Table of Contents
Introduction 2
JIT philosophy 2
Frameworks and techniques contributing to a successful implementation 3
Kanban 3
Jidoka 3
7 wastes elimination 3
Quality 4
Leveled production 4
Setup time minimization 4
Management’s commitment 4
An improved version of JIT – JIS 4
Implementation of JIT in American companies 4
Cultural background of JIT 4
Comparison between the Japanese and the American working (business/management) culture 4
Problems faced by American companies during implementation 4
Adjustments of JIT made by the American companies 4
Real-life example: Harley Davidson 5
Company history 5
Turning point 5
Implementation of JIT by Harley Davidson 5
Problems and solution 5
Final results – success 5
Conclusion 5
Bibliography 5
Introduction
A successful manufacturing company is one that knows its customers and delivers exactly the kind of product that its customers want and are willing to pay for. This is not enough, on one hand, producing more of this product than it is demanded will lead to high inventory and even higher costs. Underproduction, on the other hand, means that a part of the customer base is offered for the competitors. In both cases we are talking about inefficient usage of resources, as raw material, time, money and also human resources.
Managing resources in a way that responds correctly to market demand, will decrease costs and contribute to quality improvement. Just-in-time manufacturing is a system of attitudes and actions that, if implemented in the right way, will lead to such results.
JIT philosophy
Just-in-time manufacturing (JIT) is more than a set of techniques and calculations aiming for reducing inventory. It is a philosophy, a mindset that has...
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For this assignment, I have decided to focus on what makes a good quality
Kuiper Leda lacks an effective Inventory Management to handle properly the increase in demand of stock and production. An inventory management plan would be capable of forecasting errors in production, client-required service levels, total lead time in manufacturing a unit or batch of the product, and demand priorities. Inventory control is a challenge currently because of the size of Midland Motor's order. In order to meet the demand the company needs to increase the inventory which increases the inventory costs. KL have an opportunity of using the Just - In - Time method of inventory control which eliminates waste by making the resources and labor available only in the time and amount required. It will help increase productivity, product quality and work performance while saving inventory costs for the company. (Curtin, 2008). Kuiper Leda also needs to keep in mind that they will still have to fill orders from other clients that have previously placed orders or even new customers.
...s And Explanations." Journal Of Economic Perspectives 20.1 (2006): 47-68. Business Source Elite. Web. 4 Oct. 2013.
Intense global competition, rapid technological changes, advances in manufacturing and information technology and discerning customers are forcing manufacturers to optimize manufacturing process, operations, and all the possible nodes of supply chains that enable them to deliver high-quality products in a short period of time (Karim et al. 2013). The origins of lean thinking can be found on the shop-floors of Japanese manufacturers and, in particular, innovations at Toyota Motor Corporation (Shingo, 1981, 1989; Monden, 1994; Ohno, 1988). These innovations, resulting from a scarcity of resources and intense domestic competition in the Japanese market for automobiles, included the just-in-time (JIT) production system, the Kanban method of pull production, respect for employees and high levels of employee problem-solving/automated mistake proofing. This lean operations management design approach focused on the elimination of waste and excess from the tactical product flows at Toyota (the Toyota "seven wastes") and represented an alternative model to that of capital-intense mass production with its large batch
Based on future supplier contracts, shortening lead time for delivery of parts and materials establishing leaner processes, namely addressing wastes identified through implementing a Just-In-Time (JIT) system. A centralized wharehouse system, co-located near the manufacturing plant will reduce shipping and transportation costs or look for larger space with warehousing capacity. Savings, significant enough will be a factor if space with warehousing falls within the
Emphasized high supplier quality by enforcing strict quality standards. Emphasis on just-in-time delivery of raw materials ensured low inventory and hence, lower warehousing and inventory holding costs.
middle of paper ... ... Reduce overhead costs of working with JIT based customers by. o Consider implementing JIT production and inventory methodology. o Reduce order handling overhead by implementing standing JIT orders (i.e. one order for a total quantity over time, instead of a separate order for each delivery).
Friesen is truly struggling to find a way to "have his cake and eat it too". Friesen is passionate about TPS ways of achieving lean manufacturing by staying focused on achieving cost reduction by thoroughly eliminating waste. He knows that just in time (JIT) production is implemented to insure plants produce only what is needed, only how much is needed, and only when it is needed. He has been thoroughly trained in jidoka principles, understanding processes are put in place to make any production problems instantly self-evident through visual deviations from normal conditions. He also understands the value of the andon pull, and that it states the andon card is not replaced until the problem is fixed – often resulting in a stop of the line. However, he felt this problem was different, and therefore an alternate process was acceptable. He believed it was possible to deviate from some of the core jidoda principles by fixing the quality problem off the production line, and within the quality control (QC) team. He believed this would allow him to save money by not having idle machines. Even after all the alarming red flags in front of him that indicate...
Garvin, David A., "Quality on the Line," Harvard Business Review, September October 1983, pp. 64-75.
[2] Excerpted from Nancy R. Tague's The Quality Toolbox, Second Edition, ASQ Quality Press, 2004, pages 359-361.
With the objective of manufacturing the vehicles in the most effective way and supplying the vehicles to the customers on time. The Toyota Production System (TPS) governs on two theories, namely "Jidoka" implying humanized automation that discovers process glitches and product shortcomings so that the equipment stops straight away averting further flawed production. The second concept of "Just-in-Time"(JIT) shows in a continuous flow, each procedure will only yield the fixed quantity as required by the succeeding process. During the commencement of Toyota, the market demand was at the peak. They touched a limit where they couldn 't meet these escalating demands. In a conventional way, they positioned all the machines together. However, after the implementation of production simulator with all the support from the people and management, they altered the layout of the entire plant as per their process flow. This made their work easier in terms of carrying parts back and forth in between the processes. With the vision of multi-tasking, each worker was executing on more than one machine. These lead to the
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
“Must have JIT experience”, “What?” I did not know what it was, or meant. Just In Time (JIT) is the production process rooted on the basis of the system working just when and as it is needed, while attempting to eliminate waste. JIT is designed to keep inventory costs down, by eliminating large inventory. The concept is to have manufacturing parts arrive just in time to be picked then assembled, and arrive just in time for the customer’s use.
Toyota has implemented many different systems such as performance monitoring software, the Just in time (JIT) inventory system, electronic quality control system, communication system and information system thought out their value chain which enable to make correct decision during the manufacturing process. They have identified that having large inventories of spares cost them extensive capital and they have implemented the Just in time (JIT) inventory system which advices the suppliers the exact spares that the product line required and provides a time frame. Toyota adopted continuous learning and embraces change allowing their staff to research and innovation (Toyota