Just-In-Time Manufacturing

Just-In-Time Manufacturing? Just-In-Time Manufacturing? What is JIT Manufacturing? What is JIT Manufacturing? Where did it come from? Where did it come from? What are the main principles? What are the main principles? Is it easy to Implement? Is it easy to Implement? What phrase best describes JIT? What phrase best describes JIT?

Just-In Time Manufacturing JIT- A philosophy of continuous improvement that puts emphasis on prevention rather than correction, and demands a company wide focus on quality. JIT- A philosophy of continuous improvement 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- operational management approach to achieve world class manufacturing. JIT- production is based on demand JIT- production is based on demand

History of JIT Manufacturing Evolved in Japan after World War II, as a result of their diminishing market share in the auto industry. 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. Toyota Motor Company- Birthplace of the JIT Philosophy Under Taiichi Ohno. W. Edwards Deming W. Edwards Deming 14 points for Management 14 points for Management JIT is now on the rise in American Industries. JIT is now on the rise in American Industries.

Principles Of JIT Manufacturing Total Quality Management Total Quality Management Production Management Production Management Supplier Management Supplier Management Inventory Management Inventory Management Human Resource Management Human Resource Management

Principles Of JIT Manufacturing Total Quality Management Total Quality Management Production Management Production Management Supplier Management Supplier Management Inventory Management Inventory Management Human Resource Management Human Resource Management

Total Quality Management Total Quality Management Seek long-term commitment to quality efforts with continuous improvement Seek long-term commitment to quality efforts with continuous improvement Quality must be a higher priority than cost Quality must be a higher priority than cost Minimizing waste Minimizing waste

Total Quality Management Eliminate Quality Inspectors Eliminate Quality Inspectors Quality is everyone’s responsibility Quality is everyone’s responsibility Do it right the first time Do it right the first time

Principles Of JIT Manufacturing Total Quality Management Total Quality Management Production Management Production Management Supplier Management Supplier Management Inventory Management Inventory Management Human Resource Management Human Resource Management

Production Management Pull System vs. Push System Pull System vs. Push System Pull = Made to order Pull = Made to order Push = Made for inventory Push = Made for inventory Flexability of the system Flexability of the system Design For Testability – In the process Design For Testability – In the process Poka-Yoke= Mistake-proofing Poka-Yoke= Mistake-proofing Throughout entire process Throughout entire process

Production Management Reduced lot sizes= Shorter cycle times Reduced lot sizes= Shorter cycle times Eliminate disruptions in the process Eliminate disruptions in the process Standardized Parts/ Simplicity Standardized Parts/ Simplicity

Production Management Communication Techniques Communication Techniques Completion of task-Kanban Completion of task-Kanban Problem- Andon or siren/light Problem- Andon or siren/light Stopping the process if something goes wrong =Jidoka Stopping the process if something goes wrong =Jidoka Preventive Maintenance Preventive Maintenance

Production Management at Toyota  Toyota uses a Kanban pull system throughout the production process.  Each task in the process seems to take identical length and work content, so everyone is working at the same pace to reduce bottlenecks.

Principles Of JIT Manufacturing Total Quality Management Total Quality Management Production Management Production Management Supplier Management Supplier Management Inventory Management Inventory Management Human Resource Management Human Resource Management

Supplier Management Establish Long Term Relationships with few suppliers. Establish Long Term Relationships with few suppliers. Delivery of Parts = 100% Defect Free Delivery of Parts = 100% Defect Free Where they are needed Where they are needed When they are needed When they are needed The exact quantity The exact quantity Work Together Work Together

Supplier Management Elimination inspection of parts Elimination inspection of parts Information Systems Information Systems Eliminating barriers to information Eliminating barriers to information Communicate problems to suppliers in a positive manner. Communicate problems to suppliers in a positive manner.

Supplier Relations at Toyota  Toyota communicates their damand for parts 20 days in advance to their suppliers, with the right to change the forecast up to the 10 th day.

Principles Of JIT Manufacturing Total Quality Management Total Quality Management Production Management Production Management Supplier Management Supplier Management Inventory Management Inventory Management Human Resource Management Human Resource Management

Inventory Management Eliminate Safety Stock = Zero Inventory Eliminate Safety Stock = Zero Inventory Reduce WIP Reduce WIP JIT is not an inventory control system JIT is not an inventory control system Reduction in inventory opens up space Reduction in inventory opens up space

Inventory hides problems in a process. Water Level = Inventory Rocks = Problems in the system Boat = Company Operations

Principles Of JIT Manufacturing Total Quality Management Total Quality Management Production Management Production Management Supplier Management Supplier Management Inventory Management Inventory Management Human Resource Management Human Resource Management

Human Resource Management Company-wide Involvement Company-wide Involvement Motivation for continuous improvement Motivation for continuous improvement Problem Solving Problem Solving High Employee Interaction High Employee Interaction Build Pride In Workmanship Build Pride In Workmanship

Human Resource Management Self-Inspection of work Self-Inspection of work Diversified Employees Diversified Employees Absenteeism Absenteeism To eliminate boredom in process To eliminate boredom in process Management Support and Empowerment of workforce Management Support and Empowerment of workforce

Human Resource Management at Toyota  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.

WIP Example

Implementation Problems Worker resistance Worker resistance Lack of top management support Lack of top management support Lack of communication Lack of communication Lack of formal training Lack of formal training

Most Important Question What phrase best describes the Just- In-Time philosophy? What phrase best describes the Just- In-Time philosophy? Continuous Improvement Continuous Improvement

Summary JIT- A philosophy of continuous improvement that puts emphasis on prevention rather than correction, and demands a company wide focus on quality.

References Cammaranano, J. Lessons to be Learned: JIT. Atlanta, Georgia: Engineering and Management Press, Dear, A. Working toward JIT: Management Technology. London: Derek Doyle and Associates, Dear, A. Working toward JIT: Management Technology. London: Derek Doyle and Associates, Fisher, D. The JIT Self Test: Success Through Assesment and Implementation. Chicago, IL: Irwin Inc., Hernandez, A. JIT Quality: A Practical Approach. Englewood Cliffs, NJ: Prentice-Hall, Hutchins, D. Just-In-Time: Inventory Control. Brookfield, VT: Gower Publishing, O’Grady, P.J. Putting the JIT Philosophy Into Practice. New York, NY: Nichols Publishing, Reinfeld, N.V. Handbook of Production and Inventory Control. Englewood Cliffs, NJ: Prentice-Hall, Schneiderjans, M.J. Advanced Topics In JIT Management: JIT Systems. Westport, CT: Greenwood Publishing Group, Taver, R.W. Manufacturing Solutions for Consistent Quality and Reliability: The 9 Step Problem Solving Process. New York, NY: AMACON, Wesner, J.W., Hiatt, J.M., and Trimble, D.C. Winning with Quality: Applying Quality Principles in Product Development. Reading, MASS: Addison-Wesley Publishing Co., 1995.