PROJECT WORK ON JIT Manufacturing

Submitted By: Course: Registration No:

<Name> <course Name> < reg No>

Symbiosis Centre for Distance Learning

2011

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DECLARATION
This is to declare that I have carried out this project work myself in part fulfillment of the Post Graduation Diploma in Business Applications (PGDBA) program of SCDL. The work is original, has not been copied from anywhere else and has not been submitted to any other University/Institute for an award of any degree/diploma.

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Index

Title Page..1 Declaration....2 Index..3 Acknowledgement...5 Abstract .....6 Introduction...7 Background and History..9 Elements of JIT..10 JIT in Practice....19 JIT and Beyond..22 Introduction to JIT manufacturing...24 CASE Study I DELL...31 Manufacturing process in Dell....34 CASE Study II IBS..43

Presint 954
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Analysis.58 Conclusion62 Abbreviations63 References....64

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ACKNOWLEDGEMENT

The goal was fixed, moves were calculated and I moved with full of enthusiasm, vigor and keen interest. Initially the task looked achievable but there are times when it proved to be on up hill task, the goal seeming beyond my reach. But as work progressed my determination and will power grew stronger and completion of this work further confined my belief that, WHERE THERE IS A WILL THERE IS A WAY. Its a sheer pleasure for me to state with candidly that this entire project is a sincere attempt to reach maximum accuracy. I therefore take this opportunity to express my utmost gratitude and respect to all who have contributed in some way.

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ABSTRACT
JIT is a management philosophy that strives to eliminate sources of manufacturing waste by producing the right part in the right place at the right time. The Waste results from any activity that adds cost without adding value, such as moving and storing. The idea of producing the necessary units in the necessary quantities at the necessary time is described by the short term Just-in-time. The implementation of this management philosophy in industries like the automobile industry can bring about a see saw change in both quality & quantity since in a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge against problems that may arise. JIT manufacturing is a powerful and proven system of producing products efficiently while keeping costs low. Some of the most successfully companies in the world have used this philosophy to improve their manufacturing processes and better meet customer demand.

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CHAPTER I INTRODUCTION
JUST IN TIME (JIT) is a management philosophy that strives to eliminate sources of manufacturing waste by producing the right part in the right place at the right time. Waste results from any activity, which adds cost without adding value, such as moving and storing. JIT (also known as stockless production) should improve profits and return on investment by reducing inventory levels (increasing the inventory turnover rate), improving product quality , reducing production and delivery lead times, and reducing other costs (such as those associated with machine setup and equipment breakdown). The idea of producing the necessary units in the necessary quantities at the necessary time is described by the short term Just-in-time. Just-in-time means, for example, that in the process of assembling the parts to build a car, the necessary kind of sub-assemblies of the preceding processes should arrive at the product line at the time needed in the necessary quantities. If Just-in-time is realized in the entire firm, then unnecessary inventories in the factory will be completely eliminated, making stores or warehouses unnecessary. The inventory carrying costs will be diminished, and the ratio of capital turnover will be increased. The implementation of this management philosophy in industries like the automobile industry can bring about a see saw change in both quality & quantity since in a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge against problems that may arise. JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes (even when the facility uses a jobbing or batch process layout) by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that found in an assembly line. To accomplish this, an attempt is made to reach the goals of driving all queues toward zero and achieving the ideal lot size of one unit. This new trend in engineering production, which originally refers to the production of goods to meet customer demand exactly, in time, quality and quantity, reduces wastage by nearly 55-75%. "Waste" in this context is taken in its most general sense and includes JIT MANUFACTURING Page 7

time and resources as well as goods. This concept can really change the phase of industrial production of goods like car & other important utilities.

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CHAPTER II BACKGROUND AND HISTORY

JIT is a Japanese management philosophy, which has been applied in practice since the early 1980s in many Japanese manufacturing organizations. It was first developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays. Taiichi Ohno is frequently referred to as the father of JIT. Toyota was able to meet the increasing challenges for survival through an approach that focused on people, plants and systems. Toyota realized that JIT would only be successful if every individual within the organization was involved and committed to it, if the plant and processes were arranged for maximum output and efficiency, and if quality and production programs were scheduled to meet demands exactly. JIT manufacturing has the capacity, when properly adapted to the organization, to strengthen the organizations competitiveness in the market place substantially by reducing wastes and improving product quality and efficiency of production. There are strong cultural aspects associated with the emergence of JIT in Japan. The Japanese work ethics involves the following concepts. Workers are highly motivated to seek constant improvement upon that which already exists. Although high standards are currently being met, there exist even higher standards to achieve. Companies focus on group effort, which involves the combining of talents and sharing knowledge, problem-solving skills, ideas and the achievement of a common goal. Work itself takes precedence over leisure. It is not unusual for a Japanese employee to work 14-hour days. Employees tend to remain with one company throughout the course of their career span. This allows the opportunity for them to hone their skills and abilities at a constant rate while offering numerous benefits to the company. These benefits manifest themselves in employee loyalty, low turnover costs and fulfillment of company goals. JIT MANUFACTURING Page 9

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CHAPTER III ELEMENTS OF JIT

In order to understand how JIT works a common vocabulary needs to be established from which to further discuss the topic and gain insight into why so many firms have adopted it. As previously stated, one of the key components of JIT is to reduce waste and add value. There are several activities that a company must monitor as targets for reducing waste. Among these are, excessive waste times, inflated inventories, unneeded people or material movement, unnecessary processing steps, numerous variabilities throughout a firm's activities and any other non-value adding activity. A key example of this is a new plant that Caterpillar is bringing on-line in the near future. By reducing the number of times a bucket had to be repositioned while it was being welded, Caterpillar was able to reduce the amount of time the bucket spent in the welding line, reduce labor costs by limiting idle time at the welding station and increase the efficiency of the entire manufacturing process.

The layout and inventories that are part of a JIT strategy may seem the most logical steps to reduce waste and increase value. By simply redeveloping the layout of certain facilities a firm can reduce the time it takes for supplies to get to the next step in process and cut costs associated with that movement. One way to do this is to have work-in-progress close to the next station in the manufacturing chain. Couple this with lowering inventories and a powerful combination is formed to reduce costs. In lowering inventories a firm can reap numerous benefits; batch sizes, set-up times and safety stock are all reduced, ergo costs are trimmed and value is added. But in order to achieve these things a firm must be willing to accept the problems that these actions can either uncover or create. Dell Computers participates in both of these activities and they are now the industry leader. Dell has warehouse space at their manufacturing facilities in which suppliers keep parts directly on-site which is the quintessential JIT layout. In addition, Dell is constantly working to achieve "JIT" inventories of only four days and in doing so are constantly uncovering and solving supply chain problems.

