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just in time

inventory management

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just in time

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  1. Lt Col Jithesh JIT

  2. Uncertain demand Uncertain supply Economy of order size EOQ ROP INVENTORY MGT

  3. !??

  4. Japan • Toyota • Kanban • Lean • Kaizen JUST IN TIME

  5. 3rd largest economy • 11th largest in terms of population • 4th in terms of purchasing power parity • 3rd largest automobile manufacturing country • Home of Toyota JAPAN

  6. 9th largest in terms of revenue • Largest automobile manufacturing company • 10 million cars per year since 2012 • Largest manufacturer of hybrid cars • Kiichiro Toyoda • TaiichiOhno • Father of the Toyota Production System TOYOTA

  7. JIT can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods) JIT also involves the elimination of waste in production effort JIT also involves the timing of production resources (i.e., parts arrive at the next workstation “just in time”) JIT

  8. JIT is popularly known as stockless production • Produce just enough to meet demand • Inventory is wasteful • Labor and materials • Equipment and time • Storage and insurance • Capital, etc. • Quality must be at the source CHARECTERESTICS

  9. Watching a machine run Waiting for parts Counting parts Overproduction Moving parts over long distances Storing inventory Looking for tools Machine breakdown Rework EXAMPLE OF WASTE

  10. 1940 Supermarket shelf model Pull model of inventory control Scheduling of inventory depends on the final stage i.e customer demand KANBAN

  11. 3 Bin system Heijunka box system E-Kanban Visibility of inventory at manufacturing unit to all providers kANBAN

  12. Just-in-Time • Precursor of “Lean” • Goals • To design out overburden (Muri) • To design out inconsistency (Mura) • To eliminate waste (Muda) TPS

  13. Link operations Balance workstation capacities Redesign layout for flow Emphasize preventive maintenance Reduce lot sizes Reduce setup/changeover time JIT: IMPLIMENTATION REQUIREMENTS

  14. Design for quality and quality at the source Worker responsibility/quality culture Measure SQC and use achievable goals Enforce compliance Fail-safe methods Automatic inspection JIT: IMPLIMENTATION REQUIREMENTS…

  15. Level schedule • Pull materials into final assembly in uniform pattern • Underutilize capacity • Realized by removing excess inventory • Inventory less likely with quality and equipment maintenance • Establish freeze windows • Fixed schedule with no further changes possible JIT: IMPLIMENTATION REQUIREMENTS…

  16. Demand pull • Back flush • Used to explode end item’s BOM to determine how many of each product went into it • Reduce lot sizes JIT: IMPLIMENTATION REQUIREMENTS…

  17. Plan for quality • Uniform production rate • Smooth flow of materials • Emphasize rate not capacity • Refocused productivity • Less expensive machines • Push towards lot size of one • Less expensive machines JIT: IMPLIMENTATION REQUIREMENTS…

  18. Sort—Seiri (organization; find what’s not needed) Set in order—Seiton (place for everything) Shine—Seiso (cleanliness) Standardize—Seiketsu (develop/maintain stds.) Sustain—Shitsuke (self-discipline) JIT: IMPLIMENTATION REQUIREMENTS…

  19. Limited number of suppliers for better control Reduce lead times Frequent deliveries Project usage requirements Quality expectations VENDOR MGT

  20. THANK YOU!

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