Just in Time Management system
JIT, or just in time, an inventory management strategy, which aims to monitor the supply of inventory processes to minimize costs associated with inventory control and maintenance. just-in-time inventory is a process that depends on monitoring the efficiency of the use of materials in production, replacement of the goods, and orders the goods arrived shortly before they were needed. This simple strategy helps to prevent the costs associated with large inventories of raw materials at a point in time.
the idea is to develop a strong understanding of what is needed to produce goods and delivery schedules to customers in the shortest possible period. As raw materials, freight is not too long after manufacture, they were directed to minimize storage costs and taxes that may apply. Double application just in time is an inventory strategy can significantly cut operational costs in the amount of business that supplies should be stored at one time and the amount of taxes to be paid on a larger inventory.
management process just in time inventory involves understanding that has many specific items needed to maintain production while more than the same item ordered. This involves two key factors. First, we need to know how long it takes for items to be sent from the supplier and arrive at the manufacturing facility. Second, the anticipated life or the use of these items should be determined. By knowing these two pieces of information, it is possible to establish procedures that allow items to be set back in time to come and replace obsolete items, without replacement set in storage for a certain period.
Many purchasing departments use just in time inventory of major items such as raw materials and machine parts. This means that the records are stored which allows for placing a new order for a component when the number of units on hand decreased to the point specified.
A fair idea in inventories is not new. Henry Ford of Ford Motor Company is known to have applied this principle to the purchase of raw materials for making cars in the early years of the 20th century. Many small businesses are involved in the use of just in time inventory approach out of necessity. With limited resources at hand, maintaining supplies small and only part that makes sense. However, even large companies today realize that the savings associated with this type of approach can save large amounts of financial resources, allowing to direct their resources toward processes generate other income.
JUST-IN-TIME (JIT) PRODUCTION
Just-in-time (JIT) is defined in the APICS dictionary as "a philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity". This also has been described as an approach with the aim of producing top-right in the right place at the right time (in other words, "on time"). Waste results from any activity that adds cost without adding value, such as materials that do not have to move, the accumulation of excess inventory, or error using the method of production that create products requiring subsequent rework. JIT (also known as lean production or stockless production) should improve profits and return on investment by reducing inventory levels (inventory increased turnover rate), reducing variability, improving product quality, reducing production and delivery lead time, and reducing other costs ( such as that associated with machine setup and equipment breakdown). In a JIT system, underutilized (excess) capacity is used as a replacement buffer stock to hedge against problems that may arise.
The basic elements of JIT was developed by Toyota in the 1950s, and became known as the Toyota Production System (TPS). JIT is a well-established in many Japanese factories in the early 1970s. JIT began to be adopted in the United States in the 1980s (General Electric was the first adopter), and JIT / lean concept now widely accepted and used.
Some Key Elements of JIT:
1. Stabilize and the rate of MPS with uniform plant loading (heijunka in Japanese): creating a uniform load on all work centers through constant daily production (forming frozen windows to prevent changes to production plans for a certain period) and mixed model assembly line (production approximately equal mix of products every day, using repetitive sequence if some products are produced on the same line). Fluctuations in demand through the end of the inventory rather than by fluctuations in production levels. The use of stable production schedule also allows the use to manage inventory backflushing: ending bills raw material items on a regular basis to calculate the number of exploding use of the various components used to make these items, thus eliminating the need to collect detailed usage information on the shop floor.
2. Reduce or eliminate setup times: aiming for a single-digit setup times (less than 10 minutes) or "one touch" setup - this can be done through better planning, process redesign, and product redesign. A good example to increase the potential of the setup times can be found in racing cars, where a NASCAR pit crew can change four tires and put gas in the tank in less than 20 seconds. (How long do you need to change just one tire on your car?) Pit Crew efficiency is the result of team effort uses special equipment and coordinated, good practice processes.
3. Many reduce the size (manufacturing and purchase): reduce setup time allows economical production of smaller lots; working closely with suppliers needed to achieve a lot in order to reduce the size to purchase the item, as this will require more frequent deliveries.
4. Reducing lead times (production and delivery): production lead time can be reduced by moving the station to work more closely together, applying the technologies and concepts of cellular manufacturing, reducing long lines (reducing the number of jobs waiting to be processed on a particular machine), and increased coordination and cooperation between the processes that sequence, delivery lead time can be reduced through close cooperation with suppliers, possibly by persuading the supplier to find closer to the factory.
