Pamantasan ng Lungsod ng Pasig Alcalde Jose St.

Kapasigan Pasig City

Written Report On:

JUST-IN-TIME MANUFACTURING

For the Subject: MGT-105 Total Quality Management

Submitted To: Professor Ed Jose

Submitted By: Jessly Ecat Nora Permison Arriane Albano Zenaida Timbal

BSBA-3C

INTRODUCTION
OBJECTIVE: The main objective of this presentation is to introduce the basic concept of Just in Time Manufacturing. It will cover the following topics: History and Background Application Benefits

HISTORY AND BACKGROUND

JIT is a Japanese management philosophy which has been applied in practice since the early 1970s It was first developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays. Taiichi Ohno is frequently referred to as the father of JIT. Toyota was able to meet the increasing challenges for survival through an approach that focused on people, plants and systems The emergence of JIT in Japan was associated with Japanese work ethics: Workers are highly motivated to seek constant improvement Companies focus on group effort Work itself takes precedence over leisure Employees tend to remain with one company throughout the course of their career span. PUBLISHED WORKS OHNO, TAIICHI (1988), TOYOTA PRODUCTION SYSTEM: beyond large-scale production, productivity press ISBN 0-915299-14-3 (1988) Workplace management, productivity press ISBN 0-915299-19-4 (2007) workplace management, translated by jon miller, gemba press ISBN 978-0-9786387-5-7, ISBN 09786387-5-1

FEB. 29, 1912 MAY 28, 1990

APPLICATION TO TQM

Fig.1 JIT improvements to manufacture DEFINITION JIT is an umbrella concept like TQM but it is a subset of TQM a philosophy and a strategy that focused attention on eliminating waste by purchasing or manufacturing just enough of the right items Just-In-Time. Zero inventories are a synonym to Just-In-Time. Just-In-Time philosophy is based on the following two principles: Production and supply of required number of parts when needed JI DOKA (self-actualization), which means utilizing the full capacity of the workforce

Objectives of Just-In-Time Developing of optimal process and be competitive Streamlining of operations and eliminating unwanted processes Continuous improvement Reducing the levels of wasted materials, time and effort Increasing efficiency of production process

ELEMENTS OF JIT o Continuous improvement Attacking fundamental problems Devising systems to identify problems Striving for simplicity A product oriented layout Quality control at source Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes Preventative maintenance, Total productive maintenance

o Eliminating waste. There are seven types of waste: Waste from overproduction Waste of waiting time Transportation waste Processing waste Inventory waste Waste of motion Waste from product defects Good housekeeping Set-up time reduction Levelled / mixed production Kanbans - simple tools to `pull' products and components through the process. Jidoka (Automation) Andon (trouble lights)

o o o o o o

I. HOW TO USE
Planning for JIT It is very important to define the plan and objectives before setting up a JIT manufacturing system. Defining the Planning The goal of a JIT approach is to develop a system that allows a manufacturer to have only the materials equipment and people on hand required to do the job. Achieving this goal requires six basic objectives: Integrating and optimizing every step of the manufacturing process Producing quality product Reducing manufacturing cost Producing product on demand Developing manufacturing flexibility Keeping commitments and links made between Customers and Suppliers Integrating and Optimizing The manufacturing system is a continual process of reducing the number of discrete steps required to complete a particular process rather than plateaus of steps. Removal of bottlenecks in the manufacturing process is a critical step in integration. Producing a Quality Product "Total Quality Control" is one of the fundamental goals in JIT manufacturing. Total Quality Control (TQC) emphasizes the quality at every stage of manufacture including product design down to the purchase of raw materials. Quality control is carried out at every stage of the manufacturing steps; from the source to the final step rather than relying on a single processing stage which implements quality control on the final product. Reducing Manufacturing Cost Designing products that facilitate and ease manufacturing processes helps to reduce the cost of manufacturing and building the product to specifications. One aspect in designing products for manufacturability is the need to establish a good employer and employee relationship.

