The system is on time. Presentation on the topic "Just-in-time"

The term "just-in-time" (just-in-time - Jit) is used in relation to industrial systems in which the movement of products during production and delivery from suppliers is carefully planned in time - so that at each stage of the process the next (usually small) batch arrives for processing exactly at the moment when the previous batch is completed. Hence the name just-in-time (right on time, only on time). The result is a system in which there are no passive units awaiting processing, as well as idle workers or equipment awaiting processing products.

Just-in-Time Phenomenon ( Jit) is characteristic of production systems that operate with a very small "fat reserve" (for example, excessive material reserves, excess labor, excess production space). JIT refers to the distribution in time of movement through a system of parts and materials, as well as services. Companies using the JIT approach usually have a significant advantage over their competitors, which use a more traditional approach. They have lower production costs, less rejects, higher flexibility and the ability to quickly market new or improved products.

Introduction

The just-in-time approach was developed at a Japanese automobile company Toyota. Its author is Taiishi Ono (who eventually became vice president of the manufacturing company) and several of his colleagues. To the fact that   Jit   It was developed precisely in Japan, probably influenced by the fact that Japan is an overpopulated country with very limited natural resources. It is not surprising, therefore, that the Japanese are very sensitive to waste of materials, time and money, and to labor inefficiency. They regard marriage and defect correction as unreasonable costs, and stocks as evil because they occupy space and link resources.

It is widely believed that the system Jit - it’s just an appropriate production planning, the result of which is a minimum level of work in progress and inventories. But in essence, JIT is a philosophy that embraces every aspect of the manufacturing process, from product development to product sales and after-sales service. This philosophy seeks to create a system that works well with minimal inventory, minimal space, and minimal office work. This should be a system that is not amenable to failures and violations and is flexible (in terms of changes in the range of products and production volume). The ultimate goal is to get a balanced system with a smooth and fast flow of materials through the system.

In systems Jit, the quality is “integrated” both in the product and in the production process. Companies that use the JIT system have achieved a level of quality that allows them to work with small production lots and a busy schedule. These systems have high reliability, the main sources of inefficiency and disruption are excluded, and workers are trained not only to work in the system, but also to continuously improve it.

Just-in-Time Objectives (JIT)

The ultimate goal of the system Jit- it is a balanced system; that is, one that provides a smooth and fast flow of materials through the system. The basic idea is to make the process as short as possible using resources in an optimal way. The degree of achievement of this goal depends on how much additional (auxiliary) goals are achieved, such as:

1. To exclude failures and violations of the production process.

2. Make the system flexible.

3. Reduce preparation time for the process and all production times.

4. Minimize inventory.

5. Eliminate unreasonable costs.

Malfunctions and process disturbances have a negative effect on the system, disrupting the smooth flow of products, so they must be eliminated. Disruptions are caused by a wide variety of factors: poor quality, equipment malfunction, changes in schedules, late deliveries. All of these factors should be eliminated whenever possible.

Preparation time and production times lengthen the process without adding anything to the cost of the product. In addition, the duration of these terms adversely affects the flexibility of the system. Therefore, their reduction is very important and is one of the goals of continuous improvement.

Inventories are unused resources that take up space and increase production costs. They should be minimized or eliminated if possible.

Unreasonable expenses represent unproductive resources; eliminating them can free up resources and expand production. In philosophy Jit   unreasonable expenses include:

• Overproduction
• Waiting time
• Waste transportation
• Inventory storage
• Marriage and waste
• Inefficient working methods
• Product defects

The presence of such unreasonable expenses indicates the possibility of improvement or the list of unreasonable expenses determines the potential goals of continuous improvement.

Forming Blocks

Design and production in the system Jitconstitute the basis for fulfilling the above objectives. This base consists of four forming blocks:

1. Product development.

2. Process development.

3. Personnel / organizational elements.

4. Planning and production management.

Speed \u200b\u200band simplicity are two common elements that go through these forming blocks.

1. Product development.Three elements of the product design are key to the on-time system:

1. Standard accessories

2. Modular design

3. Quality

The first two elements are related to speed and simplicity.

The use of standard components means that workers deal with fewer parts, and this reduces the time and cost of training. Procurement, processing and quality control are more standard and enable continuous improvement. Another important advantage is the use of a standard processing procedure.

Modular design is a kind of extension of the concept of standard components. Modules are groups of parts assembled into a single unit (and therefore representing a separate unit). This greatly reduces the number of parts that you have to work with, simplifies assembly, procurement, processing, training, and so on. Standardization has the added benefit of reducing the length of the list of materials for different products, i.e. simplifying this list.

The disadvantages of standardization are that the products are less diverse and resist changes to their standard designs. These inconveniences are somewhat reduced where various products have common parts or modules. There is a tactic that is sometimes called “delayed differentiation”: decisions regarding which particular products will be put into production are delayed until standard parts are manufactured. When it becomes apparent which products are needed, the system quickly responds by producing the remaining non-standard parts for those products. Quality is the essential prerequisite of a just-in-time system. It is vital to systems Jitas poor quality can cause serious disruptions in the manufacturing process. The system aims at a smooth flow of work; the appearance of problems due to poor quality causes failures in this stream.

Since the small size of the production lot and the lack of reserve stocks result in a minimum amount of work in progress, the production process is forced to stop when a problem arises. However, it cannot resume until the problem is resolved. It is obvious that stopping the entire process is very expensive and reduces the planned level of output, so it is absolutely necessary to avoid stopping the system and quickly solve problems if they occur.

Systems Jit   use a three-step approach to quality. The first part is to introduce quality into the product and into the production process. A high level of quality is achievable because "precision" systems produce standard products, using respectively standard working methods and standard equipment, workers are used to their production operations and know them well. In addition, all the costs of the quality of the project (i.e. the formation of product quality at the project stage) can be distributed to many products, while receiving a small unit cost of the product. It is very important to choose the appropriate level of quality from the point of view of the end user and production capabilities. Thus, product design and process development must go hand in hand.

2. Process development.   For "precision" systems, seven aspects of product development are especially important:

1. Small production lots

2. Reducing production preparation time

3. Production cells

4. Limitation of work in progress

5. Improving quality

6. Production flexibility

7. Small inventories

The small volume of the production batch and the procurement batch gives a number of advantages that allow the systems Jit   function efficiently. Firstly, when small production lots are transported through the system, the volume of work in progress (i.e. materials that are in the process of processing) is significantly less than with large lots. This reduces the cost of storage, requires less storage space, and does not create excessive workload space at the workplace. Secondly, when quality problems arise, the costs of inspection and rework are less, since there are fewer units in each batch that require inspection and processing. In addition, small batches provide greater planning flexibility.

A small volume of a production batch and a changing assortment of products require frequent re-equipment and readjustment of equipment (i.e. preparation for production). If such training cannot be done quickly and relatively inexpensively, time and costs will become inhibitory factors. Often workers are trained to prepare their equipment for the production process themselves. In addition, special programs are used to reduce the time and cost of preparation for production; while workers become a valuable part of the process.

In addition, to reduce the time and cost of training, you can use a grouping of technologies - a combination of similar operations. For example, the production of various parts that are similar in shape, material, etc., may require the same type of (similar) preparation. Their sequential processing on the same equipment can reduce the necessary changes; only minor adjustments are required.

A common feature of "precision" systems is the multitude of production cells. They combine equipment and tools for processing a group of parts with similar technological requirements. At their core, cells are highly specialized and efficient manufacturing centers. Among the most important advantages of production cells: the time to switch to a new type of product is reduced, equipment is used efficiently, and it is easier for workers to master related specialties. The combination of high efficiency cells with small sizes of production lots leads to a minimum volume of work in progress.

Continuous quality improvement is often aimed at finding and eliminating all the causes of problems.

Just-in-time systems are designed to minimize inventories. According to philosophy Jitstockpiling - meaningless expenses. Stocks are buffers that hide recurring problems. These problems cannot be solved - partly because of the fact that they are hidden, and partly because having a reserve stock makes them less serious.

Using the approach Jitgradually lower inventory levels to open problems. When problems are discovered and resolved, the level of stocks is again lowered, the next layer of problems is found and solved, etc.

Personnel / Organizational Elements

There are five staffing and organizational elements that are particularly important for JIT systems.

1. Workers as an asset

2. Training workers in related specialties

3. Continuous improvement

4. Accounting

5. Enterprise / project management

Fundamental principle of philosophy Jit- consider workers the active capital of the enterprise. Well-trained and motivated workers are at the heart of the system. They have more decision-making authority than their counterparts in traditional systems, but they expect more from them accordingly.

Workers are trained in related specialties to perform several elements of the process and work on a variety of equipment. This gives the system additional flexibility, because workers can help each other in the event of “congestion” in the production process or replace an absent colleague.

Workers in the system   Jit   are more responsible for quality than workers in traditional systems. They are expected to participate in solving problems in the process of continuous improvement. Workers in JIT systems typically receive extensive training in statistical process control, quality improvement, and problem solving.

Another characteristic feature of “precision systems” is the way in which overheads are distributed. Traditional accounting methods sometimes distort the distribution of costs because they are distributed on the basis of the hours worked directly.

Another feature of just-in-time systems is management related. The manager is required to be a leader and an assistant, and not just give orders. Bilateral relations between managers and workers are strongly encouraged.

Production Planning and Management

5 elements of production management and planning are especially important for JIT systems:

2. The system of movement of work.

3. Visual systems.

4. Close relationships with suppliers.

5. Reducing the number of operations and the volume of office work.

The main focus in systems Jit   made to achieve stable, balanced work schedules. To this end, the main production schedules are designed to ensure uniform workload of production capacities.

The terms “pull” and “push” are used to describe two different ways of moving work through a production system. In the "push" systems (push system), at the end of work at the production site, products are pushed to the next site; or, if this operation was final, finished products are pushed to the warehouse of the final product.

In "pull" systems (pull system), the movement of work is assigned to the subsequent operation: each work site, as necessary, "attracts" products from the previous site; products from the final operation are “pulled” by the request of the consumer or the control schedule. “Accurate systems” use a “pulling” approach to control the flow of work when each work site releases products in accordance with the request of the subsequent work site. Traditional production systems use a “push” approach to push work through the system.

Typically, exactly-on-time systems have very close relationships with suppliers, which must ensure frequent deliveries of small batches of high-quality products. In the traditional production system, buyers themselves monitor the quality of the purchased products, checking the supply batches for quality and quantity, and returning low-quality goods back to the supplier for revision and replacement. In "precision" systems, there is practically no reserve time, therefore low-quality products disrupt the smooth movement of work through the system.

Moreover, checking incoming purchases is considered a waste of time, because it does not add anything to the cost of the product. For this reason, the obligation of quality assurance is transferred to suppliers. Buyers work with suppliers, helping them achieve the required level of quality and realize the importance of producing consistent high quality products. The ultimate goal of the buyer is to secure a certificate of conformity for the supplier as a manufacturer of high quality goods. The bottom line is that you can completely rely on the supplier, without any doubt that his deliveries will correspond to a certain level of quality and not need to be checked by the buyer.

