Talk:Just In Time
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INTRODUCTION Just-in-time (JIT) is defined in the APICS dictionary as “a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. It encompasses the successful execution of all manufacturing activities required to produce a final product, from design engineering to delivery and including all states of conversion from raw material onward. The primary element of Just-in-Time are to have only the required inventory when needed; to improve quality to zero defects; to reduce lead times by reducing setup times, queue lengths, and lot sizes; to incrementally revise the operations themselves; and to accomplish these things at all forms of manufacturing-job shop, process, and repetitive-and to many services as well. JIT is used in different firms under different name. IBM uses the term Continuous Flow Manufacturing, Hewlett-Packard calls it both Stockless Production and the Repetitive Manufacturing System, GE calls it Management by Sight, Motorola calls it Short Cycle Manufacturing and several Japanese firms simply use the term The Toyota System or Time Based Competition whereas Boeing named it as Lean Manufacturing. Just-in-time is an inventory strategy implemented to improve the return on investment of a business by reducing in-process inventory and its associated costs. The process is driven by a series of signals, or Kanban that tell production processes when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. When implemented correctly, JIT can lead to dramatic improvements in a manufacturing organization's return on investment, quality, and efficiency. Hence a more complete definition can be: JIT (Just-In-Time) is a STATE OF MIND for achieving competitive excellence by creating an attitude of continuous improvement, through 100 percent involvement to eliminate all waste, institutionalizing only value-adding activities with 100 percent quality—NOTHING LESS.
HISTORY The technique was first used by the Ford Motor Company as described explicitly by Henry Ford's My Life and Work (1922): "We have found in buying materials that it is not worthwhile to buy for other than immediate needs. We buy only enough to fit into the plan of production, taking into consideration the state of transportation at the time. If transportation were perfect and an even flow of materials could be assured, it would not be necessary to carry any stock whatsoever. The carloads of raw materials would arrive on schedule and in the planned order and amounts, and go from the railway cars into production. That would save a great deal of money, for it would give a very rapid turnover and thus decrease the amount of money tied up in materials. With bad transportation one has to carry larger stocks." This statement also describes the concept of "dock to factory floor" in which incoming materials are not even stored or warehoused before going into production. The concept needed an effective freight management system (FMS); Ford's Today and Tomorrow (1926) describes one.
The technique was subsequently adopted and publicized by Toyota Motor Corporation of Japan as part of its Toyota Production System (TPS).
Japanese corporations cannot afford large amounts of land to warehouse finished products and parts. Before the 1950s, this was thought to be a disadvantage because it forced the production lot size below the economic lot size. (An economic lot size is the number of identical products that should be produced, given the cost of changing the production process over to another product.) The undesirable result was poor return on investment for a factory. The chief engineer at Toyota in the 1950s, Taiichi Ohno, examined accounting assumptions and realized that another method was possible. The factory could implement JIT which would require it to be made more flexible and reduce the overhead costs of retooling and thereby reduce the economic lot size to fit the available warehouse space. JIT is now regarded by Ohno as one of the two 'pillars' of the Toyota Production System.
Therefore over a period of several years, Toyota engineers redesigned car models for commonality of tooling for such production processes as paint-spraying and welding. Toyota was one of the first to apply flexible robotic systems for these tasks. Some of the changes were as simple as standardizing the hole sizes used to hang parts on hooks. The number and types of fasteners were reduced in order to standardize assembly steps and tools. In some cases, identical subassemblies could be used in several models. Toyota engineers then determined that the remaining critical bottleneck in the retooling process was the time required to change the stamping dies used for body parts. These were adjusted by hand, using crowbars and wrenches. It sometimes took as long as several days to install a large (multiton) die set and adjust it for acceptable quality. Further, these were usually installed one at a time by a team of experts, so that the line was down for several weeks. So Toyota implemented a strategy called Single Minute Exchange of Die (SMED), developed by Shigeo Shingo. With very simple fixtures, measurements were substituted for adjustments. Almost immediately, die change times fell to hours instead of days. At the same time, quality of the stampings became controlled by a written recipe, reducing the skill level required for the change. Further analysis showed that a lot of the remaining time was used to search for hand tools and move dies. Procedural changes (such as moving the new die in place with the line in operation) and dedicated tool-racks reduced the die-change times to as little as 40 seconds. Today dies are changed in a ripple through the factory as a new product begins flowing. After SMED, economic lot sizes fell to as little as one vehicle in some Toyota plants.