5. Preventive maintenance: use the engine and idle time workers to maintain and prevent damage to equipment.
6. Flexible workforce: workers must be trained to operate several machines, to perform maintenance tasks, and to conduct quality inspections. In general, JIT requires a competent team, empowered employees who have more responsibility for their own work. Toyota Production System concept of "respecting others" to contribute to good relations between workers and management.
7. Suppliers need to apply quality assurance and quality programs without disabilities: an error that led to the damaged item should be eliminated, because no part of the excess buffer. Quality at the source (jidoka) program must be applied for workers' personal responsibility for the quality of work they do, and the authority to stop production when something goes wrong. Techniques such as "JIT lights" (to indicate line slowdowns or termination) and "tally board" (to record and analyze the cause and correct the cessation of production slowdowns to facilitate them later) can be used.
8. Small-lot (single unit) vehicles: use of control systems such as kanban (card) system (or other signaling system) to deliver parts between work stations in a small number (ideally, one unit at a time). In the largest sense, JIT is not the same thing as a kanban system, and a kanban system is not required to implement JIT (some companies have implemented JIT programs with MRP systems), although required to implement JIT kanban system and the two concepts are often confused with one another.
JIT is a philosophy of continuous improvement where the activity does not add value (or wastes) are identified and removed for the purposes of:
Reduce Costs Improve Performance Improve Quality
Improving Delivery Adds Increased Flexibility innovation
JIT is not about automation. JIT eliminates waste by providing an environment to improve and simplify the process. JIT is a set of techniques used to improve operations can also be a new production system that is used to produce goods or services.
American Production and Inventory Control Society (APICS) has the following definition of JIT:
"a philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity. This includes the successful implementation of all manufacturing activities required to produce the final product, from design engineering to delivery and including all stages of the conversion of raw materials and so on. includes elements The main elements have the necessary supplies as needed; to improve quality to zero defects; to reduce lead times by reducing setup time, long queues and many sizes; to gradually revise their own operations and to achieve these things at minimum cost. "
When JIT principles successfully implemented, a significant competitive advantage realized. JIT principles can be applied to all parts of an organization: orders, purchasing, operations, distribution, sales, accounting, design, etc.
Waste Removal:
JIT is usually seven prominent indentifies types of waste to be removed:
Waste from overproduction waste wait / idle time
Waste Transportation Waste Inventory
Waste Processing Waste of Motion
Waste from Product Defects
Summary:
Reduced manufacturing costs associated with design for manufacture and design for assembly technique in which the parts or processes that do not need to be abolished. They also reduced through the elimination of excess material handling, inspection, and storage sections. Its main purpose is to eliminate non-value adding tasks. Quick change over to replace the old technique of set-up times. Cell will replace the traditional assembly line.
Visual control is often used to schedule production of components in the system such as MRP. Statistical process control is used to ensure that products consistently meet the desired results.
Changing business environment with increasingly demanding consumers and product life cycles shorter supply has impacted the way place. While excessive stock market allows to be served better, it leads to the high carrying costs. just-in-time inventory system is usually a wise approach to managing the stock.
just-in-time inventory system works well in manufacturing industries that produce many times in a large number of products that are not distinguished, by facilitating the production of the right in the right place at the right time. In addition, there are several prerequisites for a just-in-time inventory system to succeed. Let's see.
Stable production schedule: It is very important for the effective management of inventory. A just-in-time inventory system can only succeed if there is a predictable pattern of demand, and production schedules that have been determined to meet that need.
Quick setup time: The production of the setup process does not have the necessary flexibility in a just-in-time processes. While the setup time will depend on the complexity of the equipment and processes, planning and proper design can help optimize it.
Many of the smaller size: Maintain production and distribution of such small size practically feasible, means the number of entries smaller orders, and because of financial savings. However, this will require back-up of a very powerful sales network, in order to work smoothly.
Short lead time: The total time lapsed between order placement and receipt of goods is called lead time delivery. Developing a network of suppliers located close to the location of production can help reduce this. Lead time during the production process can also be reduced by preparing all the workstations in one place. In this context, "Manufacturing Processes for Engineering Materials" is a useful book dealing with real world applications of engineering materials, processes and manufacturing systems.
Moved idle time: The just-in-time inventory system will work effectively when there is minimal waste of resources. For example, if there is a waiting time of a machine or a worker between jobs, it can be better utilized to mobilize resources for other tasks. Preventive maintenance is also important in order to reduce the loss of productive time due to engine damage.
