JIT Manufacturing Essay Research Paper JustInTime Systems

JIT Manufacturing Essay, Research Paper

Just-In-Time Systems

In today & # 8217 ; s companies, new gimmick phrases and thoughts are being developed each and every twenty-four hours. One of the more popular thoughts that is go arounding around these yearss is the thought of just-in-time fabrication. Many magazines and newspapers have documented the attempts of companies to develop and implement just-in-time procedures. The inquiry can be asked, though, what does just-in-time intend? How does a company implement just-in-time procedures, and what are the consequences of execution? Just-in-time fabrication is fundamentally the thought that companies should

the beginning of the fabrication procedure and cargo to the client.

of these schemes are some of the most hard undertakings in just-in-time fabrication.

One key thought that must be understood about just-in-time fabrication is throughput clip. This is the clip between the start of the fabrication procedure and the terminal, where the merchandise is ready to be shipped. Five cardinal elements are involved in throughput clip. The first component is treating clip, or the clip really spent working on the merchandise. Following is inspection clip and moving clip. Traveling clip is merely the sum of clip spent traveling the merchandise from one production section to another, every bit good as back and Forth from storage countries. The last two elements of throughput

clip are waiting, or queue, clip and storage clip. Queue clip is the sum of clip a merchandise is waiting at a production section before being worked on, while storage clip is the sum of clip natural stuffs, finished goods, and works-in-progress really stay in storage. Just-in-time doctrine says that the first component, processing clip, really adds value to the merchandise,

while the last four cardinal elements do not.1 Therefore, there are value-added activities and nonvalue-added activities. Just-in-time fabrication attempts to diminish the sum of clip spent on nonvalue added activities every bit much as possible. Just-in-time doctrine was foremost used by Toyota in Japan. Since that clip, many companies around the universe have begun to successfully implement just-in-time procedures, including several companies in the United States. The execution of just-in-time procedures have taken on a familiar form in these companies. Normally it is begun by developing everyone in the company about the just-in-time doctrine. The basic just-in-time constructs that employees would be trained in and made to follow as guidelines are listed in Table I.

Table I

* Visualize the procedure in as few stairss as possible.

* View stock list as moving, non inactive.

* Emphasis should be placed on the synchronism of each procedure.

* Simplify, combine, extinguish

* Wastes are: over and under production, unneeded stairss, and inordinate

stock list and motion.2

These basic thoughts are non alone to just-in-time, but are important in developing employees about the just-in-time doctrine. Most companies have realized now that the just-in-time doctrine is an of import constituent in the thought of entire quality direction. Entire quality direction has the same ends as just-in-time, but besides seeks as few mistakes as possible between each phase of production. Just-in-time doctrine is a tool that top-level directors use to implement entire quality direction. Most companies today seek this execution, and follow the undermentioned stairss.

The first measure to implementing TQM/JIT fabrication is to develop the top direction in the basic constructs of these thoughts. Once this is accomplished, the following measure is to organize a top-level squad. This squad & # 8217 ; s duties include make up one’s minding upon an organisational construction and

developing a program to implement TQM/JIT within the company. This program should include the company & # 8217 ; s ends refering production, every bit good as how to set up this program among all employees ( i.e. motive and subject ) . This program should so be used to set up the overall doctrine of the

company refering TQM/JIT.3 Next, the system should be implemented to every facet of the company from provider to distributers. First, each section should set up its ends and a specific job to assail. Then, a squad should be chosen by each section and squad leaders established. The squads should concentrate on the decrease of costs and the riddance of wastes. Datas must so be collected on the squads & # 8217 ; jobs. This information should be plotted in order to happen extra waste or costs. Once this is done, measurings should be made every bit far as mean costs, rhythm times, and mistake rates. Manipulation of this information should demo at least some evident jobs in the current system. Further analysis should assist in the execution of TQM/JIT by demoing job countries. In add-on, the informations could be used to demo the effects of implementing TQM/JIT into the company.4 After the beginning of execution, it is important that every employee believe in the constructs listed in Table I. Otherwise, the system could neglect. Once implemented, though, just-in-time systems must be continually monitored and preventive actions performed. For case, if a mistake in a merchandise is discovered because of a faulty wire, that axial rotation of wire is removed. In a complete just-in-time system, nevertheless, the procedure does non halt at that place. The director would look into the warehouse and determine if there were any more axial rotations of faulty wire. If he discovered any, so those would be thrown out every bit good. Then, the director would reach the provider which sold the company the faulty wire and inform him of the state of affairs, hopefully to forestall any more cargos of defective wire. By making all of this, the director prevents any backlogs and waste in the hereafter. With the just-in-time system, every facet of the company is continuously running. The just-in-time system helps companies spotlight those countries that are falling behind and necessitate betterment. There are methods by which a company can execute preventive care. The first is through be aftering a well-developed, goal-oriented. Second, the direction of each section should work together to seek and extinguish jobs, and non put incrimination on any one section. Blame has ne’er accomplished anything, and hence is a nonvalue-added point. Following,

