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Just-in-time (JIT) System

Just-in-time (JIT) System. Lean and fast production system. World Class Manufacturing . High quality Low costs Fast delivery. TIME-BASED COMPETITION. TWO TYPES OF PRODUCTION SYSTEM. PRODUCE TO STOCK OR FORECAST OR ACCORDING TO CAPACITY (PUSH TYPE)

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Just-in-time (JIT) System

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  1. Just-in-time (JIT) System Lean and fast production system Andre Sugiyono

  2. World Class Manufacturing • High quality • Low costs • Fast delivery Andre Sugiyono

  3. TIME-BASED COMPETITION Andre Sugiyono

  4. TWO TYPES OF PRODUCTION SYSTEM • PRODUCE TO STOCK OR FORECAST OR ACCORDING TO CAPACITY (PUSH TYPE) • PRODUCE ACCORDING TO ORDER OR DEMAND(PULL TYPE) Andre Sugiyono

  5. Just-in-time (JIT) “pull system” – produce according to demand Just-in-case (JIC) “push system” – produce according to capacity Andre Sugiyono

  6. Just-in-time (JIT) System Lean and fast production system Andre Sugiyono

  7. Just-in-time rules 1) Never send defects to the next process. 2) The next process gets only what it needs from the prior process. 3) Produce only the quantity taken by the next process. Andre Sugiyono

  8. SERVING EXTERNAL AND INTERNAL CUSTOMERS EXTERNAL CUSTOMERS 1 Customer Service INTERNAL CUSTOMER INTERNAL CUSTOMER INTERNAL CUSTOMER 2 PPC 3 Purchasing SUPPLIERS Andre Sugiyono

  9. accept create pass on Do not defects. Andre Sugiyono

  10. JIT JIC Andre Sugiyono

  11. JIT worker A worker B worker A JIC worker B Andre Sugiyono

  12. A 120 cars 10 workers 20% productivity increase 100 cars 10 workers B 100 cars 8 workers Andre Sugiyono

  13. Monday Tuesday Wednesday Thursday Just-in-time Production January February March April Conventional Production Andre Sugiyono

  14. Mass Customization Andre Sugiyono

  15. RECEIVE COUNT RECEIVE INSPECT PAPER WORK DELIVER NEGOTIATE EXPEDITE $PURCHASING COSTS$ NEGOTIATE DELIVER $PURCHASING COSTS$ TRADITIONAL VS. PARTNERING PURCHASING Andre Sugiyono

  16. Supplier Partnership and Development Andre Sugiyono

  17. B1 B2 B3 B4 B1 B2 B3 B4 S3 S4 S1 S2 S3 S4 S1 S2 conventional sole-sourcing CUSTOMER-SUPPLIER PARTNERSHIP B1 B2 B3 B4 B1 B2 B3 B4 S3 S4 S3 S4 S1 S2 S1 S2 one-to-one supplier reduction Andre Sugiyono

  18. SET-UP TIME REDUCTION COUNTRY MACHINE BEFORE AFTER FEDERAL U.S.A. MILLING 2 HRS. 2 MINS. MOGUL MACHINE H.WEIDMANN SWITZERLAND PLASTIC 2.5 HRS 6.6 MINS MOLDING MITSUBISHI JAPAN BORING 24 HRS. 2.6 MINS HEAVY MACINE TOYOTA JAPAN BOLT 8 HRS. 58 SECS. MOTOR Andre Sugiyono

  19. Benefits of JIT • cycle time, throughput time (down) • inventories, lot/batch sizes (down) • set-up time (down) • variety (up) • quality (up) • costs (down) • teamwork (up) • supplier relationship (up) Andre Sugiyono

  20. World Class Manufacturing Checklistrate 1(worst) to 5 (best) • short predictable lead times • low reject rates and rework, few inspection especially in downstream operations • low inventories (WIP, FG, RM) due to pull production • short set-up time, flexible manufacturing (multi-model production) • good preventive maintenance, low machine downtime • multi-skilled, empowered workers, good teamwork • continuous improvement program • good housekeeping (5S) Andre Sugiyono

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