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Just in Time
Just in Time
Just-in-time (JIT) is a management philosophy that strives to eliminate sources of manufacturing waste by producing the right part in the right place at the right time. Waste results from any activity that adds cost without adding value, such as moving and storing.JIT (also known as lean production or stockless production) should improve profits and return on investment by reducing inventory levels (increasing the inventory turnover rate), reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs (such as those associated with machine setup and equipment breakdown). In a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge against problems that may arise.
JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes (even when the facility uses a jobbing or batch process layout) by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that found in an assembly line. To accomplish this, an attempt is made to reach the goals of driving all queues toward zero and achieving the ideal lot size of one unit. The goal of JIT, therefore, is to minimize thepresence of non-value-adding operations and non-moving inventories in the production line. This will result in shorter throughput times, better on-time delivery performance, higher equipment utilization, lesser space requirement, lower costs, and greater profits. JIT was developed as a means of meeting customer demands with minimum delays. Thus, in the olden days, JIT is used not to reduce manufacturing wastage, but primarily to produce goods so that customer orders are met exactly when they need the products. JIT is also known as lean production or stockless production, since the key behind a successful implementation of JIT is the reduction of inventory levels at the various stations of the production line to the absolute minimum. This necessitates good coordination between stations such that every station produces only the exact volume that the next station needs. On the other hand, a station pulls in only the exact volume that it needs from the preceding station. The JIT system consists of defining the production flow and setting up the production floor such that the flow of materials as they get manufactured through the line is smooth and unimpeded, thereby reducing material waiting time. This requires that the capacities of the various workstations that the materials pass through are very evenly matched and balanced, such that bottlenecks in the production line are eliminated. This set-up ensures that the materials will undergo manufacturing without queuing or stoppage.
Another important aspect of JIT is the use of a 'pull' system to move inventories through the production line. Under such a system, the requirements of the next station are what modulate the production of a particular station. It is therefore necessary under JIT to define a process by which the pulling of lots from one station to the next is facilitated.
JIT is most applicable to operations or production flows that do not change, i.e., those that are simply repeated over and over again. An example of this would be an automobile assembly line, wherein every car undergoes the same production process as the one before it. Some semiconductor companies have likewise practiced JIT successfully. Still, there are some semiconductor companies that dont practice JIT for the simple reason that their operations are too complex for JIT application. On the other hand, thats precisely the challenge of JIT creation of a production set-up that is simple enough to allow JIT. Inventory stocks allow production process to continue even when some problem occurs. In a way, inventory stocks act like a buffers to hide any problem that may occur. But, with JIT, there are no buffers to hide problems and thus, occurrence of problem can shut down the entire production process. Thus, JIT philosophy helps organization to prominently expose problems and thus, bring a clear focus on removal of it at source, by eliminating the cause, rather than effects, of problem. With JIT, it is believed that the root causes of most problems are due to faulty production process design. Hence, with JIT, nothing is taken for granted, everything is subject to analysis. Each activity is identified as either Value-Added or Non-Value-Added. The reduction of Non-Value-Added activities is achieved mainly through increasing manufacturing flexibility and improved quality. JIT is an extremely powerful tool to identify where improvements should be made. It helps you to identify cause (not the effect) of problem and its elimination. Failures and exceptions are treated as opportunities to improve the system. In fact, JIT initiates failures due to problems to expose them. It is a system of trouble-shooting, within a culture of constant analysis and improvement. It is clear, as an attitude and approach, JIT and TQM are perfectly complimentary to each other, to expose and correct problems at source, so as to avoid wasting resources on production of defective products. Just-in-time manufacturing is a process where suppliers deliver inventory to the factory only when it's needed for assembly. Companies are beginning to turn to Internet-based technologies to communicate with their suppliers, making the just-in-time ordering and delivery process speedier and more flexible.