interior decorators should be knowing of fabrication demands and restrictions so that there is non a contradiction between designs and existent merchandises. This consequences in waiting clip, another nonvalue-added point. Last, but most of import, is ample preparation. Employees that have been trained

exhaustively can manage minor jobs on the topographic point without holding to keep up the full fabrication procedure and call for a director. Employees without such preparation are jobs waiting to happen.5 Once all of the preparation, end scene, and squad forming are complete, the clip has eventually come to implement the TQM/JIT system. Once implemented, a company must happen a manner to form all of the squads, including who is on what squad and what their ends are. In order to make this, some companies have developed what is called a squad trailing and position study. An illustration of this sort of study is shown in Table II.

Table II6

Status Phase Meeting Main

Name of Team A B C D Leader Time Goal

Top-Level Non-Applicable R. Wilson Mon 1pm System Implem.

& A ; Management

Corrective Action

Supplier Mgmt X X X R. Klimo Mon 10:30 Improve Vendor

Performance

Excess Inventory X X X X BG Thur 7am Reduce Excess

Inventory

Glass Stains X RC Wed 8:30 Reduce Stains

from Curr. Degree

Functional Improvement

Secretary X X D. Boggs Tues 9am Improve Copier

Effic. & A ; Qual

Engineering X X X X PW Tues 10am Reduce Doc.

Mistakes

Cust. Service X B. Murray Thur 8am Reduce Gross saless

Order Cycle

Time & A ; Defects

Buying X X X X R. Klimo Fri 7:30 Improve

Qual of

Requisitions

Qual Engineering X X X X J. Fish Wed 10am Reduce Planning

Defects

JIT Line A X X X B. Yong Tues 1pm Reduce Lint in

Coil Defects

JIT Line C X P. Tipa Tues 2pm Reduce Chip

Defects

Particular Teams

KANBAN H. Wong Tues 8am Rebalance JIT

Line A

Setup G. Knodel Fri 8am Reduce Tester

Setup Times

SPC K. Gangkai Mon 4pm Move SPC In-

Line for JIT

Line F

As indicated in Table II, many squads are required to successfully run a

TQM/JIT operation.

Now that we have discussed how just-in-time doctrines can be

implemented along with the full sum quality direction strategy, it can

be questioned whether or non big United States companies can wholly

implement just-in-time systems. The reply is yes.

Before the thought of just-in-time was widely accepted, economic

recessions and recoveries played mayhem with American concerns. During a

period of economic wellbeing, for illustration, a company would expect

farther economic growing and carry both labour and merchandises. This was a

all right thought, until the economic system hit a recession. Companies were stuck with

tremendously big stock lists and low client demand. The lone manner

companies could react was to cutback on labour, ensuing in big layoffs.

Then, one time the economic system took an upswing, companies were finally faced

with labour deficits, and big graduated table hiring began. This rhythm continued

each clip the economic system fluctuated. That is, except for companies who

decided to implement just-in-time fabrication, which broke the rhythm. As

more and more companies bought into the just-in-time doctrine, & # 8220 ; the

consequence was smaller stock lists of both parts and concluding products. & # 8221 ; 7 With

smaller stock lists, one million millions of dollars were freed up for investing intents.

This protects companies during the thin old ages when demand may transcend

production.

