Just-In-Time Management

For everything you wanted to know on building leadership and management, refer Shyam Bhatawdekar’s website: http://shyam.bhatawdekar.com

(Refer our High Quality Management Encyclopedia “Management Universe” at: http://management-universe.blogspot.com/)

Just-In-Time (JIT) Definition

Pioneered by Shigeo Shingo- Japanese production engineering consultant at Toyota
JIT is producing what is necessary, when it is necessary, in the amount necessary
Let us make today what is required tomorrow

First Generation JIT

Getting the suppliers to deliver much more frequently and in much smaller batch sizes than in the past
It was thought that this was the heart and soul of JIT
Sometimes this was achieved simply by persuading for forcing a supplier to hold stocks or inventories for the customer to call on demand
So, inventory was held somewhere by the supplier and perhaps the end user was paying for it ultimately

World Class JIT

Aim: To provide fast, reliable and flexible response to customers’ requirements at least cost and with minimum dependence on inventory
Approach: Progressive elimination of waste, particularly those wastes which affect how much stock and work in progress you have, how quickly you can deliver, what the customer wants and how flexible you can be in responding to customers’ changing demands
Waste: Any kind of non-value adding activity

Main Parameters

Expose fundamental problems in working and then putting them right on a permanent basis
Strive for simplicity
Reduce manufacturing cycle times or through-put times
Improve supplier performance and in-house manufacturing performance
Improve quality of supplier supplied and in-house manufactured materials/items
Improve labor or worker flexibility through cross-functional or cross-skill training

Eliminate Seven Notorious Wastes

Waste from over production
Waste of waiting time
Transportation waste
Processing waste
Inventory waste
Waste of motion
Waste from production defects

Reduce Lead Times

Improve delivery performance
Reduce lead times of all the processes (both, technical and business processes)

Reduce Set-up Times

Benefits

Shorter set-up times means less cost, frequent set-ups possible, small batches, increased flexibility and reduced lead-times
Reduced setup times allow you to make to order
A batch if at all scrapped or requires rectification will be small
Therefore, less temptation to over produce in the original batch
Work in progress will be much less and you can avoid the need for complex computer based system

Challenge the Conventional Practice of Economic Batch/Order Quantity (EBQ or EOQ)

Economic batch/order quantity policy says: Increase batch size to the point where setup cost (or purchase order cost) is balanced by inventory holding/carrying cost
Main flaws in this policy: Inventory does not add value and making larger batch size ties up production resource(s), reducing flexibility and increasing lead time

Implement SMED (Single Minute Exchange of Die)

Identify internal and external activities; arrange for external activities to be carried out while the machine is working on another batch, instead of during the set-up time
Convert as many internal activities as possible into external activities so that they too can be done while the machine is working on another batch
Continuously strive to improve or eliminate each element of the remaining internal and external activities

Take Actions to Reduce Inventories

Challenge existing order frequencies
Challenge existing batch sizes
Challenge the level of finished stocks demanded by Sales and Marketing
Tackle obsolete stocks

Improve Worker/Employee Flexibility (Multi Skilling)

Rotate employees around within the work group
Rotate employees around between work groups in the same department
Rotate employees around different departments of the factory
Call in casual workers from an established register of trained part-timers
Take on additional temporary workers if the increased demand is expected to continue for more than a few days

Improve Supplier Performance

Appraising performance of suppliers : Suppliers, corporate culture, vision, strategy, financial health, effective control systems, technical capabilities, continuous improvement approach
Improving performance
Forging strategic alliances (Partnership sourcing)
Selecting preferred suppliers
Suppliers’ day briefings
Developing new supply methods : Scheduled contracts, the supermarket method and contingency stocks
Quality at source

For More Guidance, Assistance, Training and Consultation

Contact: prodcons@prodcons.com

Training in "Just-In-Time Management (JIT)" is provided by Prodcons Group's Mr Shyam Bhatawdekar, eminent management consultant, management educationist and trainer- par excellence, with distinction of having trained over 150,000 people from around 250 organizations. Assistance is designing and implementing JIT is also provided by the team of Prodcons Group.

Also refer: (Prodcons Group) http://prodcons-group.blogspot.com/, (Training Programs by Prodcons Group) http://training-development-function.blogspot.com/, (Productivity Consultants) http://productivity-consultants.blogspot.com/

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Just-In-Time Management

Monday, December 22, 2008

Just-In-Time Management (JIT)

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