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Management ofManufacturing Systems

JIT Manufacturing"Just -in-Time"

(Lean Manufacturing and Stockless Production)

Assignment

Amit Ramawat

MBA/8001/12

Date: - 10 DEC 201!


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"ntro#uction

Just-in-time (JIT) manufacturing is a way of managing manufacturing

systems that could reduce waste and lower cost thus increasing !rofit In its

most #asic e$!lanation and !rinci!le JIT is e%ery com!onent in the

manufacturing system arri%ing &ust in time for it to #e used Since the !roducts

arri%e &ust in time there is no need for stock holding facilities of any kind The

most common industry using JIT manufacturing is the automo#ile industries

'owe%er many other com!anies of all sies and !roducts are currently usingand transitioning to &ust-in-time manufacturing lthough &ust-in-time

manufacturing sounds like a %ery sim!le a!!lication im!lementing it can #e a

%ery costly and difficult task

$istory

JIT manufacturing can #e traced #ack to the late *+,,s (Just In Time

Toyota) .li /hitney contri#uted his conce!t of interchangea#le !arts to the

idea of JIT manufacturing in *+00 This conce!t was de%elo!ed when /hitney

took a contract from the 1nited States rmy to manufacture *,,,, muskets at

the low !rice of 2*34, each (Just In Time Toyota) 5%er the ne$t se%eral

years manufactures o%erall focused on the de%elo!ment of indi%idual

technologies Through these years few !eo!le were concerned with the!rocesses that each !roduct went through during !roduction (Just In Time

Toyota)
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.arly industrial engineers in *60, #egan to #e concerned with indi%idual

work methods a!!lying science to management and all work elements

7rederick Taylor contri#uted the idea of standardied work (Just In Time

Toyota) 7rank 8il#ert conducted a motion study which led to thede%elo!ment of !rocess charting and organied la#or tasks (Just In Time

Toyota)

In *0*4 'enry 7ord introduced the idea of the mo%ing assem#ly line to the

world while !roducing his Model-T 7ord this re%olutionied manufacturing

('enry 7ord nd) 9y *0*: 7ord #egan to im!lement the idea of JIT

manufacturing (/ren *000) This reduced the in%entory needed from 2:,

million to 2;, million dollars to !roduce the same num#er of %ehicles (/ren

*000)

The !resent idea of JIT manufacturing can #e traced to Toyota motor

com!any in Ja!an 'owe%er to #egin use of JIT manufacturing in Ja!an they

first researched merican !roduction methods focusing on 7ords !ractices

(Just In Time Toyota) In Ja!an JIT manufacturing is referred to as the Toyota

Production System (9easley J . nd) The realiation for the new

system came after /orld /ar II when the Ja!anese automoti%e manufactures

knew they were far #ehind the merican motor com!anies The !resident of

Toyota made a comment a#out the ga! "


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This #egan started to #e im!lemented into the western world during the late

*0+,>s to early *06,>s

%oyota &ro#uction System

Toyota realied that they could not follow the same manufacturing techni=ue

as merican manufacturing #ecause of the their relati%ely low s!ace resources

and demand t the time the merican auto manufacturers used the traditional

way such as to make a #atch of certain !roducts (9easley J . nd) To dothis they ordered enough !arts to com!lete the #atch so they ha%e to stock or

store the materials So 5hno came u! with a system that would #etter fit

Ja!an>s ca!a#ilities The whole system is #ased on the elimination of waste

!rinci!le Time resources and materials were all areas where waste could #e

found according to 5hno The following are more s!ecific areas that could #e

corrected to im!ro%e efficiency?