After the first introduction of JIT by Toyota, many companies followed up and around mid 1970s, it gained extended support and widely used by many companies. One motivated reason for developing JIT and some other better production techniques was that after World War II, Japanese people had a very strong incentive to develop a good manufacturing technique to help them rebuilding the economy. They also had a strong working ethnic which was concentrated on work rather than leisure, seeked continuous improvement, life commitment to work, group conscious rather than individualism and achieved common goal. This kind of motivation had driven Japanese economy to succeed. Because of the natural constraints and the economy constraints after World War II, Japanese Manufacturers looked for a way to gain the most efficient use of limited resources. They worked on "optimal cost/quality relationship".
Before the introduction of JIT, there were a lot of manufacturing defects for the existing system at that time. According to Hirano, this included inventory problem, product defects, risen cost, large lot production and delivery delays. The inventory problems included the unused accumulated inventory that was not only unproductive, but also required a lot of effort in storing and managing them. Other implied problems such as parts storage, equipment breakdowns, and uneven production levels. For the product defects, manufacturers knew that only one single product defects can destroy the producers creditability. They must create a "defect-free" process. Instead of large lot production - producing one type of products, they awaked that they should produce more diversified goods. There was also a problem of rising cost, the existing system could not reduce cost any further but remember improvement always leads to cost reduction.
Lastly, the existing system did not manage well for fast delivery request, so, there was a need to have a faster and reliable delivery system in order to handle customers needs. Thus, JIT manufacturing management was developed based on these problems.
FOCUS OF JIT?
Mainly JIT focuses to eliminate the waste or the non-value added. Thus there are several types of wastes categorised. JIT usually identifies seven prominent types of waste to be eliminated: Waste from Overproduction Transportation Waste Processing Waste Waste from Product Defects Waste of waiting/idle time Inventory Waste
JIT SYSTEM
The idea of giving up old concept was especially for the large lot production, The lot production was felt that "having fewer changeover was better", but it was no longer true. Whereas JIT is a one-piece flow manufacturing. To compare the two, Hirano had this idea: Lot production: "Unneeded goods...In unneeded quantities...At unneeded times..." JIT: "Needed goods...In needed quantities...At needed times..." The main point here is to have an awareness of the need of throwing out old system and adopting a new one.
The 5Ss stand for: SEIRI Proper Arrangement SEITON Orderliness SEISO Cleanliness SEIKETSU - Cleanup SHITSUKE Discipline
This 5Ss should be implemented company-wide and this should be part of a total improvement program. SEIRI - Proper Arrangement means sorting what you have, identifying the needs and throwing out those unnecessary. One example is using red-tags. This is a little red-bordered paper saying what the production is, how many are accumulated and then stick these red tags onto every box of inventory . It enhances the easiness to know the inventory status and can reduce cost. SEITON - Orderliness means making thing in order. Examples include keeping shelves in order, keeping storage areas in order, keeping workplace in order, keeping worktables in order and keeping the office in order. SEISO - Cleanliness means having a clean workplace, equipment, etc. SEIKETSU - Cleanup mean maintaining equipment and tools. SHITSUKE - Discipline means following the rules and making them a habit.
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Flow manufacturing means producing one single piece of product at a time but multihandling which follows the process sequence.
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There are several main points concerning flow manufacturing: 1. Arrange machines in sequence. 2. U-shaped production line (Cellular Manufacturing). 3. Produce one-piece at a time. 4. Train workers to be multi-skilled. 5. Follow the cycle time. 6. Let the workers standing and walking around while working. 7. Use small and dedicated machines.
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STEP 4: STANDARD OPERATIONS Standard Operation means to produce quality safely and less expensively through efficient rules and methods of arranging people, products and machines. The basis of standard operations is: 1. Cycle time It means how long it would take to "carry out part all the way through the cell". Following are the equations for calculating cycle time.
