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JIT Requires:: JIT and Competitive Advantage

The document discusses Just-In-Time (JIT) inventory management and its benefits. JIT requires lean production, reducing waste, and throughput time. It also discusses pull versus push systems and kanban as a popular pull system using visual signals to schedule small batches and stabilize production schedules.

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100 views6 pages

JIT Requires:: JIT and Competitive Advantage

The document discusses Just-In-Time (JIT) inventory management and its benefits. JIT requires lean production, reducing waste, and throughput time. It also discusses pull versus push systems and kanban as a popular pull system using visual signals to schedule small batches and stabilize production schedules.

Uploaded by

Ab
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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JIL

In inventory management, the Just-In-Time or JIT system reduces wastage, improves


efficiency and productivity, and contributes to smoother production flows. A shorter
production cycle can decrease financial costs, inventory costs and labour costs

JIT and Competitive Advantage

JIT Requires:
Lean production 

Lean production is an approach to management that focuses on cutting out waste,


whilst ensuring quality. This approach can be applied to all aspects of a business – from
design, through production to distribution. Lean production aims to cut costs by
making the business more efficient and responsive to market needs.

throughput time 

Manufacturing throughput time is the amount of time required for a product to pass


through a manufacturing process, thereby being converted from raw materials into
finished goods. ... Queue time. This is the time spent waiting prior to the processing,
inspection, and move activities.

general formula is I = R * T. In other words, Inventory = Rate multiplied by Time, where


“rate” is the throughput. But if you solve for R, you would get R = I / T, or Rate =
Inventory divided by Time

Waste Reduction

 Waste is anything that does not add value from the customer point of view

 Storage, inspection, delay, waiting in queues, and defective products do not add value
and are 100% waste

Pull Versus Push Systems


"Push type" means Make to Stock in which the production is not based on actual
demand. "Pull type" means Make To Order in which the production is based on actual
demand. ... At the point where "Pull type" starts to supply operations triggered by actual
demand, it is like an elevator.

Is Kanban push or pull?

Push is MRP, pull is kanban (not really a quote, but often heard in industry). ... A well-
implemented kanban system (i.e., not just a plant where every paper is miraculously
called “kanban”) is indeed a pull system. However, it is not the only possible way to
create a pull system. You could also use, for example, CONWIP.

KAIZEN™ 5S 

KAIZEN™ 5S Best-In-Class. Workplace Organization or simply called 5S, is an integral


part of the Lean and KAIZEN™ process. The 5S's are Sort (Seiri), Straighten (Seiton),
Scrub (Seiso), Standardization (Seiketsu) and Sustain (Shitsuke).

Kanban

Kanban is one of the Lean tools designed to reduce the idle time in a
production process. The main idea behind the Kanban system is to deliver what
the process needs exactly when it needs it and how much to produce. In Japanese, the
word "Kan" means "visual" and "ban" means "card," so Kanban refers to visual
cards.Sep 21, 2010
idle time

Idle time refers to time when an employee or a production machine is not producing


anything, i.e., not working. Idle time may be due to any type of work stoppage. We also
call it downtime, allowed time, or waiting time. Sometimes management causes the
downtime, but not always.

To calculate idle time, we simply deduct the actual working hour from the total
standard hour, the difference is idle time

Kanban is a popular Agile software development methodology

 Schedules must be communicated inside and outside the organization

 Level schedules

 Process frequent small batches

 Freezing the schedule helps stability

 Kanban

 Signals used in a pull system

Scheduling Small Lots


JIT Level Material-Use Approach
A A B B B C A A B B

Large-Lot Approach
A A A A A A B B B B B B B B

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