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              Just In Time
Group Members
Niaz Hussain       (09-IME-71)
Salman Razaq      (09-IME-72)
Muhammad Usman    (09-IME-73)
Muhammad Waleed   (09-IME-74)
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
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.

 JITis now on the rise in American
  Industries.
Definition
 JITis 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
Summary of JIT Goals and
    Building Blocks
                    Ultimate     A
                      Goal balanced
                             rapid flow


Supporting
  Goals       Eliminate disruptions
         Make the system flexible         Eliminate waste




    Product         Process           Personnel    Manufactur-    Building
    Design          Design            Elements     ing Planning    Blocks
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
Eight Wastes
THE EIGHT TYPES OF WASTE OR MUDA
Waste                    Definition
1. Overproduction        Manufacturing an item before it is needed.
2. Inappropriate         Using expensive high precision equipment when simpler machines
   Processing            would suffice.
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.
6. Inventory             Excess inventory hides problems on the shop floor, consumes
                         space, increases lead times, and inhibits communication.
7. 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.
8. Underutilization of   Failure of the firm to learn from and capitalize on its employees’
   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

   Human     Resource 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
5th Principle Of JIT


Human Resource Management
Human Resource
Management
 Company-wide        Involvement
    Motivation for continuous improvement
    Problem Solving
    High Employee Interaction


 Build   Pride In Workmanship
Human Resource
Management
 Self-Inspection   of work

 Diversified   Employees
  Absenteeism
  To   eliminate boredom in process


 ManagementSupport and
 Empowerment of workforce
JIT Manufacturing Building Blocks
 Product   design
 Process   design
 Personnel/organizational
 elements
 Manufacturing
 planning and control
1. Product Design
 Standard   parts
 Design   Simplification
 Highly   capable production systems
 Concurrent
 engineering
Design Simplification
2. Process Design
 Small    lot sizes
 Setup     time reduction
 Limited    work in process
 Quality    improvement
 Production      flexibility
 Little   inventory storage
Benefits of Small Lot Sizes

  Reduces inventory
     Less rework
          Less storage space
     Problems are more apparent
  Increases product flexibility
         Easier to balance operations
Quality Improvement
 Autonomation
    Automatic detection of defects during production

 Jidoka
    Japanese term for autonomation
Production Flexibility
 Reduce
       downtime by reducing
 changeover time
 Usepreventive 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
 Evaluation and selection of vendor
 (suppliers) network to develop a tiered
 supplier network – reducing the number of
 primary suppliers.
Transitioning to a Successful JIT
 System
 Get   top management commitment
 Decide    which parts need most effort
 Obtain    support of workers
 Start   by trying to reduce setup times
 Gradually    convert operations
 Convert    suppliers to JIT
 Prepare    for obstacles
Obstacles to Conversion
 Management       may not be committed
 Workers/management       may not be
 cooperative
 Suppliers   may resist
Comparison of JIT and Traditional
Factor        Traditional               JIT
Inventory     Much to offset forecast   Minimal necessary to operate
              errors, late deliveries
Deliveries    Large                     Small

Lot sizes     Large                     Small

Setup; runs   Few, long runs            Many, short runs

Vendors       Long-term relationships Partners
              are unusual
Workers       Necessary to do the       Assets
              work
Comparison Of JIT & MRP
   JIT
    Repetitive production
    Minimal shop floor control
    Simpler
    Relies on visual or audible signals to trigger production
    and inventory (e.g. auto carpets)
    Lower inventories related to need “at the time”
   MRP
    Lot size or batch production
    Extensive shop floor control
    More complex
    Relies on computer system to trigger production and
    order inventory Inventories related to batch or lot sizes
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.
JIT Benefits
 Reduced   Inventory
 Improved quality
 Lower costs
 Reduced space requirements
 Shorter lead-time
 Increased productivity
 Greater flexibility
 Improved vendor relations
JIT Benefits (contd.)
 Simplified  scheduling & control
 Increased capacity
 Better utilization of personnel
 More product variety
 Increased equipment utilization
 Reduced paperwork
 Valid production priorities
 Work force participation
JIT … Not For Everyone
 JIT concepts work best when goods can
  be produced in response to consumer
  demand (e.g. automobiles, etc.)
 JIT is less effective for the production of
  standardized consumer goods (e.g. basic
  clothing, food, soft drinks, toasters, etc.)
 There are cases where JIT concepts apply
  to sub-processes of a make to stock
  environment. (e.g. computers etc.)
References
   Cammaranano, J. Lessons to be Learned: JIT. Atlanta, Georgia:
    Engineering and Management Press, 1997.
    Dear, A. Working toward JIT: Management Technology. London: Derek
    Doyle and Associates, 1988.
   Fisher, D. The JIT Self Test: Success Through Assesment and
    Implementation. Chicago, IL: Irwin Inc., 1995.
   Hernandez, A. JIT Quality: A Practical Approach. Englewood Cliffs, NJ:
    Prentice-Hall, 1993.
   Hutchins, D. Just-In-Time: Inventory Control. Brookfield, VT: Gower
    Publishing, 1988.
   O’Grady, P.J. Putting the JIT Philosophy Into Practice. New York, NY:
    Nichols Publishing, 1988.
   Reinfeld, N.V. Handbook of Production and Inventory Control.
    Englewood Cliffs, NJ: Prentice-Hall, 1987.
   Schneiderjans, M.J. Advanced Topics In JIT Management: JIT Systems.
    Westport, CT: Greenwood Publishing Group, 1999.
   Taver, R.W. Manufacturing Solutions for Consistent Quality and Reliability:
    The 9 Step Problem Solving Process. New York, NY: AMACON, 1995.
   Wesner, J.W., Hiatt, J.M., and Trimble, D.C. Winning with Quality: Applying
    Quality Principles in Product Development. Reading, MASS: Addison-
    Wesley Publishing Co., 1995.