Daily Quantity Required = Monthly Quantity Needed / Working Days per month Cycle Time = Working Hours per day / Daily Quantity Required 2. Work sequence 3. Standard stock-on-hand 4. Use operation charts
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STEP 5: MULTI-PROCESS HANDLING Multi-process handling means one worker is responsible for several processes in a cell. Some points that should be aware:
Clearly assign jobs to machines and workers. Make a good use of U-shaped cell manufacturing. Multi-skilled workers Operation should be able to perform multi-machine handling and multi process
handling. Multi-machine handling - a worker should handle several machines at once, this is also called "horizontal handling". Multi-process handling - a worker should handle several different processes at once, this is also called "vertical handling" and this is the basis for JIT production. Uses casters extensively as author written, "Floor bolts are our enemies! Machines must be movable."
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According to Cheng, the basic elements of JIT manufacturing are. People Involvement Plants System
PEOPLE INVOLVEMENT
Maintaining a good support and agreement from people involved in production. This is not only reduce the time and effort in implementation of JIT, but also minimize the chance of creating implementation problem. The attempt to maximize peoples involvement may carry through the introduction of quality circle and total involvement concept. Manufacturers can gain support from 4 sources.
1. Stockholders and owners of the company - should maintain a good long-term relationship among them.
2. Labor organization - all labors should be well-informed about the goals of JIT, this is crucial in gaining support from the them.
3. Management support - support from all level of management. The ideas of continuous improvement should spread all over the factory, managers and all shop-floor labor.
4. Government support - government can show their support by extending tax and other financial help. This can enhance the motivation, and also help in financing the implementation of JIT.
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PLANTS
Certain requirements are needed to implement JIT, there are: 1. Plant layout - the plant layout is mainly focus on maximizing working flexibility. It requires the use of "multi-function workers". 2. Demand pull production - it means to produce when the order is received. This can manage the quantity and time more appropriately. 3. Kanban - a Japanese term for card or tag. Special inventory and process information are written on the card. This helps tying and linking the process more efficiently. 4. Self-inspection - it is carried out by the workers at catch mistakes immediately. 5. Continuous improvement - this concept should be adopted by every members in the organization in order to carry out JIT. This is the most important concept of JIT. This can allow an organization to improve its productivity, service, operation and even customer satisfaction in an on-going basis.
SYSTEM
This refers to the technology and process that combines the different processes and activities together. Two major types are MRP (Material Requirement Planning) and MRP II (Manufacturing Resource Planning).
MRP is a computer-based, bottom-up manufacturing approach. This involves two plans, production plan and master production schedule. Production plan involves the management and planning of resources through the available capacity. Master production schedule involves what products to be produced in what time.
MRP II is mainly involved the management or planning of financial resources in order to carry out the operation.
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The Just-in-time philosophy that emerged, is a management logic based on simplicity and continuous improvement. It may be applied to any process where it will aim to make improvements through elimination of excess, waste and unevenness.
The Just-in-Time concept comprises methods and techniques that aim to increase the potential for short times to delivery.
Production system in which both the movement of goods during production and deliveries from suppliers are carefully timed so that at each step of the process the next (usually small) batch arrives for processing just as the proceeding batch is completed.
The "Just in time" (JIT.) inventory concept, also called Kanban, asserts that just enough inventories, arriving just in time to replace that which was just used, is all the inventory that is necessary at any given time. Excessive inventory unnecessarily ties up money, adds warehousing costs, increases risk of damage and risks obsolescence, and most of all, can possibly obscure opportunities for operational improvements.
Storing inventory is still the basics of warehousing, but in todays business it constitutes only part of the total. A modern thought on warehousing is that large inventories are really not as necessary as once believed. To some companies storing large quantities of inventory is detrimental to business because it ties up capital and can also disguise poor management practices. The JIT philosophy emphasizes flow flexibility and developing supply chains to reduce all excess and waste
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IMPLEMENTATION OF JIT
Although the just-in-time (JIT) concept is very young, perhaps 10 to 15 years old in this country, it is so widespread in American manufacturing and service. Perhaps this is because the idea is so simple and so appealing. In short, the JIT strategy is to have "the right product at the right place at the right time." It implies that in manufacturing or service, each stages of the process produces exactly the amount that is required for the next step in the process. This notion holds true for all steps within the system.