Technological changes are the most expensive of all these operations. Systems Jit   reduce costs by reducing the number and frequency of such operations. For example, a supplier delivers products directly to production, completely bypassing warehouses, thereby abolishing activities associated with the placement of materials in a warehouse and their subsequent transfer to production sites. The endless search for ways to improve quality, permeating the entire JIT system, eliminates many activities related to product quality - and associated costs. The use of bar coding (not only in “precision” systems) helps to reduce data entry operations and increases data accuracy.

Just-in-Time Advantages

“Accurate” systems have a number of important advantages that attract the attention of companies with a traditional approach to production. The main advantages are:

1. A reduced level of inventories in the production process (work in progress), procurement and finished products.

2. Smaller requirements for the size of production facilities.

3. Improving the quality of products, reducing defects and alterations.

4. Reduction of production time.

5. Greater flexibility when changing the range of products.

6. A smoother flow of production with very rare failures caused by quality problems, shorter preparation time for the production process; multidisciplinary workers who can help or replace each other.

7. Increased level of productivity and use of equipment.

8. The participation of workers in solving problems.

9. The need for good relationships with suppliers.

10. Less need for non-productive work, such as warehousing and moving materials.

Summary

A precisely-on-time system is a system that is used primarily in mass production. In such a system, goods are moved through the system and the task is carried out in strict accordance with the schedule. “Accurate” systems require very small inventories, as sequential operations are tightly coordinated.

Ultimate goal Jitis a balanced, smooth flow of production. Supporting goals: elimination of violations in the system, ensuring system flexibility, reducing equipment time and production time, eliminating overhead, and minimizing inventory. The forming blocks of the "exact" system are product development, process development, personnel and organizational issues, production planning and management.

Such production requires the exclusion of all possible sources of disruption to the smooth flow of work. High quality is necessary because quality problems can disrupt the process. In addition, problem solving is aimed at eliminating all violations of the production process and giving the system greater efficiency and continuous improvement.

The key advantage of “precision” systems is reduced stock levels, high quality, flexibility, reduced production time, increased productivity and efficiency of equipment use, reduced scrap and processing, as well as reduced space requirements.

Recently, in some industries in the production process, the so-called method of inventory management on an exactly on time basis has been increasingly used.

“Just in time” is a method of controlling and managing inventories, in accordance with which inventories are acquired and put into production exactly at the moment when they are needed.

Thus, the management philosophy according to the JIT method focuses specialists on “pulling” inventories through the production process “as needed”, and not on “pushing” them according to the “on-release” principle. Such an approach requires a very accurate information system in the field of inventory production, the most efficient procurement system and inventory processing system, as well as extremely reliable suppliers. Of course, the supplies of raw materials, goods, and materials en route cannot under any circumstances reach zero, but despite this, the term “on time” is one of the most effective ways to reduce inventory. However, the goal of JIT is not limited solely to their reduction, it also consists in increasing productivity and flexibility of production, as well as improving the quality of products.

Factors determining the “on time” method:

1. Geographic concentration. If the buyer enterprise strives to receive the necessary parts on a “just in time” basis, it is necessary that the transportation of goods from the supplier plant to the consumer plant is carried out in a relatively short time: less than one day. So, for example, the vast majority of supplying plants of the Japanese company Toyota is located at a distance of no more than 60 miles from its enterprise.

2. Reliable quality.   The consumer company must have confidence that it receives from its suppliers only high-quality materials and goods. The Japanese concept is that each production process should consider the subsequent process as its end customer. Quality control measures are aimed at controlling the production process itself, and not at eliminating rejects as a result of quality control.

3. Managed Vendor Network.   The implementation of the “on time” system is facilitated by the maximum reduction in the number of suppliers and the conclusion of long-term contracts with them. Most Japanese car manufacturers have no more than 250 component suppliers. For comparison, let's say that the company GeneralMotorsCorp. Only assembly production works with 3500 suppliers.

4. Managed Transport System.   In short, the basis for this is the creation of reliable transit routes between suppliers and users. So, Japanese automobile companies use only trucks (their own or under contract) to deliver parts. Component deliveries from each supplier are carried out several times a day in accordance with a predetermined schedule.

5. Production flexibility.   At the plant, the supply process should be “able” to respond quickly and promptly provide the consumer site with any necessary details. In this case, the ability to quickly change tools is very important. For example, in Japan, one automatic pressing equipment can be replaced by another within 6 minutes.

6. Small shipments.   Most Japanese automotive companies using the just-in-time system require that the batch size not exceed 10% of the daily consumption of parts or materials. Ideally, they strive to achieve such an order when the batch will consist of one unit of production so that as each machine is assembled, each part is specially produced for it.

7. Efficient material acceptance and material handling system.Most Japanese companies generally refused formal acceptance operations. All parts of the plants are used as acceptance areas, and parts and accessories are delivered as close to their destination as possible. Thanks to the use of loading equipment of a special design, the Japanese got rid of the need for special settlers for it.

8. The persistent desire of management personnel to implement the system "on time."The just-in-time system should cover all departments of the plant. Management personnel are responsible for providing the company with the resources necessary for the effective use of this system. He must firmly adhere to his intended goal during the transition to the “on time” system, which is often quite complex and lengthy.

For enterprises with relatively small volumes of production, the costs of order fulfillment may be insignificant, and storage costs are not needed if the materials immediately go into production.

In other words, the optimal batch size of a particular material is proportional to the square root of twice the annual demand for this material.

Red line method.One of the largest control systems is called the red line method (red – linemethod) and consists in the fact that a red line is drawn inside the box in which the stocks are stored. When stocks ran out to this line, i.e., it became visible, an order was placed for a new batch.

The method of two boxes.Another example is the two-binmethod method. In this case, stocks are stored in two boxes at once. First, the materials are consumed from the first, and when it becomes empty, an order for a new batch is placed and the materials begin to be taken from the second box. These methods are based on practical observations and are applicable in production involving a large number of small parts, as well as in repair shops.

Computer systems.Large companies use computer-based inventory control systems. First, information about all types of stocks is entered into the computer’s memory, then the consumption of materials is automatically recorded and the balance is adjusted. When the moment of stock renewal is reached, information on the order of a new batch is transmitted to the supplier through the computer network, and after receiving it, the balances are again adjusted. In this case, data on the balances for each type of product are entered in the computer, while the product itself has a magnetic code. Upon purchase and settlement through an electronic cash register, information is transferred to a computer and, thus, the remainder of this product is automatically reduced. When the point of placing a new order is reached, information about it is transmitted directly to the supplier’s computer.

However, for the optimal order size model to work, the following assumptions must be observed:

1. sales should be perfectly predicted;

2. sales are evenly distributed throughout the year;

3. Orders are executed without delay.

JIT (Just-In-Time) / Just in time - a material management system in production in which components from a previous operation (or from an external supplier) are delivered exactly when they are needed, but not earlier. This system leads to a sharp reduction in the volume of work in progress, materials and finished products in warehouses.

The “just in time” system implies a specific approach to the selection and evaluation of suppliers, based on working with a narrow circle of suppliers, selected according to their ability to guarantee the delivery of “on time” high-quality components. At the same time, the number of suppliers is reduced by two or more times, and long-term economic relations are established with the remaining suppliers.

The system just in time has huge potential in the fight against various types of production losses: losses from downtime and waiting, transport losses, warehouse losses, technological losses, losses from product defects.
This concept is a set of principles, tools and techniques that allow the company to produce and supply products in small batches and in a short time, satisfying the specific needs of consumers. Delivery of products on time and in the required quantities allows avoiding losses, inconsistencies and inappropriateness and increasing the efficiency of processes. This idea was first expressed by Toyoda Kiichiro, the father of the Japanese automobile industry, and his successors developed a production system based on it. It should be remembered that in accordance with this principle, everything should happen not only on time, but also exactly at the appointed time.

The JIT system involves the production of what is needed, when necessary and no more than what is needed. Anything more than the required amount is considered a loss.
  Although the idea of \u200b\u200bJIT is simple and understandable and its advantages are quite obvious, it still remains inaccessible to most companies, including Russian companies. The main reasons for this is the need to provide two basic conditions for the implementation of the JIT production system. The first condition is the availability of a trouble-free, self-adjusting mechanism that ensures the accuracy and consistency of deliveries in time and space. The second condition is that all supplied production components must be defect-free, otherwise this whole synchronous system will be instantly destroyed.
  For the implementation of JIT, it is necessary to carry out a number of activities, such as the creation of compact enterprises, the creation of integrated teams, combining professions, the use of integrated technologies, the supply of parts in minimal quantities, reducing the time for equipment re-adjustment, eliminating overloading of production capacities.
  A compact enterprise is a complex production unit of no more than 300 people producing one or more similar products. The limitation of the number and assortment creates a sense of community among the personnel of the enterprise, simplifies management and facilitates the work on a “on time” basis.
  The creation of integrated teams and the organization of labor by the brigade method allows for the implementation of group technologies in which work is performed not by specialized functional areas, but by production cells that perform all operations for the production of certain parts.
  Combination of professions is one of the important conditions for the effective work of members of integrated teams.
Integrated technologies include the installation of various types of equipment in one production cell to speed up the production process.
  In the JIT system, parts are delivered to workstations in minimal quantities and exactly matches their needs.
  Reducing equipment readjustment time reduces equipment downtime, that is, it can dramatically reduce technological and downtime and standby losses.
  The exclusion of overloads of production capacities also allows to reduce technological losses due to possible equipment failure.
  The heart of the JIT system is the pull principle and the kanban card mechanism. The manufacturer does not produce the product at the warehouse, but only if the customer has shown interest in this product. The consumer launches the “pull” mechanism, which cascades across the entire value stream and no one upstream should do anything until the domestic consumer, located downstream, requires it. Thus, “just in time”, this means when the internal consumer informs the manufacturer about the need for parts using the Kanban mechanism.
  One tool for controlling bandwidth is Kanban cards. Kanban control cards are an effective mechanism for controlling the movement of components. The Kanban card is a permit to receive or manufacture the next batch of parts.

Visualization

Visualization is any tool that informs how work should be performed. This is the placement of tools, parts, containers and other indicators of the state of production, in which everyone at a glance can understand the state of the system - a norm or a deviation.

