The acronym JIT corresponds to the Anglo-Saxon expression "Just In Time", whose translation we can denote as "Just In Time". And precisely the name of this novel production method indicates its work philosophy: "raw materials and products arrive just in time, either for manufacturing or for customer service".
just-in-time-just-in-time-introductionThe JIT method explains much of the current successes of Japanese companies, their great forerunners. Its bases are the reduction of “waste”, that is, of everything that is not needed at the precise moment, capacity buffers, large batches stored in inventories, etc. In this way, the first thing that strikes us is the substantial reduction in inventory costs, leading to better production, better quality, etc.
However, we cannot study the JIT system as a software package, such as MRP (Material Requirements Planning: Material Requirements Program), but we must study it as a philosophy, since it not only affects the production process, but also It does so directly on the personnel, the way of working, the suppliers, etc. This philosophy is based mainly on two expressions that summarize its objectives, "the habit of improving" and the "elimination of wasteful practices". The JIT seeks that we continually seek to do things better, a fact that is rarely appreciated by wealthy Western companies, some of which make an equivocal comparison between their measures of minimizing costs with the elimination of practices that produce waste, that is,practices that do not suppose any benefit for the company (although at first sight if it seems it).
In this work, we will go on to expose how the JIT emerged as an innovation, from the R&D departments, because although the most well-known aspect of their work is the creation and innovation of new products, it is less relevant on a superficial level. but no less important at the business level are its innovations in production methods
THE BIRTH OF JUST IN TIME
Just in time was born in Japan, where it was applied by the Toyota automobile company that began to use it in the early 1950s and the main purpose of this system was to eliminate all unnecessary elements in the production area (which includes from the raw materials purchasing department, to customer service, through human resources, finance, etc.) and is used to achieve cost reductions never imagined and meeting the needs of customers at the lowest possible costs as commented in the introduction. In a small nation like Japan, the most precious asset is without a doubt physical space. Therefore, one of the pillars of the new philosophy was precisely the saving of space, the elimination of waste and, in conclusion,eliminating the burden of inventory stock.
In addition, the story has its own contribution to JIT innovation. If in the 1950s, technological advancement and industrial development were the almost exclusive property of the United States of America, due in large part to its victory in World War II, which greatly damaged the Japanese nation, in the decade In the 1980s, this trend was reversed towards what was his great enemy in the war, Japan. The advancement of electronics and other large industrial sectors related to the most flourishing industries settled in that country due in large part to the favorable economic and labor conditions in Japanese companies. But the birth of a large number of companies, almost all of them related to the same technology sectors, led to the emergence of fierce competition.The fight for world supremacy was then focused on aspects that had never been so important before, Innovation.
The large number of companies led to the almost simultaneous appearance of similar products manufactured by different companies, thus reducing market share and therefore profits. Companies had to be superior to their competitors, and they had to be superior in those aspects that no one had previously thought of. Japanese companies were the first to focus their products and innovations in this direction. To do this, they had to be the best in innovation of new products, but also had to be the fastest, to prevent competition from reducing their profit margin. But technological advance prevented the time difference from when the new product was launched until the competitors "reproduced" it. Thus,A new method had to be found to continue innovating but increasing the profit margin. And precisely this will be the philosophy of innovation that we are dealing with: JIT. Quickly, the companies that implemented it, all of them Japanese, managed to solve two problems at the same time: the lack of physical space and obtaining the maximum benefit: “reduction of inventories and elimination of wasteful practices”. The first company to implement this production method, Toyota, quickly became world leaders in its sector. The effectiveness of the JIT quickly led them to improve and perfect their philosophy, which began to affect all areas of the company, and not only production, Workforce, Management,…Quickly, the companies that implemented it, all of them Japanese, managed to solve two problems at the same time: the lack of physical space and obtaining the maximum benefit: “reduction of inventories and elimination of wasteful practices”. The first company to implement this production method, Toyota, quickly became world leaders in its sector. The effectiveness of the JIT quickly led them to improve and perfect their philosophy, which began to affect all areas of the company, and not only production, Workforce, Management,…Quickly, the companies that implemented it, all of them Japanese, managed to solve two problems at the same time: the lack of physical space and obtaining the maximum benefit: “reduction of inventories and elimination of wasteful practices”. The first company to implement this production method, Toyota, quickly became world leaders in its sector. The effectiveness of the JIT quickly led them to improve and perfect their philosophy, which began to affect all areas of the company, and not only production, Workforce, Management,…The first company to implement this production method, Toyota, quickly became world leaders in its sector. The effectiveness of the JIT quickly led them to improve and perfect their philosophy, which began to affect all areas of the company, and not only production, Workforce, Management,…The first company to implement this production method, Toyota, quickly became world leaders in its sector. The effectiveness of the JIT quickly led them to improve and perfect their philosophy, which began to affect all areas of the company, and not only production, Workforce, Management,…
The JIT method explains many of the successes of Japanese companies in recent years, which are gradually coming to lead their market areas. However, many companies have not yet implemented JIT in their production. Most of these companies correspond to the group of Western companies, among which we include both North American and European companies.
One of the reasons that JIT is not installed in the West may be the different lifestyles of both blocks, Japanese traditional methodical life versus liberal life in Western countries. And above all, we must arrive at the difference derived from here in the way we see the company. While in Europe, the company is the workplace for the vast majority, losing all relationship with it outside working hours. In Japan, on the other hand, the company is a very important part of life in the life of the Japanese worker, reaching the extreme of totally identifying with the problems of the company, making them as their own and trying to solve them for the benefit of the whole before the own benefit. If we take this fact as a starting point,we can already appreciate the reason for the difficulties of implementing a Japanese production system in a western country.