Carrying the process into parts-storage made it possible to store as little as one part in each assembly station. When a part disappeared, that was used as a signal (Kanban) to produce or order a replacement.
PHILOSPHY Just-in-time (JIT) inventory systems are not a simple method that a company can adopt; it has a whole philosophy that the company must follow in order to avoid its downsides. The ideas in this philosophy come from many different disciplines including statistics, industrial engineering, production management and behavioral science. In the JIT inventory philosophy there are views with respect to how inventory is looked upon, what it says about the management within the company, and the main principle behind JIT. Inventory is seen as incurring costs, or waste, instead of adding value, contrary to traditional thinking. This does not mean to say that JIT is unaware that removing inventory exposes manufacturing issues. Under the philosophy, businesses are encouraged to eliminate inventory that doesn’t compensate for manufacturing issues, and to constantly improve processes so that inventory can be removed. Secondly, allowing any stock habituates the management to stock and it can then be a bit like a narcotic. Management are then tempted to keep stock there to hide problems within the production system. These problems include backups at work centres, machine reliability, process variability, lack of flexibility of employees and equipment, and inadequate capacity among other things. In short, the just-in-time inventory system is all about having “the right material, at the right time, at the right place, and in the exact amount” but its implications are broad for the implementors. To compete in this new environment, the Order-to-delivery –cycle(the time elapsed between the moment that a customer places an order until the customer receives the order) must be drastically reduced. In the traditional view of manufacturing, a key objective was to fully utilize production capacity so that more products were produced with fewer workers and machines. This kind of thinking led to large queues of in-process inventory waiting at work-centres in manufacturing. Large queues meant that machines and workers had never had to wait on partially finished products to come to them; therefore capacity utilization was very high and production costs were low. But on the other hand large queues of in process inventory also meant that products spent most of their time in manufacturing just waiting. With this arrangement, companies would be ill equipped to compete in today’s time based competition. From the below diagram it is clear that this kind of traditional thinking can be deadly to companies that want to use speed as a weapon. To shorten lead times, 100% of capacity utilization must not be the predominant objective.
In JIT Manufacturing, drastically reducing the elapsed time of the order-to-delivery cycle has displaced the objective of 100% production capacity utilization in traditional manufacturing. An important way to reduce manufacturing lead times is to reduce queue lengths and waiting times of partially completed products at work centres in manufacturing.
PREREQUISITES FOR JIT MANUFACTURING The main objective of JIT manufacturing is to reduce manufacturing lead times, and this is primarily achieved by drastic reduction in WIP. Most successful JIT applications have been in repetitive manufacturing, operations where batches of standard products are produced at high speeds and high volumes with materials moving in a continuous flow which makes planning and control very simple. In contrast highly complex job shops where production planning and control is extremely complicated, JIT application becomes very difficult. However smaller, less complex job shops have used JIT, but these companies have taken steps to change operations so that they behave somewhat like repetitive manufacturing. JIT does not come free-certain changes to the factory and the way it is managed must occur before the benefits can be realized. Some of the major changes required are: • Stabilize production schedules and demand. • Increase production capacities of manufacturing work centres. • Improve product quality. • Cross train workers so that they are multi skilled and competent in several jobs. • Reduce equipment breakdowns through preventive maintenance. • Develop long term supplier relations that avoid interruptions to material flows. • Reduce change over times and the batch sizes. e.g. At Toyota the MPS(Master Production Schedule) is frozen for the first month, and the entire MPS covers one year. The production schedule is exactly the same for each day of the month. This means that the same products are produced in the same quantities in the same sequence every day of the month. Toyota divides the total number of each automobile model to be manufactured during a month by the number of workdays in the month get the number of that model to be produced daily. Even if only a few of a particular model were needed in a month, some would be assembled in each day of the month. This provides the same daily production schedule throughout the month. Another fundamental requirement for JIT is to increase the production capacity of manufacturing work centres which causes the reduction of manufacturing lead times. Production capacities are usually increased in two ways, increasing production rates and reducing setup times at work centres. Setup time is the time it takes to adjust the machine settings, replace materials, change tools, and do everything it takes to change over from producing one product to a different one at a work centre. Since production at work centres is shut down while the work centres are being changed over, reducing setup times will reduce down time and increase production capacity.
