Kanban system for operational efficiency in the company

Currently, if a company is not flexible enough to adapt to market changes, it could be said that that company will be out of competition in a very short time.

What is being flexible? According to its literal definition, it is "That it can be easily bent, that accommodates itself to the direction of another", this applied to manufacturing would translate, "that it accommodates itself to the needs and demand of the customer. », Both in design, quality and delivery.

One of the most common problems with regard to production planning is to produce what is necessary in the necessary time, without surpluses or shortages, to achieve this you need a plan, a flexible plan, a plan made to be modified, a plan that can be quickly modified.

application-and-use-of-the-kanban-system-to-achieve-the-operational-efficiency-of-a-company

A production plan is influenced both externally and internally. Market conditions are constantly changing. To respond to these changes, instructions must be constantly given to the work area.

Since we want to produce in a Just-in-Time system, work instructions must be given consistently at varied time intervals. The most important information in the work area will be how much we should produce of which product at that time; instructions can be given as needed.

Since it is not convenient to make very large production orders trying to prevent market demand since we can be short or long of product, as well as it is not convenient to make unit orders; Small batch orders are most convenient, this is the fundamental concept.

It is very important that workers know what they are producing, what characteristics it has, as well as what they are going to produce next and what characteristics it will have.

Many Japanese manufacturing companies viewed the assembly of a product as continuing from Design-Manufacturing-Distribution to Sales-Customer Service. For many companies in Japan the heart of this aforementioned process is the Kanban, which directly or indirectly manages much of the manufacturing organization. It was originally developed by Toyota in the 1950s as a way to manage the flow of materials on an assembly line.

Over the past three decades, the Kanban process that is defined as "A highly effective and efficient production system" has developed an environment of optimal manufacturing wrapped in global competitiveness.

It is very important that workers know what they are producing, what characteristics it has, as well as what they are going to produce next and what characteristics it will have.

For many companies in Japan the heart of this process is the Kanban, who directly or indirectly handles much of the manufacturing organization.

Our specific objectives are the following:

• In a manufacturing company, be able to start any standard operation at any time Give production instructions based on the current conditions of the work area Prevent unnecessary work from being added to orders already started in organizations, and avoid excessive paperwork Unnecessary Promote elimination of overproduction Facilitate material control

1. Generalities.

The Kanban system, a system implemented in many of the Japanese plants, known as the "pull" or pull ^{1 system}, has its own characteristics when it comes to operating, since the machines do not produce until they are asked to do so, so In this way, unnecessary inventories are not generated that may eventually be stranded and not sold, since they would be production surpluses.

The production system of "pull" is supported by the kanban, a methodology of Japanese origin that means "numbered card" or "identification card". This technique serves to meet the material requirements in a pattern based on the needs of the finished product or shipments, which are the generators of the kanban card, and which would be sent directly to the injection machines to process only the required quantity.

Each piece has an empty container and a card, which specifies the reference (machine, part description, etc.), as well as the number of pieces that each container has to wait to be filled before being transferred to another workstation, to cite one example.

As a rule, each and every one of the processes must be accompanied by their kanban card.

The Kanban system works under certain principles, which are listed below:

1. Elimination of waste Continuous improvement Full involvement of staff Workforce flexibility Organization and visibility

Definitions of the Kanban system.

The association of Kanban = JIT ² or Kanban = INVENTORY CONTROL is very common, this is not true, but if it is related to these terms, Kanban will work effectively in combination with other elements of JIT, such as production scheduling using labels, good organization of the work area and production flow.

Kanban is a tool based on the way supermarkets work. Kanban is Japanese for "instruction tag."

The Kanban tag contains information that serves as a work order, this is its main function, in other words, it is an automatic direction device that gives us information about what is going to be produced, in what quantity, by what means, and how. transport it.

Kanban functions.

Basically Kanban will serve us for the following:

• Be able to start any standard operation at any time Give instructions based on current work area conditions Prevent unnecessary work from being added to orders already started and prevent unnecessary excess paperwork.

Another function of Kanban is that of material movement, the Kanban label must be moved together with the material, if this is carried out correctly the following points will be achieved:

• Elimination of overproduction. Priority in production, the most important Kanban is put first than the others. Material control is facilitated.

But there are two main functions of Kanban, the same ones that will be analyzed below:

• Control of production; and, The improvement of the processes.

Production control.

By production control we mean the integration of the different processes and the development of a JIT system in which the materials will arrive in the time and quantity required in the different stages of the factory and if possible including the suppliers.

Japanese producers tend to be less vertically integrated, leaving many activities to their suppliers, and maintaining a small number of them. This is possible thanks to the long-lasting and cooperative relationships that are maintained.

In the operational field, small and frequent deliveries are the key to the system, and they can be made at no additional cost due to the cooperative relationships and the use of suppliers close to the plant.

Geographical proximity, therefore, appears to be a very important element, as it improves control, communication, cost and timeliness of transactions, which allows maintaining minimum incoming inventories.

The demands in terms of quality and punctuality come to the fore and constitute an essential element both for the selection of suppliers and for the extension of relationships.

