jit supply chain management js cwcm (27.07.02)

8/8/2019 JIT Supply Chain Management JS CWCM (27.07.02)

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JS/CWCM 2

Logo

Delivery

Team

s-Insp

iration&Com

petit

ion

ShareholdersValue

Min

dse

t,Cu

lture

&Pass

ion

Visio

n,Mi

ssion,Strategy&Leadershi

p2

Work

Environment

(5S)

6

Quality First:

SQM and

Best Practices

5Customer

Driven:

Internal and

External

4

Equipment

Effectiveness/

TPM

3

JIT / Supply Chain

Management

1

Waste

(MUDA)

Elimination

8

Information,

Systems/BPR,

Technology and

Cash Flows

7Liaison,

Team Force

and Skill

Development

QualityCost

InnovationsProductivity

WCM Model for Excellence and Competitive Advantage


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JS/CWCM 3

3

JIT / Supply Chain

Management

JITAND SUPP Y CHAIN MANAGEMENT

A

KEY

TO

WOR D C ASS ORGANIZATION


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JS/CWCM 4

To cre te Su y h wh ch rovides st,

re iable and fle ible res onse to customer

requirement at least cost and minimal

de endence on inventory

The Grou s im


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JS/CWCM 5

Cust mers Expectati ns

80s 90s 00s

F

a

c

t

o

r

s


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Objectives

To provide inputs on various aspects of Just InTime approach to Management.The concepts

will be supported with case e amples from the

Group as well as renowned outside

organizations

To identify potential areas across the

organization(Throughout the Supply chain )

for JIT and select a Pilot area for immediate

implementation.This will be done through

Team e ercise


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Provide fast, reliable and fle ible response to customer

requirement at least cost and minimal dependence on

inventory not just within the confines of a single

organization, but ultimately throughout the entire supply

chain by creating a highly responsive organization which

is devoid of any waste

ims of JIT


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JS/CWCM9

Origin of JIT

Commenced at Toyota car plant in Japan and is thus

known as Toyota Production System ( T PS)

Taichi Ohno, & Shiego Shingo are two credited with JIT

approach

Japanese concept now widely used all over the world

Also referred to as, Lean Manufacturing / Time Based

Manufacturing /Agile Manufacturing / Toyota

Production system ( T PS)


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JS/CWCM10

TPS TheFour Rules

Rule 1 All workshall behighlyspecified asto content,sequence,timing and outcome

Rule 2 Everycustomer supplier connection must be direct and

clear

Rule 3 The pathway forevery product and service must be

simple and direct

Rule 4 Any improvement must be made in accordancewiththe

scientific method underthe guidance of a teacher atthe lowest

possible levels in the organization


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JS/CWCM11

JIT- Somecommon misunderstandings

Putting pressure on the suppliers / management ofsuppliers only

Getting deliveries at the last moment

Suppliers holding the stockfor us

JIT is applicable only in foreign countries like Japan

Not practical in remote units

Not applicable to process industries


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JS/CWCM12

3 t 5 years re ate % nnual %

Mf ... CT reducti n 80-90 30-40

Invent ry reducti n M 35-70 10-30

WI 70-90 30-50

F 60-90 5-60

Space reducti n 40-80 5-50Quality C st reducti n 5-60 10-30

Typical JIT BenefitSummary


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JS/CWCM13

Inventory in logistics chain represents stored

capacities

It is more profitable to store capacities in capital

assets than liquid assets

The goal is to aim for shortest throughput time

and high fle ibility.

JIT Says


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JS/CWCM14

Inventory HidesInefficiencies

I

nv

e

n

t

ry

1=defects, =breakd wns,3=rew rk,4= r lay ut,5=plannin pr blem,6= ff

tandards.

1 3

4

56


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JS/CWCM15

What DoesInventory Help Achieve? (Or

Hide )

Helps hide inefficiencies

Hides bottlenecks

Hides process problems & defect generation

Can get away with poor planning

Proliferate sluggish responses

Inaccuracies can continue

And so on


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JS/CWCM17

Key Elements of JIT Philosophy

Expose and Eliminate Fundamental Problems

Reduce Manufacturing Throughput Time

Improve Supplier Performance

Improve Quality

Improve Flexibility

Create High Responsive Organization

EliminateWaste (Non Value Adding)


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JS/CWCM18

Just In Time Approach means Challenge

theFollowing

Set up Time

Process Cycle Time

Batch Size

Planning System

Material Handling

In Short All Existing Practices !


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JS/CWCM19

TRADITIONAL MFG

Inventory is necessary

to maintain an

interrupted supply tocustomers

Inventory is an asset.

In process inventory isnecessary for smooth

production

JIT MFG

Inventory is a

Liability

It hides operationalinefficiencies

It does not

guarantee

uninterrupted

supply to customers

JIT &Inventory


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JS/CWCM20

TRADITIONAL MFG

Acceptable levels of

rejects and rework.

Quality is a specialist

function

An inevitability that

failures will occur

JIT MF

G

Right first time and

every time

Process

improvement is

constant and on

going

Every employee is

responsible for

Quality

JIT & Quality


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JS/CWCM 21

Exp se and Eliminate undamental Pr blems and c nvert

unreliability t reliability

Reduce Manufacturing Throughput Time

Impr ve Supplier Per rmance

Impr ve uality, Pr cess Capability, Six Si ma Appr ach

Improve Flexibility

Create High ResponsiveOrganization

Advanced Plannin & Schedulin

Eliminate Waste (N n Value Addin )

Manufacturing Strategiesto ensure an effective

Supply Chain


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Throughput Time - an Indicator of

Responsiveness


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JS/CWCM 23

Throughput time is an important

indicator of manufacturing effectiveness

and organizational responsiveness.

