Just-in-Time Manufacturing

1. Just-in-Time Manufacturing

2. A. INTRODUCTION • Why “Just-in-Time” manufacturing ? • No large capital outlays required. • Advocates simplifying and streamlining existing process. • Planning is entrusted to shop floor personnel. • No-cost, or low-cost method for improving mfg. process.

3. B. JIT PHILOSOPHY • Basis is the concept of ideal production. • Centers on the elimination of waste- from raw material to shipping. • Defined as: “Production of the minimum number of units in the smallest possible quantities at the latest possible time, which eliminates the need for inventory”. • Does not mean to produce on time but to produce “just in time”.

4. B. JIT PHILOSOPHY 1. History of Just-in-Time • Incorrectly rumored to have been invented by Henry Ford. • Actually invented by Taiichi Ohno of Toyota. • Ohno’s system designed to handle varying volumes/various parts. • Nothing more than good, common sense manufacturing.

5. B. JIT PHILOSOPHY 2. From Supermarket to Shop Floor • Ohno is believed to have gotten his JIT idea from U.S. supermarkets. • Customers pull items from shelf. • Empty space on shelf is signal for stocker to replace item. • If items are not bought, no replacement required. • When item become low, stocker reorders from supplier. • Customers take only what they need because they know items will be restocked. • Ohno applied the same concept to manufacturing.

6. B. JIT PHILOSOPHY 3. What to Expect • JIT is more than an inventory system. • It is an operational philosophy which includes: • A set-up time improvement system. • A maintenance improvement system. • A quality improvement system. • A productivity improvement system. • A properly implemented JIT system should: • Produce products customers want. • Produce products only at the rate customers want them. • Produce with perfect quality. • Produce instantly with zero unnecessary lead time. • Produce with no waste of labor, material or equipment.

7. B. JIT PHILOSOPHY • What to Expect • Elements of the implementation process include: • Reductions in set-up time; • A formal preventive maintenance program; • Utilization of quality circles; • Cellular manufacturing techniques; • Cross training of employees; • Quality certification of suppliers; • Reductions in vendor lead time; • Reductions in lot sizes; • Sole sourcing, and • Presence of one who “championed” the cause in the company.

8. B. JIT PHILOSOPHY • What to Expect • Benefits of JIT implementation include: • Reductions in downtime; • Reductions in inventory; • Reductions in scrap and rework; • Reductions in work space; • Increased inventory turns; • Increased labor utilization; • Increased equipment utilization; and • Improved service to customers.

9. C. FIRST IN – FIRST OUT (FIFO) • A method of inventory rotation to ensure that oldest inventory (first in) is used first (first out): • Simply means how you handle your products; • For example, groceries • Perishable items (milk and eggs) restocked from the back; • Old items are pushed to the front; • Selected first by the customer. FIFO Racks

10. D. TAKT TIME • “TAKT” – German word for baton an orchestra conductor uses to regulate the speed, beat or timing at which musicians play. • The rate or time a completed product is finished. • 2 minutes, 2 hours, 2 days, or 2 weeks. 1. How is Takt Time Established ? • Established by customer buying rate. • What if Customers Buy Fewer Products? • Takt time changes to adjust to customer buying rate. • Increases or decreases result in staffing and production changes. 3. What if Customers Buy More Products? • Takt time decreases to make more products in shorter time. There is no substitute for continuously improving a balanced Takt time.