3. • JIT- A philosophy of c o ntinuo us
im p ro v e m e nt that puts emphasis on
prevention rather than correction, and
demands a company wide focus on quality.
• JIT- operational management approach to
achieve world class manufacturing.
• JIT- production is based on demand
4. • JIT philosophy means getting the right quantity of
goods at the right place and the right time
• JIT exceeds the concept of inventory reduction; it
is an all-encompassing philosophy geared to
eliminate waste, anything that does not add value
• A broad JIT view – or le a n p ro d uc tio n/le a n
s y s te m s - is one that encompasses the entire
organization
4
5. • 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.
6. • JIT originated in Japan at Toyota Motor Co, fueled
by a need to survive the devastation post WWII
• JIT gained worldwide prominence in the 1970s
• Often termed “Lean Production” or “Lean
Systems”
• Broad view that entire organization has the same
goal - to serve customers
6
7. • JIT is built on simplicity - simpler is better.
• Continuous improvement
• Visibility – all waste must be visible to be identified
and eliminated
• Flexibility - to adapt to changes in environment
7
8.
9. • Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management
11. • Total Quality Management
• Pro d uc tio n M na g e m e nt
a
• Supplier Management
• Inventory Management
• Human Resource Management
12. • Communication Techniques
• Completion of task-Kanban
• Problem- Andon or siren/light
• Stopping the process if something goes wrong =Jidoka
• Preventive Maintenance
15. • Single card
• Move only containers
with C (Conveyance)kanban)
• e.g.: Kawasaki
• Dual card
• Move only container
with C- kanban
• Produce only when
authorized by P
(Production)- kanban
• e.g.: Toyota
16. • Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management
17. Toyota communicates their
demand for parts 20 days in
advance to their suppliers, with
the right to change the forecast up
to the 10th day.
18. • Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management
19. • Inventory = Lead Time (less is better)
• Inventory hides problems
19
21. • Self-Inspection of work
• Diversified Employees
• Absenteeism
• To eliminate boredom in process
• Management Support and Empowerment of
workforce
22. In 1986 from a labor force of 60,000 Toyota received
2.6 million improvement proposals, 96% of which
were implemented by either management or the
employees themselves.
23. • Worker resistance
• Lack of top management support
• Lack of communication
• Lack of formal training
24. • What phrase best describes the Just-In-Time
philosophy?
Continuous Improvement
25. There are so many companies that are using JIT
planning. Any car, motorbike or aircraft
manufacture uses JIT. This means that the
examples are countless. For example,
• Toyota
• Dell
• Harley Davidson
•W
almart
• McDonalds
• Xerox
26. • Dell has also leveraged
JIT principles to make its
manufacturing process a
success.
• Dell’s approach to JIT is
different in that they
leverage their suppliers to
achieve the JIT goal.
27. • Dependable suppliers with the ability
to meet Dell’s demanding lead time
requirements.
• A seamless system that allows Dell to
transmit its component requirements
so that they will arrive at Dell in time to
fulfill its lead times.
• A willingness of suppliers to keep
inventory on hand allowing Dell to be
free of this responsibility.
28. • Harley Davidson’s use
of JIT is mostly
characterized by its
transformation in the
late World War 2 era
from an inefficient
manufacturer that
solved all of its
problems with extra
inventory to a nimble
manufacturer able to
meet demand and
29. • Inventory levels decreased 75 percent.
• Increased productivity.
Harley Davidson’s success with the
implementation of JIT had a lot to do with
the fact that when JIT was put into practice,
process problems could no longer be
hidden by costly inventory that helped to
meet ship dates. The inefficiencies in the
processes were quickly identified and
solved.
30.
31. The main BENEFITS of JIT are the following:
Funds that were tied up in inventories can be used
elsewhere.
Areas previously used to store inventories can be
used for other more productive uses.
Throughput time is reduced, resulting in greater
potential output and quicker response to customers.
Defect rates are reduced, resulting in less waste
and greater customer satisfaction.
A real business example: Dell Computer Corporation
32. DISADVANTAGES of JIT:
Implementing thorough JIT procedures can
involve a major overhaul of business systems -it
may be difficult and expensive to introduce.
JIT manufacturing also opens businesses to a
number of risks, notably those associated with the
supply chain. With no stocks to fall back on, a
minor disruption in supplies to the business from
just one supplier could force production to cease at
very short notice.
A real business example: Toyota
33. W have been the experiences of
hat
JIT implementers so far?
22 companies had underrtaken JIT efforts at the time
of the study. W
hile 13 of them reported some efforts
such as experimental and ad hoc modification of
systems, 9 reported major JIT efforts in place.
Most of the firms with some JIT efforts reported
starting their efforts only recently. Those with major
JIT pro-grammes had started their efforts as early as in
1986.
Firms with major JIT programmes indicated an
implementation lead time of more than three years.
