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Just in time production (JIT

Just in time is a ‘pull’ system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time. This means that stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum. This requires a carefully planned scheduling and flow of resources through the production process. Modern manufacturing firms use sophisticated production scheduling software to plan production for each period of time, which includes ordering the correct stock. Information is exchanged with suppliers and customers through EDI (Electronic Data Interchange) to help ensure that every detail is correct. Supplies are delivered right to the production line only when they are needed. For example, a car manufacturing plant might receive exactly the right number and type of tyres for one day’s production, and the supplier would be expected to deliver them to the correct loading bay on the production line within a very narrow time slot. Advantages of JIT      Lower stock holding means a reduction in storage space which saves rent and insurance costs As stock is only obtained when it is needed, less working capital is tied up in stock There is less likelihood of stock perishing, becoming obsolete or out of date Avoids the build-up of unsold finished product that can occur with sudden changes in demand Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time

Disadvantages of JIT    There is little room for mistakes as minimal stock is kept for re-working faulty product Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders – however, JIT is a very responsive method of production

JIT Just-in-Time manufacturing
`Just-in-time' is a management philosophy and not a technique. It originally referred to the production of goods to meet customer demand exactly, in time, quality and quantity, whether the `customer' is the final purchaser of the product or another process further along the production line. It has now come to mean producing with minimum waste. "Waste" is taken in its most general sense and includes time and resources as well as materials. Elements of JIT include:

Continuous improvement.
o o o o

Attacking fundamental problems - anything that does not add value to the product. Devising systems to identify problems. Striving for simplicity - simpler systems may be easier to understand, easier to manage and less likely to go wrong. A product oriented layout - produces less time spent moving of materials and parts.

and continually improving it. methods. There are seven types of waste: o o o o o o o   Good housekeeping . Although high standards are currently being met.providing machines with the autonomous capability to use judgement. It was first developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays . plants and systems. Kanbans . to strengthen the organisation's competitiveness in the marketplace substantially by reducing wastes and improving product quality and efficiency of production. Andon (trouble lights) .each worker is responsible for the quality of their own output. Toyota realised that JIT would only be successful if every individual within the organisation was involved and committed to it. Poka-yoke . problem-solving skills. flexibility and job satisfaction. inventory waste. Work itself takes precedence over leisure. It is not unusual for a Japanese employee to work 14-hour days. transportation waste. waste from product defects.ensuring machinery and equipment functions perfectly when it is required.workplace cleanliness and organisation. when properly adapted to the organisation. there exist even higher standards to achieve. Set-up time reduction . waste from overproduction.simple tools to `pull' products and components through the process. Taiichi Ohno is frequently referred to as the father of JIT. if the plant and processes were arranged for maximum output and efficiency. There are strong cultural aspects associated with the emergence of JIT in Japan.   . Levelled / mixed production . Multi-process handling .Background and History JIT is a Japanese management philosophy which has been applied in practice since the early 1970s in many Japanese manufacturing organisations. prevent mistakes Preventative maintenance. so workers can do more useful things than standing watching them work. Companies focus on group effort which involves the combining of talents and sharing knowledge.a multi-skilled workforce has greater productivity.increases flexibility and allows smaller batches.`foolproof' tools.  Workers are highly motivated to seek constant improvement upon that which already exists. Eliminating waste. jigs etc. waste of motion.o o o  Quality control at source . processing waste. JIT manufacturing has the smooth the flow of products through the factory. The Japanese work ethic involves the following concepts. ideas and the achievement of a common goal. Total productive maintenance . waste of waiting time. Jidoka (Autonomation) .     JIT .to signal problems to initiate corrective action. and if quality and production programs were scheduled to meet demands exactly. Ideal batch size is 1item. Toyota was able to meet the increasing challenges for survival through an approach that focused on people.

make it better. low turnover costs and fulfilment of company goals. What Are The Benefits Resulting From Kaizen? Kaizen is focused on making small improvements on a continuous basis. This is not a once a month or once a year activity. shared and implemented. Kanban and 5S are all included within the Kaizen system of running a business. These benefits manifest themselves in employee loyalty. improve it even if it isn't broken. Kaizen is based on making changes anywhere that improvements can be made. Japanese companies. such as Toyota and Canon. It comes from the Japanese words 改 ("kai") which means "change" or "to correct" and 善 ("zen") which means "good". Kaizen is a system that involves every employee . automation. Everyone is encouraged to come up with small improvement suggestions on a regular basis. technology. and changing standards to ensure the problem ." Kaizen in Japan is a system of improvement that includes both home and business life. "if it ain't broke. company culture. The word Kaizen means "continuous improvement". In business Kaizen encompasses many of the components of Japanese businesses that have been seen as a part of their success. we can't compete with those who do." The Kaizen philosophy is to "do it better. Kaizen even includes social activities. It is a concept that is applied in every aspect of a person's life. Suggestions are not limited to a specific area such as production or marketing. Kaizen is based on making little changes on a regular basis: always improving productivity. safety and effectiveness while reducing waste. Quality circles. Employees tend to remain with one company throughout the course of their career span. safety and leadership. We'll look at Kaizen by answering three questions: What is Kaizen? What are the benefits of Kaizen? What do you need to do to get started using Kaizen principles? Kaizen was created in Japan following World War II. This allows the opportunity for them to hone their skills and abilities at a constant rate while offering numerous benefits to the company. because if we don't. Kaizen involves setting standards and then continually improving those standards. Kaizen involves every employee in making change—in most cases small. don't fix it. To support the higher standards Kaizen also involves providing the training. productivity. processes. It is continuous. It focuses on identifying problems at their source.from upper management to the cleaning crew. Kaizen is… …a system of continuous improvement in quality. In most cases these are not ideas for major changes. Western philosophy may be summarized as. solving them at their source. a total of 60 to 70 suggestions per employee per year are written down. just-in-time delivery. suggestion systems. materials and supervision that is needed for employees to achieve the higher standards and maintain their ability to meet those standards on an on-going basis. incremental changes.

