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Just In Time

INTRODUCTION
Just-in-time (JIT) is more than an inventory control system. It is a philosophy and integrated management system based on the concept of eliminating all waste.. The intention of JIT production is to produce only what is needed, when it is needed. The philosophy of JIT is simple, inventory is waste. JIT inventory systems expose hidden causes of inventory keeping, and are therefore not a simple solution for a company to adopt. The company must follow an array of new methods to manage the consequences of the change. The ideas in this way of working come from many different disciplines including statistics, industrial engineering, production management, and behavioral science. The JIT inventory philosophy defines how inventory is viewed and how it relates to management. JIT inventory systems are not just a simple method that a company has to buy in to; it has a whole philosophy that the company must follow. Problems before JIT system were that companies cannot properly calculate their material flows. Also, there were problems with warehouses because there were situations that in one moment warehouses are full with stocks, and in other they are almost empty. Because of these problems it was really difficult for engineers and managers to deal with logistics.

HISTORY
The technique was first used by the Ford Motor Company during 1920s, but the technique was subsequently adopted and publicised by Toyota Motor Corporation of Japan. It was part of Toyota production System (TPS). In 1954 Japanese giant Toyota implemented this concept in order to reduce wasteful overstocking in car production. One motivated reason for developing JIT and some other better production techniques was that after 2nd world war. Japanese people had a very strong incentive to develop a good manufacturing techniques to help them rebuilding the economy. Before introducing JIT there were a lot of manufacturing defects for the existing systems at that time. According to HIRANO, this included inventory problem, product defects, risen cost, large of production and delivery delays.
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The inventory problems included the an used accumlated inventory that was not only unproductive but also required a lot of efforts in storing and managing them. Because of this problem based JIT was deleloped.

WHAT IS JUST-IN-TIME ?

Just-in-time means producing what is needed when needed and no more. Anything over the minimum amount necessary is viewed as waste, because effort and material expended cannot be utilized now. Definition: According to, American Production and Inventory Control Society (APICS), JIT is defined as: A philosophy of manufacturing based on planned elimination of waste and continuous improvement of productivity . The different people put words in a different order but they all have the same idea of cutting costs to benefit the company. The just in time concerns all aspects of the companys supply chain from its suppliers supplier up to its customers customer. stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum. This requires a carefully planned scheduling and flow of resources through the production process. Modern manufacturing firms use sophisticated production scheduling software to plan production for each period of time, which includes ordering the correct stock. Supplies are delivered right to the production line only when they are needed. for something not needed now

For example : A car manufacturing plant might receive exactly the right
number and type of tyres for one days production, and the supplier would be expected to deliver them to the correct loading bay on the production line within a very narrow time slot.

Just In Time

Businesses are encouraged to eliminate inventory that doesnt add value to the product. inventory is a sign of poor management as it is simply there to hide problems within the production system. These problems include backlogs at work centers, lack of flexibility for employees and equipment, and inadequate capacity among other things In short, the justin-time inventory system is all about having the right material, at the right time, at the right place, and in the exact amount.

THE PHILOSOPHY OF JIT

The philosophy of JIT is as follows:


1.

All waste, anything that does not add value to the product or service, should be eliminated Value is anything that increases the usefulness of the product or service to the customer or reduces the cost to the customer.

2.

JIT is a never ending journey, but with rewarding steps and milestones.

3.

Inventory is a waste.

4.

The customers' definitions of quality, their criteria for evaluating the product, should drive product design and the manufacturing system.

5.

Manufacturing flexibility, including quick response to delivery requests, design changes, and quantity changes, is essential to
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maintain high quality and low cost with an increasingly differentiated product line.

6.

A team effort is required to achieve world class manufacturing capability.

7.

The employee who performs a task often is the best source of suggested improvements in the operation. It is important to employ the workers' brains, not merely their hands. JIT views inventory as a symptom of inadequate management. A

method of hiding inefficiencies and problems, Inefficiencies that cause inventory include long and costly setups, scrap, lengthy and widely varying manufacturing lead times, long queues at work centers, inadequate capacity, machine failure, lack of worker and equipment flexibility, variations in employee output rate, long supplier lead times, and erratic supplier quality. JIT emphasizes that solving each of these problems will reduce the need for inventory and improve productivity. It strives to have the right material, at the right time, at the right place, and in the exact amount.