Time Compression helps achieve

Throughput time reduction

THROUGHPUT TIME


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Time Compression

Applies to all the segments of value delivery

chain such as new product development,

manufacturing & distribution

Time compression like quality is free. It

provides the competitive edge both in domestic

and export market


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JS/CWCM 25

A B C D E G H

A receivin (NVA), B St re(NVA), C Pr cess(VA), D WIP st ra e(NVA),

E Pr cess(VA) Pr cess(VA),G G St ra e(NVA), H Despatch t cust mer.

TOTA CYC E TIME 39 DAYS. VA 3 DAYS, NVA 36 DAYS.

3 1 1 5 1 1 16 4

A B C D E G H

3 3 1 1 1 5 4

T tal Cycle Time

16 Days


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JS/CWCM 26

Production Cycle Time - How does it increase?

The non value adding activities significantly

add to the cycle time

The ideal cycle time would consist entirely of

value added activities


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Concept of 3 MUs

The rds strain, inc nsistency and aste are

expressi ns pr blems

1. MURI: - Excessive e rt, exerti n r tensi n

- Excessive demand n nes em ti ns

3 MUS

MURI - STRAIN

MU

RA - INCONSISTENCYMUDA - WASTE

LookforWaste in different forms

. MURA -Inc nsistency, Variability, ack

Uni rmity,

3. MUDA- N n Value Addin Activities,Material

Handlin , Waitin , ueuin , Delays,

Inspecti n, Rejecti n, Re rk,Invent ry


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JS/CWCM 28

1 Types Waste

1)1) UUntidinessntidiness)) EExcess Pr ducti nxcess Pr ducti n

3)3) ate delivery / Timin sate delivery / Timin s

4)4) IInvent rynvent ry

5)5) MM ti nti n

6)6) IImpedance / B ttlenecksmpedance / B ttlenecks

7)7) NNeedless Pr cessineedless Pr cessin

8)8) AAdministrati n / C mmunicati ndministrati n / C mmunicati n9)9) TTransp rtati n / C nveyanceransp rtati n / C nveyance

10)10) EErr rs / De ectsrr rs / De ects

11)11) IIdle / Waitindle / Waitin

1 )1 ) TTentative placemententative placement

MUDA can be found in the following

U EliminateIt!

Remember


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Process Throughput Efficiency

LEAD TIME TOWORK CONTENT

(Total CT to Value Adding)

TYPICAL > 10

GOOD < 3

IDEAL < 2


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Mana ement Manu acturin Thr u hput Time

A Maj r Step in Speedier Deliveries


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Thr u hput Time

FOCUSON THROUGHPUT TIME as a meanstoenhanceresponsiveness.

Institute Cycle Time measurementsystems in key

processes.

Calculate Process Efficiency by identifying Valueadding and non value adding activities.


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JS/CWCM 33

Speed The Time Dimensi n

Pr curement and Pr ducti n Time

Demand Time

P

D

Situati n: P > D


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JS/CWCM 34

Six Ways t Impr ve the Plan

Increase P/D ratiIncrease P/D ratiReduce the P TimeReduce the P Time

Increase D timeIncrease D time

StandardizeStandardize recast m re accuratelyrecast m re accurately


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JS/CWCM 35

Reduce P Time

Step 1Step 1 -- Map the Pr cessMap the Pr cessStepStep --Identi y the N n Value Addin ActivitiesIdenti y the N n Value Addin Activities

Step 3Step 3--Eliminate the NVAs systematically and c mpress theEliminate the NVAs systematically and c mpress the

time.( Exampletime.( Example Waitin Time)Waitin Time)

Step 4Step 4-- C ntr l time variability in the Pr cessesC ntr l time variability in the Pr cesses( Stretchin time)( Stretchin time)

Step 5Step 5 Simpli y the Pr cess Sta es ( C mbine pr cesses)Simpli y the Pr cess Sta es ( C mbine pr cesses)

Step 6Step 6 Enhance Speed at critical sta es ( Speed upEnhance Speed at critical sta es ( Speed up

reacti n times, mixin times,Evap rati n time etc.)reacti n times, mixin times,Evap rati n time etc.)


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JS/CWCM 36

Increase D Time

Cust mers ant sh rter D Times.H ever, they can beCust mers ant sh rter D Times.H ever, they can be

m tivated t rder ell in advance thereby enhancin Dm tivated t rder ell in advance thereby enhancin D

Times.Times.

This ives a l n er span time r hich clear plans canThis ives a l n er span time r hich clear plans can

be made.be made.


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JS/CWCM 37

Standardize

Pr duct varieties c uld be many.Pr duct varieties c uld be many.

H ever, i the inputs are standardized, they makeH ever, i the inputs are standardized, they make

plannin and pr curement easy.plannin and pr curement easy.

Ideal Desi n Strate yIdeal Desi n Strate y Pr vide varietiesPr vide varieties

pr ducts r m limited variety input materials.pr ducts r m limited variety input materials.


