Just in Time
Operations Management-2 Project
Table of Contents
EXECUTIVE SUMMARY 2
JIT INTRODUCTION 2
JIT ELEMENTS 2
Positive attitude towards workforce 3
Use of modern computers and automation 3
Customer Awareness 4
GOAL AND BENEFITS OF JUST IN TIME 4
LIMITATION AND DISADVANTAGES 4
JIT PHILOSOPHY 5
IMPLEMENTATION OF JIT 6
METHODOLOGY 6
Reduction of Set-up time 6
Reduction of lot sizes 6
Implementation of Group technology process 7
EXAMPLES FOR SUCCESSFUL IMPLEMENTATION OF JIT 7
Toyota 7
Dell 7
Harley Davidson 8
SMED 8
Goal of SMED 8
Set-Up Conversion Matrix: 12
MRP/KANBAN 13
REFERENCES 14
EXECUTIVE SUMMARY
We begin by talking about JIT and give an introduction about the concept so that all may come to terms with the basics of the same. Next we move on to the elements involved in JIT and briefly describe them one by one. Next we begin talking about the goals, benefits, and limitations of the same, giving way to the philosophy and techniques of JIT. We continue our report with the implementation steps and examples of JIT in real world scenario.
Moving on to two problems that we identified where JIT was successfully implemented and tools were used to resolve those- SMED and MRP/Kanban. We see here in the first problem that how SMED tool was used to reduce the set-up time of a plant to incorporate JIT and in the second problem we see how a combination of MRP and Kanban cards was used to incorporate JIT in the firm.
JIT INTRODUCTION
Just in Time (JIT) is described as an
As a result of these benefits, the JIT system has been particularly effective for companies with a high customer demand on newly developed technologies such as computers. If the product is produced when required and as specified by the customer, this not only allows the customer to order exactly what they want with modern technology, but it also benefits the manufacturer who is guaranteed a return on the goods straight
Consider a firm with a daily demand of 100 units, a production rate per day of 500 units, a setup cost of $200, and an annual holding cost per unit of $10. Suppose that the firm operates 300 days per year. How many units of inventory must their storage area be able to hold?
3.1 For each hotel, what is the role of technology and the role of operations
JIT is a customer-oriented management philosophy used in contemporary supply chain management. Originally, it was used to refer to the process of producing standard products at the right time to meets the demands of the consumers. However, in modern manufacturing plants, the term is used to describe the approach of producing goods at the most minimum waste level possible. It enables the manufacturing companies to avoid costs associated with the overproduction of goods (Hirano 12).
Just in Time (JIT) is an approach of continuous and forced problem solving via a focus on throughput and reduced inventory. The Toyota Production System TPS. With its emphasis on continuous improvement, respect for people, and standard work practices. Is particularly suited for assembly lines. Learn operation supplies the customer with exactly what the customer want’s when the customer wants it. Without waste, through continuous improvement. Lean operation are driven by workflow initiated by the ‘pull” of the customer’s order. When implemented as a comprehensive manufacturing strategy. JIT, TPS and lean system sustain competitive advantages and result in increased overall return. If there is any distinction between JIT, TPS and lean operation, it if that
JIT minimizes “quality problems” that can result when parts sit around for a long time. JIT stresses the importance of minimizing waste. A company that uses JIT is from the school of though of feeling like they have a need for continuous improvement. The JIT viewpoint on improvement is “if it’s not perfect, make it better” instead of “it’s good enough.” JIT minimizes “quality problems” by using pull quick setups and small lots and by using flexible resources and efficient facility layouts. If parts aren’t sitting around wasting space and money then there is less of a chance for the parts to go bad.
As I entered the remaining classes in my concentration, Operations Management, I realized how each particular class subject had all come together, and how each was interrelated. Each class, each subject became more important to me as I realized their importance in the role of an operations manager.
Most new technologies follow a similar technology maturity lifecycle describing the technological maturity of a product. This is not similar to
JIT Is Defined As “A Technique For The Organization Of Work-Flows, To Allow Rapid, High Quality, Flexible Production Whilst Minimizing Manufacturing Waste And Stock Levels.” (CIMA Official Terminology)
Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-processinventory and associated carrying costs. Just-in-time production method is also called the Toyota Production System. To meet JIT objectives, the process relies on signals or Kanban (看板 Kanban?) between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets ' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization 's return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow,
- “The level production strategy keeps the production level at a fixed rate (usually to meet average demand) and uses inventories to absorb variations in demand”.
When the McDonald brothers, Dick and Mac opened their first restaurant in 1940 in San Bernardino, California, they could never have imagined the phenomenal growth that their company would enjoy. From extremely modest beginnings, they hit on a winning formula selling a high quality product cheaply and quickly. However, it was not until Ray Kroc, a Chicago based salesman with a flair for marketing, became involved that the business really started to grow. He realized that the same successful McDonald’s formula could be exploited throughout the United States and beyond.
In a business, there are many important tasks a manager and his/her employee’s need to uphold too. One of the most important processes while running a business is its operations management. Operations management is the fundamentals of managing and delivering the production process of all goods and services with in the business. This refers to all the activities, responsibilities, processes, functions and activities that are dedicated to the operation functions of the facility. The sole owner of the business must ensure that all goods and services are properly accounted for. One of the most fundamental ways a manager can monitor their goods and services properly is through operations management.
In the implementation and sustenance of JIT, psychological factors also play a vital role. Little consideration of the complexities involved in psychological pattern of employees and suppliers would reveal a vast field hitherto explored in the manufacturing environment. Every manufacturing practice has two elements; one is the technical element and other is the human element. In this paper, we attempt to understand the criticalities involved in the human element of the JIT practice. For this purpose, we researched upon the various factors affecting the human element and present the information in the following order. Firstly, we list down the factors or characteristics that would enable JIT to be successfully implemented and sustained. Secondly, we attempt to gain in depth understanding these factors thru’ the research work conducted by work psychologist and how these factors behave in molding the implementation. Thirdly, we present how these factors are handled in industries and what are the possible solutions presented by academic and industries entities to tackle the challenges posed by these factors and its relations.
a) Both are true b) Both are false c) True and false respectively d) False and true respectively.