WASTE REDUCTION

Just-in-time is more than an inventory control system. It is a philosophy and integrated management system based on the concept of eliminating all waste. The intention of just-in-time production is to produce only what is needed, when it is needed. Waste has a very comprehensive meaning in just-in-time systems. Following are the common wastes that must be eliminated if a JIT program is to be successful :
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Overproduction

It is important to produce only what is required, when it is required. Making more than required is a waste of time, money, and material. Operator and Machine Time :

Some of the common things that do not make effective use of time are operators waiting due to long setup times, slow material movement, shortage of parts and tools, and slow processes and procedures. Transportation :

Moving material from one place to another is a costly waste of time. The manufacturing process and manufacturing cells should be designed to reduce or eliminate the handling and movement of material between work areas. Processing :

One of the objectives of JIT is to eliminate products and processes through redesign. It is often then found that, some products are not needed and should not be made. Inventory Stock :

Keeping inventory at any stage, from raw materials to work-in process (WIP) is costly, wasteful, and the sign of an ineffective and inefficient manufacturing operation. Motion :

Any motion that does not add value to the product or service is wasteful and should be eliminated.

Defective Parts

Parts or products that must be scrapped or reworked, are a costly waste that must be eliminated by examining and changing the manufacturing process for zero defects.
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JIT is not about automation.

JIT eliminates waste by providing the JIT is a collection of It can also be a new production

environment to perfect and simplify the processes. techniques used to improve operations system that is used to produce goods or services.

Just In Time

HUMAN RESOURCE MANAGEMENT

If there is a single key to attaining JIT objectives, it is a genuine respect for fellow human beings, for their aspirations, capabilities, and integrity. This requirement is the foundation of the recommendations concerning the treatment of customers, employees, and suppliers. The following are critical in winning the trust, participation, and wholehearted support of all employees: Employees must be convinced that the improvements they suggest will not result in their unemployment. Orientation, education, and training programs must exist so that employees understand the objectives and policies of the company and the rationale of related programs.. Employees must be given more responsibility as decision making is driven downward in the organizational structure.

Just In Time

PRINCIPLES OF JIT.

Principle 1.
goals.

Base your management decisions on a long-term expense of short-term financial

philosophy,even at the

Generate value for the customer, society, and the economyit is your starting point. Evaluate every function in the company in terms of its ability to achieve this.

Be responsible. Strive to decide your own fate. Act with self-reliance and trust in your own abilities. Accept responsibility for your conduct and maintain and improve the skills that enable you to produce added value.

Principle 2.
to the surface.

Create a continuous process flow to bring problems

Redesign work processes to achieve high value-added, continuous flow. Strive to cut back to zero the amount of time that any work project is sitting idle or waiting for someone to work on it.

Create flow to move material and information fast as well as to link processes and people together so that problems surface right away..

Principle 3. Use pull systems to avoid overproduction.


Provide your down line customers in the production process with what they want, when they want it, and in the amount they want. Material replenishment initiated by consumption is the basic principle of just-in time.
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Minimize your work in process and warehousing of inventory by stockingsmall amounts of each product and frequently restocking based onwhat the customer actually takes away.

Principle 4.
tortoise, not the hare.)

Level out the workload (heijunka). (Work like the

Eliminating waste is just one-third of the equation for making lean successful. Eliminating overburden to people and equipment and eliminating unevenness in the production schedule are just as importantyet generally not understood at companies attempting to implement lean principles.

Principle 5.
quality right the first time.

Build a culture of stopping to fix problems, to get

Quality for the customer drives your value proposition. Use all the modern quality assurance methods available. Build into your equipment the capability of detecting problems and stopping itself. Develop a visual system to alert team or project leaders that a machine or process needs assistance. Jidoka (machines with human intelligence) is the foundation for building in quality.

Principle 6.

