JUST IN TIME PREREQUISITES
JIT Defined
JIT can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods)
JIT also involves the elimination of waste in production effort
JIT also involves the timing of production resources (i.e., parts arrive at the next workstation “just in time”)
Thus, Philosophy of JIT
All materials to be active as work-in-process
Never a pause to collect carrying charge
Hand-to-mouth operation, in which the ratio of production and delivery quantities approach to one
Flow of materials resources through the logistics system in such a way that they arrive at the point of intended use just in toime
No idle inventory, only that to which value is being added.
Advantages of JIT
Inventory levels are drastically reduced
Process time, Space requirements and set up time are reduced considerably
Leads to Lead-time based competition, using speed as a weapon to capture market share.
Eliminating waste by prohibiting over-production, waiting, undue warehousing and handling facilities, and defective production.
Improve Customer services and commitments, bringing competitive advantage
Improve productivity.
Motion of efforts by greater employees participation and motivation
Disadvantages of JIT
High risk is involved due to short-term planning and a minimum level of inventory.
Suppliers of input materials need to be educated about the quality by the customers/company
Needs continuous and close evaluation and follow-up of the whole process.
Needs establishment of long term business partnership with suppliers.
Not able to meet any foreseen requirements/ demand.
JUST IN TIME PREREQUISITES
Purchasing
Must cultivate a limited number of highly-reliable suppliers/vendors with long-term partnerships.
Using local suppliers to reduce replenishment cycle time
Suppliers must be particularly strong in lead-time dependability and quality.
Quality at the source must be endured by preventing defects and doing it right the first time, along with eliminating incoming inspection.
Suppliers must have knowledge of production and inventory of buyers tp plan their own production
Online Electronic Data Interchange (EDI) system is essential for real-time communication of information
TransportationDelivery schedules and turn-around times of high discipline are required
Warehousing
Focus on material movement not on material storage
Parts and components must be delivered in fragments directly to the point of use.
Inventory Control
Emphasize on:
Elimination of safety stock
Reduction of errors in inventory system
Trade-off between order size and time-phased intended use
Low variety and stability if demand
Elimination of safety stock
Reduction of errors in inventory system
Trade-off between order size and time-phased intended use
Low variety and stability if demand
ProductionSmall production lots
Short production run
Rapid set-up time
Flexible manufacturing system
Quality Control
Elimination of wastages of resources
Effort on continuous improvement of system for reducing the path.
Human Resource & General Management
People must perform reliably
Training of people about JIT culture
Team work
Support of top management restructuring of organization to redefine responsibilities and priorities for the various departments of the organization
Creation of logistics and supply chain management department.
JIT can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods)
JIT also involves the elimination of waste in production effort
JIT also involves the timing of production resources (i.e., parts arrive at the next workstation “just in time”)
Thus, Philosophy of JIT
All materials to be active as work-in-process
Never a pause to collect carrying charge
Hand-to-mouth operation, in which the ratio of production and delivery quantities approach to one
Flow of materials resources through the logistics system in such a way that they arrive at the point of intended use just in toime
No idle inventory, only that to which value is being added.
Advantages of JIT
Inventory levels are drastically reduced
Process time, Space requirements and set up time are reduced considerably
Leads to Lead-time based competition, using speed as a weapon to capture market share.
Eliminating waste by prohibiting over-production, waiting, undue warehousing and handling facilities, and defective production.
Improve Customer services and commitments, bringing competitive advantage
Improve productivity.
Motion of efforts by greater employees participation and motivation
Disadvantages of JIT
High risk is involved due to short-term planning and a minimum level of inventory.
Suppliers of input materials need to be educated about the quality by the customers/company
Needs continuous and close evaluation and follow-up of the whole process.
Needs establishment of long term business partnership with suppliers.
Not able to meet any foreseen requirements/ demand.
JUST IN TIME PREREQUISITES
Purchasing
Must cultivate a limited number of highly-reliable suppliers/vendors with long-term partnerships.
Using local suppliers to reduce replenishment cycle time
Suppliers must be particularly strong in lead-time dependability and quality.
Quality at the source must be endured by preventing defects and doing it right the first time, along with eliminating incoming inspection.
Suppliers must have knowledge of production and inventory of buyers tp plan their own production
Online Electronic Data Interchange (EDI) system is essential for real-time communication of information
TransportationDelivery schedules and turn-around times of high discipline are required
Warehousing
Focus on material movement not on material storage
Parts and components must be delivered in fragments directly to the point of use.
Inventory Control
Emphasize on:
Elimination of safety stock
Reduction of errors in inventory system
Trade-off between order size and time-phased intended use
Low variety and stability if demand
Elimination of safety stock
Reduction of errors in inventory system
Trade-off between order size and time-phased intended use
Low variety and stability if demand
ProductionSmall production lots
Short production run
Rapid set-up time
Flexible manufacturing system
Quality Control
Elimination of wastages of resources
Effort on continuous improvement of system for reducing the path.
Human Resource & General Management
People must perform reliably
Training of people about JIT culture
Team work
Support of top management restructuring of organization to redefine responsibilities and priorities for the various departments of the organization
Creation of logistics and supply chain management department.