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JS/CWCM 39

Throughput Time Reduction Techniques

Cellular Manufacturing

Set up time reduction

Reduce manufacturing batch size / single piece

flow

Parallel instead ofsequential scheduling

De bottlenecking

Elimination of NVA (rework, inspection, MH &

Waiting)

Elimination of breakdowns

Elimination of defects


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To achieve,

a logical arrangement and sequence of all

facets of company operation in order to bring

the benefits of mass production to high

variety,mixed quantity production


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L L

L L

GG

M

M

M

G

M

M

G

A

E

BB

E

D

DA

CC

ProcessLayout


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L

M

G

M

L

L

G

M

M

G

M

G

L

A B C D E

A B C D E

CellularLayout


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Categorize the parts/products into variousfamilies

Identify the machines/operations and form

machine groups

Allocate families of parts/products to diff erent

machine groups.As far as possible a product

should move within the cell allotted

The advantages are reduction in handling and

throughput time



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JS/CWCM 44

Setup Time

The time required to make changes in the

machine / equipment / process in order to

enable it to produce a product of diff erent

variety than the one which it was producing

prior to the setup change


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Typical Setup Operation

Adjustment andtrial Process-

50%

Preparation- 30%

Setting 15%

Removal and Fitting 5%


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Setup Time Reduction / QuickChangeOverSteps

Separate internal activities from external

Convert as much of internal set up to external

Eliminate the adjustment process

Abolish the set up itself ( have uniform part for

all products, make multiple products at the same

time on a single machine)

P ll l S h d li / S i l S h d li


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Parallel Scheduling v/s Sequential Scheduling

Sequential Scheduling: Move from one

operation/Machine to next only after the entirelot is ready.This means waiting time for the lot.

For e.g.. Lot size 500. Operation 1 time is 1

minute per piece,operation 2 time per piece is 1.5

mts,operation 3 time per piece is 2 minutes perpiece. The total lot throughput time is 2250

minutes

Parallel Scheduling :The component is moved

from one operation/Machine to next on single

piece basis.This way the lot is moving paralleland the total throughput time for the entire lot

will be considerably less. The total lot throughput

time is 1002.5 minutes

P ll l S h d li / S i l S h d li


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Parallel Scheduling v/s Sequential Scheduling

A

B

C

10

64

Sequential Scheduling Total Cycle time for Batch is 20 days.

A

B

C

Parallel Scheduling Cycle time for

batch = 10 Days

M

A

C

H

I

N

E


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JIT Effect on BatchSizes

TRADITIONAL MFG

An Economic

Batch Quantity

can be worked

out to show

balance between

set up times and

Production runs

JIT MF

G

Batch Size should be as

small as possible

aiming towards a batch

size of 1(Single Piece

Flow)

Set up time can be

considerably reduced

leading to lowering of

Batch sizes

JIT Eff t B ttl k


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TRADITIONAL MFG

Bottlenecks are

inevitable

MachineUtilizationmust behigh

JIT MFG

No queues

Bottleneckseliminated

Emphasis on timely

delivery and

throughputtimerather

than mere Machine

Utilization

JIT Effect on Bottlenecks

M i l H dli


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JS/CWCM 51

Material Handling

Movement of material within the plant is a

wasteful activity

It does not add value but adds to delays

Traditional layout is functional while JIT layout

is based on flow line principles

Workout distance moved in Tonne Metre for the

products for a given time bracket say a week


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JS/CWCM 52

Typical Major Non Value Adding Activities

Inspection, 100% inspection

Rework/ reprocessing

Rejects

Inventory (RM, WIP, FG) holding, handling,

transporting

N V l Addi A ti iti


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Non Value Adding Activities

First try to eliminate

Then lookfor improvement only ifcannot be

eliminated


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JIT P h i F t


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JS/CWCM 55

JIT Purchasing Features

Preferably single source for each item

Long term contacts

Very short lead times

Frequent deliveries ofsmall lots

100% good qualityClose interaction with supplier

Proper delivery schedules and plans to

supplier

Local source as far as possibleTraining assistance in SQC, JIT & Technical

Assistance

Treat the supplier as CO-MAKER

JIT Effect on MaterialOrdering


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TRADITIONAL MFG

Orderquantity is

determined bythe

EconomicOrder

Quantity

JIT MFG

Supplyexactly meets

demand.Delivery is

when required

JIT Effect on MaterialOrdering

JIT Eff t P h i


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TRADITIO

NAL MF

G

Large,JustIn Case

coversseveral weeks

production

Deliveries are notlinked to manufacture

and are in bulk.

Relationship is

adversarial

Multiplesuppliers.

ST Agreements

JIT MFG

Small,JIT For daily

production

Deliveries are

synchronized withproduction

Relationship is based

on Co Maker

principle.

Singlesupplier.

LT Agreements

JIT Effect on Purchasing

SUPP IER PARTNERSHIP


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Supplier partnership is here cust mers and

suppliers devel p such a cl se and l n term

relati nship that the t rk t ether as partners.It

is n t philanthr py.The aim is t secure the best

p ssible c mmercial advanta e.The principle isteam rk is better than c mbat.

B th must WIN

JIT P rchasing ( item attrib tes) Slide 1


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JIT Purchasing ( item attributes) Slide 1

ShortShelf lifeFairlystable price

LessSeasonality

Short lead time

Degree ofcompetition high

Effectivecommunication systems

Lesstransportation time

Criticality of items: essential/desirable

Low levels ofrejection

Engineering changes Less or nil

Disposable value less



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Low variation in demand

Highconsumption rate

Forecasteasy

Potential to substituteshould be less

High value purchase itemLimited Product variety

End use packaging or Manufacturing

Sources ofsupply less

Difficultto storeEasyto transport

Relati nship Trans rmati n Buildin


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Relati nship Trans rmati n Buildin

Traditional Relationship Partnership Relationship

Sh rt term/Pr ject Based

Pass/ ail Measures

Price

Secretive

u te t Dra in

Parallel W rkin

Hidden A enda

C n r ntati n

Adherence t

Speci icati n

n Term

C ntinu us Impr vement

C st

Open B k C stin

Early Inv lvement

Team W rkin

C mm n Objectives

C - Operati n

Cust mer Satis acti n

Purchase Strategies


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PurchaseStrategies

Rationalization ofSuppliers ( Reducing thesize ofthe

supply base, at least forstrategicsupplies)

Tiers in theSupplychain ( Each firsttiersupplierhas

theresponsibilityto co ordinatesupplies from the

second tiersuppliers)



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Purp se is t secure a c mpetitive ed e in terms

uality,Desi n input and C st Structure.