Grow leaders who thoroughly understand the work,


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live the philosophy, and teach it to others.

Just In Time

Grow leaders from within, rather than buying them from outside the organization.

Do not view the leaders job as simply accomplishing tasks and having good people skills. Leaders must be role models of the companys philosophy and way of doing business.

A good leader must understand the daily work in great detail so he or she can be the best teacher of your companys philosophy.

Principle 7. Develop exceptional people and teams who follow


your companys philosophy. Train exceptional individuals and teams to work within the corporate philosophy to achieve exceptional results. Work very hard to reinforce the culture continually. Use cross-functional teams to improve quality and productivity and enhance flow by solving difficult technical problems. Empowerment occurs when people use the companys tools to improve the company. Make an ongoing effort to teach individuals how to work together as teams toward common goals. Teamwork is something that has to be learned.

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BENEFITS AND LIMITATIONS OF JIT

Benefits

The key benefits offered by JIT are increases in production efficiency and a strengthening of competitiveness. These result from the elimination of waste of time, raw materials and other resources, thus saving on inventory costs.

Implementing just-in-time production can prevent over-production minimize waiting times and transport costs save resources by streamlining production systems reduce the capital tied up in stock dispense with the need for inventory operation decrease product defects

Limitations

A number of risks are associated with JIT. Following are the limitations of JIT such as follows: Resistance to change Difference in the implementation of jit Traditional approach Culture difference Employees skill
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Loss of individual autonomy.

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TECHNIQUES USED IN JIT


For the purpose of eliminating or reducing waste JIT gave birth to many common sense technique in the organization such as pokayoke, kanban ,push pull method ,TPM, jidoka( low cost automation), single minute exchange of dies (SMED)etc. These processes are implemented in the manufacturing set ups.

1. Kanban an integrated JIT system :


Kanban stands for Kan card, ban- signal.In stage one which is the simplest form, JIT is a shop floor-control tool that allows the scheduling of inventory movement through the shop floor with the use of a Kanban, a materials movement tracking device. The Kanban can take the form of a card, a box, or a marked off area on the floor. These Kanbans are used as an authorization to move materials or to produce new product. This initial stage of JIT should generate impressive reductions in work-in-process inventory because of the direct uninterrupted movement of materials between work stations.

2. Group technology (GT) :


Group technology is defined as "an engineering and manufacturing philosophy which identifies the 'sameness' of parts, equipment or processes. It provides for rapid retrieval of existing designs and anticipates a cellular type production equipment layout." Youngkin writes that under GT, a group of dissimilar machines are combined into a U-shaped cell that will process a family of parts. In order to develop part families, parts must be classified according to design and manufacturing characteristics, then grouped according to commonality.

3. SMED (single digit minute exchange die) :

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Just In Time

Single Minute Exchange of Die (SMED) is the lean production methods for reducing waste in a manufacturing process. It provides a rapid and efficient way of converting a manufacturing process from running the current product to the next product.

The phrase "single minute" does not mean that all changeovers and startups should take only one minute, but that they should take less than 10 minutes (in other words, "single digit minute)

4. Jidoka :
Jidoka is transferring of human intelligence to automated machinery so that it can detect the production of a defective part and respond by stopping and requesting help. In, doing this, the equipment can identify unacceptable items and the automated process becomes more reliable. The objectives of Jidoka are: Ensuring Quality 100% of the time Preventing equipment breakdowns Using manpower efficiently

5. Total Preventive Maintenance

Total preventive maintenance (TPM) includes both preventive maintenance (PM) and continual analysis of and improvements to equipment and the work place organization. TPM increases flexibility, reduces material handling, and improves flow.

Preventive

maintenance

begins

with

simple

housekeeping

procedures. The combination of the statistical analysis of the reliability and life expectancy of components, the alertness of experienced operators, and scheduled preventive maintenance can substantially reduce unplanned downtime. This reduces the need for some inventory and improves delivery performance.

5. Poka-yoke :
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Mistake-proofing (poka-yoke) is targeted at the process design stage in an attempt to eradicate mistakes. There may be limit switches that automatically prevent a machine from moving too far in a given direction or other devices that physically prevent the mistake from occurring.

