JIT Implementation Roadmap - to achieve a balanced rapid flow from planning to scheduling

1. Just in Time JIT Implementation Roadmap - to achieve a balanced rapid flow from planning to scheduling Anand Subramaniam

4. JIT - Overview

5. JIT Philosophy JIT Lower inventory levels / small lots sizes Streamlined with no waste or variability in production system A “Pull” system thru the plant Fewer suppliers (keiretsu) with long-term guaranteed contract Employee empowerment Guaranteed delivery times A management philosophy Works well in high-volume production with minimal inventory (RM, WIP, FG) Exposes problems & bottlenecks, requires TQM

7. JIT Objectives Objectives Zero lead time Zero failures Flow process Flexible manufacture Eliminate waste Zero Inventory

8. JIT – Building Blocks JIT Product Design Process Design Manf Plan & Control Human Resource / Organisation

11. JIT Relationship

12. JIT in Manufacturing Planning & Control

17. Kanban Pull System

18. What is Kanban Kanban Kan=card Ban= signal Cards to signal & communicate reorder information Minimise storage in the production area Workstations only produce / deliver components when a card PLUS empty container is received Toyota in 1950s developed it to manage line / material flows Authorisation to produce more inventory Limits the amount of inventory in process To deliver components to a work station as & when needed (pull) Work-station produces enough to fill the container

19. Kanban System Machine Centre Assembly Line Bin Part A Bin Part A Material Flow Card (signal) Flow Withdrawal kanban Production kanban

20. Kanban - Pull Signal

21. Kanban Card # of containers released Name / location of preceding process Routing process Store bin / location Units of measure Part # Container type & capacity Name / location of next process Supplier Part # Supplier Name Reorder / Lot Qty Description Kanban #

25. Kanban Challenges Challenges Assumes stable repetitive production Gets complex when upstream w/station makes several parts, each with separate signaling card Poor quality (scrap & rework) affect functioning Doesn't eliminate variability and / or lengthy down times Less suited to industries where mix & volumes fluctuate Buffer stocks may be needed

26. JIT - Implementation Roadmap

27. JIT – Phased Implementation Phase 1 Phase 2 Phase 3 Design Flow Process Review product design, TQC & SPC Kanban Pull Review inventory policies Work & build trust with Vendors Manage Stakeholder Expectations JIT Implementation Inventory reduction Skill / Capability Development Measure performance Business Improvement Improve product design 1 2 3 4 5 6 7 Months Baseline & Stabilise schedules Project / Change Management

28. JIT – Implementation Steps Design Flow Process Total Quality Control Baseline & Stabilise Schedule Demand / Kanban Pull Inventory Review & Reduction Build Skills & Capabilities Improve Product Design Continuously Improve Work & Build Trust with Vendors Measures & Metrics

31. JIT – Continuously Improve Design Flow Process Total Quality Control Baseline & Stabilise Schedule Demand / Kanban Pull Inventory Review & Reduction Build Skills & Capabilities Improve Product Design Work & Build Trust with Vendors Measures & Metrics