ELEMENTS OF JIT MANUFACTURING Various elements for JIT Manufacturing are as follows • Eliminating waste • Enforced problem solving and continuous improvement • People make JIT work • Total Quality Management (TQM) • Parallel processing • Kanban production control • JIT purchasing • Reducing inventories through Setup Time Reduction • Working toward repetitive manufacturing
ELIMINATING WASTE: Waste is ‘anything other than the minimum amount of equipment, materials, parts, space, and worker’s time, which are absolutely essential to add value to the product.’ -Shiochiro Toyoda President, Toyota
Shigeo Shingo, a JIT authority at Toyota, identified seven wastes in production that should be eliminated. These 7 wastes are as follows: 1. Overproduction: Make only what is needed now 2. Waiting: Reduce waiting by coordinating flows and balancing loads 3. Transportation: Reduce or eliminate material handling and shipping 4. Unneeded Production: Eliminate all unneeded production steps 5. WIP Inventories: Reduce setup times and increase production rates 6. Motion and Effect: Eliminate unnecessary human motions 7. Defective Products: Eliminate defects and inspection.
ENFORCED PROBLEM SOLVING AND CONTINUOUS IMPROVEMENT: In traditional manufacturing, in process inventories allow production to continue even if production problem occurs; thus, high machine and worker utilization is achieved. If defective products are discovered, machines malfunction or material stock out occurs, in process inventory can be used to feed what would otherwise be idle workers. However in JIT, by drastically reducing in-process inventories, production problems are uncovered and production stops until the causes of the productions are solved. Only when the machine is fixed, the quality problem is solved or the cause behind the stock out is found and corrected-only then can production begin again.
JIT is really a system of enforced problem solving. Every material is expected to meet quality standards, every part is expected to arrive exactly at the time promised and precisely at the place it is supposed to be, every worker is expected is work productively and every machine is expected to function as intended without breakdowns. One of the best approaches to implement JIT program is to reduce in-process inventories incrementally in small steps. At each step, different production problems are uncovered and the workers and their managers work to eliminate the problems. Then when there is no in-process inventory the causes of most production problems have been removed. Japanese firms have been practicing Kaizen, the goal of continuous improvement in every phase of manufacturing and the concept of SMED (Single Minute Exchange of Dies) since long to achieve the targets of JIT.
PEOPLE MAKE JIT WORK Businesses ultimately succeed or fail because of their people. JIT is no exception to this. Since JIT is a system of enforced problem solving, having a dedicated work-force committed to working together to solve production problems is essential. Hence, JIT asks for a strong element of training and involvement of workers in all phases of manufacturing. First and foremost thing required is a culture of mutual trust and teamwork throughout the organization. Managers and workers see themselves as coworkers committed to the company’s success. Work teams are encouraged to meet together to search for long term solutions to the causes of production problems. Because workers are committed to the success of the company, the work team-rather than the individual worker becomes the focus. Another important factor crucial for the success of JIT is the Empowerment of workers. This means that the workers are given the authority to take the initiative in solving production problems. Rather than waiting for guidance from above, workers have the authority to stop the production at any time for such things as quality problems, machine malfunctions or safety concerns. People, suppliers, workers, managers and customers must all be motivated and committed to teamwork for JIT manufacturing to be effective.
TOTAL QUALITY MANAGEMENT As defined by the International Organization for Standardization: “TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society. One major aim is to reduce variation from every process so that greater consistency of effort is obtained.” TQM is the system of producing high quality products and services initially rather than depending on detecting defects later through inspection. Hence for any successful JIT program manufacturing goes hand in hand with an organization wide TQM culture. Both JIT and TQM have their focus finally on customer itself. Here are steps to maintain Customer Driven Production Flow.
Measure Reason Technology / Managerial Course Follow-up Stop defectives reaching the next process. Defects disrupt the process.