"o%er!roduction - waste from !roducing more than is needed

time s!ent waiting - waste such as that associated with a worker #eing

idle whilst waiting for another worker to !ass him an item he needs (eg

such as may occur in a se=uential line !roduction !rocess)

trans!ortation@mo%ement - waste such as that associated with

trans!orting@mo%ing items around a factory

!rocessing time - waste such as that associated with s!ending more time

than is necessary !rocessing an item on a machine

in%entory - waste associated with kee!ing stocks
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defects - waste associated with defecti%e items"(9easley J . nd)

5hno disco%ered two ways to reduce waste &ust-in-time and autonomation

The theory of &ust-in-time is the #asic !rinci!le for the ma&ority of his

manufacturing system (9easley J . nd) Stock is seen as unnecessary and a

waste using this method Materials and resources are !ro%ided only when they

are ready to #e used in the !roduction system utonomation is techni=ue that

regulates the amount of human interaction concerning ins!ections of !arts or

!roducts The goal is to limit the human in%ol%ement and make the system as

automated as !ossi#le de%ice will #e im!lemented into the system to detect

defects and only when that de%ice detects a defect is there a human ins!ection

'owe%er when a defect is detected the system sto!s and will not start again

until the !ro#lem is recognied and fi$ed

Toyota used the kan#an to control the flow of in!uts and out!ut in the

!roduction system Aan#an is a Ja!anese word that #asically means sign This

was a "rectangular !iece of !a!er within a trans!arent %inyl en%elo!e (9easley

J . nd)" that ga%e instructions on what needed to #e done It ga%e

instructions such as things that needed to #e withdrawn from the system items

that needed to #e !roduced and amounts of materials need and when There

are two main ty!es of kan#an the !roduction kan#an and the con%eyance

kan#an (Just In Time (JIT) nd) The !roduction kan#an lets the workers

know that more of a certain !art needs to #e !roduced The con%eyance kan#an

lets them know that !arts need to #e trans!orted to another center This ty!e

can also #e called a mo%e or withdrawal kan#an The kan#an is classified as a

!ull system in !roduction which means that when !arts are need they are

!ulled and sent to the location in need (Just In Time (JIT) nd) The starting

!oint for a !ull system is the customers and then it works it way #ackwards all
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the way to the original resources (8lenn T ;,,*) This differs from a !ush

system in that a !ush system has a set schedule and all the !arts are mo%ed

when the schedule is com!lete 'owe%er the kan#an did not allow or take into

account defects So it an item was found to ha%e a defect the end !roduction=uantity would not #e achie%ed There are three key rules when using the

kan#an (Just In Time (JIT) nd) 7irst no !art can #e manufactured with

authoriation from the kan#an Second each container has a !roduction and

con%eyance kan#an Third all containers used are standard The num#er and

ty!e of containers used is determined #y the management In merica this is

generally referred to as kitting and has #asically the same conce!ts limitations

and rules (Ideal Manufacturing Scene)

Limiting setu! time is also a key factor in the Toyota Production System

Since setu! time is also down time which means the !roduction line has

sto!!ed and em!loyees are getting !aid for waiting To decrease setu! time the

machines were reengineered so that o!timal setu! time could #e achie%ed thus

sa%ing money (9easley J . nd)
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"m'(ementation an# "ntegration

Im!lementing or integrating JIT into a com!any is not a decision madelightly It must #e thought through and !lanned %ery carefully Im!lementing

JIT will not ha!!en in a o%ernight it takes time and commitment


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the system Things will not always go as !lanned and there needs to #e a

fle$i#le enough system so that it can #e modified easily Si$th there needs to

#e a strong and relia#le relationshi! #etween customers and su!!liers Since

JIT techni=ue has %irtually no e$tra stock or materials the com!anies need torely on each other to #e relia#le and on time These o#&ecti%es need to #e taken

into consideration #y any com!any looking to integrate JIT and are crucial to

#eing successful in the integration

Keys to Implementation and Integration

Just-in Time manufacturing is difficult to setu! #ecause each com!any needs

to !ersonalie for their ty!e of com!any to fit their s!ecific needs lthough

many com!anies seek hel! from consultant firms for the difficult task ahead

there are many key !oints that they they can address themsel%es (Just-In-Time

Manufacturing)