The fundamental principle of JIT is the concept of producing product only as needed or on demand. This implies that product is not held in inventory, and production is only initiated by demand. Adopting the produce-on-demand concept will ensure that only materials that are needed are processed and that labour will be expended only on goods that will be shipped to a customer. At the end of the production cycle, there would be no excess inventory. Developing Manufacturing Flexibility Manufacturing flexibility is the ability to start new projects or the rate at which the production mix can be adjusted to meet customer demand. The unique feature of JIT is the change from a PUSH to a PULL system. As such manufacturing flexibility requires production managers to consider the following aspects in scheduling and manufacturing flexibility improvement: supplier lead time the need to ensure fast and reliable delivery of finished goods to the customer production process time process setup time Bottlenecks in production process should be reduced and resources (e.g. workers, machines should be fully utilized. Keeping Commitments and Links made between Customers and Suppliers The corporate commitment to developing the internal structures and the customer and supplier bases to support JIT manufacturing is the primary requirement for developing the JIT system. Trust and commitment between the supplier and the customer is a must, because every Just-in-Time operation relies on it. Failure to keep the commitments is a serious form of break-down in a JIT system. Requirements for JIT Manufacturing The corporate commitment to developing the internal structures and the customer and supplier bases to support JIT manufacturing is the primary requirement for developing a viable JIT system. To be able to establish a JIT manufacturing system, every department should have some commitment to align with a common goal. A significant financial commitment is necessary during the early stages of development and implementation to change over to a JIT system. Ultimately, the operation of a JIT system will require the unwavering support and commitment of the entire company. Management needs to come with grips during the early transition phase of implementing JIT. The prospect must be faced of some production loss and changes to management procedures and operation policies while existing operations and manufacturing problems are being concurrently resolved. Just-inTime will require every department in a company to contribute to the overall success of the system and patience is required as results are not instantaneous. In the long term, the rewards are worth the initial setbacks. Trust and commitment between the supplier and the customer is a must, and it is essential to keep these commitments as this is to ensure that customer's confidence in a supplier's ability to meet production schedules. Critical Elements in JIT manufacturing Partnerships Commitments

Integrated Process Control (IPC)

Optimizing the production process and meeting customer requirements concurrently. The company must be aware of changes in requirements and continually improve the production process

Contracts Supporting Partnerships Developing JIT Suppliers Partnerships - A Mutually Beneficial System Early supplier involvement Just-in-Time materials shipment Invoicing systems Customer-Supplier proximity

Detect Defects before they affect...

The process of continual improvement is aimed at reducing the need for gate inspection, rework, scrap, and test. IPC is an economical tool to minimize these costs. The results of using IPC are the prevention of defects before they occur.

JIT and Purchasing

Goals Tactics Regard suppliers as an extension of the internal manufacturing process and cultivate them as long term business partners. Establish long term purchasing and supply commitments Improve communication with suppliers. Involve suppliers in early stages of new product planning. Use supplier expertise to improve design manufacturability and reduce product cost. Purchasing Requirements Material purchased in a JIT system should meet three requirements: An acceptable level of quality, On time delivery schedule, and A reasonable cost. Secure a steady flow of quality parts. Reduce the lead time required for ordering product. Reduce the amount of inventory in the supply and production pipe lines. Reduce the cost of purchased material

Quality for JIT

Quality is an integral part of a JIT program. To increase the supplier quality two methods are used in a JIT system; supplier quality engineering (SQE) and receiving inspection (RI). Supplier quality engineering is used to evaluate supplier capability, help suppliers develop process control, resolve quality issues with suppliers, and certify that suppliers qualify for JIT production. Receiving inspection provides an inspection service for purchasing.

Benefits of using Just-In-Time

Reduction of Waste Reduction of Work-in-Progress Establishing proper customer relationship Reduction in lead time Less inventory of raw materials Improvement in Flexibility Lower cost and high productivity Enhanced customer satisfaction due to lower price owing to elimination of wastes Improved employee morale owing to a perfect system without waiting Improved satisfaction of shareholders due to high profit Reduced space requirements on account of total elimination of WIP and buffer stock of materials, subassemblies and products Improved productivity and improved quality Not following JIT Increases Cost JIT does not mean that the products are made when needed, but that no materials are stocked for years waiting to be used. In fact, the reason for JIT is to reduce inventory costs. There are many hidden problems of not following the JIT strategy. For instance, if the material received is a year old, precautions have to be taken for storing, handling, and security. Therefore, the company has to make additional space for storage. No material has a shelf life of many years. During storage the material may deteriorate which will further add to the cost of manufacture of the products and the cost of the end product Why Practice JIT? More prosperity of the company More profits for the company Companies Using JIT

JIT
CONCLUSION
Just-In-Time can be practiced by defining and implementing several concepts such as: Kaizen Team work Multi-function work-force Optimizing plant lay-out Eliminating wastages Reduced set up time Kanban Material Requirement Planning (MRP) Manufacturing Resources Planning (MRP II), etc. Involvement of people Plant optimization Hence we can see that to have a Total JIT manufacturing system, a company-wide commitment, proper materials, quality, people and equipments must always be made available when needed The policies and procedures developed for an internal JIT structure should also be extended into the company's supplier and customer base to establish the identification of duplication of effort and performance feedback review to continuously reduced wastage and improve quality.