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Just-In-Time Production

Management philosophy Pull system though the plant. WHAT IT IS. Attacks waste Exposes problems and bottlenecks Achieves streamlined production. WHAT IT DOES. Employee participation Industrial engineering/basics Continuing improvement Total quality control

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Just-In-Time Production

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  1. Management philosophy • Pull system though the plant WHAT IT IS • Attacks waste • Exposes problems and bottlenecks • Achieves streamlined production WHAT IT DOES • Employee participation • Industrial engineering/basics • Continuing improvement • Total quality control • Small lot sizes WHAT IT REQUIRES • Stable environment WHAT IT ASSUMES Just-In-Time Production 13

  2. Minimizing Waste: JIT Production Produce... ...what is needed... ...when it’s needed... ...NOTHING MORE! 11

  3. Waste--Operations (1) Waste from overproduction (2) Waste of waiting time (3) Transportation waste (4) Inventory waste (5) Processing waste (6) Waste of motion (7) Waste from product defects 6

  4. Production Kanban Withdrawal Kanban A Machine Center Assembly Line B Storage Minimizing Waste: Kanban Production Control Systems 15

  5. JIT Requirements: Work with Vendors • Reduce lead times • Frequent deliveries • Project usage requirements • Quality expectations 27

  6. JIT Requirements: Reduce Inventory More • Stores • Transit • Carousels • Conveyors 28

  7. JIT Requirements: Improve Product Design • Standard product configuration • Standardize and reduce number of parts • Process design with product design • Quality expectations 29

  8. Partnership Relationship • Continuing relationship involving • a commitment over an extended time period, • an exchange of information, and • an acknowledgement of the risks & rewards of the relationship. 9

  9. JIT Purchasing--Requirements • Reduced lot sizes • Frequent and reliable delivery schedules • Reduced and highly reliable lead times • Consistently high quality levels for purchased materials 11

  10. JIT Purchasing--Suppliers • Fewer, nearby suppliers • Repeat business • Support suppliers’ competitiveness • Clusters of remote suppliers • Limit competitive bidding to new parts • Resist vertical integration • Encourage suppliers to implement JIT purchasing 12

  11. JIT Purchasing--Quantities • Steady output rate (a desirable prerequisite) • Frequent deliveries in small lot quantities • Long-term contract agreements with minimal release paperwork • Deliver quantities variable from release to release but fixed for whole contract term 13

  12. JIT Purchasing--Quantities (Ctd) • Little or no permissible overage or underage of receipts • Suppliers encouraged to package in exact quantities • Suppliers encouraged to reduce their production lot sizes (or store unreleased material) 14

  13. JIT Purchasing--Quality • Minimal product specifications imposed on supplier • Help suppliers to meet quality requirements • Close relationships between buyers' and suppliers' quality assurance people • Suppliers encouraged to use process control charts instead of lot sampling inspection 15

  14. JIT Purchasing--Shipping • Scheduling of inbound freight • Gain control by use of • company-owned or contract shipping • contract warehousing • trailers for freight consolidation/storage 16

  15. JIT Purchasing--Benefits • Consistent quality • Savings on resources • Lower costs • Special attention • Saving on tooling • Loyalty associated with long-term relationships with suppliers 17

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