Suppose, for example, that all products pass through a drilling operation and then a milling operation. With JIT, the drill produces only what the mill will need next. It also holds for the last step that is, the system produces only what the customer desires.
Implementation of a JIT system typically includes emphasis on the following aspects of the production process: Production Smoothing Capacity Buffers Set-up Reduction Cross Training and Plant Layout Total Quality Management
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To Implement This System To Every Aspect Of The Company From Supplier To Distributors:
First of all each department should establish its goals and a specific problem to attack. Then a team should be chosen by each department and establish team leaders. The teams should focus on the reduction of costs and the elimination of wastes. Data must then be collected on the teams problems. This data should be plotted in order to find excess waste or costs. Once this is done, measurement should be plotted in order to find excess waste or costs. Once this is done, measurement should be made. Manipulation of this data should show at least some apparent problems in the current system. Further analysis should help in the implementation of JIT by showing problem areas. In addition, the data the data could be used to show the effects of implementing JIT into the company.
Make the factory loadings uniform, linear, and stable. Fluctuations in manufacturing loadings will result in bottlenecks. Reduce, if not eliminate, conversion and set-up times. Reduce lot sizes. This will smoothen out the flow of inventories from one station to another, although this may necessitate more frequent deliveries or transfers. Reduce lead times by moving work stations closer together and streamlining the production floor lay-out, applying cellular manufacturing concepts, using technology to automate processes and improve coordination. Reduce equipment downtimes through good preventive maintenance. Cross-train personnel to achieve a very flexible work force require stringent supplier quality assurance since an operation under JIT can not afford to incur errors due to defects. Use a control system to convey lots between workstations efficiently; the use of a kanban system is an example of this.
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Introduction
Just in Time---manufacturing is a systems method to develop and operate a factory system. It is mainly basis on the total Decrease of waste. As you know, many people think JIT is not a new knowledge field. As a matter of fact, it has been part and plays an important role of the Japanese manufacturing industry adopted method for a long time. It requires all the materials such as equipment, human resources, and management skills are made available only in the amount required and at the time required to do the job. It is based on producing only the necessary units in the necessary quantities at the necessary time by bringing production rates exactly in line with market demand. Generally speaking, JIT means making what the market wants. JIT has been found to be so effective that it increases productivity, work performance and product quality. Whats even more, it plays a vital role to increase productivity and decrease the total cost of manufacturing production.
Since each manufacturing process is different, it is up to the individual company to determine the degree of appropriateness and the final application of JIT. However, it is very important to define the plan and objectives before setting up a JIT manufacturing system. It is
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impossible to establish a new JIT system that can be used successfully without change. Therefore, we should take serious consideration to make a plan for Just-In-Time, which will benefit to our factory performance.
JIT manufacturing system requires an understanding of the objectives of JIT, and objectives of the JIT system. After the objectives are set up for the manufacturing, the process of planning becomes one of determining what is required to meet those objectives. The goal of a JIT approach is to develop a system that allows a factory to have only the materials equipment and people by hand required doing the some plan. T o achieve this goal, we should have equipped with at least five fundamental plan: Integrating and optimizing every step of the manufacturing process Reducing manufacturing cost Producing product on demand Developing manufacturing flexibility Produce quality product to maintain commitments and links made between Customers and Suppliers.
We also should keep in mind that achieving these obtaining targets does not automatically make a company a JIT manufacturer. On the contrary, it will lead to achieve even one of these objectives will prevent a manufacturer from establishing a successful JIT system. According to Common Wealth on May, 1996 report, it said that A company cannot decide to implement JIT; they must earn the right to use JIT by revising their quality for system."
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Manufacturing Flexibility
According to China time report on August 1996. "Manufacturing flexibility is the ability to start new projects or the rate at which the production mix can be adjusted to meet customer demand." Planning for manufacturing flexibility requires the understanding of the elements in the manufacturing process and understanding elements in the process that restrict flexibility and improving on these areas. The unique feature of Just-In-Time is the modification from between pull and push systems. The main idea behind these approaches is that "work should not be pushed on to the next worker until that worker is ready for it." (Hauser, J.R.) As a result, manufacturing flexibility requires production managers to consider the some important factors, such as supplier lead time, production process time, process setup time and so forth.
