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JUST-IN-TIME (JIT)

PRODUCTION SYSTEM
The name just-in-time refers to a
production system in which operations
(processing, movement of materials & goods,
etc.) occur just as they are needed or
demanded. JIT approach emphasizes continual
effort to remove waste & inefficiency from the
production process through small lot sizes,
high quality, and teamwork.
MISUNDERSTANDINGS
ABOUT JUST-IN-TIME
• Different JIT Systems
• JIT means “zero stock”

• Impossible to implement in Pakistan

• Only good for manufacturing concerns

• Inner & outer dimensions


Key Elements of
JIT Systems
•A fixed, steady rate of production
•Low inventories
•Small lot sizes
•Quick, low-cost setups
•Layout
•Preventive maintenance & repair
•Multifunctional workers
Key Elements of
JIT Systems
•High quality levels
•A cooperative spirit
•Reliable vendors
•A pull system of moving goods
•Problem solving
•Continual improvement
Kanban
Definition: A “kanban” is a sign-board or card in Japanese and is the
name of the flow control system developed by Toyota.
Role:
Kanban is a tool for realizing just-in-time. For this tool to work
fairly well, the production process must be managed to flow as
much as possible. This is really the basic condition. Other
important conditions are leveling production as much as possible
and always working in accordance with standard work methods.
– Ohno 1988
Push vs. Pull: Kanban is a “pull system”
– Push systems schedule releases
– Pull systems authorize releases
MRP versus Kanban
MRP
Lover
Level … Assembly
Inventory

Kanban
Lover Level … Assembly
Inventory

Kanban Signals Full Containers


Kanban Mechanism
Outbound Outbound
stockpoint Completed parts with cards stockpoint
enter outbound stockpoint.

Production When stock is Production


cards removed, place card authorizes
production card start of work.
in hold box.
Benefits of JIT Systems
• Reduced levels of in-process inventories,
purchased goods, and finished goods
• Reduced space requirements
• Increased product quality & reduced scrap &
rework
• Reduced manufacturing lead times
• Greater flexibility in changing the production mix
Benefits of JIT Systems

•Smoother flow of production, with fewer


disruptions caused by problems due to quality;
shorter setup times; multi skilled workers who can
help each other & substitute for others in case of
absenteeism
•Increased productivity levels & utilization of
equipment
•Worker participation in problem solving
Benefits of JIT Systems

•Pressure to build good relationships


with vendors

•Reduction in the need for certain


indirect labor, such as material handlers
Converting to a JIT System

Top management must be committed to the


conversion and that they know what will be
required. Furthermore, management must be
willing to provide visible support.

Management must know what it will cost &


how long it will take to complete the
conversion, and what results can be expected.
Converting to a JIT System

•Study the operations carefully; decide which


parts will need the most effort to convert

•Obtain the support & cooperation of workers

•Begin by trying to reduce setup times while


maintaining the current system
Converting to a JIT System

•Gradually convert operations, beginning at the end


of the process & working backward. At each stage,
make sure the conversion has been relatively
successful before moving on.

•Do not begin to reduce inventories until major


problems have been resolved.

•Convert suppliers to JIT as one of the last steps


Converting to a JIT System
•Prepare to work closely with suppliers. Start by
narrowing the list of vendors, identifying those
who are willing to embrace the JIT philosophy

•Try to use vendors located nearby if quick


response time is important

•Insist on high standards of quality & adherence


to strict delivery schedules
Obstacles to Conversion
•Management may not be totally committed
or may be unwilling to devote the necessary
resources to conversion

•Workers may not display a cooperative spirit

•Management may resist because JIT shifts


some of the responsibility from management
to the workers
Obstacles to Conversion
Suppliers may resist, for several reasons:
•Buyers may not be willing to commit the resources
necessary to help the supplier adapt to the JIT system

•They may be uneasy about long-term commitments


to a buyer

•Frequent, small deliveries may be difficult,


especially if the supplier has other buyers that are
not using JIT systems
Obstacles to Conversion

•The burden of quality control will shift to the


supplier

•Frequent engineering changes may have to


be made as the result of continuing JIT
improvements on the part of the buyer
Why is “Zero Defects” an
Important Concept?

Key Element in our capability


to implement Kaizen
Manufacturing Systems.

No need for “just in case” inventories


Allows company to make only what the
customer needs.
What is a Zero Defect Quality
System (ZDQ)?

A quality concept to manufacture ZERO defects


& elimination of waste associated with defects!

“ZERO” is the goal!


1-10-100 Rule
The 1-10-100 rule states that as a product or service moves through
the production system, the cost of correcting an error multiplies by
10.
Activity Cost
Order entered correctly $1
Error detected in billing $ 10
Error detected by customer $ 100
Dissatisfied customer shares the experience with others the costs is

$1000
Source Inspection

Detects mistakes before they become defects

Transformation = Quality production the 1st time

Inspection….eliminated ???

Transport
Dedicated lines
Storage

Delay/wait One piece flow