This besides means that with such small room for stock list mistake, one

error could intend 1000s in lost grosss. For illustration, in 1993, one

General Motors engine works in New York had repeated production

jobs. This resulted in the underproduction of 90,000 autos. Still,

General Motors is wholly dedicated to the just-in-time doctrine. This

strong belief held in TQM/JIT by General Motors, every bit good as 1000s of

United States companies, may better the state & # 8217 ; s economic system over the long

haul.8

Some companies have found ways to put the loads of gauging

gross revenues and maintaining the exact sum of stock list upon person else. These

companies have paid & # 8220 ; middleman & # 8221 ; companies a specific sum to be in

charge of their stock lists. One such & # 8220 ; middleman & # 8221 ; company is Owens & A ;

Minor, a infirmary supplies distributer. For illustration, UCLA Medical Center

allowed Owens & A ; Minor to purchase their stock list. Owens & A ; Minor workers

take day-to-day stock list and study to the place office what each person

infirmary demands for the following twenty-four hours. The points are delivered, and all UCLA

Medical Center has to make is pay for the points it uses, thereby salvaging 1000000s

on stock list costs. In add-on, Owens & A ; Minor works with the infirmary to

happen unneeded points and assist extinguish waste, maintaining costs to a

minimum.9 This coincides with the rules of the just-in-time doctrine.

Harmonizing to recent surveies, just-in-time systems have helped maintain

stock lists of American companies down. Ratios of inventory-to-sales have

been worsening for the past four old ages. However, due to the economic system turning

really easy, finished goods stock lists have increased over the past year.10

To battle this growing, companies have turned to bettering their

dealingss with their providers. By sharing gross revenues prognosiss every bit good as

production prognosiss with their providers, stuffs are shipped harmonizing to

the demand from the company. For illustration, say an car production

company produces one hundred autos in a twenty-four hours. They will necessitate two hundred

pail seats. They will put an order to their providers for two hundred

seats within a certain, preset clip period. This clip period allows

for the seats to get the twenty-four hours that they are needed, hence, no seats will be

placed in stock list. This sounds fantastic, but companies still must do

estimations many months before manus utilizing an unstable economic system. This means

that some companies may stop up with gross revenues estimations that are over or under

existent gross revenues.

This brings us back to the overall construct of just-in-time being a tool

used in entire quality direction. Take, for case, American Standard,

Inc. American Standard manufactures bathroom fixtures, air conditioning

units, and braking systems for autos. They believe that this type of

fabrication is demand-driven by their clients. This demand-flow type

of production tantrums right in with the construct of entire quality direction.

American Standard besides believes in leting their workers to pull off their

ain production procedure. This was non ever the instance, nevertheless. American

Standard began to implement just-in-time systems every bit early as 1979. It met

with moderate success, but when the recession of 1990-91 hit, they had debt

in surplus of three billion dollars. That is when they decided to implement

entire quality direction, and utilize just-in-time as a major tool. Through

demand-flow fabrication, efficiency improved and rhythm clip decreased.

In add-on, stock list and waste besides declined. American Standard believes

in the doctrine of bettering dealingss with providers, but it besides believes

in demanding entire quality control from its suppliers.11 With American

Standard, every bit good as other companies, take a firm standing on TQC from their providers,

the entire quality direction thought is being dispersed nationally.

Just-in-time systems are being implemented in most companies,

though some more than others. Those companies that acknowledge

just-in-time doctrines and implement them to the full as portion of a complete

entire quality direction system are rapidly going participants in the universe

market. Those companies that do non implement entire quality direction

with an accent on just-in-time systems may be left behind as we go into

the 21st century.

1. Polimeni, Ralph S. , et. al. , Cost Accounting, Third Edition ( New York:

McGraw-Hill, Inc. , 1991 ) 446.

2. Ryan, John M. , The Quality Team Concept in Total Quality Control

( Milwaukee: ASQC Quality Press, 1992 ) 17.

3. Ryan, 11.

4. Ryan, 11.

5. Ryan, 29-30.

6. Ryan, 54-55.

7. Howard Gleckman, & # 8220 ; A Tonic for the Business Cycle, & # 8221 ; Business Week

April 4, 1994: 57.

8. Gleckman, 57.

9. Suzanne Oliver, & # 8220 ; Cut Costs, Add a Middleman, & # 8221 ; Forbes April 25, 1994:

135.

10. David Fischer, & # 8220 ; Siting on Excess Supplies, & # 8221 ; U.S. News & A ; World

Report September 18, 1995: 88.

11. Michael Barrier, & # 8220 ; When & # 8216 ; Just In Time & # 8217 ; Just Isn & # 8217 ; t Enough, & # 8221 ; Nation & # 8217 ; s

Business November 1992: 30-31.