Other JIT producers are excellent suppliers as they are easily integrated into the kanban system, constituting, in a way, like one more process of the parent company, this being a key issue to explain the better efficiency of Japanese producers based in Japan.

Finally, it is important to mention that the largest companies can afford to offer training programs to their suppliers to integrate them into their dynamics.

As in the case of human resource management, some authors have tried to demystify the idea of ​​shared benefits in JIT relationships. Turnbull sees JIT as, in many cases, just an excuse to shift incoming inventories, their management, and their cost to suppliers' plants. In particular, the use made of small providers is criticized.

Process improvement.

By the function of process improvement, we understand the facilitation of improvement in the different activities of the company through the use of Kanban, this is done using engineering techniques, and they would give the following results:

• Elimination of waste Organization of the work area Reduction of set-up ³. The set-up time is the amount of time required to change a device from one set and prepare that set to produce a different model; to produce it with the quality required by the client and without incurring costs for the company and thereby reduce production time throughout the process. Use of machinery vs. Utilization on a demand basis Multiprocess management Error-proof mechanisms Preventive maintenance Total productive maintenance Reduction of inventory levels

Kanban implementation.

It is important that the personnel in charge of production, production control and purchases understand how a Kanban system (JIT) will facilitate their work and improve their efficiency by reducing direct supervision.

Basically Kanban systems can only be applied in factories that involve repetitive production.

Before implementing Kanban it is necessary to develop a production labeled / mixed production schedule ⁴ to smooth out the current material flow; This should be practiced in the final assembly line, if there is a very large fluctuation in the integration of the Kanban processes it will not work, and otherwise it will create a disorder. Systems to reduce setups, small batch production, visual control, poka yoke ⁵, preventive maintenance, etc. will also have to be implemented. all of this is a prerequisite for introducing Kanban.

The following considerations should also be taken into account before implementing Kanban:

• Determine a production scheduling system for final assemblies, to develop a mixed production system and labeling. A Kanban route must be established that reflects the flow of materials, this implies designating places so that there is no confusion in the handling of materials, It should be made obvious when the material is out of place The use of Kanban is linked to small batch production systems It should be taken into account that those items of special value should be treated differently There should be good communication from the sales department to production for those seasonal cyclical items that require a lot of production, so give plenty of advance notice. The Kanban system should be constantly updated and continuously improved.

In summary, it is considered that there are 4 main phases for a good implementation of the Kanban system, and these are:

Phase 1. Train all staff in the principles of KANBAN, and the benefits of using KANBAN.

Phase 2. Implement KANBAN in those components with the most problems to facilitate their manufacture and to highlight hidden problems. Training with staff continues on the production line.

Phase 3. Implement KANBAN in the rest of the components, this should not be a problem since for this, the operators have already seen the advantages of KANBAN.

Phase 4. This phase consists of the review of the KANBAN system, the reorder points and the reorder levels.

Personnel training.

It is necessary to train all staff in the principles of Kanban, and the benefits of using Kanban

The characteristics exposed in production require multifunctional workers with capacities to work in common and strongly self-identified with the company in such a way that they collaborate for its improvement.

Minimizing inventory means working under greater pressure, with tighter times and with greater perfection.

In the selection of workers, the ability of these to integrate into the dynamics becomes more important than training, which in many cases is provided by the company itself.

The number of job categories in Eastern companies is considerably smaller, and the wage differences are less important than in Western companies, being based more on seniority than on the training or category of the worker.

Each large company has its own union, which facilitates agreements with workers. Vertical communication is simpler since there are fewer levels in the organization charts and the managers themselves are more used to stepping on the work floors.

Finally, it is noteworthy the rotation of engineers, managers and key personnel through different departments or plants in order to exchange improvements and promote the versatility of employees.

Against those who see Japanese human resource management as a perfect exchange of job security by commitment between company and workers, an important group of authors have described the Japanese model as pure post-Fordism in which there is no type of consideration towards the worker.

Aspects such as the pressure exerted by teamwork on the worker, the use of bags of temporary employees who lack job security, the 'slavery' derived from the low union diversification, discrimination against women or racial problems in Japanese factories, have been presented as central elements of the debate on the convenience of the Japanese labor management system.

Identification and application in problem components.

Japanese plants established in the West have been seen as the ambassadors of JIT production that have tested the adaptability of the system to the West.

The successes of plants such as Nummi ⁶ in the United States, established jointly by Toyota and General Motors but primarily under Japanese control, are used as examples against those who allege the existence of strong cultural barriers to the implementation of JIT outside of Japan..

Although it is clear that the JIT systems implemented by Japanese companies in the West have yielded important results, in general, they have not reached the same levels as their subsidiaries in Japan.

Despite successes like Nummi's, there seem to be barriers that prevent the level of implementation and the results obtained in Japan from being matched. What's more, the opening of Nummi, for example, seems to have been surrounded by special circumstances that could have created an optimal environment for JIT adaptation.

The special attention on the part of the automotive sector and institutions towards this pilot experience, the existence of a workforce chastened by previous experiences with General Motors or the crisis in the American automobile industry in the 1980s, are characteristics that could have fostered an atmosphere of cooperation of all parties involved.