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a#ility to more efficiently !roduce smaller #atches of !roducts 'owe%er this

will re=uire deli%eries of materials to #e more often Beducing time in #etween

the trans!ortation of the indi%idual !arts can also im!ro%e the efficiency To

accom!lish this work stations can #e mo%ed closer together s well as theamount of time a !art is waiting to #e !rocessed at an indi%idual station can #e

lowered 7inding a su!!lier closer to the factory or con%incing one to relocate

closer will also reduce lead time 1sing down time is also another way to hel!

with !roducti%ity and efficiency /hile a worker or machine is waiting for

other !arts of the system to #e used maintenance can #e !erformed on the

machinery This makes the most of the workers time and can hel! to !re%ent

future #reakdowns do to lack of maintenance Pro%ide the workers with more

res!onsi#ilities and training This can include training on se%eral machines

a#ility to maintain the machines and !erform correct ins!ection This will

make the the com!anies work force more %ersatile and can hel! with issues of

a#sences lthough the kan#an system is not re=uired in a JIT system it is a

good organiational tool to hel! eliminate misunderstandings and increase

communication These !oints are things the com!any can control and im!ro%eto hel! the successful integration of the JIT system

Su''(iers

Since JIT is a stockless !roduction and does not allow room for defects or

error ha%ing trustworthy relia#le su!!liers is an im!ortant factor /hen

choosing a relia#le su!!lier consider their location and !rior occurrences with

la#or issues such as strikes 5nce a relia#le su!!lier is found creating a good

relationshi! is the ne$t ste! This is a two way relationshi! in that #oth the

com!any and su!!lier get some !ositi%e out of it (Just-In-Time

Manufacturing) The com!any gets !roducts or material with no errors or
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defects a =uality !artnershi! and gets e%erything on time according to deli%ery

schedules lso the su!!lier must ha%e a #ack-u! !lan incase for emergencies

such as strike weather conditions and any other !ro#lem that many arise The

su!!lier gets a long term contract constant demand for their !roduct and agood constant !rice

on-Automoti,e Com'anies

/hen discussing JIT manufacturing usually it is #eing a!!lied to the

!roduction of a tangi#le item more s!ecifically automoti%e manufacturing

Strategy Manufacturing Inc is an e$am!le of an non-automoti%e com!any that

e$!lored the o!tion of JIT as an manufacturing techni=ue (8lenn T ;,,*)

Strategy s!ecialies in !rinting !u#lications such as manuals #ook and

manuscri!ts They originally !rinted in large #atches and that was a !ro#lem

#ecause they could not kee! u! with consumer demand #ecause of switching

from one !u#lication to the ne$t took to long They tried im!lements JIT with

their current technology #ut this was not sufficient to there needs It increased

their efficiency when !rinting low %olumes of !u#lication #ut with higher

%olumes it was more e$!ensi%e and !laced limitations on the com!anies

out!ut fter u!dating their system and !urchasing an on demand !rinting

system they were #etter a#le to im!lement se%eral com!onents of JIT Some of

the com!onents #eing shorter setu! times smaller cycle times and fewer

defects The most influential com!onent #eing setu! times which ga%e them
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the a#ility to change !rinting one !u#lication to another rather fast Cow their

system is suita#le for #oth high and low %olume #atches and is %ery efficient

and cost effecti%e This also allowed them to switch to a !ull system where

they !roduce !u#lications according to consumer demands This es!eciallyhel!ed with !rinting manuals #ecause the com!anies re=uired high %olumes

that were switched a#out fi%e times a year 9efore this left Strategy with

outdated and useless manuals in in%entory The com!any now runs it

!roduction all day

American Automoti,e "n#ustries

merican automoti%e com!anies such as 7ord and 8eneral Motors ha%e

im!lemented JIT into their !roduction howe%er not as smoothly as Toyota

They came across se%eral !ro#lems including strikes and the su!!liers ina#ility

to su!!ly the materials demanded (8lenn T ;,,*) Since JIT is a stockless

!roduction system it lea%es the com!any at the mercy of the su!!liers 7ord

e$!erienced a !ro#lem with a JIT su!!lier that may ha%e cost them tens ofmillions of dollars They had to shut down si$ !lants lea%ing many workers