Train workers: In order to work, a just-in-time inventory system needs of the team staff who are able and committed to implementing it. Therefore, workers must have interdisciplinary training, so they are able to handle more than one task.
Low error rate: A quality assurance program for the solid input materials and manufactured products will reduce the need to maintain buffer stock. Workers should feel responsible for maintaining the quality and empowered with the authority to make decisions that support it. Programs such as "tracking software defects" and "quality control software" can be very helpful in this regard.
Bottom line is, a just-in-time inventory system can bring many gifts, but only if handled carefully handled and properly implemented.
Just in Time (JIT) Manufacturing and Inventory Control System:
Learning objectives of the article:
1. Defining and explaining the concept of just in time manufacturing and inventory control system
2. What are the advantages and disadvantages of manufacturing systems timely.
Traditionally, manufacturers have estimated the demand for their products into the future and then have tried to provide production to meet expected demand. At the same time, they are also trying to keep busy all the people who might generate output to maximize the "efficiency" and (hopefully) reduce the cost. Unfortunately, this approach has a number of major weaknesses, including a large inventory, long-time production, high levels of damage, obsolescence of production, inability to meet delivery schedules, and (ironically) the high cost. Non of this is obvious if it were, the company would long ago have abandoned this approach.
Manager at Toyota is credited with the view that the approach is entirely new, which is called just in time (JIT) is required.
* The definition of manufacturing Just in time
* Just-In-Time Concept
* Benefits / Benefits in time manufacturing systems
* Limitations / Disadvantages Just in Time Manufacturing
* List of Companies that use just in time System
Explanation of definitions and Just in Time Manufacturing:
Just In Time (JIT) is a production and inventory control system in which the material is purchased and produced only required to meet actual customer demand.
When the company uses Just in Time (JIT) production and inventory control systems, they buy materials and produce only the necessary units to meet actual customer demand. Just in time manufacturing inventory system is reduced to a minimum and in some cases is zero. JIT approach can be used in both manufacturing and merchandising companies. This has the most profound effect, however, the manufacturing operations that maintain the three-class raw materials inventory, work in process and finished goods. Traditionally, manufacturing companies have been preserved in large numbers for the three types of inventories to act as a buffer so that the operation can proceed smoothly despite the unexpected interruption. Providing supplies of raw material suppliers in the insurance case with the late delivery. In the case of inventories maintained in the work station can not operate because of damage or other reasons. Finished goods inventory maintained to accommodate the unexpected demand fluctuations. While this inventory provides buffer against unforeseen events, they have a cost. In addition to the money tied up in inventory, experts argue that the presence encourages inefficient supply and sloppy work, producing too many defects, and dramatically increase the amount of time required to complete a product.
Just-In-Time Concept:
Under ideal conditions a company that operates on JIT manufacturing system will only buy the materials enough each day to meet the needs of the day. In addition, the company will not have items that are still in process at the end of the day, and all finished goods during the day will be sent directly to the customer. As shown in this order, "just-in-time" means that the raw material is received in time to go into production, manufacturing finished just in time for assembly into products, and products will be completed in time for delivery to customers.
Although some companies have been able to achieve this ideal, many companies have been able to reduce inventory to only a small fraction of previous levels. The result has been a substantial reduction in the ordering and warehousing costs, and far more efficient and effective operations. In the environment in time, the flow of goods is controlled by attractive approach. Pull approach can be explained as follows. In the final assembly stage of the signal sent to the previous work station for the exact amount of parts and materials that will be needed for a few hours to assemble products to meet customer orders, and only the amount of materials and components provided. The same signal will be sent back to their previous workstation so that the smooth flow of parts and materials inventory maintained without sufficient buildup at any point. So all workstations interesting response given by the final assembly stage, which in turn respond to customer orders. As one worker explained, "Under the system of your time do not produce anything, where, for each entity unless they ask for some places downstream. Inventories crime we are taught to avoid".
Pull approach described above can be pushed in contrast to the approach used in conventional manufacturing systems. In the conventional system, when the workstation finished, finished goods are partly driven forward workstations regardless of whether that workstation is ready to receive them. The result is not accidental accumulation of partially finished goods that may not be resolved for days or even weeks. This binding also resulted in funding and operating inefficiencies. For one thing, it becomes very difficult to track where everything is when so many are scattered throughout the factory floor.
