Just In Time - Operations Management

Post on 20-Jan-2015

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Welingkar Institute of Management Development and Research By Gargi Kapadia

Transcript of Just In Time - Operations Management

A philosophy of continuous improvement that puts emphasis on prevention rather than correction, and demands a company wide focus on quality.

Operational management approach to achieve World Class Manufacturing.

Production is based on demand.

Evolved in Japan after World War II, as a result of their diminishing market share in the auto industry.

Toyota Motor Company- Birthplace of the JIT Philosophy Under Taiichi Ohno.

JIT is now on the rise all over.

Total Quality Management

Production Management

Supplier Management

Inventory Management

Human Resource Management

Seek long-term commitment to quality efforts with continuous improvement.

Quality must be a higher priority than cost.

Minimizing waste.

Eliminate Quality Inspectors.Quality is everyone’s responsibility.

Do it right the first time.

“The principle of Production Management in JIT Manufacturing is important to sustain quality in

the process.”

“JIT functions as a Pull System.” This allows for demand to set the tone for production.

Push = Made for inventory Pull = Made to order

Communication Techniques: The JIT philosophy uses multiple communication techniques to aid in the production process:

1)Kanban: Kanban is Japanese for the word Card. Kanban is used to control the flow of inventory throughout the process in a pull system utilizing a card to signal demand.2) Andon: An Andon is a light or signal in the process throughout the work stations that will alarm the workers that there is a problem in the process, and there is a collaborative effort to correct and prevent the problem from happening again.

Toyota uses a Kanban pull system throughout the production process.

Each task in the process seems to take identical length and work content, so everyone is working at the same pace to reduce bottlenecks.

Establish Long Term Relationships with few suppliers.

Delivery of Parts = 100% Defect FreeWhere they are neededWhen they are neededThe exact quantity

Work Together: Elimination inspection of parts

Information Systems: Eliminating barriers to information

Communicate problems to suppliers in a positive manner.

Toyota communicates their demand for parts 20 days in advance to their suppliers, with the right to change the forecast up to the 10th day.

Eliminate Safety Stock = Zero Inventory

Reduce WIP

JIT is not an inventory control system

Reduction in inventory opens up space

Inventory hides problems in a process.

Water Level = InventoryRocks = Problems in the system

Boat = Company Operations

Company-wide Involvement:Motivation for continuous improvementProblem SolvingHigh Employee Interaction

Build Pride In WorkmanshipSelf-Inspection of workDiversified Employees:

AbsenteeismTo eliminate boredom in process

Management Support and Empowerment of workforce

Worker resistance

Lack of top management support

Lack of communication

Lack of formal training

Thank You..