with nothing to do So the !lant was still costing money to run #ut nothing

!roducti%e was taking !lace similar !ro#lem took !lace with 8eneral

Motors in *00: resulting in them tem!orarily closing o%er two-thirds of their

!lants Their su!!ly com!any had a se%enteen day strike and without ha%ing

any emergency or #ack-u! materials there was nothing that could #e done to

correct the !ro#lem .%en after the strike was o%er there were still

com!lications for some time fter the strike was o%er the su!!lier had to

s!eed u! !roduction to meet 8eneral Motors needs resulting in a large amount

of defecti%e !roducts This se%enteen day strike resulted in 8eneral Motors

loosing #etween :,,-6,, million dollars in !rofits statement #y Aeith


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of utomoti%e news sums u! these !ro#lem %ery well "JIT manufacturing

along with single source su!!liers creates terrific manufacturing efficiencies

=uality im!ro%ements and lower costs 1nfortunately the downside is it

creates and chilles> heel for manufacturers any natural or unnatural disasterat any critical su!!ly !lant whether it>s a flood fire or strike- that shuts off the

flow of materials from that critical !lant to the assem#ly !rocess can shut down

a manufacturing o!eration in a matter of hours"(8lenn T ;,,*)

Barriers for Sma(( Manufacturing

Enter'rises .SME

Small manufacturing enter!rises ha%e &ust as much to gain as large

enter!rises from im!lementing JIT into their com!any They also a few

ad%antages #y #eing smaller than the larger com!anies 'owe%er There are

more #arriers for them to o%ercome and they are taking a larger risk n

acce!ted measurement of a small manufacturing enter!rises are fewer than *,,

em!loyees ha%ing a sales %olume of no more than D million dollars (Johnston

B 9 nd) Some ad%antages that SM.s ha%e are they can #e owned !ri%ately

which means the decision to switch does not ha%e to #e held u! in an a!!ro%al

!rocess lso with fewer em!loyees it is easier to communicate the new

system to the em!loyee Since they ha%e fewer em!loyees many SM.s train

their em!loyees on se%eral machine in case of sudden a#sences That gi%es

them one less com!onent to worry a#out They also are used to making smaller

#atches of !roducts and switches o%er so thus makes them more fle$i#le Many

SM.s do not ha%e union contracts to worry a#out which makes it much easier

to make the change o%er lthough SM.s ha%e se%eral ad%antages their risks

are much greater and there sie creates se%eral #arriers The first is money is
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always an issue with smaller com!anies and im!lementing JIT can cost a

relati%ely large amount of money without any short time returns Since smaller

com!anies do not ha%e a large amount of free cash and are less susce!ti#le to

get loans coming u! with a!!ro!riate funding can #e a huge issue lso sinceSM.s do not use as large an amount of materials they do not ha%e any

#argaining !ower o%er the larger manufacturing com!anies This can restrict

them form getting a good !rice ordering only small amounts at a time

A#,antages

There are many ad%antages of that a manufacture can recei%e from JIT

'owe%er they can differ from com!any to com!any Listed #elow are some of

the ad%antages o%er%iewed throughout this !a!er?

Possi#le increase in !rofits

Euality !roducts

Euicker setu!

.liminates costs of storage facilities

More fle$i#le em!loyees

Euality relationshi!s with su!!liers

.limination of waste

Co down time

Fisad%antages


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lthough the ad%antages outweigh the disad%antages the disad%antages can

ha%e a negati%e effect on the com!any Listed #elow are some of the

disad%antages o%er%iewed throughout the !a!er?

