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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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.
JIT- Just in Time was an approach used to achieve Lean manufacturing. JIT to explain it shortly it means producing right item at right time and at right quantity. Toyota introduced JIT approach in 1950 when the company facing Tough competition, high capital investment, rapid change in automobile market in terms of price value and technology.
Before the introduction of JIT, there were a lot of manufacturing defects in the system such as inventory problems, product defects, risen cost, large lot production, and delivery delays. Some other problems also included equipment breakdowns, and uneven production levels. The inventory problems included unused inventory that was unproductive and the extra effort of storing and managing it. To store inventory, it costs money called a Carrying Cost, which can be expensive. However, with the use of the JIT system, inventory costs can be reduced by as much as 50 percent if not more. For product defects, the manufactures knew that a single product defect can cause breakdown the producer’s creditability so they must have a defect-free process. Instead of a large lot production, manufactures decided they should produce more than just one good and have a diverse line of products. And finally, the way they were running things did not manage well for the fast delivery request, so there was a need to have a faster and reliable delivery system in order to handle customers’ needs.(1) With the use of the JIT system, these problems were solved and made things run a lot more smoothly with a lot less cost. To make the JIT system successful the cooperation between manufacture and its cha...
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
The idea of Just In Time originated in Japan. Actually this type of inventory/production was originally known as the "Toyota Production System". A man by the name of Taiichi Ohno is credited as the person who first came up with this system. He looked at the Western industries and found that the manufacturers would set up their manufacturing lines to produce a large quantity of one product before stopping and and switching to a different product. They also would order and stock an overabundance of inventory so that the right parts were always on hand.
The system requires companies to manufacture products based on predicted customer demand, rather than the real demand. This is because of the lag-time associated with manufacturing products by batch and queue technique. In many cases the system is very inefficient and wasteful. This is mainly due to substantial WIP, placed on hold when other functional teams ready their units. Figure below captures flow of production in a batch and queue
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
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...
The business environment is increasingly becoming competitive and challenging. In the recent past, manufacturers have found themselves facing the threat of dwindling profit margins due to unfortunate global events such as the 2007 global financial crisis and the on going Europe economic crisis. The need to improve operation efficiency so as to ensure current and future investment yield the highest rate of return has therefore become extremely important. Manufacturers are now actively engaged in, managing their costs, Research and Development, adopting best procurement strategies, among other Actions. While such actions might eventually lead to positive results, additional business value can be achieved through proper management of the supply chain (Waymer, Ivanaj & Mussa 2009; Krivda 2004).
Total Quality Management (TQM) will be used to support the manufacturing processes to ensure quality and minimise defects. The manufacturing unit will be according to the matrix type organization structure to provide more flexibility in resource allocation and communication. Just in Time (JIT) approach will be introduced to achieve and meet the demands and expectations of the customers. TQM will improve the company’s effectiveness, efficiency, competitiveness, flexibility and delivery to customers. All function other than manufacturing will be handled in the registered office at Spa Fields Industrial Estate, New Street, Slaithwaite, Huddersfield, HD7 5BB. The training and development department will be formed at the same location.
The Goal of any business is to obtain maximum results in the most efficient manner while at the same time providing your customer with the quality product they desire. Often times this process is made difficult with waste or anything that clogs the process unnecessarily. Henry Ford aimed to eliminate this waste through looking at his manufacturing pro...
According to Srinidhi and Tayi (2004), companies that are flexible enough and are able to change from a JIT system to a traditional inventory system will have a competitive advantage over other firms who do not switch. In such uncontrollable environments, the major benefit of JIT becomes a handicap with the increase in delivery times and the added data handling and coordination required in such times. This leads to a decrease in quick response time, which ultimately leads to increase in costs to the firm.
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
Based on the analysis by author and from their article, the seru production are very encourage and important to the company like Sony and Canon because they use this seru production to minimize their cost and increase their production. We agree with the author that is because the seru production can give many benefit to the organization such as it can reduce lead time, setup cost, work in process inventories, finished-product inventories, cost, required workforce, and floor space. Besides that, seru production also influences on the profits, product quality, and workforce motivation (Singh, 2017). In this suggestion, our suggestion will explain more about seru production. What the company must
This is the activity carried out by organizations that own production sites, and their performance has a major impact on product cost, quality, speed of delivery and delivery reliability, and flexibility [8]. As it is quite an important part of the supply chain, production needs to be measured and continuously improved. Suitable metrics for the production level are as follows. Order lead-time, the total order cycle time, called order to delivery cycle time, refers to the time elapsed in between the receipt of customer order until the delivery of finished goods to the customer. The reduction in order cycle time leads to reduction in supply chain response time, and as such is an important performance measure and source of competitive advantage [9]. It directly interacts with customer service in determining competitiveness. Range of product and services: According to [8] a plant that manufactures a broad product range is likely to introduce new products more slowly than plants with a narrow product range. Plants that can manufacture a wide range of products are likely to perform less well in the areas of value added per employee, speed and delivery reliability. This clearly suggests that product range affects supply chain performance. Effectiveness of scheduling techniques is another important measure of supply chain effectiveness. Scheduling refers to the time or date on or by which