An other characteristic of conventional manufacturing systems is emphasized in "keeping everyone busy" as an end in itself. This inevitably leads to excess inventory, especially in the inventory process. Just in time in manufacturing, the traditional emphasis to keep all busy people who abandoned support only producing what customers really want. Even if it means some workers are unemployed.
Just in time manufacturing
Benefits | Benefits of Just in Time Manufacturing System:
The main benefits just in time manufacturing system is as follows:
1. Funds tied up in inventory can be used elsewhere.
2. Areas previously used for storing supplies can be used for other usage more productive.
3. Throughput time is reduced, resulting in potential output is greater and faster response to customers.
4. Defect level is reduced, resulting in less waste and customer satisfaction is greater.
As a result of the excess as quoted above, more companies are embracing just in time manufacturing system every year. Most companies have found, however, that just is not enough to reduce inventories. To remain competitive in an ever-changing and always competitive business environment, must fight for continuous improvement.
Real Business Example
PCs Just In Time Management:
Del Computer Corporation finally set up with the Just-in-Time system to make orders for customized personal computers that went through the Internet at 9 am. can be in a delivery truck to the customer with 9 In addition, Dell's low-cost production system to allow a price below its competitors by 10% to 15%. This combination has made Dell the envy of the personal computer industry and has enabled the company to grow at five times the industry rate. How can a company just in time system provides a lower cost? "While the machine from Compaq and IBM may languish on the shelves for two months traders Dell does not start ordering parts and assembling computers to order to order. It may sound like no big deal, but the PC component prices can fall quickly in just a few months . With just before the assembly to order, Dell's part numbers, the average is 60 days newer than those in an IBM or Compaq machines sold at the same time. That could translate into 6% profit gain in the components alone. "
Source: Gray McWilliams, "the wind storm on the Web," Business Week, April 7, 1997.
Cutting Process Time:
American Standard using cell manufacturing to cut inventory and reduce manufacturing time. In plants, the UK, it used to take three weeks to produce a vacuum pump and another week to process the paperwork for the order. Therefore, customers must book in advance. "Today, Leeds have turned to manufacturing cells that do everything from lathing to assembly in order quickly. The result is a breakthrough in terms of speed. Manufacturing a pump now takes six minutes."
Source: Shawn Tully, "robbing the company Hidden Cash," Fortune, August 22, 1994, PP 82-87.
Loss of Just in Time Manufacturing System:
Establish a comprehensive JIT can involve a major overhaul of your business systems - may be difficult and expensive to introduce.
JIT manufacturing businesses are also open to a number of risks, especially those associated with your supply chain. With no stocks to fall back, a small disruption in supplies for your business from only one supplier can be forced to stop production of a very short notice.
Real Business Example:
Toyota Only in Developer TimeToyota of JIT System
Just-in-time manufacturing system has many advantages, but they are vulnerable to the unexpected interruption of supply. A production line can quickly come to stop when important parts are not available. Toyota, JIT developer, discovered this the hard way. One Saturday, a fire at Aisin Seiki Company's plant in Aichi Prefecture stop sending all the rest for Toyota. On Tuesday, Toyota to cover the entire Japanese assembly line. At rest the supply of spare parts had been restored, Toyota has lost about $ 15 billion in sales.
Source: "Toyota to calibrate again, '" International Herald Tribune, February 8, 1997.
List of Companies that use just in time (JIT)
* Harley Davidson
* Toyota Motor Company
* General Motors
* Ford Motor Company
* Manufacturing Magic
* Hawthorne Management Consulting
* Strategy Manufacturing Inc
the idea is to develop a strong understanding of what is needed to produce goods and delivery schedules to customers in the shortest possible period. As raw materials, freight is not too long after manufacture, they were directed to minimize storage costs and taxes that may apply. Double application just in time is an inventory strategy can significantly cut operational costs in the amount of business that supplies should be stored at one time and the amount of taxes to be paid on a larger inventory.
management process just in time inventory involves understanding that has many specific items needed to maintain production while more than the same item ordered. This involves two key factors. First, we need to know how long it takes for items to be sent from the supplier and arrive at the manufacturing facility. Second, the anticipated life or the use of these items should be determined. By knowing these two pieces of information, it is possible to establish procedures that allow items to be set back in time to come and replace obsolete items, without replacement set in storage for a certain period.