In fact, once the initial prominence had passed, some labor problems that arose at the plant were commented on.

Although special attention has been paid to the automobile sector and the American experience, the Japanese presence abroad covers many other industries and extends throughout the world.

It is difficult to find in the literature examples of plants functioning the same as in Japan. Given that there is the experience of managers trained in similar plants in this country, there seems to be no problem regarding the implementation of production techniques. The main differences are in the area of ​​human resources and supplier relations.

Application in the other components.

Differences in human resource management between Japanese plants inside and outside Japan are considered to depend fundamentally on two factors, the size of the company and the type of worker.

Small companies tend to adapt to local work models while large ones introduce low-cost practices, such as teamwork, multipurpose employees or internal training, while reserving high-cost ones, such as job security or employment for the whole company. life, for its plants in Japan and its Japanese employees posted abroad.

The sectoral differences have also been highlighted in some works. For example, it is noted that, while the automotive industry has tried to adapt Japanese practices to a greater or lesser extent, the electronic components and products sector has limited itself to accepting local labor practices.

One of the main barriers encountered is not precisely the attitude of the plant workers, but the mentality, training and customs of the managers hired locally.

This is why large companies are choosing to hire recent graduates and train them temporarily in Japan, or to promote plant workers.

Bargaining with unions is a fundamental step in the introduction of new labor practices and is, on many occasions, the main barrier.

Many Japanese plants have tried to avoid the presence of unions by choosing those locations where this was possible and others, usually large ones, have managed to establish agreements.

The main problems occur in the more developed countries, where unions have become more powerful and important. In industrializing countries it is common to grant rights and privileges to Japanese plants that allow them to avoid union presence.

From a more sociological perspective, the mentality of Japanese workers and the particular Japanese culture "wa ⁷ " (harmony) based on cooperation, teamwork and respect for antiquity, has been considered by some authors a fundamental factor for success. by JIT.

According to them, not only an organizational transformation is enough, but a major cultural change is also necessary.

Feedback.

This phase consists of the review of the Kanban system, the reorder points and the reorder levels.

It is important to take into account the following recommendations for the correct operation of Kanban:

• No work should be done out of sequence.

The distribution in the plant basically pursues two objectives:

• The one to minimize the waste time of the operators; and, Facilitating a continuous and balanced flow of products.

Therefore, the use of U-shaped or parallel lines allows an operator to control more processes within the chain and minimize travel.

The placement of machines according to the products and not the processes, also contributes to the elimination of distances and to increase awareness towards the demand since it allows to maintain lower inventories.

The work in cells and teams of operators in each phase of the production process contributes to the achievement of these objectives and the division of the process into stages interconnected by kanban.

As has already been commented, this way of governing communication within a chain means that demand is the one that activates said production chain in a process of "dragging" that enables the existence of minimum stocks ⁸.

To maintain a continuous and uniform flow with this distribution in the plant, it is necessary to maintain a stable and level production level that passes through the control and prediction of the demand volume.

This stability, together with the short set-up times of machinery, allows to reduce the size of the batches and to greatly eliminate the inventories.

Although, the time in which the machines remain inactive to be adapted to a new product is similar in Japan and in the West, the shorter time used by the former to carry out the tooling changes allows this operation to be carried out a greater number of times and to work with smaller batches.

If any problem is found notify the supervisor immediately.

Quality control plays an essential role in JIT production. The concept of Total Quality Control is introduced, whose main maxim is to produce better quality than to detect and remove defective products (zero defects philosophy).

For this, it is necessary to involve all departments, employees and processes in a series of programs that go through the training of workers to carry out self-supervision tasks and the implementation of statistical control techniques that allow the chain to stop when a machine is out of adjustment. and begins to produce outside the established standards.

The participation of workers in the introduction of improvements is carried out through quality circles, which are voluntarily made up of groups of workers who propose and analyze possible changes to improve efficiency.

These circles are promoted by paying incentives that depend on the improvements obtained with the different ideas.

Maintaining a flexible production or, what is the same, responding quickly to changes in demand implies that the different cells are activated regularly over time.

To avoid an underutilization of operators, they must know different activities in order to be assigned to those places where they are needed.

In the same way, although production levels are kept stable in the short term, seasonal variations are faced by using temporary staff and modifying the length of working hours.

Finally, in JIT production a fundamental principle reigns, continuous improvement or «kaizen» ⁹. This principle is always present in all processes, which are open to changes and improvements that are promoted with the participation of all through, for example, quality circles.

An example of the Kanban card is as follows:

Part No:	734789X
Description	Barrel wire
Unit of measurement	meter
(Reorder Qty)	6
Storage place	Hall 7, Box 17
Seller	Anaconda
Seller's phone	593 04 515 151
Vendor Code	16GAX100
567	8990

1. Kanban rules.

Kanban as a productivity improvement system.

At present, the need to produce efficiently without causing disruptions or delays in the delivery of a given product is a factor of utmost importance for companies that want to remain active in a market like the current one, which requires quick responses and quality compliance, quantity and delivery times.

Therefore, the implementation of more efficient production systems has become a factor that must be marked as essential to implement in production plants.

