Japanese Production Management Systems

JIT, KANBAN,BAKAYOKE, ANDON,Yo i don,S!M

JIT Just in Time is basically a philosophy of waste reduction It is a set of techniques for inventory reduction & waste reduction. According to JIT, anything that does not add value to the product is a waste; e ! "ewor#, $crap; inventories at different points. JIT%s basic concept is since any stoc#ed item does not add value to the end product; the right part should be at the right place at the right time. The objectives of JIT are:To eliminate waste. To improve quality. To minimise lead time. To reduce cost and To improve productivity. Key elements for successful JIT are:& 'ouse#eeping for higher productivity. & (uality improvement through process improvement. & "educed set up time. & )reventive *aintenance. & Incremental inventory is reduced. & +or#ers are cross trained for higher efficiency. & A level schedule is maintained. & ,perations are balanced for smooth & even flow & To prevent inventory build up between wor# centres. -A.,./ -amera & ,ffice 0quipment & )roductivity Improved 122/342 & +aste eliminated 514 mil 6 78 mil & $et up time reduced 9 min 6 14 sec & Inventory reduction 42: in 13 years & (uality Improved 94: reduction in ; months & <ead time reduced Effects of JIT & "eduction of <,T si=e & *otivational 0ffect & feedbac# & $mall >roup Activities & +ithdrawal of buffer stoc# & <ess $crap & <ess direct labour & <ess space for storing & <ess equipment to handle Implementation Of JIT & Total (uality -ontrol
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Japanese Production Management Systems

JIT, KANBAN,BAKAYOKE, ANDON,Yo i don,S!M

& & & & & & &

"esponsibility for (uality rests with the ma#ers of the part (uality -ircles @anban JIT )urchasing <ong term relationship $imple )urchase Agreements $mall but frequent deliveries

Japanese Manufacturing System

AUTONOMATION JIT
Autonomous Defect Control !ontro" by Team #or$

Production Methods

Info System KAN AN

%o&i&don Andon
'! AKA%OK( Automatic Stop Device

Smoothening of Production Small lot size Short set up time Design of Process Multi functional worker Standardisation of jobs Job finishing in cycle time

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Japanese Production Management Systems

JIT, KANBAN,BAKAYOKE, ANDON,Yo i don,S!M

Implementation Of Kanban

Production ordering Kanban a

Machining "ine Preceding +rocess

#ithdra)a" Kanban

A
Assemb"y "ine Subse*uent O+eration

Implementation Of utonomation & Autonomation means autonomous ?efect -ontrol & ?esigned to ensure 122: good units to flow to the ne t operation & Integral part of JIT & ?epends on 6 Automatic stop devices 6 +or#er teamwor# AA@AB,@0 & All machines are Autonomous & All are equipped with automatic stopping devices & To prevent large output of defects Andon & All wor#ers are Autonomous & In a manual system 6 If a wor#er observes something abnormal, 6 'e can push a stop button 6 That stops the entire line 6 The problem is solved before restarting the line 6 Total prevention of large scale defective units Bo/i/don "eady, set, go Page 3

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Japanese Production Management Systems

JIT, KANBAN,BAKAYOKE, ANDON,Yo i don,S!M

& & & & & & & & & &

Teamwor# between two adCacent operations To ensure balance in station It involves Andon when required In yo/i/don, +hen a wor#er completes his operation, will press a button At the end of each cycle time a "0? light burns automatically at each station where wor# is .,T completed. "0? light means ?0<AB. 0.TI"0 line stops till all red lights are off Teamwor# comes in +or#ers who have finished their wor# rush to "0? light stations to help the wor#er in difficulty. All wor#ers are multi s#illed.

Supply Chain Management

Supply of products & services

Supply chain planning & control

Demand for products

Coordinating the flow of materials & information between operation and

& services

supply chain

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Japanese Production Management Systems

JIT, KANBAN,BAKAYOKE, ANDON,Yo i don,S!M

Supply Chain Management

tier Suppliers

tier Suppliers

Supply of products & services

tier Customers tier Customers

Coordinating the flow of materials & SupplyCoordinating chain information between the flow of & planning & materials operation and supply chain

information control between

operation and Distributing "gt supply chain Supply side !urchasing "gt "aterials "gt#

Demand side

SUPPLY CHAIN MANAGEMENT

!" %" &" (" )" #urchasing an$ supply mgt" #hysical $istribution mgt" 'ogistics Materials mgt" Supply chain mgt"

!" #urchasing is concerne$ *ith supply si$e activities of an organisation

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Japanese Production Management Systems

JIT, KANBAN,BAKAYOKE, ANDON,Yo i don,S!M

SUPPLY CHAIN MA Pu"cha!ing

SUPPLIERS Quote Speci ication! P"ice #eli$e"y %the" te"m!