Defects:
Stop machines automatically, immediately. Correct defects daily; promptly. Identify the root causes. Promote defect prevention. Give each process just the parts it needs. Each process knows how much and when it needs. Follow the job card (JC). 1. Ensure parts entry in the JC. 2. Parts move with the JC. Determine the daily parts requirement of the process. Produce just the quantity. the next process needs. Each process makes just the quantity the next process takes Produce in the sequence the JCs are received Prevent over-production and missing items. Measure Reason Technology / Managerial Course Follow-up Constantly control the volume and product mix. Prevent defects and waste when a process draws parts unevenly.
Maintain:
1. Small lot sizes; 2. Actual cycle times; 3. Production sequence Do not overload more than the previous process. Keep the excess capacity to the lowest. Fine-tune production by JC Respond to changes in the production schedules. Keep the set up as far 'as possible. 1. Prevent schedule changes. 2. Consistency as basis for
fine¬tuning.
3.Adjust plans on a daily
basis; make small, easy-to- manage changes. Daily fine-tuning keeps less production set up and work-in process.
Stabilize and simplify the process.
Maintain a steady supply of parts.
1. Rationalize operations. 2. Improve 1. Standardize to reduce
waste and unevenness.
2. Eliminate defective
work.
PARALLEL PROCESSING An important part of JIT manufacturing is to exploit parallel processing wherever possible. Any operations being performed in series that can be performed in parallel (simultaneous) can take huge chunks out of manufacturing lead times. Many operations can be made parallel simply through scheduling, as production is scheduled to occur at the same time at one or more operations. In some cases layout redesign and product redesign may be needed to achieve parallel processing.
KANBAN PRODUCTION CONTROL A kanban or “pull” production control system uses simple, visual signals to control the movement of materials between work centers as well as the production of new materials to replenish those sent downstream to the next work center. Originally, the name kanban (translated as “signboard” or “visible record”) referred to a Japanese shop sign that communicated the type of product sold at the shop through the visual image on the sign (for example, using circles of various colors to indicate a shop that sells paint). As implemented in the Toyota Production System, a kanban is a card that is attached to a storage and transport container. It identifies the part number and container capacity, along with other information, and is used to provide an easily understood, visual signal that a specific activity is required. In Toyota’s dual-card kanban system, there are two main types of kanban: 1. Production Kanban: signals the need to produce more parts . 2. Withdrawal Kanban (also called a "move" or a "conveyance” kanban): signals the need to withdraw parts from one work center and deliver them to the next work center
In some pull systems, other signaling approaches are used in place of kanban cards. For example, an empty container alone (with appropriate identification on the container) could serve as a signal for replenishment. Similarly, a labeled, pallet-sized square painted on the shop floor, if uncovered and visible, could indicate the need to go get another pallet of materials from its point of production and move it on top of the empty square at its point of use.
A kanban system is referred to as a pull system, because the kanban is used to pull parts to the next production stage only when they are needed. In contrast, an MRP system (or any schedule based system) is a push system, in which a detailed production schedule for each part is used to push parts to the next production stage when scheduled. Thus, in a pull system, material movement occurs only when the work station needing more material asks for it to be sent,
while in a push system the station producing the material initiates its movement to the receiving station, assuming that it is needed because it was scheduled for production. The weakness of a push system (MRP) is that customer demand must be forecast and production lead times must be estimated. Bad guesses (forecasts or estimates) result in excess inventory and the longer the lead time, the more room for error. The weakness of a pull system (kanban) is that following the JIT production philosophy is essential, especially concerning the elements of short setup times and small lot sizes, because each station in the process must be able to respond quickly to requests for more materials.
JIT PURCHASING The same pull type approach in JIT is applied to purchasing shipments of parts from suppliers. In JIT purchasing, suppliers use the replacement principle of Kanban by using small, standard size containers and make several shipments daily to each customer. If Kanban is used by a supplier, Kanban cards authorize the movement of containers of parts between the supplier’s shop and the customers. JIT therefore not only reduces in-process inventories by using Kanban but raw material inventories are also reduced by applying the same principles to suppliers. The essential elements of JIT purchasing are as follows:
● Supplier development and supplier relationship undergo fundamental changes. The nature of the relationships between customers and suppliers shifts from being adversarial to being cooperative. The Japanese call these relationship subcontracting networks and refer to suppliers as co-producers. Sensitive information, assistance in reducing costs and improving quality, and even financing are often shared by customers and suppliers.