The implementation of production systems that are currently able to meet market demands does not necessarily imply having to make large investments in expensive automation systems, or in large mobilizations and redesigns of layout ¹⁰ and production lines. In reality, with an adequate analysis of the situations and the elements that are available, it is possible to develop an effective system that meets the needs and that is not the cause of a greater investment.

The results displayed by the Kanban system, when implemented in safe environmental states, certainly perform exceptionally well. However, the more traditional systems used in the United States also show this good performance. On the contrary, there are other plant environments in which all systems perform much worse. This suggests that the factors themselves are the key to structural improvement. Simultaneously, setup times are reduced and batch sizes are the only effective way to cut inventory levels and improve customer service.

Defective product should not be sent to subsequent processes.

The production of defective products involves costs such as investment in materials, equipment and labor that will not be able to be sold. This is the biggest waste of all.

If a defect is found, steps must be taken first of all to prevent it from happening again.

At this point it is necessary to speak of the so-called Autonomatization or Jidoka ¹¹, whose meaning in Japanese is autonomous defect control.

Autonomization never allows defective units in one process to flow to the next process, there must be devices that automatically stop the machines and no more defects occur.

The worst is not to stop the process, the worst is to produce articles with defects.

Observations for this rule:

• The process that has produced a defective product, you can discover it immediately. The problem discovered must be disclosed to all the personnel involved, recurrence must not be allowed.

Subsequent processes will require only what is necessary.

This means that the subsequent process will request the material it needs from the previous processes, in the necessary quantity and at the right time.

A loss is created if the previous process supplies parts and materials to the subsequent process when it does not need them or in a greater quantity than it needs.

The loss can be very varied, including loss due to excess overtime, loss of excess inventory, and loss of investment in new plants without knowing that the existing one has sufficient capacity. The worst loss occurs when the processes cannot produce what is necessary, and when they are producing what is not necessary.

To eliminate this type of errors this second rule is used. If we assume that the previous process will not supply the subsequent process with defective products, and that this process will have the ability to find its own errors, then there is no need to obtain this information from other sources, the process can supply good materials..

However, the process will not have the capacity to determine the necessary quantity and the appropriate moment in which the subsequent processes will need material, so this information will have to be obtained from another source. In such a way that we will change the way of thinking in which "the subsequent processes will be supplied" to "the subsequent processes will ask the previous processes for the necessary amount and at the right time." This mechanism should be used from the initial process to the last.

There are a series of steps that ensure that subsequent processes will not arbitrarily pull or require the previous process:

• Material should not be required without a kanban card. Items that are required should not exceed the number of kanban supported. A kanban tag should always accompany each item.

Produce only the exact amount required by the subsequent process.

This rule was created with the condition that the same process must restrict its inventory to a minimum, for this the following observations must be taken into account:

• Produce no more than the number of kanbans. Produce in the sequence in which the kanbans are received.

The JIT is a philosophy based on the total development of people who see the continuous improvement of manufacturing processes with quality assurance, through the elimination of waste and operational simplification, allowing flexibility in meeting the needs of customers. JIT is not the result of an application of a specific technique.

It requires a systematic approach accompanied by profound changes in the technical, managerial, operational and human fields.

It should be implemented respecting the operational characteristics of each company, as well as the best environment where the company operates.

Balance production.

So that we can produce only the necessary quantity required by the subsequent processes.

It is necessary for all processes to maintain the team and workers in such a way that they can produce materials at the necessary time and in the necessary quantity.

In this case, if the subsequent process requests material in an incontinuous way with respect to time and quantity, the previous process will require excess personnel and machines to satisfy that need. At this point, the fifth rule emphasizes, production must be balanced or smoothed.

This is when it is easier to appreciate the basic components of the Kanban system, taking special care and observation of the first, which are the following:

• Balance, timing and flow. Quality: "Get it right the first time." Employee participation.

Kanban is a means to avoid speculation.

So for workers, Kanban becomes their source of information for production and transportation and since workers will depend on Kanban to carry out their work, the balance of the production system takes on great importance.

It is not worth speculating whether the subsequent process will need more material the next time, nor can the subsequent process ask the previous process if it could start the next batch a little earlier, neither of them can send information to the other.

Only the information that is contained in the Kanban cards is considered official, thus avoiding speculations regarding production. It is very important that production is well balanced; If so, we will obtain the following benefits:

• Reduction in production time Increase in productivity Reduction in quality cost Reduction in prices of purchased material Reduction of inventories Reduction of setup time ¹².

Stabilize and streamline the process.

Defective work exists if the work is not standardized and rationalized, if this is not taken into account, there will continue to be defective parts.

These defective parts can be defined as waste, that is, anything that is different from the absolute minimum resources of materials, machines, and labor necessary to add value to the product.

It must be remembered that Kanban is defined as an Industrial Philosophy of eliminating everything that implies waste in the production process, from purchases to distribution.

1. Kanban types and labels.

Types of Kanban.

The authors do not agree on the number and classification of Kanban types that can emerge and support an organization.

This classification may vary according to the professional's perspective, in consideration of the elements taken into account for its conceptualization.