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Going hand-in-hand with maintaining Just In Time inventory levels is JIT scheduling. By working to reduce inventory to the lowest possible working levels, a firm must constantly be adjusting its schedule of ordering and delivering. In doing so, communication both up and down the supply chain is critical. Frequent orders are placed for supplies and small production runs are constantly being initiated. In order to achieve this breakneck pace of order/production schedule, a firm must constantly be making small changes to orders/production and recognize that kanbans are of incredible importance. Possibly the single piece of JIT that has the most relevance to a study of supply chain management is the partnerships that are essential to making JIT truly work. A firm cannot implement a JIT system by itself; it must have the complete cooperation of its entire supply chain. The sheer amount of information that is needed for a JIT system to operate well demands partnerships to be formed and nurtured, almost to the point at which an entire supply chain operates as one firm. Examples of these kinds of partnerships are everywhere in today's business world. XYZ-Company allows its key suppliers to work directly at their manufacturing sites and place orders as needed for the parts that that supplier supplies. By example Dell has its suppliers store raw materials directly at the manufacturing plants.

Other concepts of Just In Time also need to be introduced in order to have a discussion about what truly makes Just In Time a worthy endeavor. By the 1980s the Japanese had achieved manufacturing greatness by practicing continuous improvement, in that a firm is constantly working to improve in every facet of its business functions. To do this a firm must always increase quality, look for innovative ways to solve problems and increase focus on the quality of its suppliers. All of these are cornerstones of a modern JIT system. Lastly, getting the workforce to buy into a JIT lean manufacturing system is important because without the dedication of the workforce, any endeavor is sure to fail. There are several ways to achieve workforce commitment. A simple way is to cross train the workforce members outside of their normal business function and help increase an employee's problem solving ability. In doing so a firm is empowering its workforce to think about their function in a new way while looking for ways to improve and giving JIT MANUFACTURING Page 12

them an overall view of the entire firm, not just their single job. When this is coupled with the support of management, an increase in resources to solve problems, and an increase in employee roles and responsibility, a workforce will feel empowered and work to make Just In Time a success for the business. There are some very important elements in just in time manufacturing which makes it a successful philosophy. They are Attacking fundamental problems - anything that does not add value to the product. Devising systems to identify problems. Striving for simplicity - simpler systems may be easier to understand, easier to manage and less likely to go wrong. A product oriented layout - produces less time spent moving of materials and parts. Quality control at source - each worker is responsible for the quality of his or her own output. Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes Preventive maintenance, Total productive maintenance - ensuring machinery and equipment functions perfectly when it is required, and continually improving it. Eliminating waste. There are seven types of waste: 1. Waste from overproduction. 2. Waste of waiting time. 3. Transportation waste. 4. Processing waste. 5. Inventory waste. 6. Unnecessary movement of people. 7. Waste from product defects. Good housekeeping - workplace cleanliness and organization.

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Set-up time reduction - increases flexibility and allows smaller batches. Ideal batch size is 1item. Multi-process handling - a multi-skilled workforce has greater productivity, flexibility and job satisfaction.

Leveled / mixed production - to smooth the flow of products through the factory. Kanbans - simple tools to `pull' products and components through the process. Jidoka (Autonomation) - providing machines with the autonomous capability to use judgement, so workers can do more useful things than standing watching them work.

Andon (trouble lights) - to signal problems to initiate corrective action.

The poka yoke system and Andon or visual control system is very significant, so are discussed in detail. Poka yoke system: Poka yoke or fool proofing is a method of 100% inspection. Poka yoke is preferred option to SQC. In SQC one has a sampling plan. If the sample is ok the lot is ok. However this does not mean that there are no defectives in the lot. When this lot goes to the market if a customer finds a defect then for him it is 100% defect. He is not concerned with batch or sample. Therefore SQC is rationalization of method of inspection. It does not ensure defects are not produced at all. Poka yoke does this. When a washing machine is packed an instruction manual is placed in the carton. Packing takes place on a conveyer out of one million cartons packed per month 7-8 customers complain that instruction booklets were not received. When a complaint is received the packer was asked to be more cautious. For a few days there were no complaints and then once again it would occur. Fool proofing was carried out by providing an electric switch on the box from which the instruction booklet was withdrawn. Now every time an instruction booklet was with drawn the electric switch activated. This allowed the carton to move to the next stage of the conveyer using an interlock no more customer complaints for missed instruction manuals. This is a classical example of poka yoke in action.

Andon system: JIT MANUFACTURING Page 14

JIT system puts emphasis on prevention of recurrence of a problem. Using andon board a supervisor immediately comes to know where a problem occurs. All employees are allowed to stop production when a problem occurs. Stopping of machines or production lines with a view to permanently eliminate the problem. One must not relieve pain by using pain killers, one must go to the root of the problem and once and fro all eliminate it. By stopping machines or production lines everyones energy is focused in finding a permanent solution. This in a way defines management philosophy which does not look for short term gains but for long term results. Very often when a problem occurs emergency measures are taken parts are reworked or salvaged which then becomes a standard practice. This causes waste. If a company management accepts this philosophy then it is advisable that it does not attempt a JIT production system.

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Agreement with the persons holding majority interest in the company management like members of the board or major shareholders commanding majority of voting power; a) Purchase of shares in open market; b) To make takeover offer to the general body of shareholders; c) Purchase of new shares by private treaty; d) Acquisition of share capital through the following forms of considerations viz. Means of cash, issuance of loan capital, or insurance of share capital.

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Strengths of JIT There is a lot of strength in incorporating JIT lean manufacturing in a company. JIT makes production operations more efficient, cost effective and customer responsive. JIT allows manufacturers to purchase and receive components just before they're needed on the assembly line, thus relieving manufacturers of the cost and burden of housing and managing idle parts. In that respect, company spokesman for Dell Venancio Figueroa, says "With our pull-to-order system, we've been able to eliminate warehouses in our factories and have improved factory output by double by adding production lines where warehouses used to be" (Songini, 2000). The benefit of carrying smaller amounts of inbound, in-process, and finished goods inventory exists regardless of the firm's operating context (size, production technology, etc.). Just In Time appeals to many companies because it helps prevent manufacturers from being stuck with inventory that may become obsolete. JIT was initially developed and justified based on cost reduction and quality improvement dimensions. Now, companies view JIT as providing an approach to achieving excellence in the elimination of waste (thought of as all things that do not add value to the product), as well as making the company more responsive to short-term customer demand patterns. JIT manufacturing can be a real money-saver for a company. Companies are not only more responsive to their customers, but they also have less capital tied up in raw materials and finished goods inventory, allowing companies to optimize their transportation and logistics operations (UPS, 2003). Overall, JIT manufacturing results in lower total system costs and improved product quality. With JIT, some plants have reduced inventory more than fifty-percent and lead time more than eighty-percent (Droge, 1998). JIT is lowering costs and inventory, reducing waste, and raising the quality of products.