Long term commitment

Possi#le large initial cost with no short term returns

Pro#lems with su!!lier can cost com!any large amounts of money

Bisk of ne%er successfully im!lementing JIT

&(anning for "%

It is im!ossi#le to esta#lish a new JITsystem that can #e used successfully withoutmodification Since each manufacturing !rocess is different (eg in terms of 8oalsProduct re=uirements


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Fe%elo!ing manufacturing fle$i#ilityAee!ing commitments and links made #etween


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The fundamental !rinci!le of JITis the conce!t of !roducing !roduct only as needed oron demand This im!lies that !roduct is not held ininventory and !roduction is onlyinitiated #y demand do!ting the !roduce-on-demand conce!t will ensure that onlymaterials that are needed are !rocessed and that la#our will #e e$!ended only on goodsthat will #e shi!!ed to a customer t the end of the !roduction cycle there would #e no

e$cess in%entory

De,e(o'ing Manufacturing (ei*i(ity

Manufacturing fle$i#ility is the a#ility to start new !ro&ects or the rate at which the!roduction mi$ can #e ad&usted to meet customer demand Planning for manufacturingfle$i#ility re=uires the understanding of the elements in the manufacturing !rocess andidentifying elements in the !rocess that restrict fle$i#ility and im!ro%ing on these areasThe uni=ue feature of JITis the change from a P1S' to a P1LL system The idea#ehind this conce!t is that work should not #e !ushed on to the ne$t worker until thatworker is ready for it s such manufacturing fle$i#ility re=uires !roduction managers to

consider the following as!ects in scheduling and manufacturing fle$i#ility im!ro%ement?

su!!lier lead timethe need to ensure fast and relia#le deli%ery of finished goods to the customer!roduction !rocess time!rocess setu! time#ottlenecks in !roduction !rocess should #e reduced and resources (eg

workers machines should #e fully utilied

3ee'ing Commitments an# 4in5s ma#e *etween Customers an# Su''(iers

The cor!orate commitment to de%elo!ing the internal structures and the customer andsu!!lier #ases to su!!ort JITmanufacturing is the !rimary re=uirement for de%elo!ingthe JITsystem Trust and commitment #etween the su!!lier and the customer is a must#ecause e%ery Just-in-Time o!eration relies on it 7ailure to kee! the commitments is aserious form of #reak-down in a JITsystem

Be=uirements for JIT manufacturing

Re6uirements for "% Manufacturing

The cor!orate commitment to de%elo!ing the internal structures and the customer andsu!!lier #ases to su!!ort JITmanufacturing is the !rimary re=uirement for de%elo!ing a%ia#le JITsystem To #e a#le to esta#lish a JIT manufacturing system e%ery de!artmentshould ha%e some commitment to align with a common goal This goal must also #esu!!orted #y the com!any>s to! management in order to ha%e resources and timeallocated to de%elo!ing the necessary systems and !rocedures
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significant financial commitment is necessary during the early stages of de%elo!mentand im!lementation to change o%er to a JIT system This system howe%er needs to #emethodically de%elo!ed on a scale that is within the em!loyer>s means from #oth afinancial and an a!!lications stand!oint 1ltimately the o!eration of a JITsystem willre=uire the unwa%ering su!!ort and commitment of the entire com!any

Management needs to come with gri!s during the early transition !hase of im!lementingJIT The !ros!ect must #e faced of some !roduction loss and changes to management!rocedures and o!eration !olicies while e$isting o!erations and manufacturing !ro#lemsare #eing concurrently resol%ed Just-in-Time will re=uire e%ery de!artment in a com!anyto contri#ute to the o%erall success of the system and !atience is re=uired as results arenot instantaneous In the long term the rewards are worth the initial set#acks

Trust and commitment #etween the su!!lier and the customer is a must and it is essentialto kee! these commitments as this is to ensure that customer>s confidence in a su!!lier>sa#ility to meet !roduction schedules

Critica( E(ements in "% manufacturing

Partnershi!s


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com!anies ha%e constructed s a#ility to !erform ? trustcommunications linearity of !roduction and time and %isi#ility to make changes

Trust

The most #asic need of su!!liers is to #e a#le to trust that the customer will !ro%idesta#ility if the su!!lier meets re=uirements This will allow the two organiations to workmuch more closely than they would #ased &ust on a contract

Communications

To successfully manage the communication link #etween customers and su!!liers can #edone in two ways?

