e-commerce project (navin sehgal)

8/9/2019 E-commerce Project (Navin Sehgal)

1/19

JIT manufacturing

technique andmodifications


2/19

Introduction Just-in-time is an inventory strategy that strives to

improve businesss return on investment andassociated carrying costs.

JIT inventory systems expose hidden causes ofinventory keeping and are therefore not a simplesolution to adopt.

The JIT inventory philosophy defines how inventoryis viewed and how it relates to management.

The focus of JIT is having the right material at theright place ad at the right time.


3/19

JIT finds its origins in japan where it has been inpratice since 1970s

It was perfected and developed by Taichii Ohno ofToyota

JIT is also known as lean production and stocklessproduction.

JIT uses pull system in which the requirements ofthe next station is what modulates the production ofthe previous station.


4/19

Assembly Line


5/19

Planning for JIT It requires understanding the goals and objectives of

the JIT system. Integrating and optimizing every step of the

manufacturing process. Reducing manufacturing cost Producing product on deamand Developing manufacturing flexibility Keeping customers and links made between

customers and suppliers. According to John Young, President of Hewlett-Packard- A company cannot decide to implementJIT system , they must earn the right to use JIT byrevising their quality procurement system.


6/19

Requirements for JIT

manufacturing The corporate commitment to developing the

internal structures and the customer and supplierbases to support JIT manufacturing is the primary

requirement. There has to be alignment within every department

to a common goal. A significant financial commitment is necessary

during early stages of development.

Trust and commitment between a supplier and thecustomer is a must.


7/19

Critical elements in JIT

manufacturing Commitments- The concept of trust and commitment in JIT is

use to build partnerships. Contracts supporting partnerships-Through contracts many of

the problems in developing customer supplier relationships are

overcome by JIT manufacturers. Developing JIT suppliers-It is important to develop a link

between the companies so as to ensure long term businessrelationship.

Partnerships- A mutually beneficial system which involves earlysupplier involvement , JIT materials shipment and invoicingsystems.

Customer-SupplierProximity- It helps in early supplierinvolvement , line problems are easier to resolve andcommunications are easier.


8/19


9/19

Integrated Process Control The company must be aware of changes in

reqirements and continually improve the productionprocess.

IPC achieves the goals of JIT manufacturing byoptimizing the production to meet both manufacturerand customer reqirements.

There is continual improvement directed towardproducing product of quality at low cost.\

Customer needs need to be continuously monitorredas they change regularly.


10/19

Quality for JIT Quality control concentrates on quality at every

stage of manufacturing including the purchase of theraw material.

To improve quality two methods used are supplierquality engineering and receiving inspection.

On time delivery, fequency of delivery and receivingand stocking the material are three major aspectsimportant in purchasing in JIT.


11/19


12/19

Issues Transaction cost approach- JIT allows a firm to leave the

inventory to its suppliers thereby reducing the transaction costs. Environmental Concerns-JIT has negative impact on

environment as muliple deliveries have to be made.

Price Volatility- JIT does respond to price rise as storinginventory at low price levels is not possible.

Quality Volatility- Input parts quality may vary with timeimpacting the quality of the product.

Demand Stability- Without significant stable demand efficientcapital utilization is not possible.


13/19

Guidelines for successful

JIT implementation Based on diagram modeled after the one used by

Hewlett-Packards Boise plant to accompalish itsJIT program-

Design Flow Process Reduce Lot sizes Link Operations Balance workstation capacity Preventive Maintaianace

Reduce setup times


14/19

Worker compliance Automatic inspection Quality measures Level Schedule Establish freeze windows Kanban pull system

Reduce lead time Frequent deliveries Quality Expectatons Standard Product configuration

Process design with product design


15/19

Effects One effect was factory time fell to about a day. Improved customer satisfaction Improvement in product quality

Just in time manufacture could be applied to othersegments of supply chain also

Reduction in setup time Improvement in flow of goods to warehouses Production scheduling got improved.

Increased emphasis on supplier relationships


16/19

Case Study- Toyota Toyota Production System (TPS) is a good

example of JIT. It is ranked in top production systems of the

world. Toyota relies on lean manufacturing

system,efficient human resource system andeffective JIT inventory system


17/19

Pull production is one of the principles

of TPS where quantity of material offirst stage is guided by the demandfrom the next stage.

The effort is to meet the demand andsatisfy the customer. Providing the highest quality at lowest

cost in shortest possible time.


18/19


19/19

Thank You!!

e-commerce project (navin sehgal)

Documents