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Weaknesses of JIT Just as JIT has many strong points, there are weaknesses as well. "In just-in-time, everything is very interdependent. Everyone relies on everybody else" (Greenberg, 2002). Because of this strong interdependence with JIT, a weakness in the supply chain caused by a JIT weakness can be very costly to all linked in the chain. JIT processes can be risky to certain businesses and vulnerable to the supply chain in situations such as labor strikes, interrupted supply lines, market demand fluctuations, stock outs, lack of communication upstream and downstream in the supply chain and unforeseen production interruptions. Labor strikes, stock outs, and port lockouts can quickly disrupt an entire supply chain while JIT processes are in place. "Adhering to the just-in-time concept can be expensive in times of emergency such as at ports" (Greenburg, 2002). When a ship arriving from Asia full of supplies cannot make it to shore, the company using JIT generally has very little inventory to compensate for the emergency. This lack of inventory is exactly what makes JIT so great to companies in reducing costs, yet making it risky as well by in some cases not having enough buffer inventories to react and keep the supply chain moving. Every year markets experience seasonal demand fluctuations as well as fluctuations due to demand from disasters or other unforeseen events. "Just-in-time delivery leaves retailers and manufacturers with little inventory as the holiday season approaches" (Greenberg, 2002). Relying solely on JIT systems would leave supply chains in shock due to the overwhelming seasonal market demand at different times of the year for seasonal products. Not all products should be produced with JIT systems in place. Custom made items will not work well with JIT as JIT systems respond best to mass produced and highly automated production items. Communication is king in a JIT rich supply chain. There is a risk involved with JIT when there is a communication breakdown and the company cannot get the right amount of supplies needed to keep the just-in-time system running smoothly. Technology is playing a big role in JIT number, however, the reliance on technology can lead to breakdowns in the IT systems that can be costly to work around and go back to the 'pencil and paper' methods of doing supply/inventory demand calculations. Companies should always have JIT MANUFACTURING Page 18

backup systems in place to help thwart the possibility of technology or communication breakdown. Weaknesses in JIT systems are very important to recognize. "From Cisco routers to Dell computers to the Gap's leather pants, companies have found their just-in-time manufacturing systems have let them down" (Johnson, 2001). Companies must strongly evaluate the pros and cons of implementing JIT systems. The effects and risk to their supply chain must also be heavily considered. Although JIT has its weaknesses, in most cases, the benefits outweigh the risks to the JIT enabled company. Planning for and recognizing when things may go wrong with the JIT system are vital for the success of JIT implementation across all areas of supply chains.

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CHAPTER IV JIT in Practice

Just in time has an overall strategic focus to provide companies with an exceptional amount of savings. There is a large variety of companies and industries that have experienced these cost savings. For our research we will feature Dell and Toyota as two examples to illuminate the cost saving effects that just in time offers. To begin our discussion, Dell, which participates in the computer technology industry, is the only company within its industry that effectively utilizes just in time. They have "revolutionized the selling of personal computers, using a direct-business model whose fundamental tenets include taking custom orders directly from customers, thereby reducing inventory and streamlining distribution" (DI D RECT, 2001). After Dell has received a customer order, they then begin production of the product that the customer desires. This exemplifies a pull system within the supply chain. A pull system is reactive whereby production is executed in response to a customer order. This unique supply chain provides Dell with a competitive advantage within its industry allowing them to become the market leader over Compaq in 2001 (DI D RECT, 2001).

Dell's position within its industry is a result of their strategic focus to reduce inventory and streamline distribution. This strategy has allowed them to keep only five days of inventory on hand (DI D RECT, 2001). This is the smallest amount of inventory of any company within this industry, according to Mike Gray, Supply Chain Evangelist for Dell. He stated that most companies within the computer industry currently hold between 20 and 30 days worth of inventory (Personal Communication March 10, 2005). The limited amount of inventory held by Dell has "created value for their customers. The value created for their customers is a function of integrating the entire value chain: invention, development, design, manufacturing, logistics, service, delivery and sales" (DI D RECT, 2001). Integrating the entire value chain creates visibility and provides stronger relationships between Dell and their customers and suppliers. This visibility allows them JIT MANUFACTURING Page 20

to only "invest in what their customers want, rather than trying to guess what they might want" (DI D RECT, 2001). In addition Dell has a philosophy to "only manufacture what their customers ask them to make, when they ask them" (DI D RECT, 2001). This strategy provides Dell with a time-to-market advantage. "They can get their customers the freshest, latest, greatest Pentium 4 and all associated operating systems 85 days faster than HP. This is true in regards to research that shows Hewlett Packard has 63 days of inventory and a distribution channel with 25 to 30 days of inventory as well. Collectively, HP has about 90 days of inventory compared to Dell's five. The minimal amount of inventory held by Dell provides them with an economic advantage, because the value of components and manufacturing materials declines about one per cent per week. The five day inventory also minimizes a customer's ability to change their wants before they receive their computer. For example, if an individual tells a manufacturer what they want today but they do not hear the request for 90 days, chances are by this time the customer wants something else" (DI D RECT, 2001).

Dell's use of just in time results in cost savings, superior customer satisfaction, limited waste, and the ability to provide their suppliers with more information. In the end these benefits all result in a cost savings for Dell and higher revenue. Since Dell holds minimal inventory, they do not have to fund raw materials, work in process or finished goods inventory. Toyota Motor Corporation is another company that effectively uses just in time. They are known as the "master and pioneer" of just in time and are currently entering the market to provide customized vehicles to customers with a minimal wait. "Toyota has spent the last six years revamping its ordering, manufacturing and distribution to make it easier for dealers and customers to make changes right before production" (Fahey, 2004). "Their goal is to reduce the average time between dealer order and delivery from Toyota's North American factories from 70 days to 14" (Fahey, 2004). This goal accomplishment "would not only make customers happier but also cut dealer inventory costs and the need for Toyota to spend on rebates for slow-selling vehicles" (Fahey, 2004).