Supplier contacts:To o%ercome the com!le$ity of the communication !ro#lem somecom!anies assign a #uyer-=uality engineer team to #e the contact for each su!!lier Thead%antage of this solution is that it !ro%ides a formal communication channel for thesu!!lier and reduces the !otential for miscommunications

Supplier programs:Su!!lier !rograms kee! the su!!lier informed on to!ics of mutualinterest and ensure the su!!lier access to information that will ha%e an effect on thesu!!lier>s !roduction These !rograms strengthen su!!lier relationshi!s #y o!eningcommunications and !ro%iding an understanding of one anothers needs

Linear Production Scedules

Linear !roduction schedules contri#ute to im!ro%ing the !erformance of manufacturingIn a JITsystem the need for the su!!lier to track the customers needs closely isim!ortant 7or this to occur the su!!lier must reduce lead time to the minimum Thisconsists of isolating the #ottlenecks in the o!eration #alancing the !roduction systemand reducing setu!-time


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Time and !isi"ility to ma#e canges

Most su!!liers can res!ond to changes in customer demand #ut they must ha%e enoughtime to make the changes The ty!es of changes su!!liers must make are !urchasingmaterials adding e=ui!ment esta#lishing work shifts and hiring and training la#or /ith

#etter schedule %isi#ility su!!liers could react more =uickly to changes in !roductionre=uirements

Partnerships - A Mutually Beneficial System

mutually #eneficial system re=uires that the su!!lier and customer work in coo!erationto achie%e a greater #enefit than they would ha%e indi%idually Three mutually #eneficialsystems are ?

.arly su!!lier in%ol%ementJust-in-Time materials shi!mentIn%oicing systems

$arly supplier in!ol!ement

In%ol%ing the su!!lier early in the design !hase of a new !roduct can o#tain the #est!erformance from a su!!lier Su!!liers will often make suggestions that can im!ro%e thedesign of the !roduct Su!!lier feed#ack !ro%ides a%enues for im!ro%ement in cost=uality and scheduling

Just%in%Time materials sipments

Feli%eries can cause traffic !ro#lems In addition there are the !ro#lems of unloadingmaterial un!acking it and mo%ing it to the !roduction-line Se%eral systems ha%e #eende%elo!ed to im!ro%e the efficiency of deli%eries to customer n e$am!le is the "9usBoute" system installed #y ero$


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Customer-Supplier Proximity


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he (uality Assurance !unctionThe res!onsi#ility of the =uality assurance function inIP< utilies statistical !rocess control (SPs res!onsi#ility in P< is to design for customerre=uirements and !roduct !roduction re=uirements To satisfy a customers need is &ust asim!ortant as designing a !roduct using to! !roduction technology

Detect Defects *efore t7ey Affect

Im!ro%ing the !roduction !rocess is streamlining and integrating the !roduction system

to achie%e an efficient and sim!le !roduct flow


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and slower !roduction method that has the a#ility to !roduce the daily re=uirement in amore continuous !roduction mo%ement

Material elivery

9y deli%ering material directly to the !roduction line on at least a daily #asis o!timiematerials deli%ery for a JIT system Two !rimary re=uirements that influence materialdeli%ery and in%entory concerns are material =uality and a%aila#ility

"% an# &urc7asing

The most challenging area for most manufacturers in achie%ing JITis the !urchasing of

raw materials and !arts This is im!ortant #ecause an internal JITsystem can only #eo!erated successfully when the material #eing fed into it are of sufficient =uality anddeli%ered on time Therefore unless the =uality and deli%ery of !urchased material arenot !roduction issues the !urchasing function should #egin to esta#lish a JITsu!!lier#ase In JIT!urchasing se%eral tactics are #eing used to achie%e certain goals ando#&ecti%es

