Importance of JIT in Modern Organisation Essay

The philosophy of just-in-time (JIT) originated in Japan 50 years ago at Toyota Motor Co. The determination is to create a intersectionion environment driven by demand that holds only a miniature amount of armoury and products at any effrontery time. Organizations in the manufacturing, service and public sectors are implementing a wide variety of innovative managerial tools and JIT philosophy to help them deal with the highly competitive, customer-driven environments in which they must(prenominal) operate. External relationships, for example with vendors and transportation carriers, stick critical for effective support of JIT carcasss. Co-ordinate such relationships and interactions introduces additional complexity into the organisation.Many companies now operate in a global environment that offers both threats and opportunities to their very survival. This global environment changes at an ever increasing rate and manufacturing organisations need to be able to oblige to thos e changes very lovesomely or they testamenting succumb to their competitors. This paper clarifies the basic features of JIT and their benefits to cheeks. The paper illustrates some advantages of using JIT establishment in coif to emphasis the enormousness of adopt this system. Therefore, the purpose of this article is to advocate the JIT systems through analyse the current problems in most organizations.INTRODUCTIONJIT manufacturing has the capacity, when properly adapted to the organisation, to strengthen the organisations competitiveness in the marketplace substantially by reducing wastes and improving product quality and efficiency of production.JIT manufacturing is a philosophy by which an organization seeks continually to improve its products and processes by eliminating waste (Ptak, 1997). It is a systems approach to quail stock and eliminate waste, thus to produces only unavoidable items in required quantities at necessary times. It has been widely implemented in ma nufacturing industries as a survival strategy against global market competition. JIT offers various benefits, such asgreater throughput, higher productiveness and ruin quality. In this paper, the designer will start from the basic elements of JIT, and batch sizing discussion will be fol first geared in section 2. sectionalisation 3 will clarify two basic methods of JIT which bunghole be aimd to overcome the local versus gild-wide dilemma. The relationship of ERP and JIT will be mentioned in Section 4. Section 5 will illustrate outcomes of JIT to a supply chain of company.1. FUNDAMENTAL FEATURES OF JITJIT composes of ten basic elements which areFlexible resourcesCellular layoutsPull production systemKanban production containSmall-lot productionQuick setupsUniform production levelsQuality at the sourceTotal productive guardianshipSupplier networkThe author will illustrate each of these elements and their outcomes for JIT system._Flexible Resources_It is recognized as a key ele ment of JIT which requires workers with the qualification to perform more than one job and general-purpose machines with the ability to perform several basic functions. With single workers operating multiple machines, the machines themselves in like manner required some adjustments. Extra tools and fixtures were purchased and placed at their omen of use so that operators did not have to leave their stations to retrieve them when need. The company uses of JIT system merchant ship reduce the waste of movement to early(a) machines, setting up other machines and hold ining at other machines can also be eliminated._Cellular layouts_It creates manufacturing cells that comprise of dis resembling machines brought together to manufacture a family of parts. The layout of machines within the cell resembles a small assembly line and is usually U-shaped. Work is moved within the cell which in normally in one direction and experiences little wait. In a one-person cell, the cycle time of the cell is determined by the time it takes for the worker to spot his or her path through the cell. It means even disparate items produced may take antithetic time to complete the time between successive items leaving the cell remains virtually the same because the workers path remains the same._Pull system_It emphasizes the supermarket approach and relies on customer requests to curl products/components through the system. Workers take only those parts or materials they need and can process immediately. The system avoids overproduction and only necessary quantities are produced._Kanban Production Control System_Kanban is a pull system which is driven by the demand at the lowest point in the chain.(Christopher, p186, 1998) A kanban contains such information as part number, description, type of container, unit load, precedingstation, and subsequent station. In a Kanban system the aim would be to produce only that quantity needed for immediate demand. It provides a simple and und erstandable process, quick and precise information with lower bell, avoid overproduction and substitute the responsibilities to line workers._Small-lot production_It requires slight space and capital investment. Incorporate the production of small amounts at a time can allow processes to be moved close set(predicate) together and transportation between stations can be simplified. The quality problems are easier to detect in small-lot production. Lower inventory levels make processes more subordinate on each other. In short, small-lot production will help people to grip the errors and solve the problems quickly._Quick Setups_It incorporates a system called SMED (single minute exchange of dies) that focuses on the principles for quick set-ups. The system differentiates between internal and external set-up, where internal set-up can be performed only when the machine is stopped, and external set-up can be performed while the machine is operating. It qualify internal set-up to ex ternal set-up._Uniform Production Levels_It is achieved by smoothing the production requirements on the final assembly line. It aims to reduce variability through more accurate forecasts, smoothing of demand and incorporating mixed-model assembly steadying component production._Quality at the Source_One of the most important issues of just-in-time is quality. Just-in-time companies should follow the concept of quality at the source, or doing it right the first time passim