But we must start from the basis that the JIT is not only a productive method, but a philosophy, and that therefore it should not be implemented, but must be taught and its virtues and disadvantages must be shown, in such a way so that the worker learns this philosophy on his own initiative, and by imposition.
On the other hand, the publicity on the subject has not gone in depth to its details, remaining only on the surface. This fact causes companies to see only the outermost layer, facilitating the appearance of suspicions and rejections towards the new production system, reaching, at best, to see JIT as a method capable of increasing the rate of return on investment of a company. company or to reduce costs. However, the adoption of JIT in a company represents a radical change in the way of seeing the company as well as of understanding it. All the rules and routines already established go to obsolescence, since, for example, the JIT forces to eliminate the excessive expenses characteristic of large facilities. And this becomes a determining factor in the rejection of JIT,since not all companies see themselves as flexible enough to adopt the changes that JIT needs. Therefore, there are many excuses that Western companies use for rejecting JIT. But all of them have a coherent explanation that may come to clarify the ideas for many companies.
Achieving a good rate of return depends on a good implementation, whose five essential phases are:
- First phase: Put the system up and running. Second phase: education. Third phase: achieve process improvements. Fourth phase: get control improvements. Fifth phase: expand the supplier / customer relationship.
The first phase involves creating a foundation upon which the deployment can be built. As the implementation of JIT involves changing attitudes within a company, the first phase sets the overall tone of the application. It includes some initial education, cost benefit analysis, and identification of a pilot plant. But perhaps the most important factor in getting started is getting the commitment of top management. Without this commitment, the implementation will be much more difficult, since inevitably at certain points difficult decisions will have to be made.
Once the first phase is completed, the task of education can begin. The fact that this phase has been called the point at which it is followed or left indicates its importance. A good implementation of JIT requires changing attitudes that are sometimes deeply rooted.
Once the education program is underway, the processes can be changed, and then the production control. These improvements include the use of mini factories with flow lines to simplify control problems, as well as the use of drag / kanban systems to drag work through the production system.
The final phase, the expansion of the supplier / customer relationship, completes the implementation of the JIT. This phase incorporates the suppliers and customers in a JIT system that covers the entire production process, from suppliers, through the company itself to reaching customers. This last phase will be discussed later.
These five phases form the basis of the implementation of the JIT. They have been tested in practice and form the core of the implementation plan.
FUNDAMENTAL PRINCIPLES OF JIT .
ATTACKING THE FUNDAMENTAL PROBLEMS
Japanese culture loves to represent concepts with images. To describe the first objective of the JIT philosophy, to attack the fundamental problems, the Japanese use the analogy of the river of stocks that is reflected in the diagram in Figure 1.
The river level represents the stocks and the operations of the company are visualized as a ship sailing upstream and downstream. When a company tries to lower the level of the river (in other words, reduce the level of stocks) it discovers rocks, that is, problems. Until quite recently, when these problems arose in companies in Western countries, the answer was to increase stocks to cover the problem.
A typical example of this type of problem would be a plant having an unreliable machine supplying parts to another, more reliable one, and the typical response from Western management would be to keep a large safety stock between the two machines to ensure that the second machine will not lack work. Instead, the JIT philosophy indicates that when problems arise we must face them and solve them, the rocks must be removed from the river bed). The level of stocks can then be gradually reduced until another problem is discovered; this problem would also be solved, and so on. In the case of the unreliable machine, the JIT philosophy would tell us that the problem had to be solved, either with a preventive maintenance program that would improve the reliability of the machine or,If this fails, buying a more reliable machine, Figure 2 illustrates the difference between the traditional Western approach and JIT.
When there is a machine or process that forms a bottleneck, one of the traditional Western approaches has been to try to achieve better and more complex programming (using, for example, MRP II) to ensure that you never run out of work, decreasing thus the effect of the bottleneck. The consequences of these policies have often been disappointing, the targets for stock turnover, which is a good measure of efficiency, have been lower in Western countries than in Japan, and what is more, these targets relating to stock turnover have increased faster in Japan than in Western countries. Instead, the JIT approach to a machine or process that constitutes a bottleneck would bereduce setup time to achieve higher capacity, look for alternative machines or processes, buy additional capacity, or even outsource excess work. A JIT manager acknowledges that neither an increase in the safety stock nor more complex programming would solve the fundamental problem; all they do is temporarily cover up the problems.
When a JIT manager observes that cycle times are so long, he tries to identify the main problems causing them. You won't be content with trying to rush a few orders, but rather want to find out why lead times are so long. In my experience, long lead times are the result of various factors, including bottleneck-causing machines or processes, unreliability of machines, poor quality control (requiring rework of non-compliant items). quality - a very expensive activity), and lack of control in the factory. By solving these problems, manufacturing times can be gradually reduced.
ELIMINATE WASTE
The second goal of the JIT philosophy can be expressed by a phrase that is often used in the most efficient Japanese factories, Eliminate Waste, in this context, means anything that does not add value to the product. Examples of operations that add value are processes such as cutting metal, welding, inserting electronic components, etc. Examples of operations that do not add value are inspection, transportation, storage, preparation. Let's take the case of inspection and quality control as examples. The traditional Western approach is to have inspectors strategically located to examine the pieces and, if necessary, intercept them. This has certain disadvantages,including the time it takes to inspect parts and the fact that inspectors often discover faults after an entire batch has been made, requiring the entire batch to be reprocessed or scrapped - two very expensive solutions. The JIT approach is to eliminate the need for an independent inspection phase, emphasizing two imperatives:
Getting it right the first time. Since sourcing high-quality products is typically no more expensive than making poor-quality products, all that is required is a concentrated effort to debug the biases that lead to defects.
Get the operator to assume responsibility for controlling the process and carry out the necessary corrective measures, providing them with guidelines that they should try to achieve.