$oals

Secure a steady flow of =uality !artsBeduce the lead time re=uired for ordering !roductBeduce the amount of in%entory in the su!!ly and !roduction !i!e lines

Beduce the cost of !urchased material

%&'ectives

Im!ro%e !urchasing efficiencyIm!ro%e =uality and deli%ery !erformance of su!!liersIsolate factors that influence the cost of materialBemo%e unnecessary cost factors in the materials su!!ly system

Tactics

Begard su!!liers as an e$tension of the internal manufacturing !rocess andculti%ate them as long term #usiness !artners

.sta#lish long term !urchasing and su!!ly commitmentsIm!ro%e communication with su!!liersIn%ol%e su!!liers in early stages of new !roduct !lanning1se su!!lier e$!ertise to im!ro%e design manufactura#ility and reduce !roduct

cost

Purchasing (e)uirements

Material !urchased in a JITsystem should meet three re=uirements?


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n acce!ta#le le%el of &ualityOn time deli!eryschedule and reasona#le cost

ua(ity for "%

Euality is an integral !art of a JIT!rogram Euality control concentrates on =uality at

e%ery stage of manufacture including the !urchase of raw material To increase thesu!!lier =uality two methods are used in a JITsystemH su!!lier =uality engineering(SE.) and recei%ing ins!ection (BI)Su!!lier =uality engineering is used to e%aluate su!!lier ca!a#ility hel! su!!liersde%elo! !rocess control resol%e =uality issues with su!!liers and certify that su!!liers=ualify for JIT!roduction Becei%ing ins!ection !ro%ides an ins!ection ser%ice for!urchasing

Delivery of Purchase Material

5n time deli%ery fre=uency of deli%ery and recei%ing and stocking the material are threema&or as!ects that are im!ortant in !urchasing

n*time material deliverymeans that the work stations recei%e the material &ust #efore itis re=uired su!!liers a#ility to deli%er on time is a com#ination of factors Htrans!ortation raw material a%aila#ility !rice holidays etc If a factor arises that couldaffect the deli%ery schedule the com!any should #e a#le to increase !roduction schedulesand esta#lish enough in%entory to see them !ast the e$!ected disru!tion

#requent deliveryis re=uired if de!endency on in%entory is to #e minimied Thesu!!liers> a#ility to make fre=uent deli%eries de!ends on the su!!liers a#ility to !roduce!roduct at the rate the customer re=uires deli%ery Local su!!liers usually ha%e anad%antage in #eing a#le to deli%er daily 7re=uent deli%ery means that a loss of one small

shi!ment will ha%e less significance than the loss of a large shi!ment in on time deli%ery

Material shipping and handling requirements?


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reduce costs and damage in trans!orting These cost reducing methods are then re%iewedwith the su!!lier to determine how the su!!lier can #est meet these needs

Scheduling ? ma&or concern of !urchasing managers is the !rocess of coordinating themanufacturing need for materials The !rocess is com!licated #y !eriodic changes in

!roduct mi$ and %olume re=uirement and the continual introduction of new !roducts


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Conc(usion

Just-in-time manufacturing can #e a !ositi%e influence on a com!any

'owe%er there are many risks associated with attem!ting to im!lement JIT

manufacturing techni=ues /hen looked at it a!!ears to #e a %ery sim!le

=uick and easy thing to do In reality it is a %ery com!licated techni=ue that

takes long term commitment and a initial cost with no guarantee of success If

im!lemented successfully it would eliminate waste make the com!any more

!roducti%e and more efficient It does this through shorter trans!ortation and

increased communication lthough there are many com!anies that are

successful many com!anies are not .%en though there are enormous risks

many still consider im!lementing JIT for it many ad%antages


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The Authors

8ihan Perera 'alenageMichael Lazuardirion Lee

jit-manufacturing.doc/amit/ramawat

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