The most commonly used visualization methods:

1. Contouring

2. Color coding

3. The road sign method

4. Paint marking

5. “It was” - “it became”

6. Graphic work instructions

Visualization methods	Method Example
Contouring is a good way to show where tools and assembly tools should be stored. Contouring means circling assembly devices and tools where they should be kept permanently. When you want to put the tool back in place, the outline will tell you where the tool is stored.
The color marking indicates what particular parts, tools, fixtures and molds are specifically used for. For example, if some details are needed in the production of a particular product, they can be painted in the same color and be in a storage location painted in the same color.
The method of road signs - uses the principle of indicating the objects in front of you (WHAT, WHERE and in WHAT QUANTITY). There are three main types of such signs: · pointers on items indicating where items should be located · pointers on places telling which items should be here · quantity indicators telling how many items should be in this place
Paint marking is a method that is used to highlight the location of something on the floor or in the aisles. Paint marking is used to designate dividing lines between work areas or transport passageways.
“It was” - “It has become” The image of the workplace / site / workshop “before” and “after” the changes clearly demonstrates the changes that have occurred, increases the motivation of employees and supports the new standard.
Graphic work instructions in the simplest and most visual form describe the work operations and quality requirements at each workplace. Graphic work instructions are located directly at the workplace and standardize the optimal way to do the work, ensuring universalization of workers and compliance with standards.

U-shaped cells

The location of the equipment in the form of the Latin letter "U". In the U-shaped cell, the machines are horseshoe-shaped, according to the sequence of operations. With this arrangement of equipment, the last stage of processing takes place in close proximity to the initial stage, so the operator does not need to go far to begin the execution of the next production cycle.

CHAPTER 8

Just-in-time production systems (Jit)

In this chapter ...

JIT logic

JIT system requirements

JIT in the service industry

Key Terms

Automated Inspection

Total Quality Control (TQC)

"; Pulling"; (pulling)
production system "; Kanban"; (Kanban Pull System)

Group Technology

Quality at the Source

Quality Circles

Method "; frozen window"; (Freeze Window)

Preventative maintenance
and equipment repair (Preventive Maintenance)

Specialized Factory Network

System "; just in time"; (Just-In-Time - JIT)

Step Schedule

Management "; bottom-up"; (Bottom-Round Management)

Resources   WWW

Arvin Automotive ()

Saturn Corporation ()

Just like a watch. According to the vice president of the company Saturn Alec Bedriki "; The company uses the rigid JIT system in the automotive business;" In company General Motors (GM) no one disputes this. Indeed, on any production lines of the company Saturn reserve stock is minimal. For example, the number of power units on an assembly line never exceeds 140 units - the amount needed for a two-hour production run, which contrasts sharply with the two-week supply of components at other enterprises GM. On other production lines Saturn the same situation. So, the stock of car frames does not exceed 95 units.

"; When working under such a scheme, production cannot function normally without clear coordination between all divisions," says Bedriki. All components come from suppliers on Saturn directly, bypassing the warehouse, which is typical of Japanese automobile plants. Components are delivered daily, some more often (for example, such large parts as radiators or front fenders). Seats come from the supplier every 30 minutes. The partner's production schedule and material flow routes are drawn up by the partner Saturn logistics company Ryder, her office is located in the territory of the car assembly plant. Firm Ryder Systems developed for Saturn jIT supply system. Ryder, supplies as needed Saturn accessories from more than 200 suppliers directly to the assembly line. Besides, Ryder delivers pre-made vehicles to dealers across the country.

They settle accounts with suppliers after using parts in production (system "; payment after production";). Suppliers are usually opposed by this approach, but suppliers Saturn work according to this concept, because, according to Kurt Gibbs, director of material flows and logistics, "; the supply system on Saturn too short. ";

Source.Ernest Raia, "; Saturn: Rising Star" ;, Purchasing,September 9, 1993, p. 44-17. All rights reserved by Cahners Publishing Company.

After World War II, the JIT production system became the most important production management method. Designed in Japan to modernize the production of high-quality goods and services, this system integrates 5Ps of operational management. All manufacturing companies that apply the concept of total quality management (TQM) actually use at least some elements of JIT in their activities. This chapter is devoted to the logic of the JIT system. It also details JIT implementation methods and the use of JIT in service organizations.

JIT logic

The JIT system is a single set of measures carried out to achieve large-scale production using minimum inventory of parts and accessories, semi-finished products and finished products. Details are received for the next work operation "; just in time" ;, are assembled and quickly go through this operation. Method "; just in time"; based on the logistic concept - "; nothing will be produced until this is necessary" ;. This principle is illustrated in fig. 8.1.

The need for production is created by the current demand for these products. When the product is sold, the market, according to this concept, “; draws”; it from the last production stage, in this case, the final assembly. This serves as a signal to start the production conveyor, where each worker immediately "; pulls"; the next part from the previous section of the material flow to replace the retired part. The area from which the part is taken, in turn, “; draws”; now the missing part in the section preceding it, and so on, right up to "; stretching"; feedstock. To ensure the continuity of such "; pulling"; process, JIT requires high quality products at each stage of the process, accurate fulfillment by suppliers of their contractual obligations and the correct forecasting of demand for finished products.

JIT systems are sometimes informally subdivided into "; large JIT"; and "; small jit" ;. "; Big JIT"; (it is often called unsaturated, or still underloaded production "1) - this is the concept of operational management, the task of which is to eliminate losses ("; useless "; costs) in all areas of the company’s production: relationships between people, relationships between suppliers, technology and materials and inventory management. The task is "; small JIT"; more narrow - planning of stocks of finished products and providing services as necessary. For example, companies such as Manpower Temporary Services and Pizza Hut, no essentially use "; pulling"; signals to fill vacancies with workers dismissed from other firms, or workers of a pizza delivery company Big Foot respectively. True, they do not use other aspects of the concept. The pioneers in the implementation of JIT concepts can be found in the sidebar "; An excursion into the history of the formation of JIT" ;.

An excursion into the history of formationJit

JIT became widespread in the 70s, although some elements of JIT were used in the USA at the beginning of the 20th century. Henry Ford used the JIT concept to modernize his conveyor lines for automobile production. For example, to reduce losses, he used the bottom of packaging wooden boxes for car seats as planks for the floor of a car. Although JIT elements were used by the Japanese industry in the early 30s, the JIT industry did not use all the features until the 70s. And only Taiichi Ohno, representative Toyota Motors, fully implemented JIT system to bring cars Toyota Motors in first place in terms of delivery and quality. Around the same time, quality experts W. E. Deming and J. M. Juran gave a series of lectures on the need to apply many of the principles of JIT in American industry.

Fig. 8.1. Pulling Production System

Japanese performance approach

After the Second World War, the Japanese leadership set a goal to achieve full employment through industrialization. The strategy of obtaining market advantage was focused on certain industries. Japan's Ministry of International Trade and Industry (MITI) has relied on competitive industries to select priority sectors. 2

To improve the competitiveness of its country, Japan began to import technology. Instead of developing new technologies, Japanese industrialists bought licenses (most often from US firms), thus avoiding the high R&D costs and associated risks. When creating new types of products, they concentrated their efforts on organizing production in order to achieve high productivity and] reduce unit costs. They used the talents of their developers more to organize production, rather than to develop new products. The Japanese also worked to improve product quality and reliability, trying to surpass their competitors in this M1. Two concepts became the main ones - elimination of losses and respect for people.

Elimination of losses and useless expenses

The Japanese really believe that losses can be avoided. Losses in Japan, as defined by Fujio Cho of Toyota, constitute "; any expenses other than those associated with the use of a minimum amount of equipment, materials, components and workers, which are absolutely necessary in production"; The expanded JIT interpretation proposed by Fujio Cho identifies the seven main types of losses to be addressed.

Unnecessary overproduction costs.

Losses from downtime (waiting time).

Transport losses.

Warehouse losses.

Technological losses.

Losses depending on the duration of the production cycle.

Losses from product defects 3.

This definition of JIT leaves no room for surplus or insurance stocks. No insurance reserves are foreseen; in other words, if stocks cannot be used at a given time, there is no need for them. They are redundant. Hidden inventories in warehouses, in the transit system, on conveyors are all key points for reducing inventories.

The application of the following seven elements is aimed at eliminating losses.

A network of specialized factories.

Group technology.

Quality at the source.

Production "; just in time" ;.

Production Management System "; Kanban" ;.

Minimize changeover times.

A network of specialized factories.In Japan, they prefer to build small specialized plants rather than huge vertically integrated production conglomerates. They believe that a large number of operations and a large bureaucracy are more difficult to manage. In addition, this is not consistent with their management style. Factories designed for one specific purpose are more economical during construction and during operation. Most Japanese factories, approximately 60,000, have between 30 and 1,000 workers.

Group technology.Group technology, although it was proposed in the United States, has been used more successfully in Japan. Instead of transferring the work to be performed from one work site with a certain specialization of workers to another specialized site, the Japanese combined all the operations necessary for the manufacture of a particular part and grouped the necessary equipment in one place. In fig. 8.2 shows the differences between areas with different locations of equipment - integrated into work centers for the manufacture of parts and located in specialized areas.

Group technology cells exclude movement and waiting time in the queue between operations, reduce inventories and the number of required workers. At the same time, workers should be more mobile in order to serve different types of equipment and different processes. Due to their high professional level, such workers provide an increased quality of work.

Quality at the source.Quality at the source means quality control directly at the place of operation from the very beginning of the process and provides for an immediate stop of the process or conveyor when deviations are detected. Factory workers themselves become supervisors, personally responsible for the quality of their products. Workers are focused on the quality performance of their part of the work on the first try, thus eliminating the quality problem, such as at a factory TRW in Marshall, Illinois, where emergency air sensors are installed. If the pace is too high and the worker has quality problems or questions arise regarding the safety of the work, the worker must press the conveyor stop button and turn on the visual signal. Workers in other areas will respond to anxiety and a problem. Workers are given the right to service themselves and their workplace in order to resolve the problem.

Fig. 8.2. Group technology versus site specialization

Quality control at the source also includes an autonomous product quality control system and automatic control. The Japanese prefer quality control performed automatically or using robots, as it is faster, easier, more reliable and frees up workers.

Production system "; just in time"; (JIT). The JIT system involves the production of what is needed, when necessary and no more than what is needed. Anything more than the minimum required amount is considered a loss, since the efforts and materials are expended on what is not necessary and cannot be used at the moment. In the table. 8.1 shows the requirements and assumptions of the JIT system.

The JIT system is applicable to mass production. The use of this system does not always require large volumes of production and is not limited to technological processes intended for serial production. It can be applied everywhere, to any repetitive work. With such a system, the ideal transfer batch size at each workplace is one unit. The worker performs his operation and transfers it to the next worker to continue production. Since work centers can be geographically dispersed, the Japanese minimize the transmission time and keep the quantity transferred small, usually the lot size is one tenth of the daily production rate. To keep the margins small and low inventory, suppliers even ship components to consumers several times a day. If all expectations in the queue are reduced to zero, investments in inventories and lead times are minimal, then firms can respond more quickly to changes in demand and solve quality problems.

The essence of this idea is illustrated in Fig. 8.3. If the water in the pond is a material reserve, then the pitfalls are problems that may arise in the company.