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POM Presentation on Just In Time Manufacturing

  • 1. POM Presentation Just In Time
  • 2. Group Members Niaz Hussain (09-IME-71) Salman Razaq (09-IME-72) Muhammad Usman (09-IME-73) Muhammad Waleed (09-IME-74)
  • 3. 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
  • 4. 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.  JITis now on the rise in American Industries.
  • 5. Definition  JITis a manufacturing philosophy involving an integrated set of procedures/activities designed to achieve a high volume of production using minimal inventories
  • 6. 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”.
  • 7. 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
  • 8. Summary of JIT Goals and Building Blocks Ultimate A Goal balanced rapid flow Supporting Goals Eliminate disruptions Make the system flexible Eliminate waste Product Process Personnel Manufactur- Building Design Design Elements ing Planning Blocks
  • 9. 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
  • 10. 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
  • 11. Eight Wastes THE EIGHT TYPES OF WASTE OR MUDA Waste Definition 1. Overproduction Manufacturing an item before it is needed. 2. Inappropriate Using expensive high precision equipment when simpler machines Processing would suffice. 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. 6. Inventory Excess inventory hides problems on the shop floor, consumes space, increases lead times, and inhibits communication. 7. 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. 8. Underutilization of Failure of the firm to learn from and capitalize on its employees’ Employees knowledge and creativity impedes long term efforts to eliminate waste.
  • 12. Sources of Waste  Overproduction  Waiting time  Unnecessary transportation  Processing waste  Inefficient work methods  Product defects
  • 13. 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
  • 14. Principles Of JIT Manufacturing  Total Quality Management  Production Management  Supplier Management  Inventory Management  Human Resource Management
  • 15. 1st Principle Of JIT Total Quality Management
  • 16. Total Quality Management  Seek long-term commitment to quality efforts with continuous improvement  Quality must be a higher priority than cost  Minimizing waste
  • 17. Total Quality Management  Eliminate Quality Inspectors  Quality is everyone’s responsibility  Do it right the first time
  • 18. 2nd Principle Of JIT Production Management
  • 19. 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
  • 20. Production Management  Reduced lot sizes= Shorter cycle times  Eliminate disruptions in the process  Standardized Parts/ Simplicity
  • 21. Production Management  Communication Techniques  Completion of task-Kanban  Problem- Siren/light  Stopping the process if something goes wrong =Jidoka  Preventive Maintenance
  • 22. 3rd Principle Of JIT Supplier Management
  • 23. 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
  • 24. Supplier Management  Elimination inspection of parts  Communicate problems to suppliers in a positive manner.
  • 25. 4th Principle Of JIT Inventory Management
  • 26. Inventory Management  Eliminate Safety Stock = Zero Inventory  JIT is not an inventory control system  Reduction in inventory opens up space
  • 27.  Inventory hides problems in a process.  Water Level = Inventory  Rocks = Problems in the system  Boat = Company Operations
  • 28. 5th Principle Of JIT Human Resource Management
  • 29. Human Resource Management  Company-wide Involvement  Motivation for continuous improvement  Problem Solving  High Employee Interaction  Build Pride In Workmanship
  • 30. Human Resource Management  Self-Inspection of work  Diversified Employees  Absenteeism  To eliminate boredom in process  ManagementSupport and Empowerment of workforce
  • 31. JIT Manufacturing Building Blocks  Product design  Process design  Personnel/organizational elements  Manufacturing planning and control
  • 32. 1. Product Design  Standard parts  Design Simplification  Highly capable production systems  Concurrent engineering
  • 34. 2. Process Design  Small lot sizes  Setup time reduction  Limited work in process  Quality improvement  Production flexibility  Little inventory storage