But in general, at least 2 types of Kanban are accepted, which vary according to their need, and which have been named as follows:

1. Production kanban Pointing kanban / material kanban.

Their differences will be explained below.

Production Kanban:

This type of Kanban is used in assembly lines and other areas where the set-up time is close to zero.

When the labels cannot be glued to the material, for example, if the material is being heat treated, they should be hung near the treatment site according to the sequence within the process.

They instruct the supplier to produce a new container to replace the one they had moved to the customer's raw materials warehouse.

To apply this system, there must be a trust between provider-client. It is being used in more and more companies as it is more flexible to market changes, due to the fact that it does not accumulate stocks. Offer a quality product.

Pointing kanban / material kanban:

This type of label is used in areas such as:

• Presses Molding by clothing; and,

The Kanban marking label is placed in certain positions in the storage areas, and specifying the production of the batch; The Kanban bookmark tag will work in the same way as a production Kanban.

They instruct the supplier to move a container from their warehouse to the customer's raw materials warehouse. The system requires internal coordination of internal elements, which is achieved through motivation (work groups). It will be possible to give these people more responsibility and therefore more satisfaction in their work. By establishing group reward systems, rivalry between workers is avoided.

Information required in a kanban tag.

The information on the Kanban tag should be such that it should meet both the manufacturing needs and those of the material supplier.

The necessary information on a Kanban tag is the following:

• Component part number and description Product name / number Quantity required Type of material handling required Where it should be stored when finished Reorder point Product assembly / production sequence

Component part number and description.

Kanbans are cards that indicate or order that a new order be served again. These describe their origin, destination, quantity and identity of the products to be served. Therefore, each part of the component must be well defined or classified by a code or key, which may be composed of numbers or letters, or a combination of these.

In addition, it can include a description of the component, a characteristic that will facilitate the understanding and action of those involved in the production.

Product name / number.

Many times it will also be necessary to include the name or number of the product; in this case, the nomenclature will refer to the product in general, and not to the particular component. This characteristic will allow avoiding confusion, in the sense that the parts that make up a certain product actually reach that product. It is not going to be that certain pieces by mistake get lost along the way, causing loss of time and money to the organization.

Required quantity .

This point is very important, since it is vital and absolutely necessary, to know the quantity required to be able to produce. The fact that, once the card is received, it contains errors, will lead to serious problems for the company. It may be the case that components are missing, and therefore production has to be stopped; on the contrary, it may be that these materials are in excess, resulting in losses due to obsolete merchandise.

Type of material handling required .

Many components will need special treatment when it comes to handling. A large number of materials have characteristics that cause their handling to be carried out carefully. These characteristics can be presented in various forms and for various reasons, which may be, among others, the following:

• The climate The perishable nature of the product The fragile nature of the material The fact of keeping it in a perennial position, etc.

Concerns about the quality of the materials and the safety of the operation of the process, and its handling at workstations, lead many manufacturing plants to a batch (push) process. Establishing schedules in manufacturing results in work orders for quantities of parts or subassemblies. Then the product is programmed in batches or sums.

Where it should be stored when finished.

Materials are received, inspected, stored and distributed, based on the predetermined schedule. These same materials, in the form of subassembly are stored again. If there are defectives, or non-specific parts are used, or assembly errors occur, large numbers of parts or sub-parts are produced and stored, perhaps for days or weeks. In any case, if the product is already finished, it will be necessary to store it somewhere, but how is the management of this storage easier? The answer, of course, is kanban.

The kanban will guide us quickly to the storage place, without wasting time and effort.

Reorder point.

Item inventory positions will need to be reviewed periodically, and the number of orders will be issued uniformly throughout the production determination. The reorder point will review the inventory position for intermediate and purchased items on a daily rather than weekly basis. The reason why kanban appears attractive is not the system itself. The kanban system is merely a convenient way to implement a small batch strategy and a way to expose environmental problems. Being a paperless system, day-to-day decisions to place new orders are made by the workers. When batch sizes are small and repetitive, systems with excessive documentation on each shop order require much higher administration costs.

Product assembly / production sequence.

The production assembly sequence, called flow, is of primary importance, and this is obtained through equilibrium.

The information on the kanban card may contain regarding this point:

• Cycle time Level load Production rate Frequency

The correct application of kanban will require training, workforce and retraining. The content of the assembly sequence will help to search in terms of stock, the minimum possible quantity at the last possible moment, and the elimination of stock.

The kanban system, by itself, is not crucial to improve performance. It's just one part of a total manufacturing philosophy aimed at reducing inventory investment, increasing productivity, and improving customer service. However, improvements in some factors are more likely to have better end results than others.

Limitations of the Kanban system.

Kanban is feasible in virtually every factory that makes whole unit items, but not in process industries. It only pays off in certain circumstances:

• The kanban must be an element of the JIT system. It makes little sense to apply an extraction system if it takes endless time to extract the necessary parts from the producing work center, as it would if the set-up times are hours and the batches are large. The key feature of JIT is reduced set-up times and batch sizes, allowing parts to be "pulled" quickly from producer work centers. Parts included in the kanban system must be used every day. Kanban provides at least one container full of a certain number of parts, which is not a lot of idle inventory if the entire container is used the same day it is produced. Therefore, companies that have a kanban system,they generally apply it to part numbers that are used a lot; but they replace infrequently used ones following conventional western techniques. Very expensive or very large units should not be included in the kanban. Its storage and handling are expensive. Therefore, your ordering and delivery must be precisely regulated under the supervision of a purchasing planner or agents.

