Group No 11_ JIT

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JUST IN TIME

Group No : 11

Anand G ( 21 )

Keerthi P ( 66 )Bhal Chandra( 40 )Avik Ghosh( 39 )Amit Ahlawat(19 )

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Just-in-Time

JIT philosophy requires getting the right quantity of goods at the right place and the right time

JIT exceeds the concept of inventory reductionJIT is an all-encompassing philosophy founded oneliminating waste

Waste is anything that does not add value A broad JIT view is one that encompasses theentire organization

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Philosophy of Just-in-Time

First adopted in Toyota manufacturing plants;pioneered by Taiichi Ohno.

JIT originated in Japan, post WWIIDriven by a need to survive after the devastationcaused by the war

JIT gained worldwide prominence in the 1970s

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The Philosophy of JIT - continued

Often termed Lean Systems All waste must be eliminated- non value items

Broad view that entire organization must focus onthe same goal - serving customersJIT is built on simplicity- the simpler the betterFocuses on improving every operation- Continuousimprovement - Kaizen Visibility all problems must be visible to beidentified and solved

Flexibility to produce different models/features

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Removal of unnecessary activities , Such asreceiving, incoming inspection, paperwork andinvoicing

Removal of In plant inventory

Removal of In transit Inventory Consignment inventory

Improved quality and reliability

Goals of JIT Partnerships

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DiversificationSuppliers may not want to tie themselves to long termcontracts

SchedulingLittle faith in purchasers ability

ChangesEngineering changes can play havoc with JIT

Quality Capital, process and technology limitations

Lot SizeSuppliers may not want frequent delivery in small lots

Concerns of suppliers

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Click to edit Master subtitle style

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Pull Scheduling System: why?

Whats wrong with PushScheduling

System?

Assumptions:Our businessprocesses are

Busin

essCircle

R i s i n g

L e a d

T i m e

Lead Time =WIP/Rate

Solution provided by Pull system : Single

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Pull Scheduling System: why?

Assumption: WIP is not costing thecompany anything.

Fact: Cost of Capital

Cost of Space

Lead-Time= Cost -Henery Ford

Tell me how youmeasure me and Illtell you how Ill

behave. -Goldratt

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Pull Scheduling System: Types

Single Schedule Point: Processimmediately after the last Supermarket

Constraint: Slowest Process afterSuper Market

Used when Customer does not needChoices, and to Control WIP in high volume repetitive manufacturing

FIFO Lane caps at each process.

SupermarketReplenishment

Capped FIFO Lanes

Drum Buffer Rope

WIP Cap

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Single Schedule Point: Processimmediately after the lastSupermarket

Constraint: Slowest Process afterSuper Market, called DRUMTo control WIP where Constraint isknown and in a fixed location

ROPE cap : overall cap between theSingle Schedule Point and theConstraint .


Capped FIFO Lanes

Drum Buffer Rope

WIP Cap

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Single Schedule Point: Processimmediately after the lastSupermarket

To control WIP where Constraint is

known and in a fixed location WIP cap : overall cap between theSingle Schedule Point and the lastprocess.


Capped FIFO Lanes

Drum Buffer Rope

WIP Cap

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Toyota Production System1515

The operational excellence is based on the quality improvementtools and methods developed by Toyota (under the TPS): such asJIT, kaizen, one-piece-flow, jidoka, and heijunka!

These technique triggered a lean revolution in themanufacturing sector.

Toyota Way 14 principles which constitute this philosophy.

4P model Philosophy (Long-term thinking) Process (eliminate waste) People and partners (Respect, Challenge them to achieve more,

Grow leaders) Problem-solving (Continuous improvement and learning)

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What is Toyota lean?1616

End result of applying the TPS to all areas of business. A five-step process:

Defining customer value

Defining value stream

Making it flow

Pulling from the customer and back

Striving for excellence.

Taiichi Ohno (founder of TPS) All we are doing is looking at thetime line from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line byremoving the non-value-added waste.

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14 Toyota-Way Principles1717

Section I Long-term philosophyPrinciple 1 : Base your management decisions on a long-term

philosophy, even at the expense of short-term financial goals.

Section II The Right processes will produce the right results

Principle 2 : Create continuous process flow to bring problem to thesurface.

Principle 3 : Use pull system to avoid overproduction.

Principle 4 : Level out the workload ( heijunka ). (work like atortoise not the hare.)

Principle 5 : Build the culture of stopping to fix problems to getquality right the first time.

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Principle 6 : Standardize tasks are the foundation for continuousimprovement and employee empowerment.

Principle 7 : Use visual control so no problems are hidden.

Principle 8 : Use only reliable, thoroughly tested technology thatserves your people and processes.

Section III Add value to the organization by developing your people

and partnersPrinciple 9 : Grow leaders who thoroughly understand the work,live the philosophy, and teach it to others.

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Principle 10 : Develop exceptional people and teams who followyour companys philosophy.

Principle 11 : Respect your extended network of partners andsuppliers by challenging them and helping them improve.

Section IV Continuously solving root problem drives organizational learning

Principle 12 : Go and see for yourself to thoroughly understand thesituation ( genchi genbutsu ).Principle 13 : Make decisions slowly by consensus, thoroughlyconsidering all options, implement decisions rapidly.

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Principle 14 : Become a learning organization through relentlessreflection ( hensei ) and continuous improvement ( kaizen ).

So we see that the JIT, Lean, 5S etc. are just tools that enablequality and productivity. TPS is much more than that!

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The TPS house diagram2121

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DELL ManagesProfitability

Not Inventory

Just-in-Time ProductionThe Dell Way

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If I have got 11 days of inventory and my

competitor has 80 and Intel comes out with a new chip , that means I am going to get to market 69 dayssooner

In the computer industry , inventory can be apretty massive risk because if the cost of materials isgoing down 50% a year, and you have a 2 or 3months of inventory versus 11 days, you have got a big cost disadvantage . And you are vulnerable toproduct transitions, when you can get stuck with

Michael Dell

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JIT Snapshot of DELL

Has no warehouses

Assembles 80,000 computers every 24 hours

Cellular Layout of factoriesCarries no more than 2 hours of inventory in itsfactories

Negative cash to cash cycle

VMI and long term supplier contracts

Direct shipping , no middleman or reseller

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Cellular Layout

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Documents

Group No 11_ JIT