly)feed it (subassembly)
3.3. Feeding stations thenFeeding stations then
manufacture to replacemanufacture to replace
those withdrawnthose withdrawn
4.4. In order to do so, thoseIn order to do so, those
stations withdraw partsstations withdraw parts
from preceding stationsfrom preceding stations
(suppliers)(suppliers)
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Pull System Production Control
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Producing only
what is needed,
when it is needed
Management philosophy
Continuous & Forced Problem Solving Respect for People
Elimination of Waste
An Integrated Management System
Pull System
Just-in-Time What it is?
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Japanese - Toyota Production System Hewlett Packard - Stockless Production
General Electric - Management by Sight Motorola - Short Cycle Manufacturing
(Based on Time-Based Competition) IBM - Continuous Flow Manufacturing Boeing - Lean Manufacturing
Harley Davidson - MAN (Material as Needed) Westinghouse - MIPS (Minimum Inventory Production System)
RJ Schonberger - World Class Manufacturing
Origins of JIT
Pioneered by Toyota
Adopted by other Japanese manufacturers
Discovered much later by Western World
JIT is also called as
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Attacks waste
Anything not adding value to the product From the customers perspective
Exposes problems & bottlenecks caused by variability
Deviation from optimum
Achieves streamlined production By reducing inventory
Just-in-Time What it does?
JIT Objective: Profit through
Productivity improvement
Cost reduction by eliminating waste: Excessive production resources
Overproduction
Unnecessary capital investment. etc.
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JIT When it Works Best?
Stable Environment Demand is highly stable
Assembly Line production
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People Involvement / Employee
Participation Industrial Engineering Basics
Continuous Improvement
Total Quality Management
Supplier Integration
Just-in-Time What it requires?
What Are Basic Elements of JIT?
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Basic Elements of JIT
Group Technology
Cell Design
5 S Technique
Visual Control Systems
SMED
Quick Changeover
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How Basic Elements of JIT Contribute to the System
Flexible Resources
Facilitates cellular layouts, TPM, and KaizenCellular Layouts
Retain relevant flexibility of job shop, obtain efficiency ofproduction line
Pull (Kanban) Production Control System Produce only what is needed - only when it is needed
Small-Lot Production Faster through-put, greater flexibility
Quick Setups
Facilitates economical small-lot-size productionUniform Production
Create and maintain a stable production system
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Quality at the Source
Facilitates removal of buffers and contributes tostability of the system
Total Productive Maintenance Contributes to stability of the system
Supplier Networks Facilitates frequent, small quantity delivery of materials
How Basic Elements of JIT Contribute to the System
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JIT - A System of Inter-Related Parts
Each of the elements
support and facilitate
many of the
other elements!
If you
implement part of system,
you may get only part
(or less) of the systemspotential benefits
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Suppliers reduced number of suppliers, better relations
supportive supplier relationships, timely qualitydeliveries
shorter lead times
Layout work-cell layouts (group technology based)
movable, changeable, flexible machinery
high level of workplace organization and neatness
reduced space requirements delivery direct to work areas
JIT Contribution to Competitive Advantage
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Inventory
reduced inventory
small lot sizes
low setup times
Scheduling
simplified
zero deviation from
schedules
level schedules
suppliers informed ofschedules
Kanban techniques
JIT Contribution to Competitive Advantage
Maintenance
scheduled, daily routine
operator involvement
no breakdowns
Quality Production
no scrap, no defects
statistical processcontrol
Improved quality
(design, process,vendor)
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Employee Empowerment Motivated, empowered, cross-trained employees
few job classifications to ensure flexibility ofemployees
training support
Commitment support of management, employees, and
suppliers
JIT Contribution to Competitive Advantage
Faster response to the customer and higher quality
A Competitive Advantage!
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Benefits of Lean Production
Lower costs
Increased productivity
Greater flexibility
Better relations with suppliers Increased capacity
Better use of human resources
More product variety
Smoother production flows
Worker participation in problem solving
Better vendor relationships
Reduction in indirect labour
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Epilogue
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What I hear I forget, what I see I remember, what Ido I understand Confucius
Modified
What I hear, I forget.
What I hear and see, I remember a little.
What I hear, see and ask questions about or discuss, Ibegin to understand.
When I hear, see, discuss and do, I acquire asknowledge and skill.
What I teach to another, I master.
Anon.
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Thank You!
In nature there are neither rewards nor
punishments; there are only consequences.
Robert B. Ingersoll
Hope:
One of the greatest discoveries a man makes,
one of his great surprises, is to find he can do
what he was afraid he couldnt do
Henry Ford
Warning:
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