With every employee looking for ways to make improvements. On top of these benefits to the company. capital intensive improvements. in Terra Haute. per year. production capacity and employee retention. .000 Toyota employees submitted over 75. Learn how Fleetwood benefited from implementing Kaizen in this article reprinted from Quality Digest. use of capital. capital projects and major changes will still be needed. but the real power of Kaizen is in the on-going process of continually making small improvements that improve processes and reduce waste. And read about how Sony. WHAT IS KAIZEN? DEFINITION The Kaizen method of continuous incremental improvements is an originally Japanese management concept for gradual. employee skills. you can expect results such as: Kaizen Reduces Waste in areas such as inventory. improved quality. For example. These continual small improvements add up to major benefits. product quality. excess quality and in processes. Indiana. and Kaizen will also improve the capital projects process. Toyota is well-known as one of the leaders in using Kaizen. Kaizen Provides immediate results. It's not unusual for Kaizen to result in 25 to 30 suggestions per employee. and lower turn-over. Instead of focusing on large. In 1999 at one U. 7. and to have over 90% of those implemented. employees working in Kaizen-based companies generally find work to be easier and more enjoyable—resulting in higher employee moral and job satisfaction. communications. better safety. of which 99% were implemented. transportation.S. over production. faster delivery. waiting times. used Kaizen to dramatically improve production in an article reprinted from Manufacturing & Technology News. lower costs. Kaizen focuses on creative investments that continually solve large numbers of small problems.stays solved. worker motion. Large. Kaizen Improves space utilization. continuous (incremental) change (improvement). and greater customer satisfaction. plant.000 suggestions. They result in improved productivity.

a radical form of change. small group activities. Kaizen means literally: change (kai) to become good (zen). Quality circles. The Business Process Reengineering approach on the other hand is harder. Teamwork. More individual cultures that are more focused on short-term success are often more conducive to concepts such as Business Process Reengineering. Improved morale. OUT OF THIS FOUNDATION. Seiso . it enables radical change but it requires considerable change management skills. THREE KEY FACTORS IN KAIZEN ARISE  Elimination of waste (muda) and inefficiency. Personal discipline. THE FIVE FOUNDATION ELEMENTS OF KAIZEN 1. incremental change situations that require long-term change and in collective cultures. willingness to change.discipline  Standardization. and communication. but requires long-term discipline and provides only a small pace of change. technology-oriented.  The Kaizen five-S framework for good housekeeping. Seiton . Seiketsu . . The Kaizen philosophy lies behind many Japanese management concepts such as: Total Quality Control. Key elements of Kaizen are: quality. When should the Kaizen philosophy be applied? Although it is difficult to give generic advice it is clear that it fits well in gradual. 5. 2. Quality Control circles. Shitsuke . Japanese companies distinguish between: Innovation. effort.cleanliness  4. more easy to implement. involvement of all employees. 3. It assumes that every aspect of our life deserves to be constantly improved.orderliness  3. and Kaizen.tidiness  2. Seiri . labor relations. KAIZEN COMPARED TO BUSINESS PROCESS REENGINEERING When Kaizen is compared with the BPR method it is clear the Kaizen philosophy is more people-oriented. Suggestions for improvement. 4.Kaizen is actually a way of life philosophy.  1. a continuous form of change.standardized clean-up  5.

The need to maintain a high rate of improvement led Toyota to devise the Kanban system. . it proved to be an excellent way for promoting improvements because reducing the number of Kanban in circulation highlighted problem areas kanban Kanban is a visual signal that’s used to trigger an action. A part is only manufactured (or ordered) if there is a kanban card for it. Kanban was one of several tools Toyota developed to ensure that inventory was based on actual customer orders rather than managerial forecasts. Because all requests for parts are pulled from the order. Downstream processes may only withdraw items in the precise amounts specified on the kanban. 4. 6. Kanban became an effective tool to support the running of the production system as a whole. At its simplest. 3. kanban is sometimes referred to as a "pull" system. it means “card you can see. kanban is a card with an inventory number that’s attached to a part. It is a scheduling system that helps determine what to produce. Roughly translated. when to produce it. A kanban must accompany each item at all times. and how much to produce.) Kanban starts with the customer’s order and follows production downstream.” Toyota introduced and refined the use of kanban in a relay system to standardize the flow of parts in their production lines in the 1950s. the kanban card is detached and sent up the supply chain as a request for another part. Right before the part is installed. (See lean production. Upstream processes may only send items downstream in the precise amounts and sequences specified by the kanban. No items are made or moved without a kanban.Kanban is not an inventory control system. Defects and incorrect amounts are never sent to the next downstream process. 2. The number of kanbans should be monitored carefully to reveal problems and opportunities for improvement. The word kanban is Japanese. 5. There are six generally accepted rules for kanban: 1. In addition.