If we compare the traditional western approach to inspection and quality control with the JIT method (Fig. 3), we can see that the western approach has been to determine upper and lower limits (eg tolerances) and whether the measurements fall outside of these two limits, the product is discarded or reprocessed. Instead, the JIT approach is to reduce deviation from the ideal nominal, not tolerating any deviation from the nominal. In addition, the JIT passes the responsibility of detecting and correcting deviations to the operators who carry out the processes. They are expected to get it right the first time and prevent products from deviating too far from nominal. These are the essential characteristics of statistical quality control. Stock storage is another example of inefficient activity.The actual cost of inventory is twofold. The first cost is, of course, the direct cost in terms of capital and warehouse expenses, and the risk that the stock will become obsolete. Many companies in Western countries have assumed that the cost of inventory is between 20 and 30 percent per year. The second cost, which has been overlooked in traditional Western companies, is that stocks hide problems. It relates to the JIT philosophy of gradually reducing stock levels and exposing problems. At first, some managers looked at this idea with some concern because they thought it was good that the problem remained hidden, since once the problem was exposed they had to do something to solve it.If suppliers do not deliver components or raw materials on time and in good quality, a large safety stock of components or raw materials will keep the problem hidden. This is not a satisfactory solution. Safety stock is expensive, takes up space, and can become obsolete. In addition, there are costs associated with returning items (if the quality is poor) or claiming the order (if it is not delivered on time). A more frequent and more reliable supply can reduce safety stocks and also costs.There are costs associated with returning items (if the quality is poor) or claiming the order (if it is not delivered on time). A more frequent and more reliable supply can reduce safety stocks and also costs.There are costs associated with returning items (if the quality is poor) or claiming the order (if it is not delivered on time). A more frequent and more reliable supply can reduce safety stocks and also costs.
Eliminating all activities that do not add value to the product reduces costs, improves quality, reduces manufacturing times and increases the level of service to customers. Indirectly, of course, it can also increase sales. Eliminating waste takes 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 workforce. If we want the policy to be effective, it cannot be left in the hands of a “committee for the elimination of waste”, but has to reach every corner of the company's operations, that is, it will only be effective if the employees fully understand the concepts and whether any action is taken to implement the waste elimination strategy.
Companies that have achieved the best results using this waste elimination philosophy have typically not considered it the sole criterion and have mobilized employees to apply the philosophy thoroughly. Suggestion programs are a way to get employees involved. In the past, these programs were notorious in the West for poor feedback from employees and for the low proportion of suggestions that have actually been implemented. If losses are to be effectively eliminated, the suggestion 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 the JIT philosophyplaces great emphasis on the need to respect workers and include their input when plans are formulated and facilities are operated. Only in this way can the experience and expertise of all employees be used to the full. This more participatory management style can require considerable adjustment, especially on the part of supervisors and managers. Staff in this category often feel that their power base is diminishing if they are not fully informed of the purpose of the changes involved in implementing the JIT. However, if company personnel, especially supervisors and managers, receive complete training on JIT, it is very likely that this system will receive unconditional support from them.
SIMPLICITY
The third objective of the JIT philosophy is to find simple solutions. The approaches to manufacturing management that were in vogue during the 1970s and early 1980s were based on the premise that complexity was inevitable. And at first glance it seems true. A typical batch manufacturer may have several hundred batches simultaneously in the different processes. Each batch probably involves a number of separate operations and will likely have to go through most of the factory departments. Managing a system of this type is extremely complex; interactions between different jobs, as well as the need for other resources, tend to overwhelm most managers. The JIT places great emphasis on the pursuit of simplicity,based on the fact that simple approaches are highly likely to lead to more effective management. The first section of the road to simplicity covers two areas:Material flow and Control.
A simple approach to material flow is to eliminate complex routes and look for more direct flow lines, if possible unidirectional. Most batch manufacturing plants are organized according to what we might call a process arrangement. Figure 4 is an example of this.
Most of the items made in this example factory would follow a tortuous route going, for example, from cutting raw materials to lathes, then boring, welding, rolling, heat treating, grinding, and workshop. Of paint. Each process typically involves a considerable amount of lead time that is added to the time it takes to transport items from one process to another. The consequences are well known, a large number of products in progress and long lead times. The problems involved in trying to plan and control such a factory are enormous, and the typical symptoms are that late items rush through the factory while others,That are no longer needed immediately due to an order cancellation or a change in forecasting, are stopped and stuck at the factory. These symptoms have very little to do with the effectiveness of management. No matter how good a director is, he will have trouble controlling such a system. JIT's philosophy of simplicity examines the complex factory and starts from the assumption that very little can be achieved by placing a complex control on top of a complex factory. Instead, JIT emphasizes the need to simplify factory complexity and adopt a simple system of controls. The main method of achieving a simple material flow in the factory is to group the products into families,using the ideas behind cluster technology and reorganizing processes so that each product family is manufactured on a flow line. An ideal case is shown in Figure 5, although, generally, the flow line is often arranged in a U-shape. In this way, the elements of each product family can move from one process to another more easily, since the processes are located adjacent to each other. This will probably reduce the number of products in progress and the lead time.since the processes are located adjacently. This will probably reduce the number of products in progress and the lead time.since the processes are located adjacently. This will probably reduce the number of products in progress and the lead time.
With these small flow lines already in place, other advantages also arise. For example, management is much easier than in process layout, as each flow line is largely independent. There may be a deputy head responsible for each flow line. Furthermore, the quality will tend to improve; Since the panic has subsided because there are fewer rush orders, more time can be spent fixing quality problems.
The JIT philosophy of simplicity, in addition to applying to the flow of items, also applies to the control of these flow lines. Rather than using a complex control, the JIT puts more emphasis on a simple control. An example is the carry-over / Kanban system. It is far from conventional control approaches, as drag / kanban systems drag work.