Fig. 8.3. Inventory issues

High water levels hide stones (problems). Management perceives this as a normal state, but with a decline in economic activity, the water level drops, problems (stones) are exposed. If you deliberately lower the water level (in particular, during periods of high economic activity), then you can identify and manage problems before they lead to even bigger problems. Organization of production according to the JIT system reveals problems previously hidden in surplus inventories and states.

The goal of a uniform production load is to smooth out fluctuations in the production flow, which usually arise as a reaction to changes in the production schedule. Changes that occurred on the final conveyor apply to the entire production line and supply chain. The only way to eliminate such fluctuations is to prevent the regulation of production volumes. To do this, establish a monthly production plan withfixed volume of products. (The need for a stable environment for a company operating on the JIT system is noted in Table 8.1.)

In Japan, it was found that it is possible to solve the problem of equalizing production load by daily production of the same range of products in small quantities. Thus, a full range of products is always available to adequately respond to changes in demand. Example Toyota shown in table. 8.2. The monthly number of cars produced is reduced to the daily (assuming that there are 20 working days in a month).

Based on the full load of the assembly line determine tact(time between assembly on the conveyor of two identical products) in minutes. The duration of the tact is used to regulate the resources necessary for the release of a specified amount of production. The performance of the equipment or assembly line does not matter. It is important to produce exactly the amount of products that is needed every day. The JIT system obliges to produce on schedule, at the lowest cost and with the best quality. (A more detailed discussion of the mixed assembly model is given in chapter 10).

Production Management System "; Kanban" ;.To regulate JIT flows in the "; Kanban" system; use signaling devices. "; Kanban"; translated from Japanese means "; sign"; or "; instruction card" ;. In a paperless control system, containers can be used instead of cards. Cards or containers make up the essence "; pulling"; systems "; kanban" ;.Permission to manufacture or supply additional components comes from subsequent operations. The card is a permit to receive or manufacture the next batch of components. In fig. 8.4 shows the assembly line of the conveyor, which is powered by components from a machining center.

Fig. 8.4. The route of the movement of two cards "Kanban"

The machining center produces two components - ANDand AT.These two parts are stored in containers located at the border of the assembly line and the machining center. Each container located at the assembly line has a selection card “; kanban” ;, and each container at the metal processing center has a production order card “; kanban” ;. This system is often called a dual-card system; kanban ;.

When the assembly line receives the first component ANDfrom the container, the worker removes the selection card from the container and transfers it to the storage location in the machining center. In a machining center, a worker finds items in a container ANDproduction order card "; kanban"; and replaces it with a selection card "; kanban" ;. Placing this card on a container allows the container to move towards the assembly line. The vacated production order card "; kanban"; attached to the rack by the workers of the machining center allows the production of the next batch of parts. The card on the rack becomes an official document for the machining center. The method of transmitting information about the need for the production of components is not only cards. Other signaling methods shown in fig. 8.5.

Fig. 8.5. Replenishment of parts using a signal marker

Below are some other possible ways.

Container system.Sometimes the container itself can be used as a signaling device. In this case, the appearance of an empty container at the production site visually signals the need to fill it. The amount of inventory is regulated by the simple addition or removal of containers.

P rectangles "; Kanban";.Some companies use markings on the floor or on the table to indicate where to store components. An empty rectangle, as shown in the figure, indicates the need to supply this component, a filled rectangle means that these parts are not needed.

Colored golf balls.At the engine plant in Kawasaki, when the number of parts used in the auxiliary assembly is reduced to the maximum level, the assembly worker drops the painted golf ball through the pipeline into the machining center. This serves as a message to the operator which part to do next. Based on this approach, many options have been developed.

Control system based on "; pulling kanban"; can be used not only within the same production, but also between different production units (for example, "; pulling"; engines or transmissions for car assembly), as well as between manufacturers and external suppliers.

Determination of the required number of cards; kanban ;.Application of the "; kanban" system; requires determination of the required number of cards; kanban; (or containers). In the case of a two-card system, the number of selection cards and production order cards is determined. How many cards; kanban; - so many containers with products circulating between supply and consumption areas. The capacity of each container determines the minimum size of the production reserve (stock). Therefore, the number of containers unambiguously reflects the volume of inventories in production.

H

the number of containers is calculated based on the lead time. The lead time is a function of the duration of the manufacturing process of the total number of components, the possible waiting time during the production process and the time required to transport materials to the consumer. Sufficient is the number of cards needed to cover the expected demand during the lead time, plus some additional reserve amount. The number of cards is determined by the formula:

DL - expected demand during the execution of the order;

k - the number of cards; kanban ;;

D - average number of parts consumed by the subsequent section per unit of time;

L - lead time (expressed in relevant units);

S - safety stock, expressed as a percentage of demand for the period of the order (as shown in chapter 15, it can be determined by the level of service and variance);

WITH - container capacity.

It should be noted that the system; kanban; it does not lead to zero inventories, it rather controls the amount of materials that should be in the production process at a given time, according to the number of containers for each part. The system "; kanban"; it’s easy to rebuild by adapting it to your current needs, as cards can be easily added or removed from the system. If the workers find that there is nowhere to fold the manufactured parts, you can put an additional container, accompanied by a card; kanban ;. If it is found that containers with parts are accumulating, card sets are easy to remove, thus reducing the amount of inventory.

Example 8.1.Determining the number of cards; kanban;

Company An/ in Automotiv, engaged in the assembly of silencers for the Big Three, was forced to use the system "; kanban"; for "; dragging"; components through all their production sites. Arvin designed each site for the manufacture of a particular family of silencers. The manufacture of a silencer involves cutting and bending pipe sections, which are then welded to a silencer and a catalytic converter (catalytic exhaust gas afterburner). Silencer and catalytic converter "; extend"; from the plot in accordance with current demand. In turn, catalytic converters are manufactured in a separate specialized area.

Catalytic converters are manufactured in batches of 10 pieces and transported on special hand trucks to production sites. The site for the catalytic converter is designed in such a way that various types of catalytic converters can be manufactured practically without loss of readjustment. The site can respond to ordering a batch of catalytic converters in approximately four hours. Since the catalytic converter section is located directly near the silencer assembly section, the transportation time is negligible. The muffler assembly site allows approximately eight assemblies per hour. Each assembly uses the same catalytic converter. Due to some process instability, the management decided to have a reserve stock equivalent to 10% of the required quantity of material stocks.

How many cards; kanban; necessary for inventory management of catalytic converters?

Decision

In this case, the replenishment time of the converters (L) is four hours. Demand (D) is eight catalytic converters per hour. The reserve stock (S) is 10% of the expected demand and the container capacity (C) is 10 units. Thus we get:

In this case, you need four cards "; kanban"; and the system will have four containers for converters. In all cases, when calculating k it is necessary to round the resulting figure up, since for work it is always necessary to have a full container of components.

Minimize changeover times.If the small size of the backlog becomes the norm, then the readjustment of the equipment should also be carried out quickly so that different models can be produced on the assembly line in turn. It is appropriate to recall here a well-known example of the late 70s, when a team of company presses Toyota, producing hoods and fenders for cars, carried out a readjustment of the 800-ton press in 10 minutes, while workers in the United States performed the same operation on average in 6 hours, and German workers in 4 hours. Now this speed has become common for most automobile plants in the United States. At the factory John Deere in 1985, the changeover time of the stamping press was reduced from one hour to one minute. To reduce time from the process of readjustment, work performed during equipment shutdown and those that can be carried out with the equipment running are distinguished. For the same purpose, time-saving devices are used, for example, duplicate tool holders. Thanks to this, the Japanese setup team is usually not involved in readjustment at weekends.

Respect for people

Respect for people is a defining moment in modernizing Japan's industry. In Japan, traditionally put emphasis on life-long hiring in large firms. Companies try to keep their wages stable even when the business environment worsens. Permanent workers (which is about one third of all workers) have a job guarantee and great confidence that they will remain in the company in any case. Therefore, they do everything in their power to help the company achieve its goals. (The recent economic downturn in Japan has forced many Japanese companies to move away from this practice. Details are in the situation for analysis "; Work contracts in the company Toyota"; at the end of this chapter.)

In Japan, there are company unions to create a favorable climate for employee relations with company management. In a favorable economic situation, all employees receive bonuses (bonuses) twice a year. Employees understand that with a good state of affairs at the company, they will receive a bonus. This encourages workers to increase productivity. Management considers workers a valuable asset of the company, not just animated machines. Automation and robotization are widely used to perform monotonous and routine types of work, and the workers released as a result of this concentrate their efforts on the important tasks of improving processes.

In Japan, a network of subcontractors plays an important role. The nature of Japanese specialized factories is notable for their small vertical integration. More than 90% of all Japanese companies form a supply chain. Some suppliers are professionals in the narrow field of customer service. Another, more common, type of provider is a single resource provider. Such a supplier produces a small set of parts for an individual consumer. Accordingly, the interaction between suppliers and consumers is based on long-term partnerships. Suppliers consider themselves members of the family (community) of consumers.

Japanese firms use style control "; bottom-up";(A Bottom-Round Management), reaching consensus through committees, groups, teams and teams. Such a decision-making process is slow, but allows consensus (but not compromise) to be reached by attracting interested parties and finding the necessary information, and also makes it possible to make decisions at the lowest level. Unlike their counterparts in the USA, Japanese top managers make very few operational decisions, and concentrate their efforts on strategic planning. This system is effective in small specialized enterprises in Japan.

Quality mugs,which includes volunteer workers, gather every week to discuss their work and problems encountered. Small Innovation Team (SGIA) activities help develop problem solutions and share solutions with management. The groups are led by a supervisor or production worker, which usually includes workers in a given industry. Some groups are multidisciplinary and work under the guidance of a trained team leader or assistant team leader. For example, corporation Westinghouse Electric has 275 quality circles and 25 assistants. These circles are part of a consensus-based bottom-up management system;

North American JIT Options

Some of the above approaches are difficult to apply in North America. Lifetime hiring, company unions, and a subcontracting network are not common in the US and Canada. US and Canadian companies typically use a planning and management structure of “top-down,”; directly opposite to the control system "; bottom-up."; In addition, US and Canadian companies are vulnerable due to strikes that are permitted under union agreements. Workers' strike in 1997 at General Motors led to the dismissal of more than 20 thousand workers in North America. (At the end of this chapter, under the heading “; Discussion material”; the article “; System”; just in time “;: Is it really good for the automotive industry?”;)

Perhaps not the whole JIT system is applicable in the USA and Canada, but the Japanese philosophy and approach to JIT can and should be borrowed. It became clear that although the introduction of the entire system may take several years, reducing the time for re-adjustment, reducing inventory, identifying problems, using the knowledge and experience of workers are important practical guidelines for all organizations. Indeed, in a study on the use of the JIT system in the USA, 86.4% of respondents (out of 1035) noted that JIT helped to get the bulk of net profit. And only less than 5% of respondents did not receive any profit from the introduction of elements of the JIT system. The duration of the production cycle (the time required to produce a unit of production from the beginning of production to the final stage) decreased by an average of 59.4%. Studies have shown that organizations with 500 employees or more usually use JIT management methods much more often than organizations with less than 500 employees. In addition, large organizations use the JIT production system for a longer period. Regardless of the size and type of process used, manufacturing using the JIT system is seen as favorable to US industrialists 4. The company’s overall quality management system Arvin can be considered the most successful example of the use of the JIT system by American companies (sidebar; Introduction to Arvin North American Automotive";).