In order to seek the benefits of providing customized orders and reducing the average JIT MANUFACTURING Page 21

delivery time, Toyota has developed its own software that connects dealers to factories and factories to suppliers. The integration of the value chain creates visibility for all members of Toyota's supply chain. When a request from a dealer is received by Toyota their "software is able to figure out the availability of parts nearby, the time to resequence the assembly line and whether the change would unbalance the line by scheduling, for example, too many models loaded with time-consuming options one right after the other" (Fahey, 2004). Toyota has also adjusted their distribution process to effectively provide customized vehicles in a just in time process. "Toyota now sends finished vehicles to sorting docks where they can be grouped by region. This new process cuts delivery by two days. And in assembling cars, Toyota now considers destination, so that it may, for instance, make vehicles headed to Seattle at the same time" (Fahey, 2004). This process adjustment has provided Toyota with a cost savings in result. Dell and Toyota are two model companies of just in time. They effectively get the right products to their customers when they need it. Both companies have achieved a competitive advantage within their industries due to utilizing the just in time process and allowing visibility between them and other members of the value chain.

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CHAPTER V JIT and Beyond

Just-In-Time inventory systems have come a long way through out the years improving the efficiency of purchasing in many companies. But as with most things there is always room for improvement and growth. JIT inventory systems have evolved over the years with many new and exciting twists. Competition in the business world is shifting from being between company and company to supply chain and supply chain. This is why JIT is evolving in many different ways. JIT II is one such evolution of the efficiency of JIT. JIT II is a way to improve the customer-supplier relationship. JIT II uses "systems integration" which allows, "sharing of information so that the relationship is more like a partnership" (Pragman). Essentially this equals more and more visibility throughout the supply chain, which equals better responsiveness and lower costs, the two main goals of supply chain management. "JIT II, a customer-supplier partnership concept pioneered at Bose Corporation and now practiced by major companies and their suppliers, can aid in cutting both design and response lead time" (Pragman). This is accomplished through systems integration, which seeks ways to improve coordination between different functional areas, as well as bridges the gap between customer and supplier. With JIT II the suppliers have a person within the customer's organization full time acting as a purchasing department employee for the customer firm. JIT II has really impacted the following areas: "the administration of the purchasing function, logistics, concurrent engineering and value analysis and material stores and support services. In each of these areas the lead time reductions are greater with JIT II than with conventional JIT" (Pragman). The administrative benefits of JIT II are due to the fact that the supplier is constantly available in-house. JIT II reduces administrative costs for both the customer and supplier JIT MANUFACTURING Page 23

because the purchasing costs are not all on the customer and the supplier gets all the business from that specific customer as it wants as long as things go well. Because the supplier is always present "JIT II permits concurrent engineering and value analysis to take place on an ongoing basis, not just during sporadic sales calls" (Pragman). JIT II is not the end of the evolution of just in time systems it is actually just the beginning. ERP is another result that spawns from the premise behind JIT II. The main difference between the two is that JIT II is not computer system based and ERP is based on a computer system that helps ensure the visibility of all functional areas within a company as well as within its supply chain. "ERP helps organizations reduce supply chain inventories due to the added visibility throughout the entire supply chain" (Wisner, Leong, Tan). A major advantage of an ERP system is that it allows managers to make better more informed decisions that effect the entire supply chain. As ecommerce and global operations continue to grow a need for visibility and data exchange between suppliers, customers and foreign offices has emerged. Thus driving ERP more to the forefront with ERP comes decreased inventories as well as responsiveness which is the major idea of JIT systems.

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CHAPTER V JIT IN MANUFACTURING

According to Hirano, the introductory phases of JIT involve 5 steps.

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Step 1: Awareness Revolution

It means giving up old concept of managing and adopting JIT way of thinking. There are 10 principles for improvement: 1. Abolish old tradition concepts. 2. Assume that new method will work. 3. No excuses are accepted. 4. It is not seeking for perfection, absolutely zero-defect process, few defects is acceptable. 5. Correct mistakes immediately. 6. Do not spend money on improvement. 7. Use you brain to solve problem. 8. Repeat to ask yourself 5 times before any decision. 9. Gather information from several people, more is better! 10. Remember that improvement has no limits. The idea of giving up old concept was especially for the large lot production, The lot production was felt that "having fewer changeover was better", but it was no longer true. Whereas JIT is a onepiece flow manufacturing. To compare the two, Hirano had this idea:

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Step 2: 5Ss For Workplace Improvement

The 5Ss stand for: Seiri - Proper Arrangement Seiton - Orderliness Seiso - Cleanliness Seiketsu - Cleanup Shitsuke
Discipline This 5Ss should be implemented company-wide and this should be part of a total improvement program. Seiri - Proper Arrangement means sorting what you have, identifying the needs and throwing out those unnecessary. One example is using red-tags. This is a little redbordered paper saying what the production is, how many are accumulated and then stick these red tags onto every box of inventory . It enhances the easiness to know the inventory status and can reduce cost. Seiton - Orderliness means making thing in order. JIT MANUFACTURING Page 27

Examples include keeping shelves in order, keeping storage areas in order, keeping workplace in order, keeping worktables in order and keeping the office in order. Seiso - Cleanliness means having a clean workplace, equipment, etc. Seiketsu - Cleanup mean maintaining equipment and tools. Shitsuke - Discipline means following the rules and making them a habit.

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Step 3: Flow Manufacturing

Flow manufacturing means producing one single piece of product at a time but multihandling which follows the process sequence. There are several main points concerning flow manufacturing: 1. Arrange machines in sequence. 2. U-shaped production line (Cellular Manufacturing). 3. Produce one-piece at a time. 4. Train workers to be multi-skilled. 5. Follow the cycle time. 6. Let the workers standing and walking around while working. 7. Use small and dedicated machines. JIT MANUFACTURING Page 29

Step 4: Standard Operations Standard Operation means to produce quality safely and less expensively through efficient rules and methods of arranging people, products and machines. The basis of standard operations is: 1. Cycle time It means how long it would take to "carry out part all the way through the cell". Following are the equations for calculating cycle time. Daily Quantity Required = Monthly Quantity Needed / Working Days per month Cycle Time = Working Hours per day / Daily Quantity Required 2. Work sequence 1. Standard stock-on-hand 2. Use operation charts

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Step 5: Multi-Process Handling Multi-process handling means one worker is responsible for several processes in a cell. Some points that should be aware: Clearly assign jobs to machines and workers. Make a good use of U-shaped cell manufacturing. Multi-skilled workers Operation should be able to perform multi-machine handling and multi process handling. Multi-machine handling - a worker should handle several machines at once, this is also called "horizontal handling". Multi-process handling - a worker should handle several different processes at once, this is also called "vertical handling" and this is the basis for JIT production. Uses casters extensively as author written, "Floor bolts are our enemies! Machines must be movable."