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Think of a company as a pipeline with raw materials entering at one end and products emerging at the other.( the pipe can be extended conceptually with customer needs or orders going in at one end and products arriving to customers at the other.) The goal is to minimize the through put time, that is to move the materials as quickly as possible Shorter throughput time is better But the pipeline varies in size and has obstructions throughout. Output is determined by the narrowest part of the pipeline and the biggest obstruction. These must be identified and then eliminated to achieve the goal. As each obstruction is eliminated the flow speeds up but only by as much as allowed by the next biggest obstruction elsewhere in the pipeline. Identification and location of these obstructions, understanding them, and finding ways to eliminate them are the purposes of JIT and TQM. The pipeline analogy may give an impression those barriers to flow / production, once removed is gone forever. This is not true. To identify the obstruction and its precise location in itself is difficult and time consuming
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Example:
Toyota manufacturing processes route the product around the plant to various work centers where work is staged to be processed. Implementing manufacturing cells typically increases net income dramatically and reduces cycle time over 50%. The cost of design and implementation is usually recovered within the first year from inventory savings. In this paper, we present the benefits of bringing the processes to the product and discuss the value of simulation as a tool to design and predict cell performance prior to implementation; therefore, reducing financial and technical risk to the company.
On September 10, 1997, Mr. Hoskins presented on "Improve Profits and Reduce Cycle Time with Manufacturing Cells and Simulation" for the National Technology University series on Kanban just-In-Time Manufacturing of this series. On October 27 - 28, 1996 Jerry Hoskins, President presented a paper titled "Developing a Lean Implementation Roadmap" at the SME Kanban Manufacturing Conference in Dearborn, Michigan. The intent of this paper is to provide information to companies on where to start with a Kanban implementation based on where one is currently manufacturing operation. His theory help our many manufactures implement all the elements of Kanban Manufacturing directed at elimination of manufacturing waste as defined by the Toyota Production System. These systems are more flexible, responsive, and profitable than traditional manufacturing systems. And, its theory also help our many participate determine where best to start with a Kanban implementation which usually involves an assessment of current operations. Once plan is developed we design the system to be implemented which may involve layout, cells, JIT, process technology, and process simulation.
Conclusion
To sum up, we should make fully use of Kanban in order to improve the performance of a production line which is under controlled by Kanban. Generally speaking, Kanban is combined with base stock or immediately improvement to create a hybrid production control system. Simulation results based on a Toyota factory show that this policy meets throughput targets with significantly lower inventories than Kanban alone. As a result, Toyota research considers a line production system which purchases raw materials from a supplier, processes them into finished products and delivers them to a buyer just in time. This study focuses on finding the optimal number of raw material orders, finished goods deliveries and Kanbans between work stations for a time-proportionate demand of finished goods.
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With the new developed JIT system supported with sophisticated aerial tunnels connecting Ford with its suppliers, production lead times can be minimised, product quality can be improved, responsiveness towards customer demands can me boosted and the most important thing is inventory, space requirements, handling and transportation cost can be dramatically reduced (Kochan, 1997). Ford is now connected with more than 50 suppliers in Valencia with specifically designed aerial tunnels. These are also very useful to transport bulky and heavy items such as seats and fuel tank. The brain of this amazing system is DAD (direct automated delivery) which will integrate the whole processes virtually as one extended manufacturing warehouse. DAD will enable a smooth manufacturing process by applying Ford scheduling system so that all the supplied components being delivered right on time they are needed. In addition, DAD and its tunnels enable the integration of manufacturing equipment so that the component being delivered can be immediately installed with the main body or other components in Ford factory.
