Just-in-Time SystemsJust-in-Time Systems

Reducing Waste and Lead Time in the Supply Chain Reducing Waste and Lead Time in the Supply Chain

BY BY SUDHIR REDDY SUDHIR REDDY

S.V.RS.V.R

Topics to be Covered Topics to be Covered

Review of JIT & Waste Review of JIT & Waste JIT PrinciplesJIT Principles BENEFITS OF JITBENEFITS OF JIT JIT RELATION TO F.M.SJIT RELATION TO F.M.S

WasteWaste is ‘anything other is ‘anything other than the than the minimumminimum amount of equipment, amount of equipment, materials, parts, space, materials, parts, space, and worker’s time, which and worker’s time, which are absolutely essential to are absolutely essential to add valueadd value to the product.’ to the product.’

— — Shoichiro ToyodaShoichiro Toyoda President, Toyota President, Toyota © 1995 Corel Corp.

Introductory QuotationIntroductory Quotation

What is JIT?What is JIT?

A corporate system designed to produce A corporate system designed to produce output within the minimum lead time and output within the minimum lead time and at the lowest total cost by continuously at the lowest total cost by continuously identifying and eliminating all forms of identifying and eliminating all forms of corporate waste. corporate waste.

It is used to describe stockless production It is used to describe stockless production manufacturing approach, where only manufacturing approach, where only right parts are completed at right time.right parts are completed at right time.

Focus of JIT: Focus of JIT:

• • Stockless production.Stockless production.

Seven Basic Types of WasteSeven Basic Types of Waste

Transportation waste Transportation waste Process WasteProcess Waste Inventory WasteInventory Waste Waste of motionWaste of motion Waste from product defectsWaste from product defects Waiting timeWaiting time OverproductionOverproduction

Push versus PullPush versus Pull

PushPush system: material is system: material is pushedpushed into into downstream workstations regardless downstream workstations regardless of whether resources are availableof whether resources are available

PullPull system: material is system: material is pulledpulled to a to a workstation just as it is neededworkstation just as it is needed

JIT is a pull system.JIT is a pull system.

Pull System Material is pulled through the system Material is pulled through the system

when neededwhen needed Reversal of traditional push system where Reversal of traditional push system where

material is pushed according to a schedulematerial is pushed according to a schedule Forces cooperationForces cooperation Prevent over and underproductionPrevent over and underproduction While push systems rely on a

predetermined schedule, pull systems rely on customer requests.

Part is produced on the authorization referred to as a KANBAN is issued from the next workstation

What is kanban?What is kanban?

Developed at Toyota 1950s to manage line Developed at Toyota 1950s to manage line material flows. material flows.

Kanban ( Kan=card, Ban= signal )Kanban ( Kan=card, Ban= signal ) simple movement system simple movement system

Boxes/containers to take “lots” of parts from Boxes/containers to take “lots” of parts from one work station to another (client-server).one work station to another (client-server).

““Cards” to signal & communicate reorder Cards” to signal & communicate reorder informationinformation

What is kanban?What is kanban? Server only delivers components to client work Server only delivers components to client work

station as & when needed (called/pulled). station as & when needed (called/pulled). Minimise storage in the production area.Minimise storage in the production area. Workstations only produce/deliver components Workstations only produce/deliver components

when called (they receive card + empty when called (they receive card + empty container). container).

The work-station produces enough to fill the The work-station produces enough to fill the containercontainer

Kanban = an authorization to produce more Kanban = an authorization to produce more inventoryinventory

We thus limit the amount of inventory in process. We thus limit the amount of inventory in process.

BENEFITS OF JITBENEFITS OF JIT

Reduced inventoryReduced inventory Reduced working progressReduced working progress Improved qualityImproved quality Reduced direct laborReduced direct labor Reduced floor spaceReduced floor space Minimum tool repair costMinimum tool repair cost Reduced material handling and Reduced material handling and

increase in overall through put.increase in overall through put.

JIT RELATION TO FMSJIT RELATION TO FMS

JIT can be either a cause or an effect JIT can be either a cause or an effect of F.M.Sof F.M.S

Achievement of true results of F.M.S Achievement of true results of F.M.S without implementing JIT is difficult.without implementing JIT is difficult.

Results due to incorporation of JIT in Results due to incorporation of JIT in F.M.S are decreased lead times, less F.M.S are decreased lead times, less work in process on shop floor, work in process on shop floor, smaller finished part inventory and smaller finished part inventory and increased customer satisfaction.increased customer satisfaction.

THANQTHANQ