In Europe, many organizations have also valued the pre-: properties provided by the use of JIT. When examining 80 European plants, the respondents noted the following improvements obtained due to the introduction of the JIT system: on average, inventories were reduced by 50%, the production cycle was reduced from 50 to 70%, readjustment time was reduced by more than 50% (without additional investments in main production and equipment), productivity increased from 20 to 50% and investment in the JIT 5 system paid off in less than 9 months.

JIT system requirements

This section is devoted to a discussion of the model for creating a production organization system; "just in time"; shown in Fig. 8.6, as well as methods for its implementation. All provisions covered are considered for production systems with repetitive processes. Keep in mind that all elements of the JIT system are interconnected: any changes in one part of the production system affect other system characteristics.

Fig. 8.6. how to implement a production system "just in time"

This scheme is based on a model developed by the company. Hewlett- Packard   for the JIT implementation program at its Bois plant.

Equipment placement and flow planning in the JIT system

To ensure a uniform labor process and a minimum amount of intermediate material reserves (backlogs), the JIT production system requires the correct placement of machine equipment. Each workplace is part of a production line, regardless of whether the material line exists or not. Assembly lines are implemented using the basic logical concept of JIT, i.e. suppliers are associated with them through "; pulling"; the system. When developing, the system designer must also take into account the relationship of internal and external elements of the logistics system with the location of the equipment.

FACTORY EXCURSION

Introducing Arvin North American Automotive (NAA)

Firm Arvin Automotive, founded in 1919, since 1929 has been a supplier of ventilation systems for the market for original equipment. Arvin achieved great success through the use of a system of universal product quality management Arvin (ATQPS). The JIT production system of this company is only part of its team approach; NAA for a long time already takes into account the opinions of consumers in the design of the ventilation system.

	Teams are often created to assess prospects, solve problems and make decisions. AT Arvin workers work in brigades, study in brigades and excel in brigades. The principles and ideas put forward by the team and individuals serve as a charge for continuous improvement.
	Production organization team Each production cell is located in such a way as to provide visual communication between operators, a smooth flow of materials, timely delivery of components and quick dispatch of finished products.
	The color coding proposed by the team facilitates quick readjustment, improving maneuverability and quality, as well as facilitating the production of small batches in accordance with the needs of consumers. Visual inspection eliminates ambiguity and ensures quality on site.
	Well organized "; pulling system"; NAAuses hardware load balancing and hanban signals; for the production of small rational batches delivered on time to domestic consumers ...
	As well as external consumers. Arvin Automotive ()

Of particular importance in terms of ensuring continuity of flows and uninterrupted operation of equipment is given preventative maintenance and repair.Most of the equipment maintenance and repair work is performed by workers (operators), since they know their equipment better, and machine repair itself is not too complicated, since the organization of operations using the JIT system involves the use of several simple machines instead of one large complex.

The aforementioned reduction in the time of adjustment and readjustment of equipment is necessary to reduce the costs caused by material flow. In fig. 8.7 shows the relationship between the size of the transfer batch (order size) and the costs of equipment retooling and storage of backlog. In the traditional approach, based on total costs, the optimal batch size is determined to be 6. When using the concept of "; kanban" in the JIT system; optimal batch size is reduced. From fig. 8.7 it is seen that the “kanban” concept provides; procedure "; time-saving setup"; reduces batch size from six to two. Such a procedure theoretically allows achieving the maximum minimum lot size equal to one.

Fig. 8. 7. The relationship between the size of the order (batch) and costs
for readjustment

Storage costsinclude storage costs and cash costs associated with these stocks Changeover Costsinclude salary costs for workers carrying out readjustment, various administrative and procurement costs. (These definitions are given in chapter 15 "; Inventory management systems with independent demand" ;.)

Application of the JIT system on production lines

In fig. 8.8 shows the action "; pulling"; systems in a conventional production line.

Fig. 8.8. System action Jit   in line production

Under ideal conditions of work on the JIT system, no worker produces anything until the market “pulls out”; from the end point of the production line the finished product. The product may be a finished product or component used in the next stage of production. When the product "; extended" ;, to replenish the seized "; extended"; the subject of labor from the previous stage of production. In the figure under consideration, a batch of finished products from stock F (from a warehouse of finished goods) "; is pulled out"; To the market. The inventory manager goes to the workplace of the last technological operation Eand takes the finished product from there to make up for the seized. This is passed along the entire production chain down to the working AND,which "; draws out"; materials from the warehouse of raw materials. The rules for the movement of material flow require that the workers keep processed workpieces at their workplaces (stations), and if someone picks them up, the worker must move to the previous production line operation to take the workpiece processed in the previous operation to make up for his retired one.

ApplicationJit   in custom manufacturing

The JIT system is traditionally used in in-line production, however, an enterprise working on orders (custom production) can also benefit from the use of JIT. The enterprises working to order are characterized by a large variety and small volumes of products. However, you can also apply JIT to them if you distribute orders over time so as to obtain repetitive processes. Recurring (stabilized) demand is usually easier to achieve in a situation where it is determined by the last production stage, rather than the final consumer. This is because the domestic consumer, i.e. - the last production stage - provides more opportunities for stabilizing demand than a distributor or an individual buyer.

Metalworking factories, paint shops, and clothing factories are all examples of custom-made enterprises, i.e. it is typical for them that the final operations are determined by the consumer (customer). As an example, consider the production system shown in Fig. 8.9.

Fig. 8.9. JIT system in custom manufacturing

Shows the placement of equipment and the route of movement of processed materials, which connects the processing centers and assembly lines

If a production site produces nine different parts used by several assembly lines operating on a “just-in-time” system; then each work center holds containers filled with finished parts so that consumers can pick them up. Operators make periodic rounds of assembly lines (every hour or more) to collect empty containers and re-place them in the appropriate work center, as well as move full containers to the assembly line. In fig. 8.9 automatically controlled lift collects and delivers parts under numbers M5 and M8 on assembly lines 2 and 3 for assembly. These procedures can be performed manually or automated, but irrespective of this, periodic collection and installation of containers allows the system to work in the "; just on time"; mode.

Total Quality Control (Tqc)

JIT and TQC systems are interconnected in theory and practice. Total Quality Control -it is a system for ensuring product quality during the entire process, and not a quality fixation by the technical control department. It is based on the responsibility of workers for the quality of their work. If employees are directly responsible for the quality of their products, the JIT system works best, since with such a system "; extend"; only quality products. If all products are of high quality, then additional materials are not required "; exactly in the box" ;. As a result, production can achieve high quality and high productivity, as illustrated in fig. 8.10.

Fig. 8.10. Relationship between Jit   and TqWITH

Source:   Richard J. Schonberger, “Some Observations on the Advantages and Implementation Issues of Just-in-Time Production System”, Journal of Operations ManagementNovember 1982, p. 5.

Using statistical methods of quality control and training workers to maintain quality, it is possible to check the quality of only the first and last units of products. If they are of appropriate quality, then we can assume that other details (between the two) will be of high quality.

One of the elements of achieving high quality is improving the design of the product. The use of standard and standardized parts and components, as well as their small nomenclature, are very important for the JIT system. Such design techniques reduce the number of changes during production, improve reproducibility in the manufacture of products and facilitate new engineering developments and modifications of products.

Stable production schedule

As already noted, production based on the JIT system must have a stable production schedule for a sufficiently long period. This is achieved using a stepwise graph, "; frozen windows"; (tasks) and incomplete capacity utilization.

Stepped graphbased on the fact that "; stretching"; the required components from the source materials to the final assembly is carried out in such a way as to enable various production links to respond to "; pulling"; signals. This does not mean at all that the schedule completely determines the movement of each part on the assembly line from the beginning to the end of the process; on the contrary, this means that this production system is flexibly supplied with everything necessary, including also a fixed supply of materials for quick response to changes in system 6.

"; Frozen window";- this is the period of time in the production schedule during which the execution of tasks is rigidly fixed and no changes are allowed in it. A stable schedule provides an additional advantage in that parts and accessories are in "; pulling"; The system is counted directly in the graph. The calculation is carried out according to the method "; re-layout";during a periodic review of the final statement of the composition of the product, which lists all the components that make up each product. Such a review of the sheet is just carried out in order to calculate the number of parts of each item that went into the manufacture of the finished product. This reduces the work of the data collection workshop if it is necessary to trace the route of movement of each part and calculate their quantity required for the production process.

characteristic of the JIT system, causes the greatest controversy. Excessive or underloaded capacities, among other things, in traditional production systems mean the presence of some stocks of materials. Reserve stocks and preemptive deliveries are used as insurance against such production problems as poor quality, equipment malfunctions and unforeseen "; bottlenecks"; in a traditional manufacturing process. In JIT conditions, excess labor and equipment are warranted. Having an excess of labor and equipment characteristic of this system is much cheaper than having an excess of material stocks. While waiting for the next "; pulling"; (downtime) personnel can be switched to other types of activities, for example, participation in special projects, production (within the group of workers) and administrative and economic activities at work sites, for example, participation in the work of quality circles.

Work with providers

Suppliers, as well as consumers and workers, are key components of the JIT system. The JIT system provides for a discussion of their planned needs for material resources with suppliers, as a result of which the latter are well aware of the volume of long-term demand for their products and the procurement system. To receive data on the necessary material resources and include them in production schedulessome suppliers are connected to the consumer online. This allows them to participate in production planning. Confidence in suppliers in fulfilling their obligations to ensure supplies reduces reserve material inventories. Maintaining stocks at the JIT system-defined level requires frequent deliveries throughout the day. Some suppliers deliver directly to the place of production (to the production line), bypassing the intermediate warehouse. This is possible if suppliers apply the practice of quality control before delivery, and then input control of their products before being put into production can be omitted.

To evaluate the results of the implementation of the JIT system, indicators are analyzed that reflect the number of technological processes affected by changes and practical measures to improve the movement of material flows and reduce labor intensity. For example, if the process improves over time, then costs are reduced. Other indicators of the JIT system reflect lower storage costs, reduced waste and improved product quality, increased participation of workers in the production process, increased incentives for work, improved psychological climate and increased productivity. According to Robert H. Hall 7, in Japanese JIT production systems, unit performance is assessed using the following six criteria.

Trends (timelines) of improvements, including the number of modernization projects implemented, trends in cost reduction and productivity improvement. Productivity is defined as the number of products released by the division, divided by the total number of permanent and temporary workers.

