What is mean by Just in Time and its benefits with details explanation l Elements of JIT manufacturing l Benefits and limitations of JIT l Objective of JIT l JIT in Services l
What is Just-In-Time (JIT)
Just In Time (JIT) manufacturing is the Japanese management philosophy applied in the manufacturing which involves having the right items of right quality and quantity in the right place and the right time. It has been widely reported that the proper use of Just In Time (JIT) manufacturing has resulted in the increases in quality productivity and efficiency improved communication and decreases in costs and the wastes. The potential of gaining these benefits has the made many organizations question and consider this approach to the manufacturing. For these reasons Just In Time (JIT) has become the very popular subject currently being investigated by many worldwide the organizations.
Just-In-Time (JIT) management involves the application of old management ideas however their adaptation to the modern manufacturing firm is a relatively the new practice. Presently many firms are studying and applying the Just-In-Time (JIT) approach in response to an ever more competitive the environment. North American organizations are aware of the pressure placed upon them by the success of their Japanese competitors at obtaining phenomenal levels of the productivity.
History and development of JIT manufacturing
Just-In-Time (JIT) is the Japanese management philosophy which has been applied in practice since the early 1970s in many Japanese manufacturing the organizations. It was first developed and the perfected within Toyota manufacturing plants by Taiichi Ohno as a means of the meeting consumer demands with minimum delays the Goddard 1986. For this reason Taichung One is the frequently referred to as the father of Just-In-Time (JIT).
Just-In-Time (JIT) had its beginnings as a method of the reducing inventory levels within Japanese the shipyards. Today Just-In-Time (JIT) has evolved into the management philosophy containing a body of knowledge and the encompassing a comprehensive set of manufacturing principles and the techniques. Just-In-Time (JIT) manufacturing has the capacity when properly adapted to the organization to strengthen organization’s competitiveness in the marketplace substantially organization’s competitiveness in the marketplace substantially by reducing wastes and the improving product quality and efficiency of the Production.
The evolution of Just-In-Time (JIT) as observed in the literature is discussed in some the detail. Despite the plethora of literature Zipping (1991) asserts that a great deal of the confusion exists about the subject. This it is suggested has led to a fundamentally different approach to the Just-In-Time (JIT) programmers in the west which has the potential to be more damaging than the beneficial.
Elements of JIT manufacturing
The Just-In-Time (JIT) manufacturing consist of several components or the elements which must be integrated together to the function in harmony to achieve the Just-In-Time (JIT) goals. These elements essentially include the human resources and the production purchasing manufacturing planning and the organizing function of an organization. In the short these elements can be grouped together into the above-mentioned Toyota production system of people plants and the system.
Stockholders and owners:- of the company Emphasis should be placed on the long-term realization of profit and so short-term the earnings should be plowed back into the company to finance the various changes and investment commitments necessary for the Just-In-Time (JIT) success. It should be made clear that most of the benefits associated with the Just-In-Time (JIT) will only be realized over the long run.
Management support:-this involves the support to management from all the levels. It also requires that management be the prepared to set examples for the workers and initiate process to the change attitudes. Striving for the continuous improvement is not only required of the employees on shop floor but must also be inherent in the management’s attitudes.
Numerous changes occur about the plant which encompass plant layout multi-function workers demand pull kabanas self-inspection MPR (material requirements planning) and the MRP II (manufacturing resource planning) and continuous the improvement. Each of these will be the explained separately with relation to how they tie into Just-In-Time (JIT) the production.
Plant layout:- Under Just-In-Time (JIT) production the plant layout is arranged for maximum worker flexibility and is the arranged according to product rather than the process. This type of layout requires the use of multi-function workers the focus shifts towards training workers and the providing them with the skills necessary to perform many tasks rather one or two highly the specialized tasks.
Demand pull production:- the concept of demand pull involves the use of demand for a given product to signal when production should the occur. Use of the demand pull always a company to the produce only what is required in the appropriate quantity and at the right time.