● Purchasing department develop long term relationship with suppliers. The results are long term supply contracts with a few suppliers rather than short term supply contracts with many suppliers.
● Although price is important, delivery schedules, product quality, and mutual trust and cooperation becomes the primary basis for supplier’s selection.
● Suppliers are encouraged to extend JIT methods to their own suppliers.
● Suppliers are ordinarily located near the buying firm’s factory, or if they are some distance from the factory, they are usually clustered together. This causes lead times to be shorter and more reliable.
● Shipments are delivered directly to the customer’s production line. Because suppliers are encouraged to produce and supply parts at a steady rate that matches the use rate of the buying firm, company owned hauling equipments tends to be preferred.
●Parts are delivered in small, standard size containers with a minimum of paper work and in exact quantities.
● Delivered material is of near perfect quality. Because suppliers have along term relationships with the buying firms and because parts are delivered in small lot size, the quality of purchased material tends to be higher.
REDUCING INVENTORIES THROUGH SETUP REDUCTION If it costs a lot to set up a machine to produce a part, it makes sense to produce many units of the part each time it is produced. Central to JIT is an ongoing program aimed at the reduction of production lot sizes so that inventory levels are reduced. But reduction in lot sizes results in too many machine setup, increased production costs and lost capacity because of idle machines during setup. JIT system spends large sums of money to reduce setup to avoid these negative consequences of small lot sizes. In the diagram below we can see that Economic Production Lot (EOQ) sizes approach zero as the setup costs approach zero. JIT firm uses the same EOQ formula to analyze lot sizes: instead they treat a very small batch size and then solve for the setup cost. In this way, production lot sizes can be set very low and the resulting setup times can be used for targets as engineers develop programs for reducing setup times.
Setup reduction is a continuous process in a JIT environment and it is important to involve the workers at each workstation in this process. The best ideas for setup time reduction frequently come from the people who most familiar with the machinery and equipments i.e. the users. With encouragement from managers, workers often come up with creative ideas for setup reduction that cost very little. WORKING TOWARD REPETITIVE MANUFACTURING Repetitive Manufacturing is the method of manufacturing where the same products are continually and repetitiously manufactured. This is the ideal setting for Mass Production where Hard Manufacturing can be used with a large fixed cost investment. Numerous products, ranging from appliances to automobiles, are manufactured in this manner. The APICS Dictionary defines it as: “The repeated production of the same discrete products or families of products. Repetitive methodology minimizes setups, inventory and manufacturing lead times by using production lines, assembly lines or cells. Work centers are no longer necessary: production, scheduling and control is based on production rates. Production may be standard or assembled from modules. Repetitive is not a function of speed or volume.” This is a product focused system in which products flow continuously along a direct route until they are finished and in which there is little in-process inventory and parts rarely stop moving. Some measures which a firm can take to be more repetitive in its production are: • Reduce set up times and production lot sizes.
● Change the layout of the factory to allow streamlined product flows through the plant.
● Convert cluster of machines within process-focused layouts to cellular manufacturing (CM) centers or cells. In CM, group of machines function as product –focused islands within the larger layout.
● Install flexible manufacturing systems (FMS). These groups of machines can accommodate product variety without the necessity of worker-performed machine changeovers.
● standardize parts design to reduce the number of parts and the number of changeovers.
● Train workers for several jobs. These flexible workers can move from work center to work center as necessarily to balance the work load in factory.
● Install effective preventive maintain programs so that machines breakdowns do not interrupt product flows.
● Install effective quality control programs so that defective products do not interrupt product flows.
● Develop an effective subcontractor so that material flow into the factory smoothly to support the in-house production schedules, thereby allowing uninterrupted production.