Minimum Of 15 Weeks To Reach Full Production Capacity Required At Least 3,000 Parts To Be Assembled For Each Car Very Small Outsourcing Involve For Car Components All Parts From Suppliers Are Delivered On Trucks
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Stock Must Be Kept At Certain Level To Assure The Continuity Of Production Parts Are Often Damaged During Packaging, Handling Or Delivery Spent Over $6 Million For Inefficient Delivery System (250+ Trucks Per Day) 80 Per Cent Automation In Overall Manual Seats And Battery Placement And This May Cause Injury For Employee. In a dynamic market trends, pre-JIT system clearly is not responsive enough as an answer. There are minor inefficiencies throughout the system which accumulate into serious problem that may cause Ford being less competitive in the market.
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The need of conventional truck delivery is minimum 98 per cent automation Seats and battery placement are being done by automated high-precision machines
There is not enough detail to measure the benefit of JIT implementation against the preJIT system, however from rough analysis Ford will gain the benefit immediately and get the investment back in virtually no time.
BENEFITS
Speed-up production process 8 weeks Smaller number or manufacturing parts Concentrating on core business functions 25% shorter time production time needed Accuracy of production on plan
Building aerial tunnels Setup Direct Automated Delivery DAD $16 million delivery system
Less handling = less damages / costs Less conventional transport dependent Time saving Manufacturing seamless integration Further interest from more suppliers Saving $6+ million per year on transport
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Conclusion
In this paper, we examined the implementation of Just-In-Time methodology in Ford for its latest small car KA; possibly one of the most interesting manufacturing revolutions where companies involved in the production are integrated not only in their business processes moreover in their physical plants. JIT has shown it success to produce the best quality product within the shortest time frame with minimum/no wastage and cost-effective to all parties. Careful production planning, cost-benefit analysis, adequate outsourcing plans and customer orientation are being praises as the key success factors of this amazing Just-In-Time concept.
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An example of the use of JIT in General Motors is given below. General Motors (GM) in the USA has (approximately) 1700 suppliers who ship to 31 assembly plants scattered throughout the continental USA. These shipments total about 30 million metric tons per day and GM spends about 1,000 million dollars a year in transport costs on these shipments (1990 figures). JIT implies frequent, small, shipments. When GM moved to JIT there were simply too many (lightly loaded) trucks attempting to deliver to each assembly plant. GM's solution to this problem was to introduce consolidation centers at which full truckloads were consolidated from supplier deliveries. This obviously involved deciding how many consolidation centers to have, where they should be, their size (capacity) and which suppliers should ship to which consolidation centers (suppliers can also still ship direct to assembly plants). As of 1990 some 20% by weight of shipments go through consolidation centres and about 98% of suppliers ship at least one item through a consolidation centre. All this has been achieved without sacrificing the benefits of JIT.
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Other Short-Term And Long-Term Objectives Are:1. Identify and response to consumers needs. Customers needs and wants seem to be the major focus for business now, this objective will help the firm on what is demanded from customers, and what is required of production. 2. Optimal quality/cost relationship. The organization should focus on zero-defect production process. Although it seems to be unrealistic, in the long run, it will eliminate a huge amount of resources and effort in inspecting, reworking and the production of defected goods. 3. Reduce unwanted wastes. Wastes that do not add value to the products itself should be eliminated. 4. Develop a reliable relationship between the suppliers. A good and long-term relationship between organization and its suppliers helps to manage a more efficient process in inventory management, material management and delivery system. It will also assure that the supply is stable and available when needed. 5. Plant design for maximizing efficiency. The design of plant is essential in terms of manufacturing efficiency and utility of resources.