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CHAPTER VI CASE STUDY - I

DELL

Dell Inc. (NASDAQ: Dell, HKEX: 4331) is an American multinational information technology corporation based in Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the JIT MANUFACTURING Page 32

world, employing more than 103,300 people worldwide. Dell is listed at #38 on the Fortune 500 (2011). Dell has grown by both organic and inorganic means since its inceptionnotable mergers and acquisitions including Alienware (2006) and Perot Systems (2009). As of 2009, the company sold personal computers, servers, data storage devices, network switches, software, and computer peripherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce. On May 3, 2010, Fortune Magazine listed Dell as the 38th largest company in the United States and the 5th largest company in Texas by total revenue. It is the 2nd largest non-oil company in Texas (behind AT&T) and the largest company in the Austin area.

HISTORY
Dell traces its origins to 1984, when Michael Dell created PCs Limited while a student at the University of Texas at Austin. The dorm-room headquartered company sold IBM PCcompatible computers built from stock components. Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PCs Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs. Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $300,000 in expansion-capital from his family. In 1985, the company produced the first computer of its own designthe "Turbo PC", sold for US$795. PCs Limited advertised its systems in national computer magazines for sale directly to consumers and custom assembled each ordered unit according to a selection of options. The company grossed more than $73 million in its first year of trading. The company changed its name to "Dell Computer Corporation" in 1988 and began expanding globallyfirst in Ireland. In June 1988, Dell's market capitalization grew by $30 million to $80 million from its June 22 initial public offering of 3.5 million shares at $8.50 a share. In 1992, Fortune magazine included Dell Computer Corporation in its list JIT MANUFACTURING Page 33

of the world's 500 largest companies, making Michael Dell the youngest CEO of a Fortune 500 company ever. In 1996, Dell began selling computers via its web site, and in 2002, Dell expanded its product line to include televisions, handhelds, digital audio players, and printers. Dell's first acquisition occurred in 1999 with the purchase of ConvergeNet Technologies. In 2003, the company was rebranded as simply "Dell Inc." to recognize the company's expansion beyond computers. From 2004 to 2007, Michael Dell stepped aside as CEO, while long-time Dell employee Kevin Rollins took the helm. During that time, Dell acquired Alienware, which introduced several new items to Dell products, including AMD microprocessors. To prevent cross-market products, Dell continues to run Alienware as a separate entity but still a wholly owned subsidiary.

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Manufacturing process in DELL

DELL has Just In Time (JIT) manufacturing process which is explained in following
pages. Introduction Not often we get the chance to look inside the kitchen of a successful computer manufacturer such as Dell or EMC. Usually they keep the details of their manufacturing process under wraps and dont really let journalists in to take a peek, let alone take photos. So we welcomed their invitation to visit their European manufacturing facilities in Limerick and Cork, Ireland, last week, to see for ourselves how Dell and EMC get the job done. The Dell facility is located in Limerick and with its 3,500 employees caters to the European and African markets and is one of the five manufacturing plants Dell has around the globe. They manufacture over 20,000 PCs every day and ship these to countries in the Europe, Middle-East and Africa region.

Dell are one of the most successful computer manufacturing companies in the world that manufacture and ship about 120,000 computer systems worldwide, ranging from notebooks to servers, every day of the week. EMC however is a storage company that caters to the corporate markets, with network storage solutions such as SAN, NAS and CAS that drive the need of their customers to have fast and reliable high capacity storage. Dell and EMC have recently entered an alliance where they both address a portion of the market. Dell typically takes the low and mid-range whereas EMC will cater to the highend market. Dell also handles the manufacturing of EMC's low-end products. As such JIT MANUFACTURING Page 35

both companies state that they compliment each other really well, without too much of an overlap. In the next few pages well take you along a tour of Dell facilities and see just how their products are manufactured from the ground up.

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Parts and Components During the press briefing Dell mentioned they manufacture more than 20,000 computer systems every weekday in their Limerick facility, which is enough to fill about 70 to 100 trucks. Part of the Dell business model is that they dont keep inventory, they dont have any parts on stock for more than a few hours. This means that their suppliers must be able to deliver the needed parts and components to the Dell facility within two till three hours. In order to streamline all of this, and process the massive amount of inventory being delivered to the Dell facility, it is equipped with forty hangars where trucks can pull right up and unload their cargo.

Parts Delivered

Parts tagged with Bar Code Distribution and Assembly

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Whenever you order a computer at Dell it creates a custom order for that configuration and it will be assembled from the ground up. Unlike other manufacturers Dell manufactures build to order computers, they dont have a baseline configuration to which they add parts, each computer is manufactured individually. The parts that are needed to fill the order are taken out of the inventory, scanned in to make sure the right parts are used, and placed in a large anti-static box that is then transported by conveyor belt to the next available spot in the assembly line. Dell has three separate production lines set up, one handles all desktop orders, the other servers, whereas the last takes care of all of the notebook orders.

Parts being transported to assembly Line

Large anti-static boxes are used to transport all the parts of the order.

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Assembly line, heres where the parts will be assembled to complete the order.

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Assembly and Testing As mentioned each part is tagged with a bar code at the delivery and scanned multiple times during the assembly process to ensure the order is filed exactly to the customers demands. It also helps Dell to manage their inventory and tracks any errors or bad batches of parts so they can quickly act on anything that might cut into their productivity or other problems that might prevent the completion of an order. When a system is completely configured it will be tested for a minimum of two hours, prior to the software being loaded. When the test is completed successfully and the software loaded, itll be prepared for shipping and sent off to the customer at the end of the day.

A barcode scan of a part needed to complete and order, a 24 speed CDROM.

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A large number of systems being tested for at least two hours, prior to shipping.

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Packaging and Shipping The last part of our tour covered the packaging and shipping of the newly manufactured computers. Dell uses as much environmentally friendly packaging as possible for the 20,000 systems that get shipped out of their Limerick facility every day. Contrary to what we thought these systems are shipped out of Limerick by road, using up to a hundered trucks that pull right up to the facility' loading bays. Distribution is then done throughout the Europe, Middle-East and Africa region either by road or air by local distribution centers on mainland Europe.

Hundreds of carton boxes containing PCs, servers, notebooks, etc.