JIT IN SERVICES COMPANIES
The JIT goals of reduced waste, improved quality and shorter lead times are attractive to all industries. In recent years, many service organizations have adopted some of these benefits. One such benefit is POKA-YOKE or Mistake Proofing. Mistake proofing refers to redesigning a process so that it is more difficult to make a mistake in the process. Another technique often used in JIT Manufacturing is good housekeeping. The APICS Dictionary defines House Keeping as “The manufacturing activity of identifying and maintaining an orderly environment for preventing errors and contamination in the manufacturing process.” These housekeeping principles are often referred to as 5S Process, which originated from the five Japanese words Seiri, Seiton, Seiso, Seiketsu, Shitsuke which means Sorting, Arrangement, Neatness, Discipline and Order. When JIT is used in the context of services, the focus is mainly on the time needed to deliver the service. Examples of fast delivery are Domino's Pizza, Federal Express and Express Mail, in-flight catering companies and 911 emergency services. Service environments with repetitive operations, with high volumes and tangible items, such as mail, checks or bills are expected to benefit more from application of JIT principles. Services are much like manufacturing, in the sense that both employ processes that add value to the basic inputs used to create the final product. JIT focuses on the process, not the product. It can therefore be applied (in theory) to any group of processes, whether manufacturing or service. The philosophy behind JIT is to continuously seek ways to make processes more efficient. The ultimate goal of JIT is to produce a good or a service without waste. This goal is approached by testing each step in a process to determine if it adds value to the product or service. If the step does not add value, then it is examined closely to determine possible alternatives. It helps make each process gradually and continually improve. Thus, one of the key requirements of JIT is the constant and continual testing of processes, whether they are in manufacturing or in services. Applying JIT to the Service Industry with the BENSON'S 1986 MODEL:
o Synchronization, balance of information and workflow o Total visibility o Continuous improvement of the process o Holistic approach to waste elimination o Flexibility in the use of resources o Respect for people It is important to integrate these basic themes with the main characteristics of the service industry in order to have a complete view and approach to JIT. 1. Visibility. With a simultaneous offering of marketing and operations functions in services, the customer is very well-aware of not only the tangible aspects of the service, but also of the service delivery system. Customers often notice variance in the system and this may affect the perceived level of quality. 2. Synchronization. This is critical for services. Service organizations must be able to successfully balance supply and demand for the service, otherwise, customers will use a competitor's service. 3. Flexibility. The customer being part of the process, service operations must be able to respond to sudden demand changes made on them by the customers. The service firm must adjust to these demands by being flexible in staffing, scheduling, production, etc. 4. Continuous improvement. This is of the utmost importance in order to achieve continued profitability and success. In addition, service organizations operate with a wide variety of personnel that may be totally interchangeable at any time. Thus, they must strive to improve all employees and systems throughout the lifetime of the company. As regards services, the emphasis should be placed on labour and processes rather than capital. 5. Holistic approach. JIT is a total organizational approach to improvement and waste elimination, a factor that becomes even more important in services because of the issue of inseparability. The more each employee knows and understands the company as a whole, the less variance in the service delivery there will be. 6. Respect for people. Due to the labor-intensive nature of services and the need for employee scheduling to provide services, each worker should be allowed to participate in the production/service process. Thus, the worker will get a chance to make suggestions, suggest improvements and receive awards.
