JIT Inventory Management
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JIT is a MPR philosophy that is designed to help an organization eliminate all types of waste such as those that result from carrying too much materials and the ones associated with long lead times.
Like the name suggest, JIT is based on the idea of replenishing material buffers jus at the time when they are required, not after or before as is the case of EOQ.
This method was developed and applied by Toyota Motor Company in mid-1970s with huge success in terms of cost reduction and increased efficiency at the manufacturing floor due to making the floor more visible which helped reduce wastages since mistakes in the production process could be identified more easily and rectified before they went to far down the production process.
The method is best applied in repetitive production processes similar to that used in automobile assembly line and where the lot size is small.
Philosophy behind JIT
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JIT is build around three main tenants
a)
To minimize all wastes: JIT seeks to reduces wastage of space, labor, and material used in the production process. To ensure that this remains so, JIT calls for constant evaluation of the production process to remove all manner of inefficiencies associated with overproduction, defects, waiting times and unnecessary transportation.
b)
Process of continuous improvement or processes and systems: although JIT seeks to reduce the inefficiencies of a system from a sloppy to an efficient one, it also seeks to build a process of feedback mechanism through which improvements can be made that makes the entire firm more competitive and profitable.
c)
Respect for workers: under JIT: the system seeks to reduce status in order to improve respect for all workers regardless of the work that they do.
Elements of JIT
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1.
Stabilization of MPS to match plant loading- this is done by creation of uniform loads through constant production, mixed model assembly to eliminate the need for collecting data on the production flow
2.
Reduce set-up time to below ten minutes- this is done through better planning.
3.
Reduce lot sizes- this make it possible to make the production more economical.
4.
Reduce lead times- done by moving workstations together and improving the process of succession from one process to the next.
5.
Preventive maintenance- done by using machine during idle time to prevent breakdowns.
6.
Flexible workforce- employees trained too operate different machines and perform tasks done by others in the production process to prevent disruption of a process incase a person leave.
7.
Supplier assurance- enter into a supply contract to ensure supply instead of pilling up suppliers which reduces the floor.
8.
Small lot sizes- employ systems like Kanban to convey work between stations in small quantities.
Kanban System
A Kanban, also called a “pull” production process relies on simple visual signs to control movement of material and finished goods between work centers as well as to signal the need for replenishment of the material. This system therefore is based on both upstream and downstream feedback.
Kanban comes from the Japanese word which means “signal” or “visible record.”
In the Toyota Dual card Kanban system, the two main types of Kanban are production Kanban and withdrawal Kanban.
The production Kanban are used to denote the need for production of more units while withdraw Kanbans signal withdrawal of parts from a work centre.
Signaling can also be used instead of Kanbans. For instance, an empty can may be used to signal replenishment while a covered or colored can may indicate move parts forward. By: https://www.doneessay.com/
Working of a Kanban System
A kanbans can be a computer order, card, labeled or container, or other devices that can be used in a production process that additional products or parts should be transferred from the previous process. The kanbans bears the description and number of exact items that should be transferred so as to smoothen the process of producing goods and acquiring new inventory.
Kanbans therefore assist JIT in its quest to eliminate inefficiencies through overproduction or stocking too much materials.
A successful Kanban system is based on well known rules.
The system works upstream to downstream (from customer order) and only the Kanban specified number of units are withdrawn from each process.
The upstream process work to replenish what has been used up in production. Each step reduces the defective parts from the kanbans and allows for more products to replace these to begin.
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KANBAN PROCESS
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Why use kanbans ?
When used together with JIT, kanbans have the following benefits :
Decrease the number of items to be scrapped as waste
Decrease raw material used in production
Reduces amount of energy, wastes and emissions.
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References Grossly, J. M., & McInnis, K. R. (2003). Kanban Made Simple: Demystifying and Applying Toyota's Legendary Manufacturing Process. New York, NY: AMACOM Div American Mgmt Assn. Lu, D. J., & Kyōkai, N. N. (2000). Kanban Just-in Time at Toyota: Management Begins at the Workplace. New York: Productivity Press,. Vollmann, T. E., Berry, W. L., & Whybark, C. D. (1997). Manufacturing Planning and Control Systems. Irwin Professional Publishing. Xue-tao, P., & Zhong, Z. (2011). On Solving JIT Production Problems for Small Batch Orders Based on E-Kanban Visualization. Changzhou, China : Changzhou Inst. of Technol.
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