Many purchasing departments use just in time inventory of major items such as raw materials and machine parts. This means that the records are stored which allows for placing a new order for a component when the number of units on hand decreased to the point specified.
A fair idea in inventories is not new. Henry Ford of Ford Motor Company is known to have applied this principle to the purchase of raw materials for making cars in the early years of the 20th century. Many small businesses are involved in the use of just in time inventory approach out of necessity. With limited resources at hand, maintaining supplies small and only part that makes sense. However, even large companies today realize that the savings associated with this type of approach can save large amounts of financial resources, allowing to direct their resources toward processes generate other income.
JUST-IN-TIME (JIT) PRODUCTION
Just-in-time (JIT) is defined in the APICS dictionary as "a philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity". This also has been described as an approach with the aim of producing top-right in the right place at the right time (in other words, "on time"). Waste results from any activity that adds cost without adding value, such as materials that do not have to move, the accumulation of excess inventory, or error using the method of production that create products requiring subsequent rework. JIT (also known as lean production or stockless production) should improve profits and return on investment by reducing inventory levels (inventory increased turnover rate), reducing variability, improving product quality, reducing production and delivery lead time, and reducing other costs ( such as that associated with machine setup and equipment breakdown). In a JIT system, underutilized (excess) capacity is used as a replacement buffer stock to hedge against problems that may arise.
The basic elements of JIT was developed by Toyota in the 1950s, and became known as the Toyota Production System (TPS). JIT is a well-established in many Japanese factories in the early 1970s. JIT began to be adopted in the United States in the 1980s (General Electric was the first adopter), and JIT / lean concept now widely accepted and used.
Some Key Elements of JIT:
1. Stabilize and the rate of MPS with uniform plant loading (heijunka in Japanese): creating a uniform load on all work centers through constant daily production (forming frozen windows to prevent changes to production plans for a certain period) and mixed model assembly line (production approximately equal mix of products every day, using repetitive sequence if some products are produced on the same line). Fluctuations in demand through the end of the inventory rather than by fluctuations in production levels. The use of stable production schedule also allows the use to manage inventory backflushing: ending bills raw material items on a regular basis to calculate the number of exploding use of the various components used to make these items, thus eliminating the need to collect detailed usage information on the shop floor.
2. Reduce or eliminate setup times: aiming for a single-digit setup times (less than 10 minutes) or "one touch" setup - this can be done through better planning, process redesign, and product redesign. A good example to increase the potential of the setup times can be found in racing cars, where a NASCAR pit crew can change four tires and put gas in the tank in less than 20 seconds. (How long do you need to change just one tire on your car?) Pit Crew efficiency is the result of team effort uses special equipment and coordinated, good practice processes.
3. Many reduce the size (manufacturing and purchase): reduce setup time allows economical production of smaller lots; working closely with suppliers needed to achieve a lot in order to reduce the size to purchase the item, as this will require more frequent deliveries.
4. Reducing lead times (production and delivery): production lead time can be reduced by moving the station to work more closely together, applying the technologies and concepts of cellular manufacturing, reducing long lines (reducing the number of jobs waiting to be processed on a particular machine), and increased coordination and cooperation between the processes that sequence, delivery lead time can be reduced through close cooperation with suppliers, possibly by persuading the supplier to find closer to the factory.
5. Preventive maintenance: use the engine and idle time workers to maintain and prevent damage to equipment.
6. Flexible workforce: workers must be trained to operate several machines, to perform maintenance tasks, and to conduct quality inspections. In general, JIT requires a competent team, empowered employees who have more responsibility for their own work. Toyota Production System concept of "respecting others" to contribute to good relations between workers and management.
7. Suppliers need to apply quality assurance and quality programs without disabilities: an error that led to the damaged item should be eliminated, because no part of the excess buffer. Quality at the source (jidoka) program must be applied for workers' personal responsibility for the quality of work they do, and the authority to stop production when something goes wrong. Techniques such as "JIT lights" (to indicate line slowdowns or termination) and "tally board" (to record and analyze the cause and correct the cessation of production slowdowns to facilitate them later) can be used.
8. Small-lot (single unit) vehicles: use of control systems such as kanban (card) system (or other signaling system) to deliver parts between work stations in a small number (ideally, one unit at a time). In the largest sense, JIT is not the same thing as a kanban system, and a kanban system is not required to implement JIT (some companies have implemented JIT programs with MRP systems), although required to implement JIT kanban system and the two concepts are often confused with one another.
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