Just in Time Manufacturing - Essay Example

JIT manufacturing Name: Number: Course: Code: Lecturer: Date: Just in time manufacturing. Just in time (JIT) operational management is a management technique whose philosophy identifies that inventory is a waste of resources thus it aims to reduce the process that is involved in inventory and the cost involved in keeping of inventory. Its principle is to remove manufacturing and operation wastes by availing right quantity of raw materials at the right time so as to produce the right quantity and quality of products at the right time and in the right place. The technique was initially used in Japan after World War II, the country’s economy had been greatly affected by the war and therefore they needed a strong manufacturing technique that would aide them to regain their economy (Hirano & Makota, 2006). However the main issues that led to the development and adoption of this technique were the problems that were associated with existing techniques of operation and manufacturing. Such problems which included product defects, production and delivery delays, and inventory delays there was accumulation of unused inventory which was unproductive and required resources to manage and maintain them, this resulted in the break downs of equipment and uneven production (Rios- mercado & Rios-solis, 2011). JIT management technique uses signals between the different stations or points during the process operation. The signals inform the production team when to make the next part of the vehicle as is the case with the Toyota Company. These signals are in different forms from a simple message to a graphical image or visual component showing which part is missing and which one needs to be fixed. With correct implementation JIT is a technique that can efficiently improve the quality and efficiency of operations in a company by focusing on employee involvement, flow and quality. This will in turn save the company a lot on returns on investment (Hirano & Makota, 2006). JIT ensures that production and operations is a continuous process and at the same time minimizing costs related to inventory keeping , mechanisms are put in place in JIT technique to communicate to the necessary persons of the need for new stock, this saves warehouse cost and space and at the same time reduces inventory and associated costs. In simple terms what is needed is ordered when needed and at the right time and place (Davy & White, 1992). The technique has five steps for the introductory phase (Marilyn, 2006); The first step is the awareness revolution step that involves abolishing of previous techniques and using JIT technique, for this step several improvement are to be realized, first is to assume the adopted technique will work then abolishing old concepts, the new concept shouldn’t be seen as seeking perfection but trying to have zero defect and if not then minimize the defects. Mistakes should be correct immediately they are identified. The reason for abolishing the old concepts is in the case of large lot production (Marilyn, 2006). The second step according to (Hirano & Makota, 2006) is the 5S’s for the work place improvement: In this step five key factors are implemented that are geared towards improvement of operations in the work place. The 5S’s stand for: Seiri - Proper Arrangement; this involves identifying the needs of the company sorting what already exists and eliminating the unnecessary things. This enhances the knowledge of inventory status and reduces cost (Hirano & Makota, 2006). Seiton – Orderliness; which entails putting things in order. It essentially means ensuring order in the work place (Hirano & Makota, 2006). Seiso – Cleanliness: Seiketsu – Clean-up; ensuring equipment and tools are maintained. Shitsuke – Discipline; involves adhering to the rules and regulations of the company. As part of an improvement program these five principles should be implemented company wide. The third step is Flow manufacturing; which is basically producing a single entity of the final product at a time but ensuring flow of which part or entity is to be produced next. To ensure proper flow manufacturing the company should arrange machines in sequence and have a U- shaped production line, produce one piece at a time, follow the cycle time, use smaller and dedicated machines and train workers to be multi-skilled (Martin, 2001). The fourth step is the Standard operations; this means production of quality products safely and at a cheaper expense through the use of methods procedures and rules of arranging machines, people and products. The standard operations stage has four major basics that guide the operations this are cycle time, work sequence, standard stock – on- hand and use of operation charts (Marilyn, 2006). The last step in the phase is multi process handling; this essentially means that one worker is in charge of more than one processes in the operation. To effectively execute this step; workers and machines should be clearly assigned their responsibilities, multi skilled workers should be employed, the company should utilize the U shaped cell manufacturing and finally the operation should be able to handle multi- machine handling and multi process handling. Multi machine handling is the ability of the worker to handle more than one machine whereas multi process handling is the ability for a worker to handle several processes at once this is basically the basis for just in time production (Marilyn, 2006). These five steps are the theoretical and practical basis for introducing JIT; implementation cannot be achieved before following these steps (Shim & Siegel, 1999). In a case study of Toyota Company the company emphasizes more on low inventory levels theoretically the JIT technique major focus is to reduce the overheads associated with keeping of inventory. Practically the reason for the low inventory levels is probably due to the high cost of space in most Japanese cities (Hirano & Makota, 2006). The theoretical models of the JIT have three major elements: according to. (Barnes, 2008) These elements of manufacturing are; involvement of people, plants and system. It is important to have a good support and agreement with