1. Advantages and improvements of the use of the jit and kanban system.

Since, in the early 1980s, some authors warned of excellent production efficiency driving the Japanese advance in Western markets, the JIT phenomenon has attracted the attention of many researchers.

It is important to highlight a certain confusion in the literature about the term Just-in-Time1 (JIT) or lean production.

The huge variety of definitions can make this concept somewhat confusing. Three main conceptions seem to stand out:

• JIT as a philosophy, JIT as a set of production techniques; and, JIT as "kanban".

The JIT philosophy is born around the objective of satisfying the customer's needs instantly, maintaining perfect quality and with minimal waste.

This philosophy has been translated into a series of production process management techniques, which, in some cases, have been considered as the only constituents of Japanese success (technical perspective).

One of these techniques is the «kanban», according to which each process in the production chain releases the flow of the previous stage according to the needs, using cards or electronically, thus going from producing for stocks to producing for demand.

Although the term JIT has also been used as a synonym for kanban, the JIT philosophy is more than a set of production techniques and also involves a particular way of understanding human resource and supplier management (socio-technical perspective).

Thus, to describe the Japanese model, we have considered its characteristics within three main areas:

• Productive processes. Human resources; and,

It should be taken into account that not all producers in Japan apply the JIT philosophy and that there are many different patterns applying, to a greater or lesser extent, the different techniques.

However, to avoid ambiguities we have considered the purest state, which can be associated with pioneering factories such as Toyota.

Advantage.

The Kanban system, without a doubt, involves by itself a large number of advantages, so we have considered only a few, the same ones that we think are the most important, being the following:

• Reduction in inventory levels Reduction in WIP (Work in Process) Reduction of downtime Flexibility in the scheduling of production and production itself Breaking administrative barriers are filed by Kanban Promotes teamwork.Improves Quality.It encourages Autonomy (worker's decision to stop the line).Provides cleaning and maintenance.Provides fast and accurate information.Avoids overproduction.Minimizes Waste.

Promoter of improvements.

A Kanban system promotes improvements in two aspects:

• In abnormal situations; and, In the weak points (Theory of restrictions).

We will explain these 2 aspects in more detail below.

From abnormal situations.

Kanban makes abnormal situations patent when they are caused by different causes, which are often outside the limits that we can manipulate.

These causes can be very varied and of different kinds, come from different sources, and their remedies are sometimes easy and other times difficult.

We allow ourselves to suggest a list of factors that must be considered when analyzing the contingencies that have forced some Japanese producers to transform the management practices used in their plants outside of Japan; below is a list of some of them:

• Machine breakdowns and product defects Company size Potential for negotiation with suppliers, governments and unions Mentality, training and customs of locally hired managers Existence of unions at the sectoral level Worker resistance to new practices Inability to adapt to the higher requirements of Japanese plants Lack of quality suppliers capable of producing just in time Resistance of local suppliers to participate in JIT systems Inability to geographically concentrate suppliers Understanding problems due to different way of conceiving a supplier-buyer relationship.

Constraint theory.

A gradual reduction in the number of kanbans leads to reductions in stock, which ends the role of stock as a buffer against production instabilities.

This uncovers under-trained and anomalous processes, and makes it easier to spot where improvement is needed. The overall efficiency is increased by concentrating on the weak elements (Theory of Constraints).

One of the functions of Kanban is to transmit the information to the previous process to know what the needs of the current process are. If there are many kanbans, the information is no longer as effective, if there are many kanbans it is not known which parts are really needed at that moment.

Reducing the number of kanbans reduces the number of setups. The fewer kanbans there are, the better the sensitivity of the system.

The Kanban of one card compared to that of two cards.

The kanban of a card.- It controls the deliveries with rigidity, so that the user work center never has more than one or two containers of parts and the supply point that serves it is eliminated. Relieving clutter and confusion around points of use is already a bonus.

On the other hand, parts produced are allowed to accumulate somewhat excessively at the point of supply that serves the producing work center; But backlog need not be severe in companies where it is relatively easy to associate the required quantity and timing with the end product schedule. Examples abound: motorcycles, motors, pumps, and generators; consumer appliances, toys.

Compare, for example, a motorcycle factory with an automobile factory. Possibly the motorcycle factory makes eight sizes in three colors and for type A a type A frame, a type A engine, type A splash guards, etc. are always used. There is little variety for the customer. Therefore, if the assembly schedule indicates that 20 types of type A must be finished daily, 20 fenders will be needed daily, perhaps an hour in advance (one hour before each assembly is completed); 20 motors and racks will be needed per day maybe 2 hours in advance, etc. Tube lengths for racks can be cut a day and a half in advance; But since they move on to welding and painting, where there can be problems and delays, the frame completion schedule can be set 2 days in advance.The additional half day will provide small inventories of tubing, finished racks, and painted racks. The one-card kanban handles part deliveries well from one stage to the next, and daily part schedules, with due timing in advance, provide parts when needed with a rather small backlog of inventory.

