Just In Time Overview

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UNIVERSITI KUALA LUMPURMALAYSIA FRANCE INSTITUTE

PRODUCTION AND OPERATIONS MANAGEMENT

FIB 36402 / FIB 36403

M122D1

PRESENTATION REPORT

JUST-IN-TIME PRODUCTION SYSTEM

Prepared By:

Name Students ID

MUHAMAD SAHIH BIN JUSO 50213211160

JOLYNN SAMANTHA MARTIN 50213211509

ABDUL SYAHIID BIN MOHD RASIDI 50207211669MUHAMMAD AWWAB BIN JAILANI 50207211278

AHMAD DANIEL BIN AHMAD IZZUDDIN 50213211392

Date: 26 November 2013 Prepared For: Madam Siti Norhafizah


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TABLE OF CONTENTS

Description ................................................................................................................................................ 1Definition .............................................................................................................................................. 1

What is JIT? .......................................................................................................................................... 1

Philosophy of JIT .................................................................................................................................. 2

Applications .............................................................................................................................................. 3

Total Quality Management ................................................................................................................... 4

Production Management ....................................................................................................................... 5

Inventory Management ......................................................................................................................... 6

Supplier Management ........................................................................................................................... 7Human Resource Management ............................................................................................................. 8

Examples ................................................................................................................................................... 9

Toyota ................................................................................................................................................... 9

McDonalds......................................................................................................................................... 10

Ramly Burger (Stall) ........................................................................................................................... 11

Dell ...................................................................................................................................................... 12

Others ...................................................................................................................................................... 13

Advantages of Using a JIT System ..................................................................................................... 13

Disadvantages of Using a JIT System ................................................................................................. 13

Comparison of the Traditional and JIT Production System ................................................................ 14

Conversion from Traditional to JIT Production System ..................................................................... 14

The Toyota Approach ......................................................................................................................... 15

JIT Manufacturing Building Blocks ................................................................................................... 15


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TABLE OF FIGURES

Figure 1: What is JIT? ............................................................................................................................... 1Figure 2: Principles in JIT Manufacturing ................................................................................................ 3

Figure 3: Total Quality Management ........................................................................................................ 4

Figure 4: Production Management ............................................................................................................ 5

Figure 5: Inventory Management .............................................................................................................. 6

Figure 6: Boat Analogy ............................................................................................................................. 6

Figure 7: Supplier Management ................................................................................................................ 7

Figure 8: Human Resource Management.................................................................................................. 8

Figure 9: MRP as Part of a Production Plan ............................................................................................. 9

Figure 10: Food Preparation ................................................................................................................... 10

Figure 11: Sophisticated System for Order Tracking with Stock and Supply Management .................. 10

Figure 12: Ramly Burger Composition ................................................................................................... 11Figure 13: Dell's Online Ordering System .............................................................................................. 12

Figure 14: Toyota Approach ................................................................................................................... 15

Figure 15: Explanation of the JIT Manufacturing Building Blocks ....................................................... 16
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DESCRIPTION

Definition

The Just-In-Time production system (JIT) is a highly coordinated system in which goods are moved

through the system and services are performed just as they are needed only.

What is JIT?

JIT is a production strategy used to improve a businesss ret urn on investment. Its process relies on

signals or kanban between different points to meet the JIT objectives. The JIT production strategy

reduces both in-process inventory and associated carrying costs to meet its production objectives.

Figure 1: What is JIT?

Production Strategy To improve a business'return on investment

How?

Reduce in-process

inventory

Reduce associated carrying

costs

ProcessRelies on signals (kanban)

between different points.JIT objectives met.Sometimes referred to as

adopting a Lean ProductionSystem

Preserve value with less

work


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Philosophy of JIT

In JIT, the storage of unused inventory is a waste of resources. The JIT Inventory System works by

exposing hidden inventory costs. However, it is not a simple solution for companies to adopt. Due to

this, the company must follow an array of new methods to manage the consequences of these changes.

This in turn defines how inventory is viewed and how it relates to the management.

