UNIT 13 Revised

8/8/2019 UNIT 13 Revised

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Program : MBA

Semester : II

Subject Code : MB0028

Subject Name : Production and Operations Management

Unit number : 13

Unit Title : Just in Time

Lecture Number : 13

Lecture Title : Just in Time

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Objectives :

Define Just In Time

Identify the characteristics of JIT

Explain the Seven wastes according to JIT

Explain JIT Implementation

Discuss Kanban

Identify JIT Techniques and Components

Explain Total Productive Maintenance

Identify Advantages and Disadvantages of JIT

Identify the application area

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Unit-13 Just In Time


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Lecture Outline

Definition JIT

Elimination of Wastes using JIT

JIT Implementation-Prerequisites, Requirements & Guidelines

Kanban

JIT Techniques

JIT Components

Supplier as Partners

Total Productive Maintenance

Advantages & Disadvantages of JIT

Application

Summary

Check Your Learning

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Introduction

Definition JIT

It is a management philosophy aimed at eliminating manufacturing wastes by

producing only the right amount and combination of parts at the right place

at the right time.

This is based on the fact that wastes result from any activity that adds cost

without adding value to the product, such as transferring of inventories from

one place to another or even the mere act of storing them.

The Goal of JIT is to minimize the presence of non-value-adding operations

(wastes) and non-moving inventories in the production line. This results in

shorter throughput times, better on-time delivery performance, higher

equipment utilization, lesser space requirement, lower costs, and greater

profits.

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Elimination of Wastes (non value adding operations)

Waste is defined as any activity that increases cost but does not add value to

the product.

Following are the wastes which need to be eliminated

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Prerequisites for JIT Implementation

A reason for Changing

Executive Commitment

Strategic Manufacturing Plan

Commitment to Action


Cont.


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Source: www.beyondlean.com


Requirements for JIT Implementation

Respond to Customer Requirements

Integrate all Processes in the Manufacturing System

Employee Participation in Meeting Commitments

Company wide Commitment to education

Eliminate redundancy

Reduce all Inventory

Establish Continuous Improvement Goals

Use a Pull Production System (see speaker notes for details)

Design products for Manufacturing

Develop Controllable Production Processes

Have a Defect Prevention Program

Reduce Setup Times

Build Products to Specification Cont.


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Reduce equipment downtimes through good preventive maintenance.

Cross-train personnel to achieve a very flexible work force.

Require stringent supplier quality assurance since an operation under JIT

can not afford to incur errors due to defects.

Use a control system to convey lots between workstations efficiently; the

use of a kanban system is an example of this.


Guidelines for successful implementation of JIT (Cont)


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Kanban

A kanban is a card attached to the carrier or container of a lot used to match what

needs to be produced in a work station and what needs to be delivered to the next

station.

Kanbans, which contain information about the lots and quantities involved, are

therefore used to facilitate the execution of this 'pull' system. With this 'pull'

system, no parts that can not be processed in succeeding stations will be

produced.


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Kanban (Cont)

There are two types of kanban assigned to every lot, namely, a production kanban

(P-kanban) and a conveyance kanban (C-kanban). The P-kanban denotes the

need to produce more parts while the C-kanban denotes the need to deliver more

parts to the next station.



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JIT Techniques

Inventory Reduction as a Tool for Improvement

Supplier Relationships

Inventory Pull

Uniform Plant Loading


Note: For details kindly go through thespeaker notes


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JIT Techniques

Reduced Setup Times

Shop-Floor Layout and Production Cells

Total Quality Assurance

Preventive Maintenance


Note: For details kindly go through thespeaker notes


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JIT Components

Production Leveling

Pull System

Kanban (label or signboard) system

Good Housekeeping

Small Lot Production

Setup Time Reduction

Total Preventive Maintenance (TPM)

Total Quality Control (TQC)

JIT Purchasing

Line Balancing

Flexible Manufacturing

Small-group Activities (SGA)



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Suppliers as partners

Since JIT is a stockless production and does not allow room for defects orerror having trustworthy reliable suppliers is an important factor.

Once a reliable supplier is found creating a good relationship is the next step.

For a a quality partnership, the company should get products or material with

no errors or defects, and should get everything on time according to delivery

schedules.

Also the supplier must have a back-up plan incase for emergencies such as

strike, weather conditions, and any other problem that many arise.

Trust and open relationships are very important in a JIT atmosphere because

the customer and the supplier must set long-term goals and very precise

shipment and delivery dates



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Total Productive Maintenance

It refers to a management system for optimizing the productivity of

manufacturing equipment through systematic equipment maintenance involving

employees at all levels. Under TPM, everyone is involved in keeping the

equipment in good working order to minimize production losses from

equipment repairs, assists, set-ups, and the like.

Under TPM, zero breakdowns, maximum productivity, and zero defects are

goals to be shared by everyone.

TPM goals:

Improvement of personnel effectiveness and sense of ownership.

reduction of operational costs

reduction of throughput times, and

customer satisfaction down the road.



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TPM has 8 key strategies:

Focused Improvements (Kaizen);

Autonomous Maintenance;

Planned Maintenance;

Technical Training;

Early Equipment Management;

Quality Maintenance;

Administrative and Support Functions Management;

Safety and Environmental Management.

TPM eliminates 6 big losses:

Breakdowns, which can result in long, expensive repairs;

Set-ups, conversions, and changeovers; Idling and minor stoppages;

Reduced equipment speed;

Defects and Rework;

Start-up Losses.



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TPM Pillars:

Preventive Maintenance to prevent breakdowns.

Corrective Maintenance to modify or improve equipment for increased reliability

and easier maintenance.

Maintenance Prevention to design and install equipment that are maintenance-

free.

Breakdown Maintenance to repair equipment quickly after they break down.



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Advantages of JIT

Possible increase in profits

Quality products

Quicker setup

Eliminates costs of storage facilities

More flexible employees

Quality relationships with suppliers

Elimination of waste

No down time

Disadvantages of JIT

Long term commitment

Possible large initial cost with no short term returns

Problems with supplier can cost company large amounts of money

Risk of never successfully implementing JIT



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Companies Currently using JIT

Harley Davidson

Toyota Motor Company

General Motors

Ford Motor Company

Manufacturing Magic

Hawthorne Management Consulting

Strategy Manufacturing Inc.

Application

JIT is most applicable to operations or production flows that do not change, i.e.,

those that are simply repeated over and over again. An example of this would

be an automobile assembly line, wherein every car undergoes the same

production process as the one before it.



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Summary:

JIT is a system that lays emphasis in achieving cost efficiencies by

the principles of waste reduction.

JIT depends on the pull system of supply, manufacture, and delivery

to reduce inventory stage.

JIT requires the use of a flexible force to overcome production hold

ups, even with lesser number of workers.

JIT is possible only when parts and products are of high quality so

that all those produced are fit for use.

Total productive maintenance is one of the essential requirements for

JIT.

Economy of movement is necessary ensuring smooth throughput

which helps in reducing inventory.

Cooperation of suppliers is vital for the success of JIT and they help

in managing inventories.

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Check Your Learning

1. Who is referred to as the Father of JIT?

Ans. Taiichi Ohno

2. Name the two types of Kanban?

Ans. P - Kanban or Production Kanban & C- Kanban or Conveyance

Kanban

3. What is TPM?

Ans. Total Productive Maintenance.

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Documents

UNIT 13 Revised