Trends in quality changes, declining rejects, process improvements, and quality assurance procedures.

Implementation by the unit of its production schedule and supply of parts as needed.

Trends in changes in the inventory levels of the unit (for example, faster inventory turnover).

Lack of an overrun of the established budget.

Improving professionalism, interchangeability of workers, expanding their participation in improving production, improving the moral climate.

As you can see, many existing quantitative and qualitative indicators for evaluating production work are also suitable for evaluating the JIT system, however, here some old ways of calculating costs no longer work. For example, the traditional systems of calculating overhead costs that have been used in the United States since the industrial revolution were based on their distribution in proportion to direct labor costs. In the JIT production system, overhead is 20 times higher than direct salary costs. And, in addition, workers in the JIT system assume the responsibility for servicing equipment, which makes it difficult to separate direct and indirect labor costs, and therefore it is necessary to change the way the overhead costs are distributed. (Box "; JIT and costing" ;.)

Jit   and costing

Since the Industrial Revolution, costing systems have focused on direct labor costs. When using the JIT system (and integrated production systems), overhead costs prevail, often 20 times higher than direct salary costs. In addition, in a system where workers themselves repair their equipment, the differences between direct and indirect wage costs are blurred.

Firm Hewlett- Packard recognized this and refused the article "; direct wages, introducing the article"; labor costs "instead."

Recently, it has become clear that the main difference between the traditional costing system and the JIT-based system is the calculation of overhead costs depending on the time spent on production, and not in relation to direct costs for wages or machine time.

Source Mohan V. Tatikonda. "; Just-in-Time and Modern Manufacturing Environments Implications for Cost Accounting" ;. Production and Inventory Management Journal.January 1988, p. 1-5.

Jitatthe sphereof service

Many service companies have successfully used the JIT system. Just like in production, the applicability of each method and the use of the appropriate JIT components depend on the market characteristics of the firm, production technology and technological equipment, professional training of employees and the general culture of the company. In this sense, service firms are not much different from manufacturing firms. Below are 10 examples of the most successful use of JIT in service 8.

Groups for solving organizational problems.Firm Honeywell expands the activities of its quality circles, transferring experience from production to service units. Other corporations, all completely different, such as First Bank/ Dallas, Standard Meat Company and Miller Brewing Companyforservice improvements use similar approaches. British Airways used quality circles as the basis of its strategy to provide new services. (Box “; JIT in express delivery service”; as another example of group efforts in the JIT system.)

Innovation

Jit   in express delivery service

Company AND.integrated express delivery service, in its work uses a delivery inventory system (shipping air waybills, bag classification, service signs, urgent packaging, boxes and work clothes). Still using the traditional inventory system, the company ANDdecided to expand investment in the system from $ 16 to $ 34 million

Since the activities of the company ANDrefers to the service industry, there is no real "; reverse process" ;. But the fact that the company belonged to the service sector did not prevent it from taking advantage of the JIT system. After learning about the potential benefits of the JIT system, management began to introduce JIT elements in their company to assess how real the declared benefits are.

After a deep study of this problem, company executives ANDreleased the following statement: "; The strategic goal of the JIT program in the company ANDit is not a reduction in the inventory list, but an increase in profits by servicing our customers by 99.9% when drawing up the necessary customs documents. The inventory compilation time will be reduced, but this will be the result of applying the JIT system. The next important strategic goal is to further strengthen the company's competitive position ANDin relation to other companies engaged in similar business ";.

This statement emphasizes the company's focus on customer satisfaction, and the basis for this is the use of elements of the JIT system in the service. The JIT group (which included representatives of all departments related to this) met once a week to resolve communication and coordination problems that arose when using the JIT system. All the personnel involved in this were well trained in all aspects of JIT, the corresponding goals of the company were explained to all of them. All suppliers were invited to the official presentation of supply forecasts and quality. Suppliers were even encouraged to attend JIT weekly meetings so that they could provide support. To strengthen relationships with suppliers, the terms of the contracts were extended. Thanks to the educational and coordinating efforts of the JIT group, the concept of this system permeated the entire business of the company. AND,based on the requirements of communication, quality and compliance.

Dividing the weekly number of completed documents by the number of required, the company ANDi was able to calculate the level of service coefficient to measure my performance. Before applying the JIT system, the company's service level was 79%, after the introduction of this system it increased to 99%, and an increase to 99.9% is expected.

In addition to expanding the service sector, the results of the company's program ANDjIT systems exceeded expected forecasts in all respects by reducing travel times, enhancing dispatching functions, improving customer awareness, improving quality, paying more attention to customer service, improving communication, applying a pricing policy, improving paperwork and enhancing teamwork.

Source. R. Anthony Inman and Satish Mehra, "; JIT Applications for Service Environments" ;, Third quarter 1991, p. 16-20. Reprinted with permission from APICS- the Educational Society for Resource Management, Falls Church, VA.

Promoting a neat attitude to work.The reward for a good, accurate attitude to work is not only cleanliness. It means, for example, that only objects necessary for work should be at workplaces, that everything necessary should be clean and ready for use at any moment. Workers clean their jobs themselves.

Service leaders such as Mcdonald" s, Disneyland   andSpeedi- Lube, long understood the importance of a neat attitude to work. The result of their adherence to this principle is that service processes proceed faster, summers make improvements and consumers notice that the quality of service is increasing.

Quality improvement.The only cost-effective way to improve quality is to increase the sustainability of the production process. High quality of the process is ensured directly at the place of the technological operation, which guarantees the constancy and uniformity of products and services.

Mcdonald" s known for achieving high quality in the service industry. She literally "; industrialized"; service delivery system in such a way that temporarily hired, casual workers can provide the same quality service in the field of catering anywhere in the world. Quality not only means producing the best, but rather, it means consistency in the production of goods and services, for which the consumer is not sorry to spend money.

Streamline workflows.JIT-based thread sequencing can fundamentally improve process execution. Examples of this are given below.

The first example. Federal Express Corporation changed flight patterns from "; origin-destination"; to "; the starting point is the nodal airport" ;, where the cargo is loaded onto the next plane bound for its destination. This was a revolution in the airline industry.

Second example. The order reception department of a manufacturing company was transformed from a functional unit into a working group aimed at customer service, which reduced the lead time from eight to two days.

The third example. The district leadership used the JIT principle to reduce the registration time of a transfer (a document on transfer of ownership of a security) by 50%.

And finally, the firm Supermaids to speed up the service, instead of sending one cleaner, she began to send a team of professional house cleaners, each of whom is given a specific task, which allows, thanks to their parallel work, to clean the house being serviced quickly. Streamlining workflows can literally lead to a revolution in the service industry.

Revision of equipment used and technology verification.Technology verification includes an assessment of equipment and production processes in terms of their compliance with the required technology, as well as adjustment of the size and professional composition of the work team.

Company Speedi- Lube turned a regular service station into a lubrication and inspection center, changing the routine of vehicles for routine inspection to a platform equipped for inspecting a vehicle without leaving the car (with through passage, and not with a dead end repair box, as before), and replacing winches for specially constructed inspection pits for cars, where maintenance personnel got full access to the lubrication points of vehicles. At the same time, reducing the time for re-adjustment of equipment for servicing vehicles, the station expanded its range of operations without compromising the availability of services.

Leveling capacity utilization.Service firms coordinate output and demand. They have developed unique approaches to equalizing demand, thanks to which they manage to avoid queues of customers for service. Firm CompuServe, providing its services, sells cheaper evening time. Mcdonald" s offers a special breakfast menu in the morning. Retailers use a catalog ordering system (Take-a-Number Systems). Mail charges a faster fee for expedited delivery the next day after ordering. These are all examples of power load balancing using the JIT system.

Eliminate Unnecessarytypes of activities.A value-free operation is a candidate for liquidation. An operation that creates value may be a candidate for improvement to ensure process stability or reduce the time it takes to complete a task.

The hospital found that at the beginning of the surgery, a lot of time was spent waiting for the necessary, but currently missing instrument. She developed a checklist of the tools needed for each category of operations, and the corresponding toolkits began to be prepared for immediate use. This eliminated unnecessary waiting. The company mentioned above Speedi- Lube eliminated some process operations, but added new ones that did not improve the lubrication of the car, but gave customers confidence in the quality of the work performed.

Reorganization of the production structure.The use of the JIT system also requires a reorganization of the work area. Often manufacturers reorganize by creating separate production cells to produce small lots in accordance with demand requirements. These cells are mini-factories within the enterprise.

Most service firms lag behind manufacturing enterprises in this regard. However, there are some interesting examples from the service industry. Some hospitals, instead of the usual hospital procedures: tests, tests, x-rays and injections, have reorganized their services into working groups based on a specific problem. There are known groups that deal only with injuries, but other medical groups were organized that served patients with diseases that did not require emergency care, such as hernias. These groups represented the microclinic within the hospital.

The introduction of "; pulling"; demand.Due to the specific nature of production and consumption in the service sector, for the normal functioning of the service business, it is necessary “; demand (response to demand). Therefore, many service firms transfer their operations to "; remote points"; or place "; contact with the consumer" ;. This approach creates new problems in coordinating the work of various departments of the company and stimulates the search for new solutions.

The restaurants found the original solution. Wendy: serving chefs are positioned in such a way as to see cars approaching the parking lot at the restaurant. They pre-set portions of a hamburger on the grill for each car that arrives, assigning a number to this portion. Such "; pulling"; The system was developed in order to have fresh portions of grilled burgers ready and serve customers at the same time as receiving an order.

Cooperation with suppliers. The JIT system encourages the organization of cooperation between suppliers and consumers, working on a mutually beneficial basis for a long time. (Box "; A new type of cooperation" ;.)

Innovation

A new type of collaboration

Cooperation between consumers and suppliers is developing in companies such as Honeywell, Base and AT&T.This collaboration was first proposed by Lance Dixon, Purchasing Director. Bose Corporation. His system, dubbed JIT II, \u200b\u200bbrought vendors named vendors to the company to participate on an ongoing basis in the procurement department. While the conventional JIT system reduced inventories and brought suppliers and consumers closer together, the JIT II system removed the purchasing and sales representative from the "; customer-supplier" chain. This vendor has replaced the buyer and seller. His activity is aimed at receiving consumer orders for the purchase and the simultaneous organization of their implementation, including development and design. Being directly at the factory, this authorized employee or his deputy can increase the level of communication between employees of suppliers and consumers. In accordance with the principles of the JIT system, its activities are completely subordinated to the interests of the consumer, focused on profitability, response to quality and based on the brigade principle.