Meth d l y:

1) Establish Supplier Partnership as a strate ic

impr vement initiative

) Establish status basic supplier relati nship

3)Evaluate supplier base

4) Reduce Supplier Base ( Rati nalize)

5) Establish advanced uality plannin meetin s

JIT Supplier Selection Criteria


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Close to plant

Quality product

Good industrial relations

Reduce total number ofsuppliers

JIT SupplierSelection Criteria

JIT between Factory & Supplier


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Extend JIT to selected purchased items through

application of Pareto Analysis and involve

suppliers

Preferably single supplier with long term

contracts,treat him as co-maker

Improve logistics, smaller lot, more frequent

supplies

Reduce supply chain lead time( both internal &

external)

JIT between Factory&Supplier


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JS/CWCM 66

Pull System of Manufacturing


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PUSH

PU

Supplier /

Manu acturer

Cust mer /

Buyer

Buyer /

Cust mer

Supplier /

Manu acturer.

Pull System of Manufacturing

Demand Pull System - Features


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Produce what is required and NOT what may

be required

Build high responsiveness in the entire system

by improving capacity to respond

Build in total employee involvement

Demand Pull System Features

Demand Pull System - Features


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JS/CWCM 69

Eliminate / reduce transport / handling by

improving layouts

Cut production cycle times through eliminating

delays and reducing set up times

Apply POKA YOKE, ANDON, JIDOKA,

SPECTRUM to achieve Zero Defects

Demand Pull System Features

KANBAN


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JS/CWCM 70

KANBAN

KANBAN is a Japanese word for CARD used

as a means of communicating a need for

materials in between production

departments,Production to Stores and Factory to

Suppliers and Sub Contractors

Different Kind of KANBAN of tailor made

design is used for different applications.

KANBAN is often supported with special

containers which hold specified quantities

JIT Implementation Between Factory& Customer


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JS/CWCM 71

p y

Produce to Demand ( Pull system)

Production Smoothing

Eliminate NVA and reduce production/process

lead times

Minimize changeover times, minimize the Batch

size

Approach SP

F( Single piece flow)

Kanban in Operation


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Kanban in Operation

FU CONTAINER

USERDAI Y

SCHEDU E

C ntainer

Kanban and

PRODUCER

EMPTY CONTAINER


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JS/CWCM 73

Responsiveness A Critical Cust mer Expectati n

Resp nsiveness is a uncti n Speed Orientationin the Or anizati n


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OTIF

OnTimeIn Full isa Maj rMeasure of

Responsiveness.

OTIF


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JS/CWCM 76

TheProportion ofPerfect ordersexecutedto totalTheProportion ofPerfect ordersexecutedto total

numberof orders.numberof orders.ThePerfectOrdermeansmeetin the followin ThePerfectOrdermeansmeetin the followin Criteria:Criteria:

Deliveredcompleteto thequantity orderedDeliveredcompleteto thequantity ordered

Deliveredexactlyto customersrequested dateDelivered exactlyto customersrequested dateand timeand time

No deliveryproblems(Dama e,Shorta e,Refusal)No deliveryproblems(Dama e,Shorta e,Refusal)

Accurateand complete delivery documentationAccurateand complete delivery documentation


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JS/CWCM 77

OTIF AnExample

Delivered onTime(Mutuallya reed dates)Delivered onTime(Mutuallya reed dates) 9090Fullquantity delivered (Ifquantity delivered isexcess orFullquantity delivered (Ifquantity delivered isexcess or

shortsay withinaccepted ran eincase ofbulksupplies)shortsay withinaccepted ran eincase ofbulksupplies)

8585

OTIF = 90x85 = 76.5OTIF = 90x85 = 76.5

OTIF Pointstoponder


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JS/CWCM 78

p

How do youcalculate,OnTime ?How do youcalculate,OnTime ?Promised delivery dateVsactual orcustomersrequestPromised delivery dateVsactual orcustomersrequest

dateVsactualdateVsactual

The date ofreceipt of goodsatcustomerend orthe date ofThe date ofreceipt of goodsatcustomerend orthe date of

dispatch ?dispatch ?

OTIF


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JS/CWCM 79

Delivering 100 ontimeto a datethat doesnotmatchtheDelivering 100 ontimeto a datethat doesnotmatchthecustomersneed isnot good customerservice.customersneed isnot good customerservice.

Delivering morethan whatthecustomerwanted isnotDelivering morethan whatthecustomerwanted isnotbetterservicebutin factabad service.betterservicebutin factabad service.

In Full doesnotmeantotalquantity onamonthlybasisbutIn Full doesnotmeantotalquantity onamonthlybasisbutforeachshipment.foreachshipment.

OTIF


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JS/CWCM 80

Differentapproaches:Differentapproaches:

Customerwise(Measured fora giventimebucketsayaCustomerwise(Measured fora giventimebucketsayamonth.Itcouldbe weekly/Fortnightlyalso depending onmonth.Itcouldbe weekly/Fortnightlyalso depending onthecustomer)thecustomer)

Product wise(Notspecificto anyparticularcustomerbutProduct wise(Notspecificto anyparticularcustomerbutassessed fora givenproduct fora giventimebracketsayaassessed fora givenproduct fora giventimebracketsaya

month)month)Orderwise(Each ordersOTIFperformanceistrackedOrderwise(Each ordersOTIFperformanceistracked

Reported assoonasan orderiscompleted)Reported assoonasan orderiscompleted)

ProductGroup wise(SimilarProductsare groupedProductGroup wise(SimilarProductsare groupedtogetherand thisisassessed fora giventimebracketsayatogetherand thisisassessed fora giventimebracketsaya

month)month)

How to increaseOTIF ?


