Just-In-Time Production

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Just-In-Time Production
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Minimizing Waste JIT Production

• Produce...
• ...what is needed...
• ...when its needed...
• ...NOTHING MORE!

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Waste--Operations

• (1) Waste from overproduction
• (2) Waste of waiting time
• (3) Transportation waste
• (4) Inventory waste
• (5) Processing waste
• (6) Waste of motion
• (7) Waste from product defects

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Minimizing Waste Kanban Production Control
Systems
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JIT Requirements Work with Vendors

• Reduce lead times
• Frequent deliveries
• Project usage requirements
• Quality expectations

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JIT Requirements Reduce Inventory More

• Stores
• Transit
• Carousels
• Conveyors

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JIT Requirements Improve Product Design

• Standard product configuration
• Standardize and reduce number of parts
• Process design with product design
• Quality expectations

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Partnership Relationship

• Continuing relationship involving
• a commitment over an extended time period,
• an exchange of information, and
• an acknowledgement of the risks rewards of the
  relationship.

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JIT Purchasing--Requirements

• Reduced lot sizes
• Frequent and reliable delivery schedules
• Reduced and highly reliable lead times
• Consistently high quality levels for purchased
  materials

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JIT Purchasing--Suppliers

• Fewer, nearby suppliers
• Repeat business
• Support suppliers competitiveness
• Clusters of remote suppliers
• Limit competitive bidding to new parts
• Resist vertical integration
• Encourage suppliers to implement JIT purchasing

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JIT Purchasing--Quantities

• Steady output rate (a desirable prerequisite)
• Frequent deliveries in small lot quantities
• Long-term contract agreements with minimal
  release paperwork
• Deliver quantities variable from release to
  release but fixed for whole contract term

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JIT Purchasing--Quantities (Ctd)

• Little or no permissible overage or underage of
  receipts
• Suppliers encouraged to package in exact
  quantities
• Suppliers encouraged to reduce their production
  lot sizes (or store unreleased material)

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JIT Purchasing--Quality

• Minimal product specifications imposed on
  supplier
• Help suppliers to meet quality requirements
• Close relationships between buyers' and
  suppliers' quality assurance people
• Suppliers encouraged to use process control
  charts instead of lot sampling inspection

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JIT Purchasing--Shipping

• Scheduling of inbound freight
• Gain control by use of
• company-owned or contract shipping
• contract warehousing
• trailers for freight consolidation/storage

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JIT Purchasing--Benefits

• Consistent quality
• Savings on resources
• Lower costs
• Special attention
• Saving on tooling
• Loyalty associated with long-term relationships
  with suppliers

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