JIT

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JIT

• BA 339

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JIT Is NOT

• Just Prompt Delivery
• Last Minute Activity
• Without Much Planning
• An Inventory System

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JIT Redefines Waste

• Traditional Waste Definition
• Idle Men or Machines
• Any Under-capacity Operation
• Focus is on the PROCESS
• Optimization of each operation
• JIT Waste Definition
• Idle Inventory
• Any Activity That Does Not Add Value
• Focus is on OUTPUT of the Process
• Dont Make or Do Anything Until It Is Needed
• Optimize the Entire Flow - Not Just A Process

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JIT Prerequisites

• Inventory Reduction is Byproduct
• Primary JIT Advantage is Quality
• JIT Prerequisites
• Stable Design
• Stable Schedule
• Faultless Shop Floor Quality
• Absolutely Reliable Supply Base
• Quality
• On-Time Delivery
• Accurate Data
• JIT is NOT Just Prompt Deliveries

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Just-in-Time

• Fundamental Objectives
• Eliminate Waste
• Increase Flexibility
• Reduce Lead Times
• Idle Inventory Waste

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JIT Features

• Pull, Not Push System
• Improves Materials Flow
• Reduces Throughput Time
• Reduces Inventories
• Improves Quality
• Reduces Inventories

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JIT Features

• Improves Supply Base
• Improves Quality of Raw Materials
• Improves On-Time Delivery
• Reduces Inventories
• Reduced Set-Ups
• Increases Flexibility
• Reduces Lot Sizes
• Reduces Inventories

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JIT Features, cont.

• Improved Maintenance
• Assures Machine Availability
• Reduces Inventories
• Reduces Space Requirements
• Reductions in Inventories From JIT Implementation
  are By-products of Process Improvements
• The Major Benefit of JIT is Improved Quality

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JIT Implementation

• Set-up Reduction
• Cellular Layout (flow)
• SPC on the Shop Floor
• Kanban - Pull System
• Preventive Maintenance
• Multifunctional Workers
• Capacity Control
• Jidoka

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JIT Impacts on Materials Management

• Purchasing
• Few Suppliers
• Long Term Close Relationships
• Receiving
• No Receiving
• No QC Checks
• Inventory Levels
• Minimal Raw Materials
• MRO May Be Stable

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JIT Impacts on Materials Management

• Inbound Logistics
• Full Use of Equipment
• Truckloads
• LTL
• Consolidation
• JIT Logistics Costs

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Types of Firms

• Make To Stock
• Standard PRODUCTS
• Made in ANTICIPATION of Demand
• Assemble To Order
• Standard COMPONENTS
• Custom Assembled
• Assembled AFTER Receipt of Order

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Type Types of Firms

• Make To Order
• Standard PRODUCT
• Made AFTER Receipt of Order
• Make Parts to Customers Specifications
• Engineer To Order
• Custom Design and Build

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JIT Applications

• JIT Works Best For
• MTS Firms
• ATO Firms
• Products in Maturity or Saturation Phases of
  Product Life Cycle
• JIT Is Most Difficult For
• ETO Firms
• Products in Early Growth or Late Decline Phases
  of Product Life Cycle

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Pull Strategies

• JIT is a Pull Process
• Final Customer
• Manufacturing Processes
• Basic Raw Material
• Align Supply Chain Strategies
• Inventory Levels, Fill Rates
• Inventory Locations
• Postponement
• Collaborative Logistics
• Supplier Strategic Focus

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