all areas of the organization. Just-in-time can only be successful in a company that is already producing quality goods.A quality at the source (jidoka) computer program must be implemented to give workers the personal responsibility for the quality of the work they do, and the authority to stop production when something goes wrong._Total Productive Maintenance_It refers to the practice of preventive maintenance with the concepts of radical quality employee involvement, purposes based on data, zero defects, an d a strategic focus. The goal of TPM is zero breakdowns._Supplier Networks_A network of reliable suppliers is also essential to JIT. An organization will reap many benefits in foothold of speak tos and time savings by reducing the number of suppliers and improving relationships with these valued partners in the JIT manufacturing process. The company and the supplier both benefit from just in time systems. The company benefits because of trim down cost. The supplier benefits by long-term profession relationships with companies as long as they continue to supply quality products on time.2. BATCH SIZE DELEMMALarge batch size can reduce set-up cost per unit, however, the carrying cost of it must be higher due to the higher inventory. Large batch inventory may hide many quality problems and only become visible when downstream customers bear witness to use and it does not fit. A large batch size will tend to create long waiting time delays as large jobs wait in queue behind large job s being processed. Thus, a longer average job queuing time will result from either batch size that are too small (an excessive amount of machine time is consumed by setups), or batch size that are too large (large jobs waiting in queue behind other large jobs).It means large batch can result of a number of difficulties, including lengthy setups, long queues at work centers, material waiting to be moved to the next operation, long distances between work centers, uneven hemorrhoid from one period to the next, equipment and workers with limited flexibility, unpredicted equipment failure, and largesafety stocks to cover possible scrap. Lets consider how the JIT approach can solve some of these difficulties.JIT philosophy the requirement is for small shipments to be made more frequently and to meet the precise time requirements of the customer. (Christopher, p188, 1998) Smaller batch sizes are desirable because they lead to such benefits as shorter lead times, less work in process, fewe r space requirements, and less scrap and rework. With all the machines located close together in the cell, material handling is greatly reduced.Moreover, control of parts flows and scheduling within the cell are simplified, as is tracking the status of jobs. Also, small batch size leads to lower inventory, which will make it easier to discover the problems. Lower inventory makes reliable continuous flow delivery. Although small batch size usually needs more money on set-up cost per unit, the carrying cost of it must be lower due to the small-lot production.3. JIT OVERCOMES THE LOCAL VERSUS COMPANY-WIDE DILEMMAJIT focuses on total employee involvement, not on the local or departmental resources, This principle can be found through analyzing the two basic elements of JIT-Kaizen and Group Technology.Kaizen is the Japanese term for continuous improvement. It is both a rigorous, scientific method using statistical quality control (SQC) and an adaptive framework of organizational values a nd beliefs that keep workers and management alike focused on zero defects. It is a philosophy of never being satisfied with what was accomplished last week or last year. It is the team responsibility to improve current systems and procedures. Management, staff, and labor must participate.It need total employee involvement, that is, participation of every employee at every level. To be able to establish a JIT manufacturing system, every department should have some commitment to align with a common goal. The companys top management must also support this goal in effectuate to have resources and time allocated to developing the necessary systems and procedures.The Kaizen cycle has four stepsEstablish a plan to change whatever needs to be improved.Carrying out changes on a small scale. commemorate the results,Evaluate both the results and the process and determine what has been learned.Group technology seeks to improve productivity by mathematical conventioning parts and products wit h similar characteristics into families and forming production cells with a group of dissimilar machines and processes. The aim of group technology is to makes it possible for a firm to achieve higher levels of flexibility without increasing production costs or sacrificing product quality, thus leading to an improved competitive position for the firm. GT is the concept of exploiting similarities to achieve manufacturing and design efficiencies. For instance, the cells group dissimilar machines together to process a family of parts with similar shapes, the worked paths are given at the same time. The cycle time is also prescribed by the workers paths. The flexibility of this layout must be very much efficient. It is the group technology which makes the works independent to a department.4. JIT SYSTEM & ERPERP is an account-oriented information system for identifying and planning the enterprise wide resources needed to take, make, ship, and account for customers orders. The use of the system has the authority to convert supply chains into demand chains in the sense that the system can now respond to known demand rather than having to scream that demand through a forecast. (Christopher, p199, 1998) For many users, an ERP is a do it all system that performs everything from entry of sales orders to customer service The system integrated operations and reporting to initiate, monitor, and track critical activities such as order fulfilment and replenishmentprocessing. It is a method for the effective planning and control of all resources needed to take, make, ship and account for customers orders in a manufacturing, distribution, or service company. It attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments particular needs.JIT (just in time) is a philosophy based on the elimination of waste, an important component of JIT is kanbans which is a technique based on replacing mater ial that has been used but has no forward visibility. ERP