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Loading the trucks with hundreds of boxes, ready to be shipped off.

One thing was obvious though in Dell's facility, this facility is able to produce and ship an amazing number of computers every day. The rate at which we've seen PCs come off the assembly line was astonishing; we've seen workers put a whole PC together in about three minutes and notebooks in less than that.

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CHAPTER VII CASE STUDY II

IBS
The term Just-In-Time (JIT), used for instance to describe the delivery of materials to a construction site, suggests that materials will be brought to their location for final installation and be installed immediately upon arrival without incurring any delay due to storage in a lay down or staging area. JIT is a concept developed by the Japanese who created the Toyota Production System, later translated into English as the lean production system. The ultimate objective of JIT production is to supply the right materials at the right time and in the right amount at every step in the process. Thus, IBS is one example of JIT in construction. Rahman and Omar (2006) defined IBS as a construction system that is built using pre-fabricated components. The manufacturing of the components is systematically done using machine, formworks and other forms of mechanical equipment. IBS is defined as products, systems and techniques used in making construction less labour-oriented, faster as well as quality controlled. It generally involves prefabricated products, factory manufactured elements that transported to the construction sites and erected. (Shaari, Bulletin Ingnieur, 2003) According to Abraham Warszawski (1999), IBS is defined as a set of element or component which is inter-related towards helping the implementation of construction works activities. He also expounded that an industrialisation process is an investment in equipment, facilities, and technology with the objective of maximising production output, minimising labour resource, and improving quality while a building system is defined as a set of interconnected element that joint together to enable the designated performance of a building. Classification of IBS According to Badir- Razali, generally, there are four types of building systems currently available in Malaysias building system classification (Badir et al. 1998), namely conventional, cast in-situ, prefabricated and composite building systems. Each building system is represented by its respective construction method which is further characterised by its construction technology, functional and geometrical configuration. Type of building system in Malaysia Nonetheless, according to CIDB (2003), the structural aspects of IBS of the systems, divided into five major types as follows: 1. Precast Concrete Framing, Panel and Box Systems Precast columns, beams, slabs, 3-D JIT MANUFACTURING Page 44

components (balconies, staircases, toilets, lift chambers), permanent concrete formwork, etc;

Precast concrete wall

1. Steel Formwork Systems Tunnel forms, beams and columns molding forms, permanent steel formworks (metal decks, etc;

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Steel Framework System

2. Steel Framing Systems Steel beams and columns, portal frames, roof trusses, etc;

Steel roof trusses

3. Prefabricated Timber Framing Systems Timber frames, roof trusses, etc;

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Prefabricated timber framing system for a double storey house

4. Block Work Systems Interlocking concrete masonry units (CMU), lightweight concrete blocks, etc.

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Lightweight concrete blocks are used for wall construction The pre-cast concrete components are among the most common prefabricated elements that are available both locally and abroad. The pre-cast concrete elements are concrete products that are manufactured and cured in a plant environment and then transported to a job site for installation. The elements are columns, beams, slabs, walls, 3-D elements (balconies, staircase, toilets, and lift chambers), permanent concrete formwork and etc. The steel formwork is prefabricated in the factory and then installed on site. However the steel reinforcement and services conduit are installed on site before the steel formwork are installed. The installation of this formwork is easy by using simple bracing system. Then concrete is poured into the formwork and after seven days, the formwork can be removed and there is some system whereby the formwork served as a part of the structure itself after concreting. The steel formwork systems are used in tunnel forms, beams, column moulding forms and permanent steel formworks. The elements of steel framing system are rolled into the specific sizes and then the elements are fabricated that involves cutting, drilling, shot blasting, welding and painting. Fabricated elements are sent to the construction site to be then erected whereby welding JIT MANUFACTURING Page 48

and the tightening of bolts at joints are conducted. The elements include steel beams and columns, portal frames and roof trusses the prefabricated timber framing system is normally used in the conventional roof truss and timber frames. The timber is prefabricated by joining the members of the truss by using steel plate. It is important that all members are treated with the anti pest chemical. Then, the installation is done on site by connecting the prefabricated roof truss to the reinforcement of the roof beams. The elements of block work system include interlocking concrete masonry units (CMU) and lightweight concrete blocks. The elements are fabricated and cured in the factory. The elements are normally used as bricks in structures and interlocking concrete block pavement. Value Stream Mapping Koskela (1992) pointed out that architects, engineers, and construction practitioners have for the longest time focused on conversion activities and overlooked issues of flow. Flow is important because work or materials that do not flow sit idle in inventory, tying up money (including the procurement cost of ingredients plus labor and machine time to bring them to the stage of completion they are in) as well as space. They stand the risk of being damaged or becoming obsolete due to design changes or market competition. Inventory means productwaits: its cycle time increases, that is, it takes longer for the product to traverse all production steps it needs to go through before reaching its customer. As a result, project durations are larger than they would have been had flow not been inhibited. Most tools used today by practitioners who manage construction, such as those fordesign, planning, scheduling, and costing, do not acknowledge flow: they do not explicitly capture changes of resource characteristics over time. Process modeling tools for discrete event simulation are an important exception and warrant more attention by the lean construction community. Such models can incorporate input regarding individuallycharacterized components, uncertainties of numerous kinds, and sequencing rules (e.g., Tommelein 1997) and then produce output data regarding buffer sizes, cycle times, idle times, production rates, etc. The symbols commonly used to depict process models for construction, however, have yet to distinguish how processes are being managed, for instance, whether or not a JIT system has been implemented. Practitioners in manufacturing, working for Toyota and then later for other companies going lean developed their own pictorial language to help focus attention on what matters in their transition. We borrowed such symbols from JIT MANUFACTURING Page 49