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1. Reduction of Inventory. JIT reduces inventory at all level of the organization. 2. Reduction of Lead Time. Lead time such as setup time and move time and waiting time is reduced. 3. Quality Control. JIT improves the quality control by increasing its efficiency of managing shop floor production and increasing its commitment to its suppliers. 4. Improvement for Performance. In JIT manufacturing, the organization can obtain a greater impact/control over its suppliers. With fewer suppliers, organizations have larger control because the amount purchased is usually large. And, organizations can obtain a tighter requirement on products from their suppliers. 5. Total Preventive Maintenance. JIT provides preventive maintenance to lessen the risk of machine breakdowns. 6. Continuous Improvement. JIT is a never-ending method in operation management. 7. Strategic Gain. JIT helps organization to remain competitive in the market place. 8. Reduction of Wastes. JIT helps significantly in reducing wastes. JIT can help organization remains competitive by offering consumers higher quality of products than their competitors, it is very important in the survival in the market place. These major objectives are suitable for all organizations. But each organization is unique in some way, adjustments of JIT objectives for each form should be made in order to complement the overall production process
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BENEFITS OF JIT
Perhaps, the most significant benefit of JIT is to improve the responsiveness of the firms to the market place thereby affording it an overwhelming advantage in competition. Specific benefits will depend upon size of the market, technology of processes etc. Therefore, they vary from organizations to organization. One of the benefits of JIT is that with raw materials and WIP being processed in smaller batches, errors can be easily identified and corrected quickly, during each stage of the production process. This in turn has the knock-on effects of reducing non-value added costs Conceptually, the JIT benefits could be grouped into the following categories;
Product Cost: This is greatly reduced of manufacturing cycle time, reduction of scraps,
inventories, space requirement, and material handling and eliminations of non-value adding operations.
Quality: It has greatly improved due to fast detection and correction of defects, use of
automatic stop devices, higher quality of purchased parts, worker centered quality control and statistical process control. Total preventive maintenance an d lower inventory levels also help in quality improvements.
Design: Due to fast response to engineering change, alternative designs can be quickly brought
on the shop floor.
Productivity: Order magnitude productivity improvements are obtained due to the use of
flexible workforce, reduced rework, reduced inspection, reduced part delay and reduced throughout time. Workers acquire multiple skills and become highly productive. JIT systems have a number of other important benefits also, which are attracting the attention of various companies.
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The main benefits are: Reduced levels of in-process inventories, purchased goods, and finished goods. Reduced space requirements. Increased product quality and reduced scrap and rework. Reduced manufacturing lead times. Greater flexibility in changing the production mix. Smoother production flow with fewer disruptions. Worker participation in problem solving. Pressure to build good relationships with vendors. Increased productivity levels and utilization of equipment Reduction in the need for certain indirect labour.
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Regardless of the great benefits of JIT, it has its limitations; the following are the major limitations. Culture Differences The organizational cultures vary from firm to firm. There are some cultures that tie to JIT success but it is difficult for an organization to change its cultures within a short time. Traditional Approach The traditional approach in manufacturing is to store up a large amount of inventory in the means of backing up during bad time. Those companies rely on safety stocks may have a problem with the use of JIT. Difference in implementation of JIT Because JIT was originally established in Japanese, it is somehow different for implementing in western countries. The benefits may vary. Loss of individual autonomy. This is mainly due to the shorter cycle times which adds pressures and stress on the workers. Loss of team autonomy. This is the result of decreasing buffer inventories which lead to a lower flexibility of the workers to solve problem individually. Loss of method autonomy. It means the workers must act some way when problems occur, this does not allow them to have their own method to solve a problem. JIT success is varied from industry to industry. Some industries are benefit more from JIT while others do not. Resistance to change JIT involves a change throughout the whole organization, but human nature resists to changes. The most common resistances are emotional resistance and rational resistance. Emotional resistance are those psychological feeling which hinder performance such as anxiety. Rational resistance is the deficient of the needed information for the workers to perform the job well.
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SOME OTHER LIMITATIONS: Relationship between management and employees is important .A mutual trust must be built between management and employees in order to have effective decision making. Employee commitment Employees must commit to JIT, to enhance the quality as their ultimate goal, and to see JIT as a way to compete rather than method used by managers to increase their workload. Production level JIT works best for medium to high range of production volume. Employee skill JIT requires workers to be multi-skilled and flexible to change. Compensation should be set on time-based wages. This allows the workers to concentrate on building what the customers wants.
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