Compared to the motorcycle factory, the automobile factory will have possibly 10 times more parts and colors, hundreds of consumer offerings, and many more stages of production. Compared to motorcycles, there are many more chances of lag, which are the combined effect of:

1. The large number of parts. The variable use of parts; and, The multiple manufacturing stages.

The daily production schedules for each part number would have to indicate substantial protective inventories (making heavy use of historical scheduling) in order not to run out of parts when delays are long. Toyota's ingenious solution to this problem is the 2-card kanban, which controls the production of each part number by adjusting it to the ups and downs of the production rate of subsequent stages.

The 2-card kanban.- It is doubly effective because it offers the advantage, for the improvement of productivity, of the withdrawal of kanban to raise and solve problems. Unfortunately, a card's kanban cannot offer that feature because there is no control over the number of canisters filled with a given part number.

So single-card kanban companies have to improve their productivity in some other way. For example, Kawasaki, which has the one-card system, manages to improve its productivity by withdrawing workers from the final assembly operation until the yellow lights come on, indicating problems that must be corrected. The Nihon Radiator Co., which also uses the single card, has a vigorous total quality control system, characterized by a continuous series of improvement projects. Projects that relate to quality, work methods, tools, or equipment improve productivity by reducing materials and labor per unit, and by improving utilization of equipment and tools.

The Kanban of a card as something special.

Some American administrators have made the following comment when referring to the kanban system: "I think it looks like the old 2-tray system." The 2-tray system is a visual replenishment point technique: When one sees that the stock of a part number has decreased to the point where the last box is to be opened (or taken from the second tray), place an order. Certainly the kanban of a card works that way. It only differs in that it is an element of the Just-in-Time system, and includes the following without limitation:

• Standard containers are used The quantity in each container is exact so inventory is easy to count and control The number of full containers at the point of use is only one or two The quantity in the container It is small, so that at least one container (usually several) is consumed daily.In the production section, the containers are filled with small batches, which requires that the preparation times have been reduced previously so that the small batches are inexpensive.

The Kanban and other inventory systems.

The oldest and most widely used inventory system in the world is the point of replenishment (PDR) system.

The simple replenishment point rule says this: When stocks go down, you order more. Even squirrels follow that rule to replenish their nut stocks. But the PDR leads to a lot of inventory. More parts and raw materials are requested to comply with the rule, rather than out of necessity.

Manufacturers using PDR do so because they have difficulty associating the need for parts with the end product schedule.

Materials Needed Planning (PMN) is a better means, taking advantage of the computer's ability to perform thousands of simple calculations to transform a master schedule of final products into the number of parts required. But like PDR, this method is batch oriented; that is, the computer collects all orders for a certain part number from a given period and recommends that the part number be produced or purchased in a good size lot.

Companies that resort to planning for necessary materials order in batches, rather than piece-by-piece (just-in-time), because they haven't cut their setup times to make small batches inexpensive. If they did, the logical choice would be a simple manual kanban, rather than this complex, expensive, and computer-based system.

The paradox of PMN is that if the company removes the lead-time hurdle for PMN to be truly effective in slashing inventories, PMN will no longer be needed; kanban is preferable.

The point can be stated in terms of the "fundamental factor": The PMN correctly calculates the requirements of parts by associating them precisely with the master schedule of final products. But what is correct at the time of the calculation is subject to error later.

The reason is that the batches are substantial and the lead time to produce is long, from one to several weeks.

During that time there will be delays and schedule changes so that the batch being produced is no longer correct relative to the final product master schedule.

Lot size and production time deteriorate the close association between the number of parts needed and end product schedules.

Next, a diagram is developed, where the main similarities and differences of the inventories that have been the object of our analysis can be appreciated.

(See PDF)

How the kanbans circulate: The Toyota case.

The Japanese and Korean manufacturing giants owe their success not to better management, not to cheaper labor, not to an industry-friendly form of government and not to a better financed industry, but they owe their success to better manufacturing technology; and the Toyota production system is one of which has given that competitive advantage in the world market.

The Toyota production system is a revolutionary system adopted by Japanese companies after the 1973 oil crisis.

The Toyota company started using it in the early 50's and the main purpose of this system is to eliminate all unnecessary elements in the production area including:

• From the raw materials purchasing department, customer service, human resources, finance, etc.

Being used to achieve cost reductions never imagined and meeting the needs of customers at the lowest possible costs.

There are several concepts of the Toyota Production System and they are briefly mentioned below:

1. Just-in-Time Manufacturing, which means producing the type of units required, in the required time and in the required quantities. Just in Time eliminates unnecessary inventories both in process and in finished products and allows to quickly adapt to changes in demand. Flexible workforce (shojinka ¹⁶) that means varying the number of workers to adjust to changes in demand; At the very least, employees must know the operations, before and after the one they are carrying out, and must be capable and willing to carry out different types of activities in any area of ​​the company. If the company cares about the worker's family, the worker cares about the company.Creative thinking or creative ideas (Soikufu ¹⁷) which means capitalizing on worker suggestions, for which it is necessary to have resources available to respond to those suggestions. It is better not to have an employee engagement program than to have one that is not given due attention. If we are asking for suggestions to improve the company, we must have a response system to those suggestions.