IMPLEMENTATION OF JIT

Stages involved in JIT implementation: 1. Organization A broadly based

:
steering committee should be formed with

representation from purchasing, design and manufacturing engineering, manufacturing management, production control, industrial engineering, quality control, maintenance, and operations. The leader should be the champion of change and have an understanding of the requirements for, and preferably some experience in, implementing change. The members should possess a certain discontent with the present yet be able to express this discontent and support change in a constructive manner. 2.

Education

The development of knowledge, understanding, confidence, and trust throughout the organization begins in the organization phase and is solidified in the education phase. Although education is continual in a JIT mode of operation, it is most intense and crucial in the beginning. It should begin with top management and cover virtually everyone in the organization. JIT must be understood and appreciated throughout the organization to achieve its full benefits. Nothing will work on the plant floor unless the workers are convinced of its benefits; and it will not reach the plant floor if staff and middle level managers do not support it.Patience is required. It is an evolution not a revolution.
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3. Evaluation and Assessment

Because organizations have different environments and are at different stages in developing their manufacturing activities, each should make a thorough assessment of its environment, decide on its strategic objectives relative to JIT, and evaluate its present status relative to the major operating objectives of JIT. Assessment of the present status is a prerequisite for deciding the priority of proposed improvement activities.

4.

Plan

The initial plan begins by obtaining the commitment of top management and is followed closely by the introductory education programs for the entire work force. Different programs may be appropriate for. different groups. Evaluation and assessment provide the basis for developing the plan for the initial improvement activities. 5.

Execution

A strong case can be made for stressing quality improvement early in a JIT program (Hall 1983). An analysis of quality requires a study of the customers' requirements. Improved quality inherently reduces inventory requirements, reduces scheduling problems, and improves personnel and equipment capability. 6.

Review

Most people respond to performance measures: Students want to know what the exam will cover, and production personnel act to achieve good scores on their performance measures. Early replacement of inappropriate performance measures is essential. For example, if a manager's performance is measured by output volume alone rather than by

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completion of the right products (orders) at the right time, the manager will be hard pressed to take JIT seriously.

RESULTS

The Apple Macintosh factory, is months into JIT, reported that rejects were reduced from 28 % to 1 %, inventory turns were twice the industry average, space requirements were reduced 35 %, labor productivity was increased 60 %.

Harley-Davidson reports a 50 % inventory reduction, a 50 % reduction in scrap and rework, a 32 % productivity increase, an increase in inventory turns from 5 to 17, and a decrease in warranty claims despite a longer warranty period.

JIT's applicability is not limited to discrete parts manufacturers or to large companies. ChemLink, a small petroleum processor, reports that inventory was reduced by 21 %, sales grew by 9 %,
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obsolete inventory was reduced by 30 cost was reduced 8 %.

%, and transportation

Omark Industries, in the first year, reduced inventory 25 % ($20 million), increased productivity 30 %, reduced lot sizes, shortened lead times, and improved quality. Later into the program, raw material was reduced 95 % and WIP 96 %. In the case of WIP, the reduction was from 100,000 pieces on the floor at any given time to 4,000 pieces, with an eventual goal of 1,000. The consequences of this reduction to material scheduling and control are that material can be much more tightly controlled.

IBM's plant in Raleigh, North Carolina, which makes terminals for mainframe computers, while not reporting numeric results did report that manufacturing costs were greatly reduced, inventory turns increased, mean time between failures was reduced, and cycle time from product inception to customer availability was reduced.

CONCLUSION

Disorganized atmosphere breeds tension.


An organization which is disorganized breeds tension, which leads to inefficiency among the employees .This shows the amount of relevance that is attached to JUST IN TIME.
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JIT is an important operational system for manufacturing and supplying companies to adopt and implement. Technically, procedurally, and managerially it requires attention to : Data, information and communication. Assessment of requirements. Programmes to change the structure of production, materials handling, manufacturing process and distribution facilities.

Improved methods of controlling unit supply costs.

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