Supplier development, Employee involvement, and Top
Management commitment were prominently listed as
critical success factors.
34. Training, task force formation, re-layout, and pilot study
were indicated as among the first five steps taken in JIT
implementation.
Three most important reasons for embarking upon a
JIT implementation programme were gaining
competitive advantage in the market place, simplifying
production planning & control, and curbing rising
inventory levels.
Proximity of suppliers, stable production plan, or high
volume repetitive manufacturing were never mentioned
among the main reasons for JIT implementation.
Firms reporting major JIT efforts have done so after
carefully evaluating this strategic nature. On the
contrary, firms reporting some ad hoc modification and
experimental efforts did not do any strategic planning
exercise. JIT efforts were initiated by middle
management because the top management asked them
to do so.
35. JIT- A philosophy of c o ntinuo us
im p ro ve m e nt that puts emphasis
on prevention rather than
correction, and demands a
company wide focus on quality.
Hinweis der Redaktion
Just-In-Time Manufacturing or JIT, is a philosophy of continuous improvement that puts emphasis on prevention rather than correction, and demands a company wide focus on quality. It is also an operational management approach to achieve world class manufacturing. I would also like to emphasize that JIT is a philosophy, and that the philosophy bases production of demand.
Jit philosophy evolved in Japan after World War II, as a result of their diminishing market share in the auto industry. Toyota Motor Company is the birthplace of the JIT philosophy under Taiichi Ohno. Taiichi’s JIT philosophy also encompasses many of W. Edwards Deming’s 14 points of Management concepts.
Pause
JIT is now on the rise in American Industries.
These are the 5 main principles of Jit Management: Total Quality Management, Production Management, Supplier Management, Inventory Management , and Human Resource Management.
The second principle of JIT Manufacturing is Production Management.
The JIT philosophy uses multiple communication techniques to aid in the production process, two of which are the use of a Kanban system and an Andon.
Kanban is Japanese for the word Card. Kanban is used to control the flow of inventory throughout the process in a pull system utilizing a card to signal demand.
An Andon is a light or signal in the process throughout the work stations that will alarm the workers that there is a problem in the process, and there is a collaborative effort to correct and prevent the problem from happening again.
Stopping the process in this manner is referred to in Japanese as Jidoka, or a halt of the line.
Preventive maintenance is necessary to eliminate any down time for machinery failure in a process.
The next principle in JIT Manufacturing is supplier management.
Toyota communicates their damand for parts 20 days in advance to their suppliers, with the right to change the forecast up to the 10th day.
The next principle in JIT Manufacturing is Inventory Management.
Self Inspection of work is needed to keep the process flowing smoothly.
The moving around of employees to different work stations throughout the day is needed in the event of absenteeism, and a technique to break up the routine task of the process.
Management support and empowerment of the work force is needed, so that employees are not afraid of stopping the process in the event of a problem.
In 1986 from a labor force of 60,000 Toyota received 2.6 million improvement proposals, 96% of which were implemented by either management or the employees themselves.
It is crucial to Implement these JIT principles correctly. Worker co-operation is the most important aspect of JIT. Managers often overlook the importance of the support from the workforce, as well as looking over the amount of work and dedication needed to strive for continuous improvement.
Overlooking these implementation Problems is a time bomb waiting to explode.
What phrase best describes the Just-In-Time philosophy?
Continuous Improvement
They are also unique in that Dell is able to provide exceptionally short lead times to their customers, by forcing their suppliers to carry inventory instead of carrying it themselves and then demanding (and receiving) short lead times on components so that products can be simply assembled by Dell quickly and then shipped to the customer.
In this company an order for a customized personal computer that comes in over the internet at 9 am, can be on a delivery truck to the customer by 9 p.m. In addition, Dell’s low cost production system allows it to under price its rivals by 10% to 15%. How does the company’s just in time system deliver lower costs? While machines from Compaq and IBM can languish on dealer shelves for two months Dell does not start ordering components and assembling computers until an order is booked. By ordering right before assembly, Dell figures it s parts, on average, are 60 days newer than those in an IBM or Compaq machine. That can translate into a 6% profit advantage in components alone.
Just-in-time manufacturing system is vulnerable to unexpected disruptions in supply chain. A production line can quickly come to a halt if essential parts are unavailable. Toyota, the developer of JIT, found this out the hard way. One Saturday, a fire at Aisin Seiki Company’s plant stopped the delivery of all break parts to Toyota. By Tuesday, Toyota had to close down all of its Japanese assembly line. By the time the supply of break parts had been restored, Toyota had lost an estimated $15 billion in sales.
In conclusion, I hope you now have a better understanding for JIT Manufacturing and it’s principles. Companies that are determined to stick to these principles will see results. Companies that believe the responsibility of quality falls in the hands of the quality department will not be around long enough to have a market share.