Inventory incurs costs or wastes in contrast with traditional accounting. Therefore, JIT is implemented

with an awareness that removing inventory exposes pre-existing manufacturing issues. These issues are

solved by:

Constantly improving those processes to require less inventory.

Having the right material, at the right time, at the right place, and in the exact amount, without the

safety net of inventory.

Encouraging businesses to eliminate inventory that does not compensate for manufacturing process

issues.


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Total Quality Management

Figure 3: Total Quality Management


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Production Management

Figure 4: Production Management


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Water level = InventoryRocks = System ProblemsBoat = Company Operations

Inventory Management

Figure 5: Inventory Management

Inventory

Management

Eliminate

safety

stock = 0inventory

Inventory

hides

problemsin process

Reduceinventory

= Morespace

JIT

Inventory

controlsystem

Figure 6: Boat Analogy


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Supplier Management

Figure 7: Supplier Management

Supplier Management

Delivery of 100% defect-free

parts

When needed

Where needed

Exact quantity

Establish long-term

relationships with few

suppliers

Eliminate inspection of parts

Communicate problems to

suppliers positively

Work together


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Human Resource Management

Figure 8: Human Resource Management

Human Resource

Management

Company-wideinvolvement

Motivation for continuous

improvement

Problem-solving

High employee

interaction

Diversified

employees

Absenteeism

Eliminate boredom in process

Management support &

empowerment of workforce

Self-inspection of work

Build pride in

workmanship


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EXAMPLES

Toyota

Pioneers the JIT approach

Only what is needed, when it is needed, and in the amount needed.

Efficient Car production, consist of many parts, follows detailed production plan including

procurement.

Eliminate waste, inconsistencies, and unreasonable requirements.

Improved productivity.

Figure 9: MRP as Part of a Production Plan


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McDonalds

Prepare, cook or reheat food when order placed.

Receive scheduled stocks from supplier when inventory is expected to be low.

Study customer preference and order supply accordingly.

Reduce storage cost, lowering material cost and better profit margin.

Figure 10: Food Preparation

Figure 11: Sophisticated System for Order

Tracking with Stock and Supply Management


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Ramly Burger (Stall)

Limitation of storage space, food preparation area and the absence of a freezer to store burger patty.

Operation running on limited budget.

Restock supply that lasts during the nightly operation. Naive forecasting applies.

Prepare, cook or reheat food when order placed.

Figure 12: Ramly Burger Composition


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Dell

Dell leverages their suppliers to achieve the JIT goal.

Forcing their suppliers to carry inventory

Demand and receive short lead times on components

Products assembled by Dell and then shipped to the customer.

Provide short lead times to their customers

Figure 13: Dell's Online Ordering System


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OTHERS

Advantages of Using a JIT System

Greater flexibility

Improved workforce participation

Increased productivity

Shorter lead-times

Simplified scheduling and control

Increased capacity (efficiency)

Better utilisation of personnel

More product variety

Reduced paperwork

Disadvantages of Using a JIT System

Less effective for use in consumer goods production especially in the food industry

Increased transportation costs

Requires a very high level of commitment for continuous system improvement


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Comparison of the Traditional and JIT Production System

Conversion from Traditional to JIT Production System

The Success of JIT Systems in Japan has attracted interest among other traditional manufacturers

around the world. However there are some problems in performing such a conversion.

Management may not be totally committed.

Workers or management may not show cooperative spirit.

Very difficult to change the culture of the organization to one that consist with JIT Philosophy.

Suppliers may resist.

Factor Traditional JIT

Inventory Much, to offset forecast errors, late

deliveries

Minimal necessary to operate

Deliveries Few, Large Many, Small

Lot Sizes Large Small

Setup, Runs Few, long runs Many, Short Runs

Vendors Long term relationship Partners

Workers Necessary to do the work Assets


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The Toyota Approach

Figure 14: Toyota Approach

JIT Manufacturing Building Blocks

There are four basic elements in the JIT manufacturing building blocks:

1. Product Design

2. Process Design

3. Personnel/Organisational Elements

4. Manufacturing Planning and Control


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Figure 15: Explanation of the JIT Manufacturing Building Blocks

Documents

Just In Time Overview