Complex control systems are push systems in the sense that they plan what needs to be manufactured, which is then pushed through the factory. Bottlenecks and other problems are supposed to be detected in advance and complex control systems are installed to report changes so that corrective action can be taken. Instead, the JIT approach using the carry-over / Kanban system eliminates the complex set of data streams, as it is essentially, in its original form, a manual system. When the job for the last operation is finished, a signal is sent to the previous operation to tell it to make more items; when this process runs out of work, it in turn sends the signal to its predecessor, etc.This process continues to reverse the entire flow line as shown in Figure 6.
In this way, work is dragged through the factory. If no work is taken out of the final operation, no signals are sent to the preceding operations and therefore they do not work. This is the main difference from previous material control approaches. If demand decreases, personnel and machinery do not produce items. Proponents of JIT suggest that they perform other tasks such as cleaning machinery, making adjustments and checking for maintenance, etc. With more traditional approaches, most managers are less likely to let people and machinery sit idle. Work will be scheduled even if it is not needed in the near future. Too many times it is never needed because the product has become obsolete and the finished products must be thrown away.In fact, the traditional approach viewed keeping machines and personnel running as a top priority, even at the cost of manufacturing items that would only help increase already inflated stocks and increase scrap rates. The JIT approach, based on the use of drag-type systems, ensures that production does not exceed immediate needs, thereby reducing work-in-progress and inventory levels, while reducing lead times. And time that would otherwise be unproductive is spent eliminating the sources of future problems through a preventive maintenance program. Achieving the correct environment for this to happen requires a comprehensive education, training and communication program.the traditional approach saw keeping machines and personnel running as a top priority, even at the cost of manufacturing items that would only help increase already inflated stocks and increase scrap rates. The JIT approach, based on the use of drag-type systems, ensures that production does not exceed immediate needs, thereby reducing work-in-progress and inventory levels, while reducing lead times. And time that would otherwise be unproductive is spent eliminating the sources of future problems through a preventive maintenance program. Getting the environment right for this to happen requires a comprehensive education, training and communication program.the traditional approach saw keeping machines and personnel running as a top priority, even at the cost of manufacturing items that would only help increase already inflated stocks and increase scrap rates. The JIT approach, based on the use of drag-type systems, ensures that production does not exceed immediate needs, thereby reducing work-in-progress and inventory levels, while reducing lead times. And time that would otherwise be unproductive is spent eliminating the sources of future problems through a preventive maintenance program. Getting the environment right for this to happen requires a comprehensive education, training and communication program.even at the cost of manufacturing items that would only contribute to increasing already inflated stocks and increasing the scrap rate. The JIT approach, based on the use of drag-type systems, ensures that production does not exceed immediate needs, thereby reducing work-in-progress and inventory levels, while reducing lead times. And time that would otherwise be unproductive is spent eliminating the sources of future problems through a preventive maintenance program. Getting the environment right for this to happen requires a comprehensive education, training and communication program.even at the cost of manufacturing items that would only contribute to increasing already inflated stocks and increasing the scrap rate. The JIT approach, based on the use of drag-type systems, ensures that production does not exceed immediate needs, thereby reducing work-in-progress and inventory levels, while reducing lead times. And time that would otherwise be unproductive is spent eliminating the sources of future problems through a preventive maintenance program. Achieving the correct environment for this to happen requires a comprehensive education, training and communication program.based on the use of drag-type systems, it ensures that production does not exceed immediate needs, thus reducing work in progress and inventory levels, while reducing lead times. And time that would otherwise be unproductive is spent eliminating the sources of future problems through a preventive maintenance program. Achieving the correct environment for this to happen requires a comprehensive education, training and communication program.based on the use of drag-type systems, it ensures that production does not exceed immediate needs, thus reducing work in progress and inventory levels, while reducing lead times. And time that would otherwise be unproductive is spent eliminating the sources of future problems through a preventive maintenance program. Achieving the correct environment for this to happen requires a comprehensive education, training and communication program.And time that would otherwise be unproductive is spent eliminating the sources of future problems through a preventive maintenance program. Achieving the correct environment for this to happen requires a comprehensive education, training and communication program.And time that would otherwise be unproductive is spent eliminating the sources of future problems through a preventive maintenance program. Achieving the correct environment for this to happen requires a comprehensive education, training and communication program.
Evidence from Western manufacturers who have run such a program shows encouraging results in reducing lead times and machine downtime. In addition, it increases morale considerably. The main advantages that can be obtained from the use of drag / Kanban type JIT systems are the following:
- Reduction of the number of products in progress. Reduction of stock levels. Reduction of manufacturing times. Gradual reduction in the number of products in progress. Identification of areas that create bottlenecks. Identification of quality problems. Simpler management.
The first three advantages have already been discussed, which are the reduction in the quantity of products in progress, the levels of stocks and the lead times. The original Kanban system at the Toyota factory in Japan achieves a stock turnover of 80 compared to the average for Western companies of 3-4. While you have to be very careful when comparing the Toyota line with other companies, the numbers indicate the staggering benefits that drag / kanban systems can bring. One of the main advantages is that they simplify the management of the manufacturing system. Drag systems work on their own and their need for complex computer control is much less. The workflow is determined by the limitations of the system and not what comes out of a computer. Yes,for example, if a bottleneck is created in a zone, it will also decrease the activity of the previous processes to avoid backlog of work before the bottleneck. The improvements associated with a drag system appear gradually. It seems to work best if the system is first applied with fairly long queues in front of each process and the river level (work in progress) slowly decreases to reduce lead times. Improvements will likely be slow, but they will also be continuous.It seems to work best if the system is first applied with fairly long queues in front of each process and the river level (work in progress) slowly decreases to reduce lead times. Improvements will likely be slow, but they will also be continuous.It seems to work best if the system is first applied with fairly long queues in front of each process and the river level (work in progress) slowly decreases to reduce lead times. Improvements will likely be slow, but they will also be continuous.