  • 35. Benefits of Small Lot Sizes Reduces inventory Less rework Less storage space Problems are more apparent Increases product flexibility Easier to balance operations
  • 36. Quality Improvement  Autonomation  Automatic detection of defects during production  Jidoka  Japanese term for autonomation
  • 37. Production Flexibility  Reduce downtime by reducing changeover time  Usepreventive maintenance to reduce breakdowns  Cross-train workers to help clear bottlenecks  Use many small units of capacity  Reserve capacity for important customers
  • 38. 3. Personnel/Organizational Elements  Workers as assets  Cross-trained workers  Continuous improvement  Leadership
  • 39. 4. Manufacturing Planning and Control  Pull systems  Visual systems (kanban)  Close vendor relationships  Reduced transaction processing (delays in delievery)  Preventive maintenance
  • 40.  Evaluation and selection of vendor (suppliers) network to develop a tiered supplier network – reducing the number of primary suppliers.
  • 41. Transitioning to a Successful JIT System  Get top management commitment  Decide which parts need most effort  Obtain support of workers  Start by trying to reduce setup times  Gradually convert operations  Convert suppliers to JIT  Prepare for obstacles
  • 42. Obstacles to Conversion  Management may not be committed  Workers/management may not be cooperative  Suppliers may resist
  • 43. Comparison of JIT and Traditional Factor Traditional JIT Inventory Much to offset forecast Minimal necessary to operate errors, late deliveries Deliveries Large Small Lot sizes Large Small Setup; runs Few, long runs Many, short runs Vendors Long-term relationships Partners are unusual Workers Necessary to do the Assets work
  • 44. Comparison Of JIT & MRP  JIT  Repetitive production  Minimal shop floor control  Simpler  Relies on visual or audible signals to trigger production and inventory (e.g. auto carpets)  Lower inventories related to need “at the time”  MRP  Lot size or batch production  Extensive shop floor control  More complex  Relies on computer system to trigger production and order inventory Inventories related to batch or lot sizes
  • 45. 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.
  • 46. JIT Benefits  Reduced Inventory  Improved quality  Lower costs  Reduced space requirements  Shorter lead-time  Increased productivity  Greater flexibility  Improved vendor relations
  • 47. JIT Benefits (contd.)  Simplified scheduling & control  Increased capacity  Better utilization of personnel  More product variety  Increased equipment utilization  Reduced paperwork  Valid production priorities  Work force participation
  • 48. JIT … Not For Everyone  JIT concepts work best when goods can be produced in response to consumer demand (e.g. automobiles, etc.)  JIT is less effective for the production of standardized consumer goods (e.g. basic clothing, food, soft drinks, toasters, etc.)  There are cases where JIT concepts apply to sub-processes of a make to stock environment. (e.g. computers etc.)
  • 49. References  Cammaranano, J. Lessons to be Learned: JIT. Atlanta, Georgia: Engineering and Management Press, 1997.  Dear, A. Working toward JIT: Management Technology. London: Derek Doyle and Associates, 1988.  Fisher, D. The JIT Self Test: Success Through Assesment and Implementation. Chicago, IL: Irwin Inc., 1995.  Hernandez, A. JIT Quality: A Practical Approach. Englewood Cliffs, NJ: Prentice-Hall, 1993.  Hutchins, D. Just-In-Time: Inventory Control. Brookfield, VT: Gower Publishing, 1988.  O’Grady, P.J. Putting the JIT Philosophy Into Practice. New York, NY: Nichols Publishing, 1988.  Reinfeld, N.V. Handbook of Production and Inventory Control. Englewood Cliffs, NJ: Prentice-Hall, 1987.  Schneiderjans, M.J. Advanced Topics In JIT Management: JIT Systems. Westport, CT: Greenwood Publishing Group, 1999.  Taver, R.W. Manufacturing Solutions for Consistent Quality and Reliability: The 9 Step Problem Solving Process. New York, NY: AMACON, 1995.  Wesner, J.W., Hiatt, J.M., and Trimble, D.C. Winning with Quality: Applying Quality Principles in Product Development. Reading, MASS: Addison- Wesley Publishing Co., 1995.