the people in charge of operations in the company this is important for the process of practical implementation since it reduces complications associated with implementation, the people involved in the process include stakeholders and proprietors, all levels of management and government agencies (Barnes, 2008). In order to implement the JIT technique practically, the plant layout, demand pull production to manage the quantity and time; plant self-inspection to identify mistakes, and continuous improvement of the plant has to be considered. This is the most important concept of JIT. This can allow an organization to improve its productivity, service, operation and even customer satisfaction in an on-going basis (Davy & White, 1992). (Paycraft, 2000) identifies several Benefits associated with the JIT technique which include; Improved flow of goods and equipment; there is reduction in delays in the movement of raw materials from source to destination and eventual movement of products (Paycraft, 2000). JIT reduces the setup time thus allowing the company to eliminate inventory for changeover time. Employees who have multiple skills are utilized to work on different parts of the operation process. The company can move these workers to where they are needed. The production scheduling and work hour consistency synchronized with demand hence saving company money either by not having to pay workers overtime or by having them focus on other work or participate in training (Paycraft, 2000). Supplier relationship with the company is enhanced as the supplier is needed several times in the production process. The supply of raw materials must be synchronized with production this is to ensure the amount of inventory is on hand and at any time. It minimizes on storage space needed thus breaking and expiry of inventory is minimized. However some limitations are associated with JIT; There is a cultural difference varying within firms, some favour the implementation of JIT while for others it becomes an obstacle to its implementation (Martin, 2001). Different ways of implementing JIT due to its origin in Japan thus its implementation in other countries varies (Barnes, 2008). Some companies have need for backing up of inventory in case of shortage .thus requiring extra storage space and cost such companies may find it difficult to use the JIT technique (Slack, Chambers, & Johnston, 2010). There is possible loss of individual, team and Method autonomy due shorter cycle ties, decreasing buffer inventories, and worker response to problems respectively (Stevenson, 2005). There is resistance to change by most employees as a result of human nature to resist change (Slack, Chambers, & Johnston, 2010). Both JIT and MRP operational management techniques are intended to enhance the efficiency in the manufacturing or production of goods. They are both computer based, bottom up manufacturing approaches which involve the use of machines for the production process (Shim & Siegel, 1999). However the two have several distinctions the MRP technique utilizes larger machines which are grouped together according to type, processes are handled singularly by single skilled workers. Inventory is accumulated between processes and inspection is done at the final stage of production (Stevenson, 2005). On the other hand the JIT technique uses different smaller machines that are grouped together into one cell unit, handles multi – processing that are handled by multi skilled workers. There is minimum or no inventory and inspection is done after every process (Davy & White, 1992). The two techniques can be merged to create and hybrid this can be done by having two plans a production plan that will entail management and planning of resources with available capacities. The other is a master production schedule that will indicate what products are to be produced and at what time (Barnes, 2008). Most companies in this current time are reducing on inventory in order to improve on the efficiency thus most are embracing just-in-time inventory practices. It is logical that more inventories are an unnecessary expense to a company, the accumulation of inventory may become a tragedy to a company thus companies are reducing the inventory in order to control production efficiently (Slack, Chambers, & Johnston, 2010). One most important thing the companies should consider while implementing the Just In time operation technique is to have a good relationship with their suppliers since the company will require flexible, stable and efficient supply of materials during the operation, the companies should also prepare a disaster plan in case of failure at any point of the process, they should also come up with cost reduction strategies. It is important that they also develop a long term continuity plan. It is also important that the company identifies alternative suppliers in case of problems in supply of materials (Barnes, 2008). References Barnes, D. (2008). Operations management: an international perspective. Cengage Learning. Davy, J. A., & White, R. E. (1992). A derivation of the underlying constructs of Just In Time operational management. The Academy of Management Journol , 653-655. Hirano, H., & Makota, F. (2006). JIT Is Flow: Practice and Principles of Lean Manufacturing. PCS Press, Inc. Marilyn, M. H. (2006). lean manufucturing and Just In Time production. Retrieved february 20, 2012, from enotes: http://www.enotes.com/lean-manufacturing-just-time-production-reference/lean-manufacturing-just-time-production Martin, J. R. (2001). MANAGEMENT AND ACCOUNTING WEB. Retrieved February 20, 2012, from http://maaw.info/Chapter8.htm#The%20JIT%20Practices Paycraft, M. (2000). Operations management. South Africa: pearson publishers. Rios- mercado, R. Z., & Rios-solis, Y. A. (2011). Just-in-Time Systems. Springer. Shim, J. K., & Siegel, J. G. (1999). Operations Management. Barron's Educational Series. Slack, N., Chambers, S., & Johnston, R. (2010, march 4). Home:student resources. Retrieved February 20, 2012, from Pearson Education: http://wps.pearsoned.co.uk/ema_uk_he_slack_opsman_4/17/4472/1145076.cw/index.html Stevenson, W. J. (2005). Operations Management. Boston: Irwin/McGraw-Hill. Read More