It is often thought that carryover / Kanban systems can only be used when there is little variety of products and little variation in demand. However, many companies are using adapted kanban / pull systems when these conditions do not exist. The fact that drag / kanban systems identify bottlenecks and other problems in the West was initially seen as a disadvantage. Well, as we have already indicated before, the objective of the JIT is to solve the fundamental problems and this can only be achieved if the problems are identified
ESTABLISH SYSTEMS TO IDENTIFY PROBLEMS
The fourth point of the JIT philosophy is to establish systems to identify problems. We have seen drag / kanban systems bring issues to light. Another example is the use of statistical quality control to help identify the source of the problem. With JIT , any system that identifies problems is seen as beneficial and any system that masks them as detrimental. Pull / Kanban systems identify problems and are therefore beneficial. Previous traditional approaches tended to hide fundamental problems and thus delay or prevent resolution. Most of the manufacturing systems also had other problems: unreliable suppliers, lack of quality and processes with bottlenecks, etc.
Systems designed with the application of JIT should be thought of in such a way that they trigger some kind of warning when a problem arises. The line operates at a certain level of efficiency, a problem appears, the line stops and the problem is identified, corrective action is taken, and the line is started again. As we have already dealt with the problem and it has been partially or totally fixed, it is unlikely that this line will have the same problem again, thus increasing its efficiency. This is reflected in the schematic in Figure 7, where it can easily be seen that the approach works by gradually accumulating a series of small increases in efficiency. When enough increases are combined, the result is a significant increase in efficiency.We can use some of these ideas in any JIT system we design. The objective is not only to reduce the number of products in progress and lead times, but also to identify problems as soon as possible to force managers to take corrective action.
For example, if we have a process with a bottleneck, clever programming may alleviate the symptoms, but it will never solve the problem. In fact, more complex scheduling simply takes a detour at the cost of, for example, having more products in progress, rescheduling work with other less profitable processes. Worse, it serves to hide the problem, as a manager may be able to program a factory with multiple bottlenecks without being forced to acknowledge that its operation has a number of inherent problems that it should identify and resolve. To properly identify a problem, a manager should be willing to pay the price in the form of small setbacks. If we really want to apply JIT seriously we have to do two things:
Establish mechanisms to identify problems.
Be willing to accept a short-term reduction in efficiency in order to gain a long-term advantage.
The difference between a typical traditional business and a JIT application is great. The low level of ongoing products in a good JIT application gives the factory a neat, almost deserted look. An increase in morale and a more dedicated atmosphere can also be observed. Many managers may initially view the need to create systems to identify problems as a potential disadvantage. However, experience shows that creating these systems and solving the problems (which is the first aspect of the JIT philosophy) can greatly improve the operation of the company.
COST / BENEFIT OF APPLYING JIT
Conventional approaches to manufacturing control such as MRP require large capital investments. For example, it is estimated that an application of MRP II can cost each company an average of more than one million dollars (180 million pesetas). Most of this cost consists of computer hardware and software. Typically an application of MRP systems involves an 18-month implementation sequence to resolve data flows; then the system is tested in parallel with the existing system, the initial problems are solved and finally the company goes on to definitively use the new system. In contrast, JIT requires very little capital investment. What is required is a reorientation of people with respect to their tasks.
With the application of the JIT, all the costs involved are mainly training costs. Company personnel must be aware of the philosophy behind JIT and how this philosophy influences their own role. But even though the cost of a JIT application is lower than that of typical MRP II applications, the stock reduction is much greater with the JIT system, many applications achieve a 60 to 85 percent stock reduction. We must also remember that JIT should not be considered short term; that is, we should not use the JIT for six months and then stop. The JIT is a progressive campaign that seeks continuous improvement. We must also keep in mind that JIT not only reduces stocks, but increases quality,customer service and overall company morale. Everything shows us that JIT can be very profitable, with the only condition that the application is well planned.
SUPPLIER-CUSTOMER RELATIONSHIP
Both supplier and customer relationships are important because they broaden the scope of cost reduction and further drive quality improvement. For example, taking steps to improve the quality of our supplier's components reduces the steps that will need to be taken when a large, low-quality batch arrives and ensures that improvements in the quality of in-house components are supported by improvements. comparable components from external suppliers, resulting in a better quality end product.
The savings can be great. Recent research suggests that in Western companies, material costs make up 51% of total costs, while labor costs make up only 15%. Labor cost as a percentage of total cost It tends to decrease (in many sectors labor costs are below 10 percent of total costs), while material costs tend to increase. Technologies such as automation and robotics have reduced labor costs and many companies are making large investments that will further reduce them.
Instead, companies are only beginning to look at things that can significantly lower material costs. Purchasing departments have often been content with a short-term vision, and their response to changes in demand, rejections, or obsolescence has basically consisted of placing urgent orders with suppliers. Customers are important because, financially, they provide the money and, from a manufacturing management point of view, they are the locomotive of the entire manufacturing process. Obviously, without customer demand there would be no manufacturing.
If customers are incorporated into the JIT implementation, both the customer and the company will benefit. For example, if the customer can provide a firm order schedule for a specified period of time (typically 6 to 8 weeks), the manufacturer, with the short lead times often associated with JIT, can work with this schedule. knowing that there will be no changes, which will allow you to reduce costs. Part of this saving can be passed on to the client. Additional benefits can also be derived from having more time to focus on quality.
LINKS WITH SUPPLIERS
Shopping has usually been the most overlooked part of management, but it is in shopping that we can achieve considerable savings; on average, for every peseta spent on labor, three pesetas are spent on purchases. Therefore, there are many more possibilities to reduce costs in purchases than in labor (although we should not ignore this aspect either).