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JS/CWCM 81

Bring inspeed OrientationinternallyBring inspeed Orientationinternally

Sound Planning and ReviewSound Planning and Review

EarlyWarning SystemsEarlyWarning Systems

Control onManufacturing Lead TimeControl onManufacturing Lead Time

FlexibilityinManufacturingFlexibilityinManufacturingQuickchangeoversQuickchangeovers

LogisticsSupportLogisticsSupport

Salesand OperationsPlanning Process


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JS/CWCM 82

APrerequisite forOTIF ImprovementsAPrerequisite forOTIF Improvements

PlanningprovidesthelinkagebetweencustomerdeliveryPlanningprovidesthelinkagebetweencustomerdeliveryrequirementand Manufacturingrequirementand Manufacturing

CustomerDeliveryRequirementsareconverted toCustomerDeliveryRequirementsareconverted toManufacturingplanand Schedule.Manufacturingplanand Schedule.

ResourcePlanning and allocationResourcePlanning and allocation

ProcurementPlanning and schedulingProcurementPlanning and scheduling

Shortcycleplanning as opposed to traditionalmonthlyShortcycleplanning as opposed to traditionalmonthlyplanning cycles.planning cycles.

IT forDecisionMaking


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JS/CWCM 83

Effectiveleveraging ofIThelpsinOTIF ImprovementEffectiveleveraging ofIThelpsinOTIF Improvement

Decisionsupportsystems facilitatemanagersintakingDecisionsupportsystems facilitatemanagersintaking

timely decision withallrelevantinformation.(Exampletimely decision withallrelevantinformation.(Example

computersimulationmodels forarriving atDeliverDates)computersimulationmodels forarriving atDeliverDates)

SupplychainintegrationthroughITisaneffective way ofSupplychainintegrationthroughITisaneffective way ofproviding arealtimelinkageproviding arealtimelinkage Onlinesystems to induceOnlinesystems to induce

speed intheSupplyChain.speed intheSupplyChain.

Delivery Failures EarlyWarning Systems


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JS/CWCM 84

Reviews withPlanReviews withPlandetectpotential deviations.detectpotential deviations.

Linkdailyproduction with orderdeliveriesLinkdailyproduction with orderdeliveries

LeverageVisualmanagementSystemsLeverageVisualmanagementSystems

AdoptAirlinesApproachAdoptAirlinesApproach Estimated date of deliveryandEstimated date of deliveryand

rescheduleprioritiesreschedulepriorities


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JS/CWCM 85

Company wide Speed Orientation A Recipe for

OTIF Deliveries

Responsiveness Role of Leaders


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JS/CWCM 86

The Leadershavetoplayacriticalrolebypromoting andThe Leadershavetoplayacriticalrolebypromoting and

demonstrating Speed Orientationacrossthe organization.demonstrating Speed Orientationacrossthe organization.

Theyhaveto evolveStrategiesatBusinesslevelandTheyhaveto evolveStrategiesatBusinessleveland

Operational LevelOperational Level

Technologyand SpeedSomeExamples


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JS/CWCM 87

Example ofprocessstepeliminationExample ofprocessstepelimination

BeforeBefore

Filmphotography,development,printing,scanning andFilmphotography,development,printing,scanning and

copying intoNewslettercopying intoNewsletter

NowNowDirect digitalcamera,photograph directlycopied intoDirect digitalcamera,photograph directlycopied into

newsletter.newsletter.

Technologyand Speed SomeExamples


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JS/CWCM 88

ExampleExample-- CombineProcessstepsCombineProcesssteps

BeforeBefore

Photocopying,sorting,Grouping and staplingPhotocopying,sorting,Grouping and stapling

NowNow

Combined operationinasinglemachineCombined operationinasinglemachine


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Manufacturing Flexibility Keyto Speedier

deliveries

Flexibility


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y

Flexibilityinmanufacturing meansFlexibilityinmanufacturing means-- Capability ofCapability ofmachines,materialhandling,productionprocesses,routingsmachines,materialhandling,productionprocesses,routingsandpeopletoproduce differentthingsand in differentandpeopletoproduce differentthingsand in differentquantities.quantities.

FlexibilityinMarketing meansFlexibilityinMarketing means Supplychainmatching toSupplychainmatching tomeetthechanging demand requirements fordifferentmeetthechanging demand requirements fordifferentproductsand volumes.productsand volumes.

Flexibilityhelpsin achieving speed.Absence of flexibilityFlexibilityhelpsin achieving speed.Absence of flexibilitymeanslongerwait.meanslongerwait.

Flexibility


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Doesa fast food restauranthave flexibility ?Doesa fast food restauranthave flexibility ?Doesitservecustomers withSpeed tojustifyitsname ?Doesitservecustomers withSpeed tojustifyitsname ?

What doesit do to enablethis ?What doesit do to enablethis ?

Areasthatinfluence Flexibility


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JS/CWCM 92

LayoutLayout

Equipmentand MachineryEquipmentand Machinery

Manufacturing ProcessesManufacturing Processes

ChangeOversChangeOvers

Operational FlexibilityOperational Flexibility

UnpredictableProblemsUnpredictableProblems

SystemsSystems

OrganizationOrganization

MeasurementsMeasurements

Layouts& Flexibility


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JS/CWCM 93

Shift from Functionallayoutsto CellularLayoutsShift from Functionallayoutsto CellularLayoutsPutmachines onWheels ?Putmachines onWheels ?