'unction In$ite! o e"!

P"o&uce Goo&! Se"$ice!

Pu"cha!ing Select !upp """""""""""""""""""""""""""""""""" unction

Relea!e Pu"cha!ing Supply unction o"&e"

Objectives of purchasing function 1. "ight price 3. ?elivery at right time ;. >oods and services to right quality 9. "ight quantity 4. "ight source $trategic decisions in purchasing function 1. $ingle or multi sourcing 3. *a#e or buy 3. )hysical distribution is management of inventory and transportation systems which lin# operations with customers

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Japanese Production Management Systems

JIT, KANBAN,BAKAYOKE, ANDON,Yo i don,S!M

Supply Chain Management

'acto"y
Cu!tome"

Cu!tome"

Cu!tome"

Cu!tome"

Cu!tome"

Cu!tome"

Cu!tome"

Supply Chain Management

'acto"y
(a"ehou!e (a"ehou!e Cu!tome" Cu!tome"

Cu!tome" Cu!tome"

Cu!tome" Cu!tome"

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Japanese Production Management Systems

JIT, KANBAN,BAKAYOKE, ANDON,Yo i don,S!M

&

<ogistics is the demand side physical movement and distribution of goods beyond the immediate customer.

+arehouses 1. *ulti level inventory system 3. +arehouses improve communications ;. +arehouses reduce routes )hysical distribution "oad "ail +ater )ipeline )hysical distribution Air 1. ?elivery speed 3. ?elivery dependability ;. )ossible quality deterioration 9. Transportation cost 4. "oute fle ibility

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Japanese Production Management Systems

JIT, KANBAN,BAKAYOKE, ANDON,Yo i don,S!M

Supply Chain Management

Phy!ical &i!t"i)ution
Supplie"0! "e!pon!i)ility Pu"cha!e"0! "e!pon!i)ility E*+(o",!

'"ee along!i&e 'AS '"ee on )oa"& '%Co!t . '"eight C.'

Co!t/In!u"ance . '"eight CI'

#eli$e"e& at !ite '%R #ESTINATI%N

& *aterials management is the integrated function of both purchasing and distribution activities, e tending from first tier supplier to first tier customer.

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Japanese Production Management Systems

JIT, KANBAN,BAKAYOKE, ANDON,Yo i don,S!M

"aterials "anagement
Suppliers

Pu"cha!ing

Ra1 mate"ial in$ento"y

P"o&uction p"oce!!
(o", in P"oce!!

A!!em)ly (a"ehou!e2 &i!t"i)ution Cu!tome"

in$ento"y 'ini!he& goo&! in$ento"y

$upply -hain *anagement covers the entire activities on both supply and distribution sides e tending from the II tier supplier or raw material supplier to the end customer.

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Japanese Production Management Systems

JIT, KANBAN,BAKAYOKE, ANDON,Yo i don,S!M

SUPPLY CHAIN MANAGEMENT

Mate"ial !upplie"! Component Manu actu"e"
Auto Manu actu"e" A"ea #i!t"i)uto"

Local #i!t"i)uto" #eale" Retaile" Cu!tome"

,elationships in Supply chains 1. 3. ;. 9. 4. D. E. 1. & & & & Integrated hierarchy $emi/hierarchy -o/contracting -o/ordinated contracting -o/ordinated revenue lin#s <ong term trading commitment $hort term trading commitment Integrated hierarchy )roductive resources >oods and services Information -ash and equity
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Cu!tome"

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Japanese Production Management Systems

JIT, KANBAN,BAKAYOKE, ANDON,Yo i don,S!M

3. & & & &

;. & & & &

9. & & & &

4. & & & &

D. & & & &

E. & &

6 $ingle product firms 6 )aper, Aasic metals $emi/hierarchy )roductive resources >oods and services Information -ash and equity 6 *ulti divisional firms 6 chemicals -o/contracting ?esign specification *edium F long term plans @nowledge and investment >oods and services 6 Joint venture 6 automotive -o/ordinated contracting ?esign specification *edium F long term plans >oods and services )lanning and control 6 )roCects 6 -onstruction -o/ordinated revenue lin#s Ginancial agreement )erformance monitoring Arand pac#age Gacilities and training 6 <icensing & franchising 6 Good chains <ong term trading commitment -apacity commitment ?esign specification ?emand forecast Alan#et orders and schedule 6 )referred supplier 6 ?efence supplies $hort term trading commitment >oods and services ?ocumentation 6 $pot purchase
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