In the relationship with the supplier, one way to eliminate waste, in the form of excess stocks, is to reduce the quantities of the orders as this will reduce the time spent in the warehouses. Reducing order quantities is one aspect of JIT that applies to suppliers, but some changes need to be made to make it feasible: Minimize bureaucracy, Backlog deliveries, and Simplify inventory management.
By reducing order quantities, orders increase, so it can only be profitable if we change some of the supply mechanisms. First we need to simplify the bureaucracy so that there is less paperwork related to orders. If with each delivery we must do the same paperwork, it will increase when there is one delivery per week. But it can be reduced, for example, by sending only one order per month but scheduling partial daily or weekly deliveries of it. More deliveries also mean higher transport costs because more trips have to be made. Figure 8 shows a delivery system with a radial base, each supplier delivering directly to the plant. To reduce the cost of shipping smaller volumes, a linkage system can be used (Fig. 9).Suppliers take turns making deliveries to the factory, passing other suppliers along the way. For bulk suppliers, direct deliveries can be maintained if the quantities warrant. This linked system requires some organization, but has the advantage of lowering the cost of shipping.
When items arrive at the plant, inventory management needs to be simplified so that items arrive quickly to production areas. This means reducing inspection and ticket inventory. These major procedural changes are offset by quality improvements that, for example, eliminate the need for receiving inspections. Simplifying bureaucracy and inventory management, along with chain deliveries, are some of the changes needed to facilitate linkages with the JIT provider. The main requirements that links with JIT providers must meet are:
High level of quality.
Reduction of order quantities.
Shorter and more reliable cycle times.
In this way, it contributes to reduce inventory levels and uncertainty regarding the supplier of cycle times. If we can be sure that the supplier will deliver high-quality products on time, we can reduce our safety stock, along with the need to inspect incoming products, and there will be no production interruption due to poor-quality items. or delays in deliveries.
Multiple providers or a single provider
Until now, most large manufacturers have typically purchased their components from several suppliers. This means that multiple suppliers manufacture the same part. The benefits are greater security of supply (failure of a supplier will not interrupt supply) and reduced cost (having greater bargaining power). However, those who consider it better to have multiple providers forget three critical points. First, they can ignore economies of scale. If a supplier can supply a larger quantity, the cost will be lower, since much of the fixed costs will remain the same. Second, each vendor handles smaller volumes than if it were a single vendor,And this volume may not be enough to justify a future investment in process improvement. Third, there are more management issues when dealing with multiple vendors.
JIT's approach highlights the need to search for a single source of supply. In fact, it continually stresses the need to have a single supplier supplying multiple parts from a “family”, thus increasing the volume per supplier and reducing the number of suppliers. In this way, the supplier will be encouraged to make the necessary investment to improve its manufacturing processes. Often times, large companies implementing JIT will send a task force to suppliers (especially small suppliers) to study their manufacturing processes and recommend changes.
If the supply from this supplier is interrupted, it does not have to mean that we will have to interrupt our own supply, provided that the basic work has been carried out correctly. It means building a good relationship with suppliers, providing technical assistance when needed and ensuring that the chosen suppliers are financially sound and well managed. If not, another provider will have to be selected.
Short-term or long-term contracts
Traditionally, purchasing departments have always viewed long-term contracts with suspicion. It means committing the company to a certain supplier over a long period of time with very little opportunity to renegotiate or seek alternative suppliers. Buyers have always preferred short-term contracts because it provides them with greater flexibility and more competitive prices. At the end of a short-term contract, you can start new negotiations with several suppliers, and sign the contract with the one that offers the lowest price.
From the supplier's point of view, long-term contracts are preferable because they involve less risk. Short-term contracts can be more expensive because they do not offer the supplier any incentive to invest in improving processes and thereby reducing costs.
JIT encourages long-term contracts with a few carefully selected vendors for the following reasons: More reliable deliveries, Greater investment opportunities, Better quality products, and Lower cost.
With a long-term contract, the supplier is considered more likely to keep its delivery promises, often at the expense of short-term contracts with other companies. The company becomes an important customer (especially if a family of products is purchased from the same supplier) and its needs will be met first. A long-term contract is also seen as giving the supplier a greater sense of security. Therefore, the supplier should make some investment to facilitate the production of the product family, investing in machinery, control systems or in the training of its personnel. Somewhere in this long-term contract, delivery dates and quality levels will be specified. Before applying the JIT,When contracts were based almost exclusively on price, there was perhaps little incentive for suppliers to improve the quality of their products. Some even gave up trying to deliver products of acceptable quality. The long-term contract specifies the required quality levels (usually a higher and higher level), and suppliers are in no doubt about the importance of maintaining product quality. These investments together with a higher volume of production for each supplier lead to a reduction in costs, part of which benefits the supplier and part of which benefits the buyer.The long-term contract specifies the required quality levels (usually a higher and higher level), and suppliers are in no doubt about the importance of maintaining product quality. These investments together with a higher production volume for each supplier lead to a reduction in costs, part of which benefits the supplier and part of which benefits the buyer.The long-term contract specifies the required quality levels (usually a higher and higher level), and suppliers are in no doubt about the importance of maintaining product quality. These investments together with a higher production volume for each supplier lead to a reduction in costs, part of which benefits the supplier and part of which benefits the buyer.
