Lean Manufacturing Delivers Value with Less Work by Eliminating Waste

Just-in-Time is an inventory management philosophy that aims to reduce inventories by implementing systems and processes to supply a product or service exactly when it is needed, and how it is needed in the production process. The concept of JIT is widely accepted today by many American manufacturing companies, and it is a means of controlling costs through striving to maintain lean inventories—in fact, the concept of JIT was introduced in the early 1980’s to the U.S. as a concept know as “zero inventories”. This inventory control concept involves close relationships with vendors or suppliers, who are able to provide components of the product direct to the work-in-process area, in a “pull” type fashion, whereby the components are

Just-In-Time (JIT) manufacturing may affect a Job Shop both positively and negatively. The most important affect is that it improves the performance of job shop production. JIT also eliminates waste and/or decreases work in progress (WIP) in that same sense. JIT allows for products that are produced to fulfill an immediate demand for them. JIT emphasizes on quality. Quality is very important in JIT manufacturing because it decreases or eliminates costs and increases profits by producing high quality products the first time around. JIT

Lean is defines the manufacturing philosophy that reduces the time between the shipping and customer demand, which based on the systematic method by eliminating waste, that means giving the customer what they want when they want it, and don 't waste whatever. Rahmana, Sharif and Esa (2013) suggested lean production is mentioned to improve the company 's performance from the philosophy in reducing waste in order. That means, lean system destination is the decrease cost by removing the non-value activities, which they are applying a category of tools and techniques for checking and eliminating defective in the production process. In the Evenort Company should emulate the five overriding principles of lean thinking in terms of implementing lean that there is guarantee the company has been driving correctly in the lean manufacturing (Cardiff 2015) as can show in table 1.

We just do it better than anyone else." The production process is like a flow following a routing from one cost center to another in a sequence of move, wait, setup, and runtime for each process. Work-in-process inventories in the move and wait stage litter the plant. Economic lot size rules determine the size of each batch while production schedules push jobs onto the floor.

The following is a guest article written by Nick Koletic, an economics specialist at UCLA. In addition to giving a brief background on Just-In-Time inventory system’s benefits, the article’s main focus is the risks that JIT systems face.

22. ___________ refers to the delay of value-added activities such as assembly, production, and packaging to the latest possible time.

Mapping the value stream | | |Jared Lovelle.  IIE Solutions.  Norcross: Feb 2001.Vol.33, Iss.  2;  pg.  26, 7 pgs | Subjects: Production methods,  Value added,  Efficiency,  Mapping Classification Codes 9190 United States,  5310 Production planning & control Locations: United States,  US Author(s): Jared Lovelle Document types: Cover Story

Physical transformation tasks: ranging from raw materials to producing finished products that get delivered into the hands of the customer.

There are four types of goods movement types: goods receipt, goods issue, goods transfer and transfer posting. Goods issue process plays a key role in fulfillment process (indicating a goods shipment to a customer’s sales order) and production (issuing of raw or semi-finished materials to a production order) and is triggered by warehouse management. Goods issue results in decrease of inventory levels. The SAP ERP screen has the following views: item overview (that contains information about items in the outbound delivery document), Picking, Loading, Transport, Status

Work-in-process (WIP) refers to all items in process throughout the plant. Since products are not manufactured instantaneously, there is always some WIP inventory flowing through the plant. After the product is completed, it becomes finished goods --the bicycles, stereos, CDs, and automobiles that the company sells to its customers. Distribution inventory consists of finished goods and spare parts at various parts in the distribution system—for example, stored in warehouses or in transit between warehouses and consumers, Maintenance, repair and operational (MRO) inventory are supplies that are used in manufacturing but do not become part of the finished

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)

Figure 1 provides a conceptual framework of lean principles across the supply chain of the enterprise thereby yielding value to the customer. Lean thinking helps in providing flexibility to the needs of the customer. Emphasis is also put on organization of workplace which leads to more simplified work environment. Ease of access in the workplace and good ergonomic designs are some of the by-products of lean thinking methodology. Lean enterprises are more adaptable to changing market trends and also provide prompt delivery to products and services. [3]

The modern concept of lean management as used today can be traced back to the Toyota Production System (TPS). The manufacturing philosophy was pioneered by Japanese engineers to emphasize the minimization of waste and focus on “doing it right the first time” (Davis and Heineke, 2005). Engineers knew that waste was something that customers were not willing to pay for thus they should try and eliminate it. This led to the discovery that inventory is essentially waste. Keeping parts and products in stock adds no value to a company, and should be eliminated. Although lean production began in Japan, it now has been successfully implemented across the globe (Agus and Hajinoor, 2012).

II) Work - in - process is generally valued at cost, which includes cost of materials, labor. And the proportionate factory overhead, as it is reasonable according to degrees of completion.

JIT inventory system provides constant quality of goods, if done properly. Less lead times, speedy manufacturing