Rother and Shook (1998) and used them to map structural steel supply chains. Boxes denote value-adding processes or tasks, such as ordering raw materials, fabricating steel, and transporting shipments to a site. A triangle denotes work in progress or inventory. It represents an accumulation of product (materials or information) possibly of unlimited amount and for an indeterminate duration. An inverted triangle is an order to batch. Kanban (introduced in Figure 1) denote orders to withdraw or produce product, in order to deplete or replenish a supermarket. A supermarket, represented by , refers to controlled inventory in terms of how much material is kept on hand and how replenishment takes place. The FIFO symbol denotes the first-in-first out release of resources output by a task. The circular arrow denotes a physical pull of materials from a supermarket. It differs from the withdrawal kanban in that it pertains to the amount of product needed at the time of the withdrawal and not necessarily a predetermined fixed quantity. A dashed line with an arrow designates the flow of product. A solid white line is transportation of product to the customer site. A black-andwhite dotted line shows that product is pushed into inventory. Rother and Shook (1998) use these symbols for so-called value stream mapping where the term value pertains mainly to reducing work n process inventories and product cycle times. Our use of this notation stems as much from our desire to engage in mapping the structural steel supply chain as it does from our desire to test the adequacy of those symbols in representing architecture/engineering/construction processes and in capturing value. Example Structural Steel Supply Chain for Building Construction The structural steel supply chain for building construction differs in several regards from the one for industrial construction. The buildings frame may in fact be more complex, especially when it supports a very tall structure, so the major steel sections require extra procurement effort. The industry is also organized differently. On design-bid-build projects, a common delivery method for buildings, the owner typically hires an architectural engineering (AE) firm, which in turn hires a structural designer. When the AE has prepared all bid documents, the project is put out for bid. A general contractor (GC) is then selected. The GC subcontracts the steel work to the fabricator, who in turn subcontracts field installation work to a structural steel erector. The latter essentially provides the crane and skilled labor, whereas the former is responsible for JIT MANUFACTURING Page 50

acquiring, fabricating, and shipping the materials to site in the sequence needed for erection. The fabricator may also subcontract the structural steel detailing work. Fabricator and erector work as a tightly knit team. The GC will meet with them during bid preparation. They must assess the project site constraints to position the erectors crane, as it determines not only the steel erection sequence but also the layout of other temporary facilities and thus the flow of many construction resources. This sequencing in turn drives the fabrication schedule. It must of course meet the GCs master schedule but must also be efficient4 the fabricator who subcontracts the erection work has an incentive to minimize that work and does so by thoroughly planning the sequencing and site delivery of steel pieces in the order they will be needed. As for logistics, a big difference between the industrial and the building sector is that more often than not building space is very tight, especially on projects located in an urban environment. Industrial projects tend to be more remotely sited. Materials deliveries to building projects accordingly are constrained by traffic patterns and transportation permit requirements. Trucks parked in the street along the edge of a site ready to off-load steel may not remain there for any extended time. When deliveries take place, the crane gets dedicated to off-loading and moving pieces to a staging area, namely the highest floor with decking, from where steel will subsequently be picked up and moved into final position. Only in exceptional cases will steel be erected directly off the flatbed truck. This saves extra handling steps but can be done only when it is acceptable to tie up the truck longer and provided the steel has been loaded in inverse order needed. Differences in value stream maps between industrial and building construction are therefore expected at least near the end of the chain, especially in the way delivery to the project site is organized. If JIT is practiced in industry today one possible way is depicted in figure.

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Figure includes two supermarkets, which illustrate the presence of pull mechanisms. The steel mill (IV) still takes special orders. The resulting output is stored in a generic buffer (triangle). The buffer is not specifically controlled in size but it is filled only based on firm customer orders. That product is sold so it is unlikely to become obsolete (waste). The mill also produces run-of-the-mill product in anticipation of customer orders. As was the case in figure 2, this is denoted by a supermarket where quantity-on-hand will not exceed a threshold value and gets replenished at appropriate times. A second supermarket is shown in figure 3 to handle output from fabrication (III). For instance, the fabricator of a 20-story building could complete the steel for stories 1 through 3, then await orders from the construction site (withdrawal kanban) to ship them steel for story 1 before starting work on story 4 (production kanban). A smaller inventory buffer may be well suited provided fabrication can keep pace with erection. Since there is virtually no storage space on site, no buffer of materials is shown preceding ERECT [ion] (VI). The creation of large buffers either at the contractors or fabricators site is contrary to JIT production system design. As the word JIT suggests, materials must be fabricated or delivered on time, which means not too late but not too early either. This implies that variability regarding timing, actual pieces released, as well as quality must be limited and controlled. In a true JIT system, this timeliness pertains not only to a single hand-off between two production steps, but rather, one aims at achieving JIT flow between all production steps. In the idealistic extreme, this means having no buffers at all! In practice, this means buffers must be determined trategically. Admittedly, doing so is not an easy task, JIT MANUFACTURING Page 52

especially in a production system of complex products that involve several organizations as is the case for structural steel. But this is what lean Because of constructions one-ofa-kind project nature, the structural steel supply chain differs from manufacturing systems for more standardized products, which can be likened to the Toyota Production System. The manufacturing symbols used here for mapping the steel supply chain provide no room for defining individually-characterized resources or detailed sequencing rules. While their ability to show processing durations and delay times has not been used in this report. The current practice of buffering stems from the desire to optimize labor and machine utilization and from admitting that uncertainties exist in the supply chain. Many uncertainties are the result of variability, which could be understood better if at least it were measured and explicitly accounted for. This is not the current practice in construction. Uncertainties and variability should not be taken for granted. They should be acknowledged, managed, and minimized to a reasonable degree. In fact, one technique to identify them is to reduce buffer sizes in-between various production steps in order to see and learn the extent to which they are needed. Process improvement efforts can then focus on those steps where the impact on throughput of the system as a whole will be most significant. Example improvements in construction are those that aim at reducing uncertainty, as is done for instance through reliable planning by the Last Planner (Ballard and Howell 1998), work methods design, and work structuring (Ballard et al. 1999).

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Presint 9
Presint 9 is the selected project to be used as our case study in this task. The selection was made because Presint 9 is one of the examples of constructions using the IBS technique. Located in our Government administration areas, this Presint 9 is one of the projects in the development of Putrajaya areas. Presint 9 is the residential area construct by Setia Putrajaya Sdn. Bhd. The company had managed to complete the construction of Presint 9 in a minimum time by using the IBS method of construction. Based on the observation carried out by Putrajaya Holdings, noticed that the contractor only need four (4) month to complete the full structure of the apartment until level six (6) comparing to the used of conventional method that can only construct full structure of the building until level four (4) in the same period. Based on this statement prove that by using the IBS system to the construction of the building may reduced the time for the completion. It also be noted that this IBS system not only give the advantages in term of time to this construction but also give benefit in term of cost for the development. The contractor managed to reduced cost on labor because this method will reduced the used of labor in the construction. Moreover, there will be a reduction in the cost of project, this is because this method will reduced the waste in the construction that will contribute to the minimizing the cost of project. These prove that the application of IBS method is one of the techniques that can achieve the implementation of JIT approach.

