jit scm final

8/3/2019 Jit Scm Final

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JUST IN TIMEJUST IN TIME&&

SCMSCM


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JIT & SCMJIT & SCM

SCM is a concept involving the integration of all the

value-creating elements in the supply, manufacturing,

and distribution processes, from raw material

extraction, through the transformation process, to enduser consumption.

The supply chain

Raw material/extraction

Ultimate sale/delivery to the final consumer


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JIT & SCMJIT & SCM


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JIT & SCMJIT & SCM

SCM is a process oriented, integrated approach to

procuring, producing, and delivering products and

services to customers, covering the management of

material, information and financial flows.

JIT can be transferred to an entire supply chain

management.


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Why JIT?Why JIT?

Inventories a type of investment

Types of inventories

Cost of inventories Factors leading to inventory waste


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Just In TimeJust In Time

Introduced in the TOYOTA production system for

the purpose of eliminating waste, during 1950s and

1960's.

Kiichiro Toyoda, the Father of Japanese AutomobileIndustry was the one who conceived the idea of JIT.

Taichi Ohno is responsible for the successful

implementation of JIT.

JIT principles can be used to increase theeffectiveness of SCM


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A philosophy of manufacturing based on plannedelimination of all waste and continuous improvement ofproductivity. It encompasses the successful execution ofall manufacturing activities required to produce a final

product, from design engineering to delivery and

including all stages of conversion from raw materialonward. The primary elements include having only therequired inventory when needed; to improve quality tozero defects; to reduce lead time by reducing setup times,queue lengths and lot sizes; to incrementally revise theoperations themselves; and to accomplish these things atminimum cost.

-The American Production and Inventory Control Society (APICS)


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JIT is a broad management philosophy that seeks to

eliminate waste that results from any activity that adds

cost without adding value, by producing the right part in

the right place at the right time

(Ohno,1988)

JIT seeks to improve profits and return on investments

by reducing inventory levels and cutting unnecessary

inventory, reducing variability, improving product

quality, reducing production and delivery lead times, andreducing other costs such as those associated with

machine setup and equipment breakdown

(Liker,2004)


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JIT PhilosophyJIT Philosophy

JIT system a combination of JIT purchasing, JITmanufacturing & JIT inbound logistics

An entire philosophy that must be observed in order

to avoid the downfalls


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JIT PhilosophyJIT Philosophy

First sell it, then make it Stockless/Zero inventory

Pull methods

Reverse order Lean production

Eliminate Waste Aimed at to produce and deliver finished goods just

in time to be sold, subassemblies just in time to be

assembled in to finished goods, fabricated parts just

in time to go into assemblies, and purchasedmaterials just in time to be transformed in to

fabricated parts.


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Continuous Flow ProductionContinuous Flow Production

Flow with JIT

Traditional Flow

CustomersSuppliers

Customers

Suppliers

Production Process

(stream of water)

Inventory (stagnant

ponds)Material

(water in

stream)


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Elements of JITElements of JIT 1.Continuous improvement1.Continuous improvement

Attacking fundamental problems - anything that does not addvalue to the product.

Devising systems to identify problems.

Striving for simplicity - simpler systems may be easier tounderstand, easier to manage and less likely to go wrong.

A product oriented layout - produces less time spent movingof materials and parts.

Quality control at source - each worker is responsible for thequality of their own output.

Pokayoke - `foolproof' tools, methods, jigs etc. preventmistakes

Preventative maintenance, Total productive maintenance -ensuring machinery and equipment functions perfectly when itis required, and continually improving it.


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2.Eliminating waste2.Eliminating waste

Waste from Overproduction

Transportation Waste

Processing Waste

Waste from Product Defects Waste of waiting/idle time

Inventory Waste

Waste of Motion


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3. Good housekeeping(5s for wokplace improvement)

` Seiri: Proper arrangement (sort through and sort out,

identify what you need, discard what you do not need )

` Seiton: Orderliness (assign a separate location for all

essential items)

` Seiso: Cleanliness (keep the workplace spotless at all

times)` Seiketsu: Cleanup (maintain equipment and tools)

` Shitsuke: Discipline (stick to the rules scrupulously)

4. Set-up time reduction- increases flexibility and allows

smaller batches. Ideal batch size is 1 item.5. Multi-process handling- a multi-skilled workforce has

greater productivity, flexibility and job satisfaction.

6. Levelled / mixed production- to smooth the flow of

products through the factory.


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7. Kanbans- simple tools to `pull' products and componentsthrough the process.

- a flag or a piece of paper which contains all relevantinformation, part number, description, process area used, time

of delivery, quantity available, quantity delivered, production

quantity

8. Jidoka (Autonomation)-providing machines with theautonomous capability to use judgment, so workers can do

more useful things than standing watching them work.

9. Andon(trouble lights)- to signal problems to initiatecorrective action.


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JIT Goals and Building BlocksJIT Goals and Building Blocks

Product

Design

Process

Design

Personnel

Elements

Manufactur-

ing Planning

Eliminate disruptions

Make the system flexibleEliminate waste

Abalanced

rapid flow

UltimateGoal

SupportingGoals

Building

Blocks


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Goals of JITGoals of JIT

Respond tocustomer needs

Competitiveness

Waste elimination

Reliable relationshipwith suppliers

Efficiency Optimal cost/quality

relationship

Inc.productivity

Reducecosts

Zero Defectprocess


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Pre requisites of JIT systemPre requisites of JIT system

Purchasing

Must cultivate a limited number of highly-reliable

suppliers/vendors with long term partnerships.

Using local suppliers to reduce replenishment cycle time.

Suppliers must be particularly strong in lead time

dependability and quality.

Quality at the source must be ensured by preventing defects

and doing it right the first time, along with eliminating

incoming inspection.

Suppliers must have knowledge of production andinventory of buyers to plan their own production.

Online electronic data interchange system is essential for

real time communication of information.


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Transportation

Delivery schedules and turn around times of high discipline

are required in JIT system

Warehousing

Focus on material movement not on material storage.

Hence, emphasis must be on the ability to move material

quickly and efficiently as against automated storage

systems.

Parts and components must be delivered in fragmentsdirectly to the point of use.


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Inventory Control

Elimination of safety stock

Reduction of errors in inventory system

Trade off between order size and time phased intended use;

and

Low variety and stability of demand.

Production

Small production lots

Short production run

Rapid set up time

Flexible manufacturing system


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Traditional Mass ProductionTraditional Mass Production


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After JITAfter JIT -- Lean ProductionLean Production

Tighter coordination along the supply chain Goods are pulled along-only make and ship what is needed


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Advantages of JITAdvantages of JIT

Inventory levels are drastically reduced. Process time, space requirement and set up time are reduced

considerably Leads to time based competition using speed as a weapon to

capture market share

Eliminating waste by prohibiting overproduction, waiting,undue warehousing and handling facilities, and defectiveproduction.

Improve customer service and commitments, bringingcompetitive advantage.

Improve productivity. Motion of efforts by greater employees participation and

motivation.


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jit scm final

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