However, when implementing the JIT it is advisable not to immediately start signing long-term contracts. It takes time to identify the right suppliers and build a good relationship with them. You cannot go overnight from maintaining a traditional, sometimes antagonistic relationship with suppliers to the ideal JIT environment of trust and cooperation. It takes time, and it should be a gradual shift towards long-term contracts. Any purchasing manager who signs long-term, high-volume, single-source contracts overnight is putting the future of the company and his or her own career at risk. This type of contract can only be signed after a long period of reflection and analysis. Companies that have applied the JIT approachsatisfactorily with their suppliers they have gradually extended the duration of the contract and little by little they have consolidated a network of unique suppliers
Local or distant suppliers
The fact that transport costs rise much faster than other costs is an increasingly powerful argument in favor of local suppliers. In addition, the long cycle times associated with distant suppliers reduce flexibility. Each day that is added to the lead time due to transportation extends the planning horizon. Thus, suppliers can eliminate inventory waste associated with lead time and reduce the risk of delivering large quantities of defective products. In addition, the risk and uncertainty associated with long cycle times are also reduced, making the system more flexible at a lower cost.
LINKS WITH CUSTOMERS
Creating links with the main customers is the last link in the JIT chain that passes through the suppliers, the company and ends at the customer. It is important to include clients in a JIT application, as their participation can mitigate planning problems. If, for example, a large customer provides us with a firm schedule of their needs six weeks in advance and the company's delivery time is five weeks, the deadlines can be met relatively easily. If the client only gives us a firm program a week in advance, the company will have more problems to comply with it. The most important function of building customer relationships is education.The client must begin to realize that if he passes a firm schedule several weeks in advance and does not change it, he or she can have relative assurance that the schedule will be met. This reduces costs and disruption for both the company and the customer. Here too a one-day meeting / seminar with key clients can be useful to explain the JIT and why it is necessary to have information in advance on clients' needs. From the customer's point of view, a supplier that is applying JIT can reduce its cycle times (offering a good response to changes in demand) and improve quality. A business with no late delivery is the kind of benefit that customers value, but they must realize that they have to provide a firm schedule.Again, a long-term contract can help the company. The overall goal of creating customer relationships is to improve the response of the JIT system to changing market demands. In turn, this can reduce costs for the customer.
CONCLUSION
In the application of the JIT, the total implementation process is strongly supported by the active participation of all company personnel in improvement activities, which contribute to raising their morale, with the application of the KANBAN, BENCHAMRKING I can be competitive, in my personal and work life, being competitive refers to the relative position of the company in the market measured by its participation and level of profitability, which ensure its long-term viability.
REFERENCES AND WEB LINKS - JOBS OF INDUSTRIAL ENGINEERING (UPIICSA - IPN)
INTRODUCTION TO INDUSTRIAL ENGINEERING
www.gestiopolis.com/recursos/documentos/fulldocs/ger1/introalaii.htm
ENGINEERING OF WORK METHODS
www.monografias.com/trabajos12/ingdemet/ingdemet.shtml
WORK MEASUREMENT ENGINEERING
www.monografias.com/trabajos12/medtrab/medtrab.shtml
MEASUREMENT ENGINEERING: STANDARD TIME APPLICATIONS
www.monografias.com/trabajos12/ingdemeti/ingdemeti.shtml
METHOD ENGINEERING: ANALYSIS OF PRODUCTION 1
www.monografias.com/trabajos12/andeprod/andeprod.shtml
METHOD ENGINEERING: PRODUCTION ANALYSIS 2
www.monografias.com/trabajos12/igmanalis/igmanalis.shtml
METHODS ENGINEERING: WORK SAMPLING
www.monografias.com/trabajos12/immuestr/immuestr.shtml
STANDARD WEATHER MANUAL
www.gestiopolis.com/recursos/documentos/fulldocs/ger/mantiemesivan.htm
PLANT DISTRIBUTION AND MATERIAL HANDLING
www.monografias.com/trabajos12/distpla/distpla.shtml
FOUNDATIONS OF THE ECONOMY OF QUALITY SYSTEMS
www.gestiopolis.com/recursos/documentos/fulldocs/fin/fundelacal.htm
WAGE PAYMENTS: WAGE AND INCENTIVES PLAN IN INDUSTRIAL ENGINEERING
www.gestiopolis.com/recursos/documentos/fulldocs/rrhh/pagosal.htm
QUALITY CONTROL - ITS ORIGINS
www.monografias.com/trabajos11/primdep/primdep.shtml
QUALITY CONTROL - SHEWHART CONTROL CHARTS
www.monografias.com/trabajos12/concalgra/concalgra.shtml
MARKET RESEARCH
www.monografias.com/trabajos11/invmerc/invmerc.shtml
PLANNING AND CONTROL OF PRODUCTION - FORECASTS
www.monografias.com/trabajos13/placo/placo.shtml
OPERATIONS INVESTIGATION - LINEAR PROGRAMMING
www.monografias.com/trabajos13/upicsa/upicsa.shtml
OPERATIONS INVESTIGATION - SIMPLEX METHOD
www.monografias.com/trabajos13/icerodos/icerodos.shtml
OPERATIONS INVESTIGATION - NETWORKS AND PROJECT MANAGEMENT
www.gestiopolis.com/recursos/documentos/fulldocs/ger1/iopertcpm.htm
PRODUCTION PLANNING AND CONTROL: ASSEMBLY LINES BALANCING: MIXED AND MULTI-MODEL LINES
