Basic elements of Just In Time
The basic elements of Just In Time (JIT) were developed by Toyota in the 1950 's, known as the Toyota Production System (TPS). JIT was well-established in many Japanese factories by the early 1970 's. JIT began to be adopted in the U.S. in the 1980 's (General Electric was an early adopter), and the JIT/lean concepts are now widely accepted and used. There have ten basic elements in Just In time which are flexible resource, efficient facility layout, pull production system, Kanban production control, small lot production, quick setup, uniform production, quality at the source, total production maintenance and supplier network.
1. Flexible Resources
The Concept of flexible resources, in the form of
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Small lots with shorter setup times reduced from hour to minuet and it’s increase flexibility to respond to demand changes. Shingo as a genius at the task reduced setup time on a 1000 ton press from 6 hours to 3 minuets using SMED ( single-minute exchange of dies ) system. SMED principle can apply in separate internal setup from external setup. Its also can convert internal setup to external setup. Besides that, it can streamline all aspect of setup and perform setup activities in parallel or eliminate them entirely. 7. Uniform Production
JIT attempt to maintain uniform production levels by smoothing the production requirements on the final assembly line. Changes in final assembly always have dramatic effects on component production upstream. When this happen in kanban , kanban for certain part will circulate very quickly at some times and very slowly at others. Kanban systems can handle +/- 10% demand changes. One way to reduce variability in production is to guard against unexpected demand through more accurate forecasts. Another approach to achieving uniform production is to level or smooth demand across the planning horizon. Demand is divided into small increments of time so that the same amount of each item is produced each day and item is mixed throughout the day in small quantities. 8. Quality at the Source
Quality has to be extremely high to ensure JIT system to work well. Jidoka is the authority to stop production line. Visual
Prior to Toyota’s Production System, the company was efficient, yet could not compete with large American competitors such as General Motors and Ford. Therefore, management realized that if the company was to be successful not only in Japan, but globally it would need to improve its manufacturing process. Consequently, the company developed Toyota’s lean manufacturing process, which is still used today. The LMP was used to eliminate waste in the entire production process to become more responsive to market demand and produce high quality products economically. In order to provide superior products, Toyota implemented many revolutionary strategies. For example, the company started, or invented, the Just-in-Time Manufacturing process. The JIT process, according to our text, is used to reduce inventory costs by scheduling supplies to arrive just in time to enter the production process or as inventory stock is depleted (Hill et al., 2015). Toyota used the just-in-time system to improve its supply chain management, which drastically decreased costs and increased the company’s production facilities output as compared to its competitors. In addition to JIT, the company introduced a concept known as Kanban that was included within the new JIT system. The Kanban system was developed by Ohno and was used to arrange for components and/or assemblies manufactured at Toyota to be delivered to the assembly floor only when needed, not before (Hill et al., 2015). Essentially the Kanban
Jonah shows that they can use the same method to develop a release system for materials throughout the system. By knowing when the bottleneck parts will reach final assembly, the release of the non-bottleneck materials can be timed to coincide along the other routes. Then Jonah indicates that after load balancing is performed to meet market demand without excess production, the next logical step is to reduce the batch sizes to reduce the total capital commitment used during production. Reduction in batch sizes also reduces the total time spent in work-in-process. Less time spent in production increases the speed of throughput as well as a faster turn-around on customer orders. Shorter lead times result in better response to the market demands. (Jackson, Goldratt, Cox, & American Media Incorporated, 1995)
Lastly, the just-in-time (JIT) approach is an operating philosophy that requires that all resources, including materials, personnel, and facilities, be acquired and used only as needed (Mazumder, 2007). The JIT approach works great for manufacturing companies because of their common classes of material that they use which are raw materials, work-in-process, and finished goods (Mazumber, 2007). According to JIT concept raw materials are received just in time to go into production, manufactured parts are completed just in time to be assembled into products, and products are completed just in time to be shipped to customers (Mazumber, 2007). The
Using ABC also allows the company to use the Just in Time (JIT) system. This system allows ensures materials are purchased just in time to produce the products, and products are completed just in time for delivery. JIT uses the demand-pull system to receive the order, schedule production, delivered materials, and finished product delivered to the customer. This lessens the amount of excess parts and inventory saving the company money as well.
4) Exploring the possibility of implementing JIT (Just in Time) system that can reduce the finished goods inventory at
Just In Time (JIT): A just in time approach maintains only required inventory in demand; it uses previous year’s statistics to dictate the amount of inventory to be kept on hand (Business.com). The benefits of a just in time approach are that it reduces inventory, shipping fees, depreciation, and doesn’t waste product.
Just-in-time: Just-in-time is an approach of continuous and forced problem solving through a focus on throughput and reduced inventory. Nissan takes advantage of JIT through reduced inventory levels and relying on a supply chain to deliver the parts needed to build its cars. The major benefit to JIT is that production runs remain short and the costs are reduced through less waste in warehouse storage space requirements. The company also saves money on raw materials
Nissan has adopted many different process practices to assist their daily manufacturing functions. Just-in-time (JIT), Toyota Production System (TPS), and Lean are three theory concepts the firm has implemented to ensure the company stays on track in order to meet their goals.
(2016). In the case of Angel Pottery, the purchase of a second kiln (low-tech resource) could help to alleviate the bottleneck that exists due to limited space kiln space. Lean management could be applied to increase productivity and improve cycle times. With the constraint of firing space alleviated by capital expenditure on a second kiln, pull from the customer or demand will drive production. This Kanban will help to orchestrate when and how much inventory should be
JIT is aimed to achieve Zero Inventory which is a stage in JIT system in which a company keeps minimum amount of inventory in storage and simply order the stock when a customer places an order or the need is generated, thus receiving in a timely manner. This is to reduce all the waste by building up the inventories by carrying only the required stock in hand. Zero inventory is an important concept as it is a key capability of the operation department to reduce waste in the form of misused and untapped resources. Thus it is an ideal situation of not keeping extra stock in the warehouses.
JITD can lower the inventory level of both Barilla and the distributors as both parties are using the same accurate forecast. Both parties do not require to store a large amount of safety stock.
The purpose of this case is to show how a batch system can be dramatically improved by JIT or Cellular concepts. The case clearly describes the changes that must be made in the production system to achieve the benefits desired. This amounts to a complete change in layout of the production floor and a substantial overhaul of the MRP system. The case nicely ties together some of the
The chief engineer at Toyota in the 1950s, Taiichi Ohno (大野 耐一), examined accounting assumptions and realized that another method was possible. The factory could implement JIT which would require it to be made more flexible and reduce the overhead costs of retooling and thereby reduce the economic lot size to fit the available warehouse space. JIT is now regarded by Ohno as one of the two 'pillars' of the Toyota Production System.
Just in time manufacturing was a concept introduced to the United States by the ford motor company. It works on a demand pull basis, contrary to hitherto used techniques, which worked on a production-push basis.
Just in time manufacturing was a concept introduced to the United States by the ford motor company. It works on a demand pull basis, contrary to hitherto used techniques, which worked on a production-push basis.