Just in Time Getting the right quantity of goods at the right place at the right time.
JIT is an all- encompassing philosophy that is founded on the concept of eliminating waste. JIT has become a standard of operations in many industries. JIT originated in Japan.
Basic Elements of JIT System Just-in-Time Manufacturing Total Quality Management Respect for People
Just-in-Time Manufacturing JIT that focuses directly on the production system to achieve value- added manufacturing. JIT is able to achieve high- volume production of high quality, low cost products while meeting precise customer needs. JIT starts with the final assembly schedule, often called master production schedule
Master Production Schedule, which is a statement of which products and quantities will be made in specific time periods. Kanban or pull system specifies what is needed Push system – push products through the production system by producing an amount that has been set by a forecast of future demand
JIT manufacturing views inventory as a waste that needs to be eliminated. Inventory is carried to cover up a wide variety of problems, such as poor quality, slow delivery, in- efficiency, lack of coordination, and demand uncertainty.
Total Quality Management The foundation of JIT, is to produce the exact product that the customer wants. Quality is an integral part of the organization. The benefits of JIT cannot occur if the company is not working toward eliminating scrap and rework. In JIT the entire organization is responsible for quality. Concept of quality at the source - the objective is not only to identify a quality problem but to uncover its root cause.
The concept of continuous improvement - the company must be continuously and actively work to improve
Respect for People JIT requires total quality organizational reform and participation by every one in the company. Everyone is equally important and equally involved. Must work together to meet customer needs. JIT considers people to be a company’s most precious resource. Self- managed teams are groups of workers that have no supervisors; inspectors, time clocks, or union stewards.
Benefits of JIT: Reduced in inventory Improved quality Reduced space requirements Shorter lead times Lower cost production Increased productivity Increased machine utilization Greater flexibility
A recent study of JIT benefits has found that over a five-year period companies using JIT have experienced an 80-90% reduction in inventory investment, an 80- 90% reduction in lead time, a 75% reduction in rework and setup, a 50% reduction in space requirement and a 50& reduction in material handling equipment.
First implementation of JIT took place at the Toyota Motor Company in the early 1970s. Time based competition is one of the primary ways in which companies operate today and JIT is what makes it possible. The large benefits of JIT can bring to a company are demonstrated by the success achieved by Alcoa, a leader in the Aluminum industry. Alcoa’s accomplishment included reducing inventories sales by almost $1 billion.
Implementation Needs to start with a SHARED VISION The implementation of a true JIT system requires a complete cultural change for the organization. To implement a JIT successful what is needed are: Correct attitude Employee involvement Continuous improvement
A Changes of such profound magnitude needs to be driven by the Top Management. JIT implementation cannot succeed if it is done by middle / lover management. Managers need to involve workers in a meaningful way and not merely give lip service to the concept. Part of the change in atmosphere should consist of breaking down the barriers between the departments ad instilling “WE” thinking in place of an “US- VERSUS-them” attitude.
A “champion” for A JIT implementation must be designated, whether it is a plant manager, the CEO or a steering committee. The job of JIT champion: Is to have a person or group oversee all the steps necessary in implementing such a large change Sharing results with everyone in the company Financial information cannot be kept secret if everyone is to work and share in benefits.
Steps in Implementation Process: 1. Make Quality Improvements 2. Reorganize Workplace 3. Reduce Setup Times 4. Reduce Lot Sizes and Lead Times 5. Implement Layout Changes 6. Switch to pull Production 7. Develop Relationship With Suppliers
JIT in Service Improved Quality Uniform Facility Loading Use of Multifunction workers Reduction in Cycle Time Minimizing Setup Times and Parallel Processing Workplace Organization