www.gestiopolis.com/recursos/documentos/fulldocs/ger1/pcplinen.htm
PRODUCTION PLANNING AND CONTROL - LINE BALANCE
www.gestiopolis.com/recursos/documentos/fulldocs/ger1/pycdelapro.htm
COMPUTER-ASSISTED MANUFACTURING
www.monografias.com/trabajos14/manufaccomput/manufaccomput.shtml
MANUFACTURING PROCESSES BY CHIP STARTING
www.monografias.com/trabajos14/manufact-industr/manufact-industr.shtml
INTRODUCTION TO MACHINE TOOLS
www.monografias.com/trabajos14/maq-herramienta/maq-herramienta.shtml
THEORY OF RESTRICTIONS
www.gestiopolis.com/recursos/documentos/fulldocs/ger1/tociem.htm
LEGISLATION AND MECHANISMS FOR INDUSTRIAL PROMOTION
www.monografias.com/trabajos13/legislac/legislac.shtml
THEORY OF THE COMPANY
www.monografias.com/trabajos12/empre/empre.shtml
NON-DESTRUCTIVE TESTING -
ULTRASOUND www.gestiopolis.com/recursos/documentos/ fulldocs / ger1 / disultra.htm
DIFFICULTIES IN THE ISO STANDARDS QUALITY CERTIFICATION
www.gestiopolis.com/recursos/documentos/ fulldocs / ger1 / difiso.htm
BASIC ENGINEERING SCIENCES
Chemistry - Atom
www.monografias.com/trabajos12/atomo/atomo.shtml
University Physics - Classical Mechanics
www.monografias.com/trabajos12/henerg/henerg.shtml
UPIICSA - Industrial Engineering
www.monografias.com/trabajos12/hlaunid/hlaunid.shtml
Mechanical Tests (Destructive Tests)
www.monografias.com/trabajos12/pruemec/pruemec.shtml
Classical Mechanics - One-dimensional movement
www.monografias.com/trabajos12/moviunid/moviunid.shtml
Chemistry - UPIICSA Physicochemistry Course
www.monografias.com/trabajos12/fisico/fisico.shtml
Biology and Industrial Engineering
www.monografias.com/trabajos12/biolo/biolo.shtml
Linear Algebra - UPIICSA Exams
www.monografias.com/trabajos12/exal/exal.shtml
Electricity Laboratory Internship (UPIICSA)
www.monografias.com/trabajos12/label/label.shtml
UP Chemistry Laboratory Practices
www.monografias.com/trabajos12/prala/prala.shtml
Physics Problems by Resnick, Halliday, Krane (UPIICSA)
www.monografias.com/trabajos12/resni/resni.shtml
Biochemistry
www.monografias.com/trabajos12/bioqui/bioqui.shtml
Code of Ethics
www.monografias.com/trabajos12/eticaplic/eticaplic.shtml
University Physics - Oscillations and Harmonic Movement
www.monografias.com/trabajos13/fiuni/fiuni.shtml
Chemical Production - The world of plastics
www.monografias.com/trabajos13/plasti/plasti.shtml
Plastics and Applications - Case Study at UPIICSA
www.monografias.com/trabajos13/plapli/plapli.shtml
Industrial Psychosociology
www.monografias.com/trabajos13/psicosoc/psicosoc.shtml
Legislation for Industrial Promotion
www.monografias.com/trabajos13/legislac/legislac.shtml
Published Works of Pneumatics in Industrial Engineering
UPIICSA compressed air
www.monografias.com/trabajos13/compri/compri.shtml
Pneumatics and Industrial Engineering
www.monografias.com/trabajos13/unointn/unointn.shtml
Pneumatics: Air Generation, Treatment and Distribution (Part 1)
www.monografias.com/trabajos13/genair/genair.shtml
Pneumatics: Air Generation, Treatment and Distribution (Part 2)
www.monografias.com/trabajos13/geairdos/geairdos.shtml
Pneumatics - Introduction to Hydraulic Systems
www.monografias.com/trabajos13/intsishi/intsishi.shtml
Structure of Hydraulic Circuits in Industrial Engineering
www.monografias.com/trabajos13/estrcir/estrcir.shtml
Pneumatics and Hydraulics - Power Generation in Industrial Engineering
www.monografias.com/trabajos13/genenerg/genenerg.shtml
Pneumatics - Pneumatic Valves (applications in Industrial Engineering) Part 1
www.monografias.com/trabajos13/valvias/valvias.shtml
Pneumatics - Pneumatic Valves (applications in Industrial Engineering) Part 2
www.monografias.com/trabajos13/valvidos/valvidos.shtml
Pneumatics and Hydraulics, Hydraulic Valves in Industrial Engineering
www.monografias.com/trabajos13/valhid/valhid.shtml
Pneumatics - Pneumatic Auxiliary Valves (Applications in Industrial Engineering)
www.monografias.com/trabajos13/valvaux/valvaux.shtml
Industrial Engineering Problems in Pneumatics (UPIICSA)
www.monografias.com/trabajos13/maneu/maneu.shtml
Electrovalves in Control Systems
www.monografias.com/trabajos13/valvu/valvu.shtml
Pneumatics and Industrial Engineering
www.monografias.com/trabajos13/unointn/unointn.shtml
Structure of Hydraulic Circuits in Industrial Engineering
www.monografias.com/trabajos13/estrcir/estrcir.shtml
Energy saving
www.monografias.com/trabajos12/ahorener/ahorener.shtml
Published Work of Law of the Atoyac School Center
Notions of Mexican Law
www.monografias.com/trabajos12/dnocmex/dnocmex.shtml
Notions of Positive Law
www.monografias.com/trabajos12/dernoc/dernoc.shtml
Civil Family Law
www.monografias.com/trabajos12/derlafam/derlafam.shtml
Amparo trial
www.monografias.com/trabajos12/derjuic/derjuic.shtml
Property crimes and Professional Responsibility
www.monografias.com/trabajos12/derdeli/derdeli.shtml
Individual Work Contract
www.monografias.com/trabajos12/contind/contind.shtml
The Family in Mexican Civil Law
www.monografias.com/trabajos12/dfamilien/dfamilien.shtml
The Family in Positive Law
www.monografias.com/trabajos12/dlafamil/dlafamil.shtml
Article 14 and 16 of the Constitution of Mexico
www.monografias.com/trabajos12/comex/comex.shtml
Individual Guarantees
www.monografias.com/trabajos12/garin/garin.shtml
The Family and the Law
www.monografias.com/trabajos12/lafami/lafami.shtml
To complement this document, we suggest the following videos, in which the subject of philosophy is addressed just in time and 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.
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