Information & Training. | Lean Manufacturing. Just In Time Processing.
Just In Time Manufacturing.
Just in Time Manufacturing is a concept that focuses on operating a process right at the edge between just getting product / services delivered to the customer and failure to deliver when required. The idea of failing to deliver creates a sense of urgency, forces an immediate and clear focus on ensuring all employees, equipment, processes are operating effectively. The closer a manufacturing operation resides on the edge between successfully delivering on time and falling behind time, the greater the potential benefits to the organization. Therefore, the focus on management needs to be to drive the manufacturing operation continually to the “just in time” edge, without allowing the organization to go beyond that point.As “Just in Time Manufacturing” reaches the optimum efficiency point, the benefits are maximized.
Consider a manufacturing organization that truly achieves an optimized “just in time” operation. There will be no finished goods inventory as product and services are delivered directly to the customer. Therefore, no cost of holding, handing, transporting this inventory. No potential cost of inventory obsolescence.Similarly, internally within the manufacturing facility, the elimination of inventory drives down a range of inventory costs. Looking from a perspective of operational efficiency. If an item of process equipment, breaks down un-expectantly, in a true “just in time” operation, there will be immediate and potentially catastrophic effects. The catastrophic effects will arise, due to the non-availability of inventory further along the manufacturing process as far as the end customer. Therefore, there will be an immediate and highly focussed effort to repair the item of process equipment and return it into active use. In addition, you would expect that there will be an immediate instruction issued by senior management to insure failure is not repeated. The net result will be a permanent fix implemented to ensure any further un-expected failure does not repeat. This will involve key staff identifying the root cause of the failure and implementing a permanent solution.
This approach to internal on-time delivery, combined with an expectation of continuous “within expected specification” operational performance, will naturally be extended back through the supplier base. Clearly, suppliers will have to deliver on time, right every time, otherwise, any under performance will severely impact on the purchasing “customer” manufacturing processes.
The tools and techniques of Lean & JIT:
– Basic working practices
– Total Productive Maintenance
– Design for manufacture
– Set-up reduction
– Operations focus
– Total staff involvement
– Overall Equipment Effectiveness (OEE)
– Visual management
– Flow layout
– Just-In-Time Supply
– Pull scheduling & Push systems of control
– Kanban control
– 5S method of control
– Levelled scheduling
– Etc. Etc..
Information & Training presentation >>>
Under the optimized “just in time” approach, costs will fall due to the operational efficiencies being achieved. As processes become more reliable and cycle times fall, the cost of manufacturing will drop due to the elimination of scrap, rework, defects, returns, obsolescence, etc.. The net result will be falling costs, improving quality and reliability, combined with increasingly satisfied customers.
Clearly the onus on senior management in every manufacturing organization, should be to seek to implement an optimized “just in time” operation. However, there is also a clear requirement that any such effort will need to be planned out in advance. The plan to implement will need to consider the current situation versus the desired status. How will the process be implemented? What staff competences and training will be required? How will the success of the process be measured? How will the impact on the customer be measured? The planning of the “just in time” approach, the long term active commitment of management, the competence, capability and motivation of staff are all critically important in contributing towards the success of the project.
The severity associated with potential risks will continually increase.
As outlined previous, the closer the manufacturing organization moves towards a true “just in time” operation, the greater the potential risks to the business. Inventory acts as a safety net, which allows operations to continue even if prior process flows are interrupted due to equipment failure, product rejections, etc.. Therefore in any project directed towards achieving “just in time”, a comprehensive risk assessment and risk management program, focussed on those potential risks created or exaggerated by the changing operating environment will need to be performed. As inventory stock levels fall throughout a process and as cycle times are reduced, then the severity associated with a potential risk will increase.How can management address the ever increasing risks to the organization?
Decisions need to be made on a costs/benefit basis. For example, retaining relatively higher levels of inventory will incur inventory holding costs, potential obsolescence costs, etc.. However, these same levels of inventory will minimize potential down-time costs further along the manufacturing process. As the process is optimized, the number of process failures, equipment downtime, etc., will continually decrease, therefore the costs/benefit analysis will need to take a long term view. Any costs/benefit analysis will need to take account of the customer. There are potential negative opportunity lost costs associated with the risk of not having product available to deliver to the customer under a “just in time” operation, where an unexpected supply interruption arises. However, this needs to be balanced out against the potential for continually improving customer quality, reliability and delivery experiences where “just in time” consistently drives continuous improvement.Approach to implementing Just in Time Manufacturing.
Management needs to take a long term view. The first step is to create a clear vision of where the manufacturing organization wants to reside over the coming years. This vision needs to aggressively strive for excellence, where the customer expectations are consistently met and exceeded. The vision then needs to be rolled back into a series of annual top level objectives, which continually strive to drive improvement in equipment, processes, practices, materials, suppliers and people. In parallel, the potential risks to the manufacturing organization must be continually monitored and managed down to acceptable levels.In summary, achievement of an optimized “just in time” manufacturing operation, requires long term vision from management, long term commitment to continuous improvement, clearly defined annual objectives striving to achieve the vision, comprehensive realistic risk assessment and management understanding and commitment to delivering and exceeding customer expectations.
“Lean” & “Just-In-Time”.
The tools and techniques of Lean & JIT:
– Basic working practices
– Total Productive Maintenance
– Design for manufacture
– Set-up reduction
– Operations focus
– Total staff involvement
– Overall Equipment Effectiveness (OEE)
– Visual management
– Flow layout
– Just-In-Time Supply
– Pull scheduling & Push systems of control
– Kanban control
– 5S method of control
– Levelled scheduling
– Etc. Etc..
Baldridge Performance Excellence Program
European Foundation for Quality Management