JIT Manufacturing

1
JIT Manufacturing

• Alex Green
• Ryan Meagher
• Lee Aquila

2
JIT Manufacturing

• Kanban Definition
• Kan Card
• Ban Signal
• Types of Kanbans
• Production
• Transport

3
Production Kanban

• Used to tell person on shop floor to produce
  product
  
• Only produce product when they have a Kanban
• Helps eliminate inventory buildup
• Minimizes Waste

4
Transport Kanban

• Used by Suppliers to resupply manufacturer
• Helps to ensure low inventory of raw materials
• Good for Supplier
• Know when to ship goods
• Helps to maintain steady flow of goods

5
JIT Purchasing Reasons For Adoption

• Secure a steady, reliable flow of quality
  materials.
  
• Reduce lead time required for ordering
  materials.
  
• Reduce inventory in supply and production lines.
• Reduce costs (wastes) of material being purchased.

6
JIT Purchasing Techniques

• Create long term purchasing relationships with
  near.
  
• View supplying company as an extension of own
  manufacturing process and view them as business
  partners.
  
• Create learning relationship Supplier helps
  purchaser in early stages of production, supplier
  helps purchaser with design manufacturability.

7
Benefits of JIT Purchasing

• No worrying about receiving materials on time or
  worry about delivery schedules.
  
• Reduces the need for central storage or
  warehousing for inventory.
  
• More personal relationship- ease of changing
  order quantities- relaying information.
  
• Receiving and inspection of quality can be
  eliminated.
  
• Increased Cycle Times, high quality products,
  fewer suppliers.

8
Example San Diego State

• Before
• 7,000 square feet of warehousing with 600,000
  worth of office supplies and obsolete goods.
  
• Multiple suppliers
• Purchased by estimation.
• Sometimes, Lead Times more than 120 Days.

9
Example Continued

• After
• One supplier per supply category
• 5 year contract with Office Depot
• Order supplies via e-commerce website.
• 24 hour lead time.
• Discount prices
• Savings total 400,000 to 600,000 annually
• Other Universities adopt JIT Purchasing -over 4
  million in State savings