Participation of representatives of the supplier (vendor) in the work of the company's engineers Bose led to a significant improvement in the quality of development and an increase in productivity in the manufacture of high-quality loudspeaker components produced by the company Bose. The main advantage of the JIT II system is that the representative of the supplier performs its functions directly on the territory of the company Bose. Bose applies these methods in its transport system, and also plans the transit of materials, considering that inventories are already in its warehouse. Companies AT&Tand Honeywell used such a JIT II system, which allowed them to save money and increase productivity, taking into account the opinion of the client through his representative.

Source. Martin M. Stein, "; The Ultimate Customer - Supplier Relationship at Bose, Honeywell and AT&T" ;, National Productivity Review,Autumn 1993, p. 543-548; Sherwin Greenblatt, "; Continuous Improvement in Supply Chain Management" ;, Chief executive86, June 1993, p. 40-43.

At the same time, firms in the service sector do not attach much importance to the network of suppliers of materials, since in the service most of the costs are for labor. Known exceptions include organizations such as Mcdonald" s - one of the largest companies with a network of fast food restaurants around the world. Along with this, small entrepreneurs realized that joint cooperation is necessary not only with suppliers, but also with all interested parties. Nowadays, it is often considered the possibility of JIT-type cooperation with organizations that temporarily provide services, and with trade schools to create a reliable source of new, well-trained workers.

Summary

The JIT system is a powerful tool for reducing inventory and improving manufacturing and service operations. Guided by the principles of this system, many improvements can be achieved, but it should be remembered that it is not universal. As with TQM, using JIT raises a number of problems, often caused by workers' defensive reactions to changes. The training of senior management personnel is very important. Demonstration pilot programs are a good start, which is more important than the widespread use of the JIT system at the enterprise by all services at the same time. Managers should carefully select a team that implements the JIT system, a team that will responsibly respond to a major reorganization in departments. A team can include from 5 to 15 people from the departments of technical control, design, production, transport units, from the procurement and marketing departments, as well as, possibly, from other units. It is important to constantly train this group in order to help employees abandon the use of methods that block the development of the JIT system. Like TQM, the JIT system is a series of small improvements that take some time to achieve. The implementation of the system requires the persistence of all parties involved.

The JIT system is a philosophy of action that encompasses product and process development, equipment, material selection and management, quality assurance, work planning and productivity improvement. The goal of creating a synchronized, well-established production on the principle of "; in time only one detail" ;, - meets world-class standards, which is rarely achieved in practice. It is difficult to achieve zero lead times and avoid downtime, so some JIT implementation projects are quickly implemented and then quickly forgotten about them. Leadership support, commitment, and the promotion of discipline are essential components for a successful JIT system.

Questions for monitoring and discussion

What principles does JIT use? Saturn?

Is it possible to achieve zero inventories? Why - or why not?

Eliminating losses is a vital principle of the JIT system. Identify some sources of losses and discuss ways to eliminate them.

Discuss the JIT system at a custom line and production line enterprise.

Why does a company using the JIT system need a stable production schedule?

Is the JIT system feasible in the service sector? Why - or why not?

Discuss the methods used by JIT to improve your performance: a pizzeria, hospital, or car service company.

What objections might a sales manager have against mixed plant loading?

How are costs taken into account when organizing production according to the JIT system?

What role do consumers and suppliers play in the JIT system?

P. Explain the mechanism of using cards in the "; kanban" ;?

Do you think that the following systems are similar to the "; kanban"; system, and why: delivery of empty bottles to the supermarket subject to the purchase of full bottles, the work of a kiosk selling "; hot dog"; during lunch, withdrawing money withcurrent bank account?

How is the American JIT system different from the Japanese?

Why is the JIT system difficult to put into practice?

Explain the relationship between quality and performance with the JIT concept.

Tasks

The supplier of measuring template kits uses the "; kanban" system; for material management. Boxes with sets of templates are transported in 5 pieces at a time. A manufacturing center produces approximately 10 patterns per hour. It takes about two hours to fill up the boxes. Due to the instability of the manufacturing process, the management decided to create a reserve of 20% of the required quantity. How many sets of cards; "kanban" ;?

Transmissions enter the production line in 4 pieces at a time. It takes one hour to deliver transmissions. About 4 vehicles are produced per hour and management decided that the reserve should be maintained at 50% of expected demand. How many cards; "kanban" ;?

Situation for analysis No. 1

Quick response to orders when sewing clothes

Imagine that you go to a store and order clothes manufactured at the factory exactly to your size and desire. This "; tailoring by order"; can be seen as the spread of the JIT system on the relationship between retailers and manufacturers. In quick response, retailers can send their order point information directly to the factory to minimize latency. Ready-made clothes then go to the buyer through a regular retail channel. Casual Wear Corporation Custom Clothing Technology Corporation (CCTC) produces jeans for women at affordable prices. The concept of "; custom tailoring"; helps reduce production costs by 30%. It also reduces inventory and lowers prices. CCTSwas created in Sung Park, where for the first time they realized that women are ready to pay $ 48 for jeans that will be right at the time.

In stores that have a contract with JIT CCTS,using a computer, a jeans model is selected and a measurement is taken. The pattern of jeans is done in Vermont, tailoring - in Texas, and the finished product is delivered in two weeks. The capacity of the women's jeans market is estimated at $ 2 billion, so Sung Park believes that this is the largest market in which you can test the JIT system when sewing jeans.

Questions

If you are a regular jeans retailer, would you be engaging in this new direction?

Do you think buyers will wait two weeks before receiving the goods?

Due to what the company maintains its competitiveness CCTSin this sector of the service market, if the delivery time is two weeks?

Discuss which other strategic areas are competing CCTS.

How can JIT concepts be used to improve customer service and flexibility in other industries? Select one of the areas below and do a “; brainstorming”; to decide whether to use the JIT system in your industry: healthcare, grocery stores, sports training, or home repair and maintenance.

Another example of the application of the rapid tailoring method is the company Second Skin Swimwear in Nose Palm Beach, Florida. The company produces 10 thousand bathing suits every year, using a body scanning system to avoid difficulties in trading in bathing suits. Deliveries are made within two to three weeks. What other types of clothing or styles will be competitive in sales using the system; "just in time" ;?

What additional improvements can retailers get when using new systems? Discuss end-season inventory issues, store department size or retail space size, as well as inventory report and cycle definitions.

How should organizational structures change their strategy to support the organization of production using the JIT system for sewing clothes?

Source. Martha E. Manglesdorf, "; Quick-Response Apparel" ;, Inc.,November 1993, p. 35.

Situation for analysis No. 2

Work contracts in the companyToyota

Although the practice of lifelong hiring was the norm in Japan for a certain portion of workers, the economic downturn has led some corporations to no longer be able to adhere to this system. To avoid the conclusion of costly life-long employment contracts for companies and at the same time to prevent layoffs, companies among which the leader Toyota Motor Corporation, identified a new category of temporary workers (this was realized only in Japan itself).

Temporary workers have a limit on the number of one-year contracts. Such employees, such as car developers, are not offered a life-time hiring scheme. The company will pay such employees a salary depending on the contribution of each, canceling the old payment system, which depended on the length of service (on the number of years worked in this company) and on the results of the work of the whole company.

Adhering to the firm's formula Toyota: "; Since the economic situation has changed radically ... it became clear that the old rigid organizational structure is now hampering the economic development of the company" ;, - President Toyota Tatzuro Toyoda plans to gradually increase the number of contract employees at their facilities in Japan. Other organizations follow the firm’s example. Toyota. The number of white-collar workers working under the contract will increase, but it will be easier to limit it than the number of employees working on a lifetime hiring system.

The number of contract workers, both among “blue-collar workers”; and among “; white-collar workers” ;, increased from 14% in 1989 to 19% in 1993. Such temporary workers can become a kind of "; safety valve"; in modern conditions of a cyclically developing economy. According to the executive director of one of the leading Japanese firms: "; The life-time hiring system should be thoroughly reviewed"; in Japan.

Questions

Explain why the Japanese are changing their hiring system?

What are the advantages and disadvantages of the new hiring system?

Will the Japanese try to apply the American hiring system and methods for evaluating the results of labor?

Is the former Japanese Lifetime Employment System applicable to US companies? Why?

Source. Michael Williams, "; Toyota Creates Work Contracts Challenging Lifetime-Job System" ;, The Wall Street Journal,January 24, 1994, p. A8.

Situation for analysis No. 3

CompanyQualityParts

Company Quality Parts - a component supplier for a computer manufacturer whose factory is located several miles from this company. The company on the production line produces components of two different models, the production volume of which can vary from 100 to 300 units.

Production flow models X and Y shown in fig. 8.11.

Another model Z in the first stage is processed on a milling machine, after which it goes through the same processing stages as the details X   andY. On the cart at the same time only 20 accessories are located. The approximate processing time of one unit for each operation and the setup time of equipment for this operation are shown in table. 8.3

The need for a computer company for these components ranges from 125 to 175 pieces per month, and it is distributed evenly between the parts X, Y and Z To ensure the sustainability of production at the intermediate assembly, a material stock is created at the beginning of the month. The cost of raw materials and purchased parts for assembly account for 40% of production costs for one component. All parts come from 80 suppliers and are delivered randomly at different times. (The finished product consists of 40 different parts.)

The waste rates for each operation are about 10%, the material stock is replenished twice a year, workers are paid at the daily rate, labor turnover is 25% per year, and net profit from operations is consistently 5% per year. Repair work is carried out as necessary.

Manager Quality Parts considers the possibility of installing an automated order processing system to control inventories - "so that the carts are always full" ;. (He believes that the two days spent on providing the front of work stimulate the worker to work with high productivity.) He also plans to additionally involve three inspectors for quality control. In the future, he thinks to establish a regeneration line to speed up the repair. Despite satisfaction with the high utilization of equipment and labor, the manager Quality Parts concerned about the downtime of the milling machine. And finally, he turned to the production and design department with a request to move too high shelves to store parts that come from the processing center 4.

R
ex. 8.11. Flow line diagram

Questions

What are the changes suggested by the manager Quality Parts, contrary to the jit philosophy?

Based on the JIT concept, give recommendations for improvements in scheduling production, planning equipment placement, using the principles of "; kanban" ;, group solving problems and creating inventories. Use quantitative data whenever possible, making the necessary assumptions.

Make a plan for implementing the JIT system in the company Quality Parts.

Discussion material

System "; just in time" ;: Really pi it is good
for the auto industry?

Detroit: Canadian auto workers strike strikes corporation General Mo tors (GM), when on Monday 1850 workers were temporarily laid off at two component parts factories in the United States.

“; We knew that sooner or later the strike would affect us,” said Chuck Zhuravsky, president of the automobile workers union, representing workers at the factory in Ipsilanti, Michigan. “I have already said that there are no borders for the strike.”

American workers were sent home, as there was no need for components that they made for Canadian factories. At the factory Willow Run (West Detroit), where Mr. Zhuravsky works, temporarily laid off 800 of 4,000 workers. At a power train factory of a corporation GM in Tonawanda, New York, 1,050 out of 5,500 workers were temporarily laid off. New York workers made six-cylinder engines for Chevrolet Luminas and Monte Carlos, assembled at the factory GM in Oshawa, Ontario. Willow Run makes transmissions for a Canadian vehicle factory.