AREAS OF POTENTIAL FOR IMPROVING PERFORMANCE
The following activities would most likely demonstrate the greatest potential for improving performance in services and achieving a successful implementation of the JIT themes stated earlier. 1. Training of employees As expectations from the customers of service businesses increase, companies have started to value investments in people as much as investments in machines. Companies need to make recruitment and training as important for service employees as for managers. Service employees who are well-trained and fairly compensated provide better service, need less supervision and are much more likely to stay on the job. Training provides service employees the ability to identify and resolve problems and operational weaknesses hindering organizational effectiveness and efficiency. Training service employees to perform a variety of service activities will also provide an organization with a great deal of flexibility. Proper training and empowerment will allow the staff members to resolve any perceived conflicts before they become a negative service encounter for the customer. 2. Technology The advances in technology should be used to support the service employees' activities, not to monitor or replace them. Because customers participate directly in some service processes, the success of technological innovations will depend to some extent on customer acceptance. To enhance productivity of various services, the customer is able to interact directly with the system without the intervention of an employee. 3. Layout Service employees whose tasks are interrelated should be physically close together, thus creating better information flows and reducing throughput time. Layout changes should be allowed in order to improve operations. Service companies must strive to remove communication barriers and facilitate effective communication by proper layouts. If physical proximity cannot be achieved, then effective communication means must be developed. Bottlenecks during service delivery can be devastating to the quality and success of a service firm. 4. Quality One of the basic requirements for a successful implementation of JIT is the existence of total quality management (TQM) principles. Employees must perform their tasks correctly the first time, which requires adequate education of employees as to the proper way to perform their tasks. The use of the "quality circle" concept can be helpful in service companies. The employees' ideas for improving the quality of services and increasing the satisfaction of customers should be carefully analyzed and implemented. 5. Standardization The emphasis on the standardization of activities arises from balancing between processes, which is expected to improve operational effectiveness and efficiency. By standardizing job activities, resources can be focused on only a few areas. The resulting impact on productivity can be significantly higher if one standardizes activities and concentrates organizational efforts and resources on those limited activities. Standardization of activities also reduces the time and cost of cross-training employees, but the flexibility has to be maintained in order to serve those customers with different needs. 6. Service delivery One of the desired outcomes of JIT is reduced lead-time for delivering the product or the service. The effort for lead-time reduction begins with order entry and setting due dates. Simplifying the procedures for any other paperwork relating to this transaction will help reduce considerably the order processing time. The basic philosophy behind JIT in manufacturing and service operations represents a uniquely organized set of activities, which can be utilized to produce both low-cost and high-quality products and services. Global competition is forcing companies to improve the quality of their products and their customer service while reducing the cost of their operations. This is a key requirement for maintaining competitiveness. It is postulated that the implementation of JIT concepts in the service sector will facilitate the achievement of benefits long-recorded by the manufacturing sector. The philosophy of JIT can bring impressive advances in productivity and quality to the increasingly service-dominated economies of the future.
BENEFITS OF JIT MANUFACTURING
Some of the benefits claimed for JIT Manufacturing Systems are: ● Inventory levels are drastically reduced.
● the time it takes for product to get through the factory is greatly reduced, thus enabling factories to engage in time based competition, using speed as weapon to capture market share.
● Product quality is improved, and the cost of scrap is reduced. Product quality improves because of worker involvement in solving the causes of production problems; and with smaller lots, defective parts are discovered earlier.
● With less in process inventory, less space is taken up with inventory and materials handling equipment. Workers are closer together so that can see each other , communicate more easily, work out problems more efficiently, learn each others jobs , and switch jobs as needed . This promotes teamwork among workers and flexibility in work assignments.
● Because the focus in manufacturing is on finding and correcting the causes of production, manufacturing operations are steam lined and production free.
Some of the other benefits associated with JIT System are: • better quality products • quality the responsibility of every worker, not just quality control inspectors • reduced scrap and rework • reduced cycle times • lower setup times • smoother production flow • less inventory, of raw materials, work-in-progress and finished goods • cost savings • higher productivity • higher worker participation • more skilled workforce, able and wiling to switch roles • reduced space requirements • improved relationships with suppliers
CONCLUSION Hence we can see that to have a Total JIT manufacturing system, a company-wide commitment, proper materials, quality, people and equipments must always be made available when needed. In addition; the policies and procedures developed for an internal JIT structure should also be extended into the company's supplier and customer base to establish the identification of duplication of effort and performance feedback review to continuously reduced wastage and improve quality. By integrating the production process; the supplier, manufacturers and customers become an extension of the manufacturing production process instead of independently isolated processes where in fact in clear sense these three sets of manufacturing stages are inter-related and dependent on one another. Once functioning as individual stages and operating accordingly in isolated perspective; the suppliers, manufacturers and customers can no longer choose to operate in ignorance. The rules of productivity standards have changed to shape the economy and the markets today; every company must be receptive to changes and be dynamically responsive to demand. In general, it can be said that there is no such thing as a KEY in achieving a JIT success; only a LADDER; where a series of continuous steps of dedication in doing the job right every time is all it takes.
Updated By- Prem Prakash Singh ICFAI Business School EMail:prempsingh_17@rediffmail.com