Change Layoutto suitProductVariety,Mixetc.UseChange Layoutto suitProductVariety,Mixetc.Use

Machines/WorkBenches/Fixtures onWheels.Machines/WorkBenches/Fixtures onWheels.

EmulateCircus,HotelConferenceRooms forflexibilityinEmulateCircus,HotelConferenceRooms forflexibilityinLayouts.Layouts.

Equipment/Machinery Flexibility


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Advanced Productiontechnology( FlexibleMachiningAdvanced Productiontechnology( FlexibleMachining

Centers,CNCMachines,MovablemachinesCenters,CNCMachines,Movablemachines

ForkLift with differentattachmentsForkLift with differentattachments

Manufacturing Processes


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Evaporatorthatcanhandle different differentmaterialEvaporatorthatcanhandle different differentmaterial

requiring differentprocesssettingsrequiring differentprocesssettings

ACookerwithalow turn downratio ( which givesvolumeACookerwithalow turn downratio ( which givesvolume

flexibility withoutaffectingperformance)flexibility withoutaffectingperformance)

Flexibilityand Changeovers


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JS/CWCM 96

SetUp orMakeReady operationscould adverselyimpactSetUp orMakeReady operationscould adverselyimpact

flexibilityiftheytaketoo muchtime ortoo cumbersometoflexibilityiftheytaketoo muchtime ortoo cumbersometocarryout.carryout.

Flexibility demandsthatChangeoversbesimplified andFlexibility demandsthatChangeoversbesimplified andachieved quickly.achieved quickly.

MoreVariety fromalineispossible withlow changeoverMoreVariety fromalineispossible withlow changeovertimes.times.

Application of QuickChangeOvertechniquesisthekeyApplication of QuickChangeOvertechniquesisthekey

Operational Flexibility


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Production scheduling ( Advanced Schedulingsystemssuch assynchronized manufacturing)

Multi Skilled Employees also give flexibility in

Operations.

UnpredictableProblems


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Flexibility ofan organizationcouldbeaffected adverselyFlexibility ofan organizationcouldbeaffected adverselydueto the following unpredictableproblems:dueto the following unpredictableproblems:

MachineBreakdowns(TPM)MachineBreakdowns(TPM)

Latevendordelivery(ReliableSuppliers/Partnerships)Latevendordelivery(ReliableSuppliers/Partnerships)

Heavyrejections(SixSigmaApproach)Heavyrejections(SixSigmaApproach)

AttacktheabovethroughappropriatetechniquesAttacktheabovethroughappropriatetechniques

mentioned withinbrackets.mentioned withinbrackets.

Theycanbe overcome.Theycanbe overcome.

Systems


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JS/CWCM 99

The fixed frequency ofprocessing dictatesthe flexibility.The fixed frequency ofprocessing dictatesthe flexibility.

ThecustomeristoldThecustomeristold SorryyourordercanbescheduledSorryyourordercanbescheduled

nextmonth only.nextmonth only.

Can wereducethe frequency ofprocessing to dailyinsteadCan wereducethe frequency ofprocessing to dailyinstead

of weekly/Fortnightly/Monthly ?of weekly/Fortnightly/Monthly ?

Organization


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TraditionalOrganizationsarestrong compartments ofTraditionalOrganizationsarestrong compartments of

Functions.Flexibilityisapipe dreamhere.Functions.Flexibilityisapipe dreamhere.Processcentered organizationsconsisting ofcrossProcesscentered organizationsconsisting ofcross

functionalteamsmakethe organizationmore flexible.functionalteamsmakethe organizationmore flexible.

Shift focus fromsingle function/Skillspecialiststo multiShift focus fromsingle function/Skillspecialiststo multi

skilled employeesto enhance flexibilityskilled employeesto enhance flexibility

Measurementsand Flexibility


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JS/CWCM 101

Sometypicaltraditionalmeasurements whichaffectSometypicaltraditionalmeasurements whichaffect

flexibilityare,flexibilityare,Focus onTimeutilization ofanequipment(forceslongerFocus onTimeutilization ofanequipment(forceslonger

runto reducethenumberofchangeovers).runto reducethenumberofchangeovers).

Focus on LocalOptimizationsuchasTonnageproduced (Focus on LocalOptimizationsuchasTonnageproduced (inducestendencyto takeuphightonnage ordersininducestendencyto takeuphightonnage ordersin

preferenceto low tonnage orders)preferenceto low tonnage orders)

To achieve flexibilityand speed shiftemphasis fromTo achieve flexibilityand speed shiftemphasis frominternalmeasuresto externalmeasures:internalmeasuresto externalmeasures:

Focus onOrderDeliveryinsteadpromotes frequentchangeFocus onOrderDeliveryinsteadpromotes frequentchangeoverand reducing thetimeperchange over.overand reducing thetimeperchange over.

Measures of Flexibility


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Measure ofreadiness(MeanDeliverytime,Lead timeMeasure ofreadiness(MeanDeliverytime,Lead time

to accept ordersetc.)to accept ordersetc.)FlexibilityinProducts(No ofvarieties,TimetoFlexibilityinProducts(No ofvarieties,Timeto

introducenewproducts/variantsetc.)introducenewproducts/variantsetc.)

Flexibilityinvolume/Scale of operations(Turn downFlexibilityinvolume/Scale of operations(Turn downratio,Outsourcing forvolumescaleup/downetc.)ratio,Outsourcing forvolumescaleup/downetc.)