Representative GM Tom Klipstin said that until next week he does not expect any strike to affect the main assembly plants.

David Andrea, Analyst Money & Co. from the headquarters in Detroit, said that GM will report on temporary dismissal almost daily if the strike continues.

"; It starts slowly, and then it will grow," he said. "The strike shows how important the whole chain is.";

It all started on Wednesday with a strike of 15,000 auto workers in Oshawa, Ontario, and St. Teresa, Quebec, and by Sunday reached a factory in St. Katarina, Ontario, where 5,300 workers went on strike.

Source. The Associated Press, The herald- TimesOctober 8, 1996.

Articles like this often give examples of problems that arise when using the JIT system in the automotive industry. Who benefited from this strike? Union General Motors? Consumers?

Prepare the following questions to discuss the JIT concept

Describe in detail why the strike at the Canadian plant caused the shutdown of factories in the United States that produce engines and transmissions.

Why didn't the main assembly plants expect the impact of the strike until next week?

What plants do you think will stop as a result of the strike?

What needs to be done to prevent mass stops similar to those described in the article?

Mainbibliography

Ansari and B. Modarres, Just in time purchasing(New York: Free Press, 1990), p. 105-106.

Joseph D. Blackburn, Time-based competition(Homewood, IL: Business One Irwin, 1991).

Joseph J. Fucini and Suzy Fucini, Working for the japanese(New York: Free Press, 1990).

Larry C. Giunipero, "; Motivating and Monitoring JIT Supplier Performance" ;, Journal of Purchasing and Material Management,Winter 1990, p. 19-24.

Robert Hall Attaining Manufacturing Excellence(Homewood, IL: Dow Jones-Irwin, 1987).

Robert Hall, Zero Inventories (Homewood, IL: Dow Jones-Irwin, 1983).

Yasuhiro Monden, Toyota Production System. Practical Approach to Production Management(Atlanta, GA: Industrial Engineering and Management Press, 1983).

Yasuhiro Monden, The Toyota Management System. Linking the Seven Key Functional Areas (Cambridge, MA: Productivity Press, 1993).

Taiichi Ohno, Toyota Production System:Beyond Large-Scale Production (Cambridge, MA: Productivity Press, 1988).

Taiichi Ohno and Setsuo Mito, Just-in-Time for Today and Tomorrow (Cambridge, MA: Productivity Press, 1988).

Richard J. Schonberger, Building a Chain of Customers: Linking Business Functions to Create a World-Class Company(New York: Free Press, 1989).

Richard J. Schonberger, Japanese Manufacturing Techniques (New York: Free Press, 1982).

Richard J. Schonberger, World classManufacturing: The Lessons of Simplicity Applied (New York: Free Press, 1989).

Richard J. Schchonberger, World classManufacturing: The Next Decade: Building Power, Strength, and Value (New York: Free Press, 1996).

G. Sewell, "; Management Information Systems for JIT Production" ;, Omega,May 1990, p. 481-503.

Shigeo Shingo, A Revolution in Manufacturing: The SMED System(Tokyo: Japan Management Association, 1983).

Shigeo Shingo, A Study of the Toyota Production System from an Industrial Engineering Viewpoint(Cambridge, MA: Productivity Press, 1989).

Kiyoshi Suzaki, The New Manufacturing Challenge: Techniques For Continuous Improvement(New York: Free Press, 1987).

Kenneth A. Wantuck, The Japanese Approach to Productivity(Southfield, MI: Bendix Corporation, 1983).

Richard E. White, "; An Empirical Assessment of JIT in U.S. Manufactures" ;, Production and Inventory Management Journal,Second quarter 1993.

James P. Womack, K. N. Jones and D. Roos, The Machine Thai Changed the World(New York: R. A. Rawston Associates, 1990).

Paul H. Zipkin, "; Does Manufacturing Need a JIT Revolution?" ;, Harvard Business Review, JIT system) ... these   knowledge more explicit and in this   sense there is a certain similarity between thesesystems   and the system   OPAL (see the chapter   ... complex in production   indoors. ... type (SIGNATURE) \u003d jet   or signature-type (SIGNATURE ...

Bolkavze Irakli Revazovich Formation of a system for monitoring the economic condition of an industrial enterprise as a factor in increasing the efficiency of a management system

Thesis

Industrial enterprise 88 chapter   3. development the system   monitoring on ... their productionsystems   (by distributing materials and scheduling production). Thesethe system ... Jit   (Just-In-Time - " for sure   at term ") will replace MRP. But this ...

System essence “EXACTLY ON TIME” (Just in time)   - “just in time” - to produce only what is needed, in the required quantity at the right time. EXACTLY ON TIME system   in production is based on the following principles:

• production of parts (assembly of assembly units, products) is carried out in a stream, in small batches, often in the quantity required by order and even for one product;
• rejection of selective control;
• quality control by the workers themselves (when processing in small batches, marriage is quickly detected in subsequent operations and corrected, the elimination of the causes is done quickly), which eliminates the possibility of marriage of finished products;
• refusal of backlog (for all operations the details are processed in one small batch) and back-up (insurance) backlogs by constructing high-quality detail-operational calendar schedules, identifying production unevenness and eliminating its causes;
• the great responsibility for the operational management of production lies with the foremen and foremen in the workshops, and not the line managers (heads of sections and workshops) and specialists of functional services.

IMPLEMENTATION OF THE EXACTLY ON TIME SYSTEM

Implementation “EXACTLY ON TIME” systems   involves:

• minimization of costs for setting up equipment due to the widespread use of CNC machines, robots and manipulators, etc., so that parts can be processed in small batches;
• the use of group technology for processing parts when equipment is set up for a group of parts with a similar design and processing technology, which also reduces the time for setting up equipment;
• the widespread use of machine tools, on which several operations are immediately performed, as a result, interoperational backlogs are excluded, the duration of the production cycle, and the volume of documentation are reduced;
• subject specialization of workshops ( eXACTLY ON TIME system impossible with the technological form of specialization of workshops due to the large distances between them and the versatility of equipment, requiring large setup costs, which makes it inefficient to process parts in small batches);
• the organization of multi-subject production lines on the principle of "mixed production" (but here it is more difficult to achieve synchronization of operations);
• application of the concept of distributed production, which provides for the simultaneous processing of batches of parts at several workplaces, which also reduces the duration of the production cycle and backlogs;
• rejection of rigid transport conveyors in order to eliminate (reduce) reserve reserves (conveyors often fail, which for “EXACTLY ON TIME” systems , where there should be no backlogs, is a big problem), increasing flexibility in the supply of parts for assembly;
• the proximity of workplaces, U-shaped or parallel production lines in order to reduce production space and the duration of the production cycle of processing parts lots;
• labor mobility: transferring workers to bottlenecks and overloaded areas, multi-machine service, which is achieved by training and trainings, mainly in production, in order to master related specialties;
• a rigid intensive system of preventive maintenance of equipment in order to avoid equipment breakdown so as not to create reserve reserves;
• automated quality control;
• drawing up only daily (shift-daily) part-time operational schedule schedules, refusal of many other documents (order - orders, waybills, etc.).

By “EXACTLY ON TIME” system   the most developed forms of production work:

GPS (flexible manufacturing systems);

IPC (integrated production complexes), including CAD - computer-aided design systems, automated process control systems - automated production management systems and process control systems - automated process control systems.

EXACTLY ON TIME system   in production involves the supply of materials and components also “EXACTLY ON TIME” system : in small batches from a small number of suppliers based on long-term contracts.

EFFECTIVENESS OF THE EXACTLY TIME SYSTEM

Efficiency “EXACTLY ON TIME” systems   manifested in the following.

1. Elimination of production (primarily revolving and reserve) backlogs. This leads to a reduction in working capital in work in progress. The need for production and warehouse space, the need for control of backlogs, for inventory and accounting of work in progress are reduced. The conscious attitude of workers towards disruptions in production is growing, giving impetus to their development of ideas for the completion of the production process, which in turn contributes to further development “EXACTLY ON TIME” systems .
2. Improving product quality, reducing rejects. In the production of parts in small batches, the worker in the next operation immediately notifies the worker in the previous operation. Thus marriage is immediately revealed, its cause and the culprit. A conscious attitude of workers to production problems appears, they express ideas for eliminating defects, improving the organization of labor, etc. “EXACTLY ON TIME” system   any failure at one workplace may suspend the entire production process. Therefore, workers develop mutual assistance, they are combined into quality groups (groups of struggle for improvement of work).
3. Quick reaction to changing market conditions, flexibility - readiness for frequent revisions of the rhythm in order to adapt production to changes in demand. When working in small batches, excluding reserve reserves, the duration of the entire logistics cycle is reduced from the procurement of materials to the delivery of finished products to the consumer. This allows you to quickly take into account market requirements, change the range and number of manufactured products, more accurately predict changes in market demand.

Obviously, for implementation “EXACTLY ON TIME” systems   and an integrated quality management system requires significant design work, considerable time and money. Toyota company, which everyone points to as the most successful user system "EXACTLY ON TIME"   and a logistic quality management system, it took over 100 years.

CONCEPT “EXACTLY ON TIME” AND KANBAN SYSTEM

The “EXACTLY ON TIME” concept is the foundation of the KANBAN system.   In literal translation from Japanese, " KANBAN   "- record or tablet. But more often KANBAN   understood as a special card used as a signal for the delivery of an additional number of parts.

There are two cards for each part (assembly unit): one card - production - for the part manufacturing area; another - transportation - for the consumer site. For each item name, there is a separate container for a certain number of parts.

When transferring a container between sections, one card (production) is replaced by another (transportation). At the manufacturer's site, the part cannot be manufactured until a production card is received.

One production and one transport card is put up for each container, the number of containers is determined by calculation.

The production card is transferred from the consumer site to the part manufacturer's site in advance, which is a signal for manufacturing the part. Exist the system KANBAN   with one card - shipping. At the manufacturer’s site, the parts are produced in accordance with the daily schedule, and their delivery to the site is done to the consumer using a shipping card. AT the system KANBAN   tight supply control is carried out with one card: at the consumer site, there can be no more than 1-2 containers, but at the manufacturer's site, containers can be accumulated, which increases backlogs.

In this way, kANBAN card   used to recognize the name of the part and transmit information about the need for it. Other means of identification can also be used: names of parts: multi-colored balls, telephone, containers themselves.

KANBAN system   - simple, does not require widespread use of computers. It can be used in almost all enterprises for parts used daily (that is, in large-scale and mass production), provided that they are implemented concept “EXACTLY ON TIME” . It cannot be used in the manufacture of parts in large batches with a long production cycle. For expensive and time-consuming parts, as well as parts manufactured irregularly, the MRP technique is used.