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PICTURES OF THE PRESINT 9 PROJECT USING IBS Problem in the implementation JIT Approach into the Construction Industries JIT gives a lot of benefits to our construction industries, but there are several problems that may contribute to the failure on its implementation. The problems that occur may contribute to the inefficiency and ineffectiveness for JIT approach been implemented. The problems may occur based on the unique characteristic of the construction industries itself. Below are several problems that been identified faced in the implementation of JIT approach in the construction industries. Material Shortage Material is one of the crucial items in the process of production in the construction industries. Shortage in the material supply is one of the problems in our industries. Therefore, the material cannot be distributes to the site on time and this situation may affect the time factor for the project progress. Weather The production place for the construction is unique and not similar to other manufacturing production. Generally, construction activities located in the open space known as site omparing with manufacturing production that were conducted in the building. Weather is one of the factors that may contribute to the interruption in the

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construction activities. The uncertainty of weather may contribute to the problems in the JIT implementation. Design Changes To fulfill the client satisfaction, most of the procurement methods in our industries give a space for the client to makes changes in the design during the construction progress. This factor may effect the time and the cost for the project. We cannot achieve the completion dates because the changes may influence to extend and add the time of completion for the project. Therefore, JIT approaches are not applicable to this kind of construction. Cost IBS system been said as the effective construction technique in the implementation the JIT approach. IBS system may cut the time factor for the construction industries and reduce the numbers of delays on the project. The problem is the cost to be used in this system is higher compared to the conventional techniques used in this construction industry.

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Workflow in IBS System

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ANALYSIS
Analysis 1-JIT Principles to Project Analysis I JIT prinicples to project that use IBS 1. Pull System Strong joint effort with supplier allows the technical department and the contractor to have a better managed on "pull" demands system from the workstation without overproducing unrelated prefabrication components. This effort had help in expedite the construction of various types of multilevel apartments of Presint 9. 2. Top management commitment and Employee involvement The determination of top management of Putrajya holdings in handling IBBS project in a mechanical intensive way suits with their corporate vision that leads them to the greatest property developer in the country. 3. Elimination of waste IBS method emphasized on the usage of the natural environmental techniques and reduction of construction material. Conventional techniques that involve unskilled labor, such as laying up bricks, brickwork, plastering and concrete Work done off-site will only caused accidents to occur for untidy and messy site especially for big project in Putrajya. 4. Total quality control IBS system maintain the quality and high aesthetic and products for the whole building structure and envelope as it ensures a proper arrangement of prefabricated beam bad column that fits to the building. This method will give a fine

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Look of the building without any design or material discrepancies that will spoil the architectural style of the Building. 5. Uninterrupted Workflow The successful application of IBS system must be accredited to the effort of Seba Precast Sdn Bhd; one of the local IBS experts. The IBS specialist conceived, planned, fabricated the components at their factory before it were Transported and erected on site. This process allows Setia Precast to ensure that the right components are produced At the right time. In the right order and without defect. The systematic approach will not only sustain the quality of the project but it also ensures that the project is completed on right time.

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Analysis II JIT advantages with JIT project case 1. Quality of work From applying Total Quality Control (TQC) principle, we can see that Putrajya Holding Sdn Bhd can maintain the quality and high aesthetic end products. they admitted that the quality of work is satisfying from the fine look of the building. So having TQC in implementation IBS system gives maximal advantages n terms f quality of work. 2. Speed up of construction process from applying uninterrupted workflow principles, Putrajya Holdings Sdn Bhd gets the following advantages of a fast construction period comparing the conventional method. With the project in Presint 9, they have proven that it only take four months for Six storey building. If the workflow was interrupted, then there will be a big chance that the advantages of IBS regarding speed up of construction process can not be achieved. 3. Increase Production From applying top management commitment and employee involvement principle, one of the benefit of putrajya Holding Sdn Bhd that this lead to their corporate vision as the greatest property developer in the country where this will influence their productivity. From applying elimination of waste principles, Putrajya HoldingsSdn Bhd proved that construction productivity can be increased with low risk and higher innovation.Putrajya Holdings also managed to increase the work productivity and reduce the local currency exchange by foreign workers to their origin country. 4. Cost Saving From applying supplier relation with only one source of supplier, Putrajya Holdings Sdn Bhd admitted that it really influences the efficiency of project. In a construction project, good efficiency means good cost saving. 5. Applicable to all type of buildings JIT MANUFACTURING Page 60

From applying pull system in IBS project, Putrajya Holdings Sdn Bhd admitted that it helps in expedite the construction of various tyes of multilevel apartments of Presint9. It is optimistic that it can be applicable to other kinds of buildings.

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Findings
After doing two times analysis (see analysis I and II) we can see for this particular project how the correlation between adopting JIT principles and advantages in IBS system. Putrajaya Holding Sdn Bhd doing IBS system in their project in Presint 9. We can see that in their process of implementation IBS project they fulfill six (6) JIT key principles in the first analysis. Then we try to relate with the main advantages of IBS in second analysis. We can see that Putrajaya Holding Sdn Bhd also can obtain all the main advantages of IBS. From this case study analysis, as a conclusion we can say that if a contractor doing an IBS project and applying JIT six (6) key principles completely, there is a big opportunity that the contractor can obtain the maximal of IBS system. From the theory framework (see figure 2), it could be explained that this parallel correlation between JIT and IBS because both of it comes from the manufacture philosophy. And with this case study, we can recommend that if you want to gain maximal advantages of IBS system, by applying JIT in the process can give you a big guaranty of the successful of the project. This recommendation can be use if Malaysian promoting IBS system in their construction industry in the future.

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CHAPTER VIII CONCLUSION

Just-in-time manufacturing is a philosophy that has been successfully implemented in many manufacturing organizations. It is an optimal system that reduces inventory whilst being increasingly responsive to customer needs, This is not to say that it is not without its pitfalls. However, these disadvantages can be overcome, with a little forethought and a lot of commitment at all levels of the organization. In this modern competitive world, where only those industries, which provide maximum customer satisfaction at attracting prices, can succeed, the JIT system plays an important role, as it reduces the manufacturing time & wastage, during production. Thus it increases the amount of goods produced and decreases the cost of production of these goods.

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ABBREVIATIONS
1- JIT

Just In Time Material Requirement Planning Bill of Material

2- MRS 3- BOM 4- MPS 5- MRP 6- ABC 7- AE 8- IBS

Master Production System II Manufacturing Resource Planning Always Better Control Analysis

Architectural Engineering Integrated Business Strategy Direct Automated Delivery Total Quality Management

9- DND

10- TQM

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REFERENCES www.dell.com www.managementparadise.com www.google.com www.scribd.com www.bdaconnect.com/india/ficci www.wikipedia.org www.ibef.org

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