Systems within an organization refer to the technology and process used to the link plan and co-ordinate the activities and materials used in the production. Two such system are material requirements planning (MPR) and the manufacturing resource planning (MRP II). Manufacturing resource planning (MRP) is the computer-based method for managing the materials required to carry out a schedule. It is a bottom0up or the consolidation approach to planning it involves the planning of lower level products within the product family such as the component parts. Planning for the Manufacturing resource planning (MRP0 can be broken down essentially into the two parts.
These include a production plan which is the broad plan indicating available capacity and the manner in which it is to be allocated about the plant and a master production schedule which is the detailed plan of what products to produce in specified time the frames. Manufacturing resource planning (MRP II) is the computer-based programmer which can be used to provide information on the financial resources available to carry out the plans of Manufacturing resource planning (MRP). An example of the information manufacturing resource planning (MRP II) provides is inventory the investment. Other systems within and the organization include those that provide linkages with suppliers and assist with the co- ordination of overall functioning of the organization.
Given the nature of Just-In-Time (JIT) quality will assume and the increasing importance. The use of total quality control is the additional element of Just-In-Time (JIT) and is important in ensuring that the quality standards set production are the achieved. Just-In-Time (JIT) quality involves quality at the source. Quality at the source means there is an emphasis on the producing products correctly the first time. Quality at the source contrasts greatly with the traditional after the fact approach to the quality. Or producing the product then inspecting it. This approach does not allow for minimizing inventory levels and the rework costs. Thus it does not tie into the goals of Just-In-Time (JIT) to the eliminate wastes.
Benefits and limitations of JIT
The potential benefits of Just-In-Time (JIT) are the numerous. First Just-In-Time (JIT) practice reduces inventory levels which means lower investments in the inventories. Since the system requires only the smallest quantity of materials needed immediately it substantially reduces the overall inventory level. In many Japanese companies that use the Just-In-Time (JIT) concept inventory levels have been reduced to a point at which the annual working-capital turnover ratio is the much higher than.
Improved quality levels have been reported by many the companies. When the order quantity is small sources of the quality problems are quickly identifiable and can be the corrected immediately. In many cases employee quality consciousness also tends to the improve producing an improvement in quality at the production source. The costs of purchased materials may be the reduced through more extensive value analysis and cooperative supplier- development the activities.
- Lower investments in the factory space for inventories and the production.
- Less obsolescence risk in the inventories.
- Reduction in scarp and the rework.
- Decline in the paperwork.
- Reduction in the direct material costs through quantity the purchases.
- Reduced the inventory.
- Improved the quality.
- Lower the costs.
- Reduced space the requirements.
- Shorter lead the time.
- Increased the productivity.
- Greater the flexibility.
- Better relations with the suppliers.
Limitation of JIT
Although the benefits of using Just-In-Time (JIT) are numerous and the cited more frequently than any potential limitations several shortcomings have been identified as the follows.
- Cultural the differences have been cited as a possible limitation of the Just-In-Time (JIT). There exist many cultural the differences which may be intrinsically tied to the Just-In-Time (JIT) success. These will be the problems that may be difficult to overcome or the work around without changes in attitudes and the worker philosophy. The magnitude of their impact may be difficult to the measure because of their nature.
- The traditional approach to manufacturing involves the use of large inventories with safety the stocks. Safety stocks can act as a buffer for the companies to fall back on to offset inaccurate the demand forecasts. This has the potential to cause problems for the organization which relies heavily on the safety stocks to absorb any increases in the demand.
Objective of JIT
Just-In-Time (JIT) Manufacturing tries to smooth the flow of materials from suppliers to the customer’s thereby increasing speed of the manufacturing process. The objectives of Just-In-Time (JIT) is to change the manufacturing system gradually rather than the drastically.
- To be more responsive to the customers.
- To have better communication among departments and the suppliers.
- To be the more flexible.
- To the achieve better quality
- To reduce product the cost.
