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Just-in-time philosophy as an improvement alternative for companies

Table of contents:

Anonim

Introduction

There are many systems or production philosophies that companies adopt based on achieving what the customer wants, in other words, achieving a high level of customer service. These systems include Just in Time (JIT), Enterprise Resource Planning (MRP), Efficient Customer Response (ECR), among others that stand out too. Each of these systems or philosophies have their particularities when it comes to their application, which does not mean that they do not have the same goal. A good application of any of these can bring substantial benefits to the company. In the case of JIT, today it is widely used by leading companies.

HIT

Lefcovich (2007) argues that the JIT method is not just another project to eliminate waste or waste. It is not just another program to motivate staff or to reduce defects. It is not just another stock reduction project. It is not just another method to reduce production times, space or preparation times. It is not simply a production or purchasing project. It is not a project at all, but a process. It is not a list of things to do, but a process that helps establish an order of priorities in what is done. The purpose of the JIT method is to improve a company's ability to respond financially to change.

The Just-in-Time system has four essential objectives which are:

  • Design systems to identify problems. Attack fundamental problems. Eliminate waste. Seek simplicity.

If we compare the traditional approach to inspection and quality control with the JIT method, we can see that the traditional approach has been to determine upper and lower limits (tolerances) and if the measurements fall outside these two limits, the product is discarded or was reprocessed. Instead, the Just-in-Time approach is to reduce the deviation from the ideal nominal, not tolerating any deviation from the nominal.

In addition, the JIT transfers the responsibility of detecting and correcting deviations to the operators who carry out the processes. They are expected to do it right the first time and to prevent products from deviating too much from the nominal.

The JIT approach, based on the use of trawl-type systems, ensures that production does not exceed immediate needs, thus reducing product-in-process and stock levels, while reducing manufacturing lead times. And time that would otherwise be unproductive is spent eliminating the sources of future problems through a preventive maintenance program.

The main advantages that can be obtained from the use of the Just-in-Time drag / Kanban systems are the following:

  • Reduction of the quantity of products in progress. Reduction of stock levels. Reduction of manufacturing lead times. Gradual reduction of the quantity of products in progress. Identification of the areas that create bottlenecks. Identification of quality problems. Simpler management.

The JIT system for better operation uses a system of cards called "instruction cards" (also known as Kanban), which have the function of acting as an automatic steering device that gives information about what is going to be produced, in what quantity, by what means and how to transport it.

The fact that these Kanban drag systems identify bottlenecks and other problems in the West was initially seen as a disadvantage. Why do we want to identify problems? Why not forget them? Well, the objective of JIT is just to solve the fundamental problems and this can only be achieved if the problems are identified.

Systems designed with the JIT application must be designed to trigger some type of warning when a problem arises, depending on solving the first objective, since if the problem is not known, it is not known to attack. If we really want to apply JIT seriously we have to do two things:

  1. Establish mechanisms to identify problems. Be willing to accept a short-term reduction in efficiency in order to gain a long-term advantage.

How to identify problems?

The Kanban entrainment system brings problems to light, while Statistical Process Control (SPC) helps identify the source of the problem. With JIT, any system that identifies problems is considered beneficial and any system that masks them is considered harmful. Kanban trawling systems identify problems and are therefore beneficial. Traditional approaches tended to hide fundamental problems and thus delay or impede solution.

Attack problems

Once these problems have been identified, it only remains to provide a solution, in addition to analyzing the possible alternative solutions to take the least expensive one. Sometimes giving a solution to a short-term problem does not mean substantial advantages, and vice versa for solutions to long-term problems, so you have to decide well what decision alternative to take.

Eliminate waste

Eliminating waste involves much more than a single effort once and for all. It requires a continuous struggle to gradually increase the efficiency of the organization and requires the collaboration of a large part of the company's staff. If you want to eliminate losses effectively, the program must involve the full participation of the majority of employees. This means changing the traditional approach of telling each employee exactly what to do, and moving on to the JIT philosophy which places special emphasis on the need to respect workers and include their contributions when formulating plans. and the facilities are operated. Only in this way can we fully utilize the experiences and expertise of employees.

Seek simplicity

Complexity was inevitable for many years in management approaches. This system emphasizes the search for simplicity, based on the principle that simple approaches will lead to more effective management. The first leg of the path to simplicity covers two areas:

  1. Material flow Control.

A simple approach to material flow is to eliminate complex routes and seek more direct, if possible one-way, flow lines. Most batch-based plants are organized according to what we might call a process arrangement. For this reason most of the articles made in this factory will follow a tortuous route passing. Normally each process involves a considerable amount of waiting time that is added to the time invested in the transport of the items (between the general confusion of the activity of the factory) from one process to another. The consequences are well known: a large number of products in progress and long manufacturing times.

The problems with trying to plan and control such a factory are huge, and typical symptoms are that overdue items rush through the factory while others are no longer needed immediately due to order cancellation or a change in the forecasts, they stop and they remain stagnant in the factory. These symptoms have very little to do with the effectiveness of management. No matter how good a live is, you will have trouble controlling such a system. We can also try to deal with the problem, for example, by installing a computer control system at the factory; if the factory remains tremendously complex, the benefits obtained will probably be marginal.

Bibliography

  • Administration with the Japanese Method - Agustín Cárdenas - CECSA –1993The Toyota Production System - Yasuhiro Monden - Macchi Editions - 1993How to implement in the West the Japanese methods of Management - Kazuo Murata and Alan Harrison - Legis - 1991Enterprise Alliances for Continuous Improvement - Charles Poirier and William Houser - Panorama - 1994 Kaizen - Detection, prevention and elimination of waste - Mauricio Lefcovich - www.gestiopolis.com - 2004 Administration, Productivity and Change - Robert Bell and John Burnham - CECSA - 1995 Lecovich, M (2007). The Just in Time Production System.IMAI, Masaaki. How to implement Kaizen in the workplace - McGraw Hill - 1998IMAI, Masaaki. Kaizen. The key to Japanese competitive advantage - CECSA - 1999DEMING, W. Edwards. The New Economy - Díaz de Santos - 1997LEFCOVICH, Mauricio. Kaizen.Continuous improvement applied in quality, productivity and cost reduction - www.monografias.com - 2003LEFCOVICH, Mauricio. Kaizen applied to administrative and bureaucratic processes and activities - www.monografias.com - 2003LEFCOVICH, Mauricio. Kaizen. Philosophy - Culture and Ethics of Continuous Improvement - www.monografiass.com - 2003.

To finish we suggest two videos through which you can learn more about the production philosophy just in time and its advantages, as well as the main elements that make it up. The first video (12 minutes) is a theoretical approach to the system and the second (23 minutes) is a documentary that shows how JIT has been applied in a British car producer. Good material to complement and deepen your learning.

Just-in-time philosophy as an improvement alternative for companies