Just Do It in Time

Aniket Balaram Tambadkar MBA FINANCE
Submitted To:Prof.Rajupadhey sir

1
Chapter 16
Just-In-Time Systems
JIT/Lean Production Just-in-time: Repetitive production system in

which processing and movement of materials and goods occur just as they are needed, usually in small batches
JIT is characteristic of lean production systems JIT operates with very little fat
JIT Goals Eliminate disruptions
Make system flexible by reduce setup and lead times

Eliminate waste, especially excess inventory
Sources of Waste Overproduction
Waiting time
Unnecessary transportation Processing waste Inefficient work methods Product defects
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
JIT Building Blocks

1. Product design 2. Process design 3. Personnel/organizational elements 4. Manufacturing planning and control
1. Product Design
Standard parts
Modular design
Highly capable production systems
2. Process Design
Small lot sizes Setup time reduction Manufacturing cells 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
10
Production Flexibility Reduce downtime by reducing changeover time Use preventive maintenance to reduce breakdowns Cross-train workers to help clear bottlenecks Reserve capacity for important customers
11
3. Personnel/Organizational Elements
Workers as assets
Cross-trained workers
Continuous improvement
Cost accounting
Leadership/project management
12
4. Manufacturing Planning and Control

Level loading
Pull systems
Visual systems Close vendor relationships Reduced transaction processing Preventive maintenance
13
Pull/Push Systems Pull system: System for moving work where a workstation pulls output from the preceding station as needed. (e.g. Kanban)
Push system: System for moving work where output is pushed to the next station as it is completed
14
Kanban Production Control System

Kanban: Card or other device that communicates demand for work or materials from the preceding station Kanban is the Japanese word meaning signal or visible record Paperless production control system Authority to pull, or produce comes from a downstream process.
15
Traditional Supplier Network
Buyer
Supplier Supplier Supplier Supplier Supplier
Supplier
Suppiler
16
Tiered Supplier Network

Buyer
First Tier Supplier Second Tier Supplier

Supplier
Supplier
Supplier
Third Tier Supplier
Supplier
Supplier
Supplier
Supplier
17
Summary JIT Goals and Building Blocks
Ultimate A Goal balanced rapid flow Supporting Goals Reduce setup and lead times Eliminate waste Eliminate disruptions Make the system flexible Minimize inventories
Product Design
Process Design
Personnel Elements
Manufacturing Planning
Building Blocks
18
Converting to a 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
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Obstacles to Conversion
Management may not be committed
Workers/management may not be cooperative

Suppliers may resist
20
JIT in Service
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.
Eliminate disruptions Make system flexible Reduce setup and lead times Eliminate waste Minimize WIP Simplify the process
21
JIT Purchasing New challenges

Meeting manufacturing requirements Changing from traditional thinking and practices frequent on-time delivery of small quantities Long term relationships with suppliers as partners
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JIT II
JIT II: the practice of allowing vendors to manage some aspects of buying their products or services for the buyer
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Benefits of JIT Systems

Reduced inventory levels High quality Flexibility Reduced lead times
Increased productivity
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Benefits of JIT Systems (contd)

Increased equipment utilization Reduced scrap and rework Reduced space requirements Pressure for good vendor relationships
Reduced need for indirect labor
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Elements of JIT
Smooth flow of work (the ultimate goal) Elimination of waste Continuous improvement Eliminating anything that does not add value Simple systems that are easy to manage Use of product layouts to minimize moving materials and parts Quality at the source
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Elements of JIT (contd)

Preventative maintenance Set-up time reduction Cross-trained employees
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Aniket Balaram Tambadkar MBA FINANCE

Submitted To:Prof.Rajupadhey sir

JIT/Lean Production Just-in-time: Repetitive production system in

JIT Goals Eliminate disruptions

Make system flexible by reduce setup and lead times

Sources of Waste Overproduction

Big vs. Little JIT

Big JIT broad focus

Little JIT narrow focus

JIT Building Blocks

Benefits of Small Lot Sizes

4. Manufacturing Planning and Control

Kanban Production Control System

Traditional Supplier Network

Tiered Supplier Network

First Tier Supplier Second Tier Supplier

Third Tier Supplier

Summary JIT Goals and Building Blocks

Converting to a JIT System

Gradually convert operations

Workers/management may not be cooperative

JIT Purchasing New challenges

Benefits of JIT Systems

Benefits of JIT Systems (contd)

Reduced need for indirect labor

Elements of JIT (contd)

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