Just in Time Manufacturing

1. Just in Time Manufacturing Buy it if we need it, make it if itis sold. Stock arrives when needed in the production process. Goods are made ready for delivery to customers.

2. JIT Building Blocks Product design Personnel/ Worker skills Incentive Systems Understanding of production process Relationships with suppliers Quality control

3. Types of Waste without JIT (JIC) • Waste from overproduction • Waste from holding WIP • Transportation waste • Stock holding waste • Processing waste • Waste from product defects • Waste from not using workers skills

4. Benefits of JIT • Reduce costs of stock hold • Minimize Work In ProgressMinimize buffer stocksSmoother production flowIncreased productivity levelsWorker participation in problem solvingGood customer relationships

5. Benefits of JIT • Reduced space requirements • Increased product quality • Reduced lead times • Greater flexibility in product mix

6. What Must You Have for JIT? • Management understanding of production process– walk the line • Effective relationship with customers- efficient EPOS ordering systems • Relationship with suppliers - frequent deliveries, effective understanding of ordering and supply systems • Product design -standardization, fewer parts • Incentive systems for workers -skills, reward for improved trends in quality and input of ideas

7. Obstacles to Conversion to JIT • Management may not be committed • Lack of understanding of production process • Workers/management may not be cooperative • Suppliers may resist • Long supply chains • Cost of implementing systems • Lack of skills / cost of training