systems improve efficiency of organizations and allow for more accurate information for decision makers to utilize. In connection with JIT process, ERP systems help to flatten an organization across the entire global enterprise by identifying business areas that are not adding value. Within the pull system, the production of a certain product starts on the demand or at the request of the buyer.It has been determined that the computer is the best source for determining when an order should be placed. Companies use ERP information system can link the replenishment of product in the market place with their upstream operations and those of their suppliers through the use of shared information. The system monitors and measures all aspects of production as the order proceeds through the various steps of the production cycle. The work order provides a complete audit trail which will come in handy later down the road.Presently, ERP i s considered the price of entry for running a business and for being committed to other enterprises in a network economy. As the business scale becomes global, and technology such as the Internet allows speedy and inexpensive communication, the use of ERP systems will be critical to an organizations success. e-commerce and supply chain management techniques, along with JIT, will be a push toward better information systems to better manage the organization and support customers and suppliers along the supply chain. In this growing global economy, the business that provides better product with better customer service will be the business that survives the increased competitiveness. Businesses can better provide for their customers by integrating the online shopping experience with automated ERP systems.5. JIT IN A COMPANY_Quick Response_QR has been delineate as a philosophical business umbrella, by which retailers decrease inventory levels while gaining greater customer delivery, thr ough innovative use of technology and business partnerships. There are many tools are used to create QR environment, which include bar code, POS and EDI. Manufacturers have turned to just-in-time (JIT) as their answer to the problem of managing inventories. They look to JIT to reduce lead time, eliminate waste, produce to customer demand, and develop long-term relationships with suppliers. In turn this will help manufacturers to satisfy the customers requirements with minimum levels of inventory and increase productivity. Retailers, assay for survival, also must find ways to substantially reduce their cost while improving customer service.One major coat incurred by retailers is the cost associated with carrying and handling inventory, which serves to satisfy customer demand. The volume of inventory the retailer carries is proportional to the sizes, styles, prices, models, colors, and so forth of the products and their total lead time. If lead time were zero, the inventory would be zero. Even though this is not practical, the shorter the lead time, the smaller total the inventory. Retailers are now adopting the philosophy that is referred to as Quick Response (QR). Quick response can be considered as a process that uses real-time or near-real-time signals to trigger replenishment responses in the supply chain for manufacturers or retailers. This will improve inventory turns, product allocation and replenishment times and helps retailers avoid running out of important stock.The basic idea behind quick response (QR) is that in order to reap the advantages of time-based competition it is necessary to develop systems that are responsive and fast. Hence QR is the umbrella term for the information systems and the JIT systems that combine to provide the right product in the right place at the right time. (Christopher, p192, 1998) In short, QR is the retailer sends a replenishment order to the supplier or manufacturer via electronic data hang on (EDI)._Vendor relatio nship_Companies with just in time production systems depend on suppliers to deliver quality goods on time. An organization will reap many benefits in terms of costs and time savings by reducing the number of suppliers and improving relationships with these valued partners in the JIT manufacturing process. Suppliers must deliver goods as frequently as required. Suppliers must make numerous deliveries each day in the exact quantity specified. Because of frequent deliveries, central receiving areas and warehouses are not needed. Several suppliers may combine their loads on one truck that will tour the supplier plants to pick up itmes for delivery to the customer. Meanwhile, the small warehouses could be used for frequently delivered items, and the consolidation warehouses could become load-switching points when geographic distances between supplier and customer prohibit daily deliveries.Generally materials are delivered straight to the area of the production process. The JIT approach p resents a very different perspective on the relationship. The JIT purchaser-supplier relationship is one of a partnership-in-profit creation. The cooperative relationship, on the suppliers side, insulates them from the full force of competition in the supply department of the market chain. This is particularly noticeable when the supplier is committed to only one, or at most, a few purchasers. The buyer, on the other hand, can benefit from the non-investment and low risks of this vertical integration. Companies must build relationships with suppliers. The company and the supplier both benefit from just in time systems. The company benefits because of reduced cost. The supplier benefits by long-term business relationships with companies as long as they continue to supply quality products on time.CONCLUSIONHence we can see that to have a Total JIT manufacturing system, a company-wide commitment, proper materials, quality, people and equipments must always be made available when neede d. In addition the policies and procedures developed for an internal JIT structure should also be extended into the companys supplier and customer base to establish the identification of duplication of effort and performance feedback review tocontinuously reduced wastage and improve quality.ReferenceChristopher, M., (1998), Logistics and supply chain management strategies for reducing cost and improving service (2nd Edition). Prentice Hall.Ptak, C., 1987, MRP and Beyond A Toolbox for Integrating lot and Systems, Irwin, Chicago, IL.