Flexibilityinsupplying differentmixes(AbilitytoFlexibilityinsupplying differentmixes(Abilitytovarytheproductmix)varytheproductmix)


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ResponsivenessMeasures AStimulus for

enhancing Speed Orientation

Appliesto all functions/AllTeamsand everyone

ResponsivenessMeasure


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Haveyouidentified yourresponsivenessMeasure ?Haveyouidentified yourresponsivenessMeasure ?Did youinvolve/consultyourcustomerinidentifying theDid youinvolve/consultyourcustomerinidentifying the

measure ?measure ?

TypicalResponsivenessMeasures


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JS/CWCM 105

Sales (Sales (Timeto respond to customercalls,Timeto respond to customercalls,

Meantimebetweencustomercontacts)Meantimebetweencustomercontacts)

Production(Production(ChangeoverTime,BatchProcessing Time,CycleChangeoverTime,BatchProcessing Time,Cycle

Time)Time)

Maintenance(Maintenance(MeanTimeto Repair,Responsetimeto attend toMeanTimeto Repair,Responsetimeto attend to

servicecalls)servicecalls)



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Purchase(Purchase(Lead timeto convertindentto PO,Lead time ofLead timeto convertindentto PO,Lead time of

deliveries,Documentclearing time)deliveries,Documentclearing time)

Laboratory(Laboratory(Timebetweensampling and analysisTimebetweensampling and analysis

feedback,TimetoprovideInformation oncriticalprocessfeedback,TimetoprovideInformation oncriticalprocess

parameters)parameters)

Personnel(Timetoprovideinformation onleaveetc.Personnel(Timetoprovideinformation onleaveetc.

Waiting time forrecording attendance,GrievancehandlingWaiting time forrecording attendance,Grievancehandling

time,Cycletime fornew recruitment)time,Cycletime fornew recruitment)



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JS/CWCM 107

Marketing(Marketing(Timeto MarketNew Product,Timeto launchTimeto MarketNew Product,Timeto launchnew Promotions,Responseto Customernew Promotions,Responseto Customercomplaints,Customerinquiryresponsetime)complaints,Customerinquiryresponsetime)

Logistics(Logistics(Truck/Containerturnaround times,Loading cycleTruck/Containerturnaround times,Loading cycle

times,Timeto changevarietyinloading/deliveriestimes,Timeto changevarietyinloading/deliveries

SecuritySecurity(Visitorhandling time,Responseto emergency(Visitorhandling time,Responseto emergencysituations)situations)

Finance andFinance and Accounts(Accounts(CashpaymentCycletime,SupplierCashpaymentCycletime,Supplierbillpaymentcycletime,Time forretrieval ofcriticalbillpaymentcycletime,Time forretrieval ofcriticalinformation,CashTo CashCycleTime)information,CashTo CashCycleTime)

JIT Implementation Within Factory Through

DOL Delivery


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JS/CWCM 108

DOL Delivery

DOL Delivery ( Direct On Line Delivery) for

delivery from one shop to another instead of

material traveling through warehouse

Will cut WIP s and also considerably reduce

throughput time


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JS/CWCM 109

The Fact That a Company Feels It Is Likely to Be

Difficult and Long Term Process to Get Its

Suppliers Operating JIT Is No Excuse for Not

implementing internally.

JIT Sub committee


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Leader -- Purchase Manager/Marketing

Members - Production, Sales, QC, IT Planning

Plant Manager, Marketing

JIT Pitfalls


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JS/CWCM 111

Lackoftop management commitment

Inadequate education

Lackofexternal assistance

Lackofunderstanding

Failure to integrate process & control

Lackof it support

Rushing vendor links


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JS/CWCM 112

Team Exercises


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JS/CWCM 113

Manufacturing Throughput Time Analysis andManufacturing Throughput Time Analysis and

ReductionReduction

Application ofQuickChangeOver (QCO)Application ofQuickChangeOver (QCO)

TechniqueTechnique

DirectOn Line Delivery ( DOL)DirectOn Line Delivery ( DOL)

Supplier RationalizationSupplier Rationalization

JIT PurchasingJIT Purchasing

ResponsivenessResponsiveness

Exercise No. 1-


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JS/CWCM 114

THROUGHPUT TIME COMPRESSION

Identify Product varieties manufactured

Identify stage by stage process of manufacture

including intermediate waiting/storing etc and

the time taken at each stage

Separate Value added and Non Value Added

and compute Process Efficiency

Identify potential areas for Throughput Time

Compression

Exercise No. 2


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JS/CWCM 115

QUICKCHANGE OVER

Identify Major Change Over Activities in the

Plant both from Process and Utilities.

List the activities involved in the Changeover.

Categorize them into Value Adding and Non

Value Adding as well as Inside activity / Outside

activity along with time taken for each.

Develop action plan for reducing the Cycle Time

of Change over with targets

Exercise No. 3


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JS/CWCM 116

DIRECTON LINE DELIVERY

Identify and prepare a list of WIPs that are

being packed and sent to intermediate stores

and later issued to some in house Department

for further processing.

Assess the quantity handled, resources spent

( packing, handling, manpower, inventory etc.)

Design a system of Direct On Line Delivery to

User .

Identify bulky purchased items where theapproach can be extended.

Prepare an action plan for implementation with

projected savings

Exercise No 4


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JS/CWCM 117

Supplier Rationalization

Identify various key input materials/families of items

and analyze the present number of suppliers/ the

business breakup and supplier wise performances.

Identifies scope and recommends items for supplier

rationalization with targets for average number of

suppliers per item on an aggregate basis.

Exercise No.5


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JS/CWCM 118

JIT PURCHASING

Identify A Category items.Compare each item

systematically with the attributes for JIT items and

prepare a list of potential items.