JIT as a Control Technique
In daily the operations Just-In-Time (JIT) provides useful control the methods. The characteristics of a Just-In-Time (JIT) control technique the include uniform loading repetitive processes pull system using production cards and the synchronized production.
Just-In-Time (JIT) control pulls materials from the previous workstation. The workstation replenishes any materials consumed by its following the workstation. Since only the consumed materials are produced the inventories between workstations never the accumulate. For the first workstation of the factory supplier is its preceding the workstation. For the last workstation in the factory customer is its following the workstation. Customers pull the products from factory and factory pulls materials from the suppliers.
the loads for jobs in every workstation are the equal. This makes the pull system possible. If uneven loading exists the following workstation may have to wait for materials from the preceding workstation. Uniform loading allows the materials to flow through the production line smoothly. Every workstation runs at the constant rate. If the demand increases the production rates in all workstation increase the together. If the demand drops all workstations may have the same level of the idleness.
Just-In-Time (JIT) control uses various cards to the transmit production signals. During the production these cards are the attached to and detached from the materials. Production signals are the transmitted from following workstation back to the preceding workstation. The cards have various shapes and colors to the indicate different purposes. Sometimes the material containers or material itself are themselves the signals.
Synchronized production is a manufacturing practice in the production activities in each workstation are synchronized with the certain control signals. The production rates of the workstations are related to each other and the work-in-process inventories are limited to the predetermined level. Synchronized production can be the seen in Just-In-Time (JIT) environments or theory-of-constraints (TOC) the environments. The control signals are carried by the kabanas in a Just-In-Time (JIT) environment. In the theory-of-constraints (TOC) environment drum-buffer-rope (DBR) is used to synchronize the workstations. Synchronized production will be the discussed in next the chapter.
The firms that have been the most successful in implementing Just-In-Time (JIT) understood the breadth and interrelatedness of concepts and adapted them to their own the particular environment. This makes sense when you consider the essence of Just-In-Time (JIT) the eliminate waste speed up changeovers the work closely with suppliers streamline the flow of work use flexible resources pay attention to the quality expose problems and use worker teams to the solve problems. None of these concepts or techniques are new or the particularly revolutionary. How they are applied can be the differ considerably from company to the company. What is the unique and remarkable is how pieces are tied together into the finely tuned operating system and how the synchronized that system can be with both the external and internal business the environments.
JIT in Services
Most people who think of Just-In-Time (JIT) as a system for the reducing inventory do not consider the system to be applicable to the services. However you know from reading this chapter that Just-In-Time (JIT) consists of more than low inventory the levels. It eliminates waste streamlines operations promotes fast changeovers and the close supplier relations and the adjusts quickly to changes in the demand. As a result, products and the services can be provided quickly at less cost and in the more variety. Although it is the rarely referred to as such we can readily observe the basic elements of Just-In-Time (JIT) in the service operations.
- McDonald’s Domino’s and the Federal Express who compete on speed and the still provide their products and services at low cost and with the increasing variety.
- Construction firms that coordinate the arrival of material just as it is needed instead
of stockpiling them at the site.
- Multifunctional workers in the department stores that work the cash register stock goods arrange displays and the make sales.
- Level selling with the everyday low prices at Wal-Mart Hills and the Food Lion.
- Work cells at the fast-food restaurants that allow workers to be the added during peak times and reduced during slow the times.
- The Dollar stores that price everything the same and simply count the number of items purchased as the customer leaves.
- Process mapping that has the streamlined operations and eliminated waste in the many
services especially in the terms of paper flow and information the processing.
- The Medical facilities that have the flexibility to fill prescriptions perform tests and the treat patients without routing them from one end of building to the another.
- The Just-in-time (JIT) publishing that allows professors to the choose material from a variety of sources and the construct a custom-made book in the same amount of time off the shelf books can be ordered and at the competitive prices.
- Lens provider’s cleaners and the car-repair services that can be the turnaround customer orders in the hour.