Gather their purchase lot quantities, No of

Suppliers, Order share per supplier, Lead Time

etc, Consumption quantity and rate

Pick item (s) for developing JIT Supplier from

either the existing or consider options of developing

one close to the Plant.

TeamExercise- Flexibility


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JS/CWCM 119

Identifyareas wherelackof flexibilityisaffecting theIdentifyareas wherelackof flexibilityisaffecting the

customerDelivery.customerDelivery.

Tobegin with focus onexternalcustomerdelivery.Tobegin with focus onexternalcustomerdelivery.

Identifymajordelivery failure orrefusal ofacustomerIdentifymajordelivery failure orrefusal ofacustomer

order.Examinethe failure fromthepoint ofview oforder.Examinethe failure fromthepoint ofview of

flexibility.flexibility.

Slide 1

TeamExercise- Flexibility

AreaArea Problem ( DescribeProblem ( Describe Remedy suggested/Remedy suggested/


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JS/CWCM 120

AreaArea Problem ( DescribeProblem ( Describe

the lackofthe lackof

flexibilityflexibility

Remedysuggested/Remedysuggested/

ActionAction

LayoutLayout

Equipment/MacEquipment/Mac

hineryhinery

ProcessProcess

ChangeoversChangeovers

OperationalOperational

SystemsSystems

OrganizationOrganization

UnplannedUnplanned

ProblemsProblems

MeasurementsMeasurementsSlide 2

TeamExercise -Responsiveness

Id tif h l k f d / i iId tif h l k f d / i i


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JS/CWCM 121

Identifyareas wherelackofspeed /responsivenessisIdentifyareas wherelackofspeed /responsivenessisaffecting yourperformanceinterms of Q,C,D,I,Paffecting yourperformanceinterms of Q,C,D,I,P

Example:Example:

Delayin getting a gasketiscausing leakage ofchemicalDelayin getting a gasketiscausing leakage ofchemicaland affecting Costand affecting Cost

Not getting emptybasketsiscausing delaysinunloadingNot getting emptybasketsiscausing delaysinunloadingmaterialaffecting deliveryto nextprocessmaterialaffecting deliveryto nextprocess

Delayin deliveryrequirementscausing difficultiesinDelayin deliveryrequirementscausing difficultiesin

transportplanningtransportplanning

DelayinPaymentscausing customercomplaintsDelayinPaymentscausing customercomplaints

Orderfinalizing takestoo long atimeOrderfinalizing takestoo long atime

Slide 1

TeamExercise- Responsiveness


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JS/CWCM 122

WhereWhere

Speed isSpeed is

lackinglacking

SupplierSupplier AffectsAffects

QQ

AffectsCAffectsC AffectsDAffectsD AffectsIAffectsI AffectsPAffectsP

Team No: Ownership Process: Equipment:

Slide 2

TeamExerciseResponsivenessMeasure


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JS/CWCM 123

IdentifyresponsivenessmeasuresinyourIdentifyresponsivenessmeasuresinyour

ownershiparea.Rankthemin orderofpriorityownershiparea.Rankthemin orderofpriority

Example:Example:

Timeto deliversamplesto labTimeto deliversamplesto labRetrieval ofInformation onProcess performanceRetrieval ofInformation onProcess performance

TeamExerciseResponsivenessMeasure


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JS/CWCM 124

S.NoS.NoResponsivenessMeasureResponsivenessMeasure

MachineMachine

MaterialMaterial

/Utilities/UtilitiesProcessProcess

QualityQuality

InformationInformation

TeamExercise ResponsivenessMeasureTarget


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JS/CWCM 125

setting

Gatherpresentperformancerelated to thetopthreeGatherpresentperformancerelated to thetopthreemeasureschosen.Arriveattargetasateam.Identifythemeasureschosen.Arriveattargetasateam.Identifytheimpedimentsand actionsto overcometheimpediments.impedimentsand actionsto overcometheimpediments.

ExampleExampleTimeto deliversamplesto lab.Timeto deliversamplesto lab.

PresentPerformance:Varies from30minutesto 2 hoursPresentPerformance:Varies from30minutesto 2 hours

TargetTarget 30Minutes30Minutes

Slide 1

TeamExercise ResponsivenessMeasureTarget


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JS/CWCM 126

setting

ResponsivenessResponsivenessMeasureMeasure

PresentPresentPerformancePerformance

TargetTarget ImpedimentsImpediments

Slide 2


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JS/CWCM 127

JIT Bibliography


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JS/CWCM 128

Putting the Just In Time philosophy into practice by P J

OGRADY

Cell System o f production by David Jackson

Just In Time Manufacturing Proceedings of the III

International Conference

JIT The Management of Manufacturing by Roland Toone

& Dave Jackson

Working towards JIT by Anthony Dear

Just In Time by David Hutchins

World Class Manufacturing - Implementing JIT & TQC

by Richard J Schonberger

Toyota Production Systems by Yashuhiro Monden The Just In Time Breakthrough ( Implementing the new

manufacturing basics) by Edward J H ay

JIT Bibliography


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JS/CWCM 129

World Class Manufacturing by JIM TODD

Manufacturing Planning &Control Systems by Thomas

Vollmann,William Berry

Time Based Competition (The next battleground in

American manufacturing.)by Joseph D Blackburn. The Race by Dr Goldratt.

Just In Time Manufacturing An aggressive

manufacturing strategy by Richard T Lubber

Just In Time Manufacturing An Introduction by TC E

Cheng and S Polosky


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WeWish You All The Best In

Your Journey Towards JIT


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Thank You

WCM

jit supply chain management js cwcm (27.07.02)

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