The Toyota production system establishes several points to make the objectives of the 3 previous concepts be achieved and that are the basis of the Toyota production system.

1. Kanban System, It is an information system that controls the production of the necessary articles in the necessary quantities, in the necessary time, in each process of the company and also of the supplier companies. Establish a production system in which products are pulled by the next station, products cannot be pushed by the first station. The products are pulled at the rate they are needed (system called PULL). The last station is the one that sets the pace of production; instead, the line produces a wide variety of products each day in response to changing customer demand. Production is achieved by adapting to changes in demand daily and monthly. Reduction of set-up time.The product that reaches the market first enjoys a high percentage of profits associated with the initial introduction of the product. Standardization of operations: It is about minimizing the number of workers, balancing operations on the line. Ensuring that each operation requires the same time to produce a unit. The worker has a standard operating routine. Distribution of machines and multifunctional workers, which allow having a very flexible workforce, which must be well trained and have great versatility that is achieved through job rotation and continuously operating standards and routines are evaluated and reviewed,and the machines may be placed in distributions in the shape of a "U" where the responsibility of each worker will be increased or decreased depending on the work to be done in each product. Improvement of activities, which are focused on reducing costs, improving productivity, reducing workforce, improve employee morale. This improvement is done through work teams and suggestion systems. Visual control systems, which monitor the status of the line and the production flow. With very simple systems, for example, some lights of different colors that indicate some abnormalities in the production line. Some other visual controls such as operation sheets, Kanban cards, digital displays, etc. Quality control throughout the company,that promotes improvements in all departments, through the action of one department and reinforced by other departments of the same company. Paying special attention to the board of directors to ensure that communication and cooperation occur throughout the company.

The kanbans circulate as follows :

1. When the parts needed on the assembly line are to be used first, a transport kanban is picked up and placed in a specific position. A worker carries this kanban to the upstream process to get parts processed. Removes a production kanban from a pallet of processed parts and places it in a preset position. The transport Kanban is placed on the pallet and the pallet is transported to the line. The Work-in-Process Kanban or Production Kanban removed from the pallet in the previous process, serves as a work order and instruction card that promotes the processing of Semi-finished parts procured from the previous process When this happens, the production card corresponding to the previous process is removed from a pallet of semi-finished parts and replaced by a transport Kanban.

With this system, only plan changes need to be indicated at the end of the assembly line.

This system has the added benefit of simplifying bureaucracy, when production is executed passing instructions to each process, some of these can be delayed, or speculative production can generate unnecessary inventories. The Kanban system prevents this waste.

The production system tries to minimize inventories of work in process, as well as stocks of finished products. For this reason, it requires a production in small batches, with numerous deliveries and frequent transports.

Conventional process control transfer and work instruction cards are not used.

Instead, the times and places of deliveries are specified in detail. The system is established as follows:

• Deliveries are made several times a day Physical delivery points are specified in detail to avoid placing parts in stock and having to remove them later to transfer them to the line Space available for placing parts is limited to make it impossible to accumulate excess of stocks.

The movement of the kanbans regulates the movement of the products. At the same time, the number of kanbans restricts the number of products in circulation. The Kanban must always move with the products.

1. Cases and articles relevant to the topic.

Kanban TO KANBRAIN

By Lewis J. Perelman.

Kanban transformed doing and marketing into products, the new "Kanbrain" system is very promising in how businesses are organized and conducted.

One result is: Incorporate classrooms with departments, as well as recruitment on campus, to avoid obsolescence.

Is your reengineering project falling apart? Do not get surprised. Even James Champy and Michael Hammer, the authors of the best seller "Reengineering the Corporation," confessed that three-quarters of the reengineering-backed corporation failed to do everything properly.

"The false correlation of learning with training or education is one of the most common and costly mistakes of the corporation that are handled today"; says John Seely Brown, Vice President of the Xerox Corp.

"The difficulty of taking people to see how they learn is really hard"; Robert Clegg, Vice President The Charles Schwab Corp.

Schwab introduced a computer called SPARKS, for Clegg through Lybrand consultants, who gave the idea of ​​learning and tabulating with SPARK for 21st century business.

A graph was put on a Unix server, which makes SPARKS mapping a complex business process almost as easy to use as Windows. Clegg told them what was happening when the Schwab Manager saw SPARKS, gender and displayed characters without error that his department was causing a bottleneck in customer service.

SPARKS revealed that workers would put or turn off processing for checks that they thought were of lower priority until the end of the day. "That they never did that and that they were returning them to other departments," Clegg said.

After seeing the Manager's table, he returned to his office and began to dictate directions to the places where they were most in demand.

Employees were not working "They were just bringing things to do their jobs and they had different ideas about their priorities"; Clegg said.

«This Manager is very well educated, but he could not explain his case. Employees had to learn for themselves.

This particular issue was resolved when the Manager consulted with the workers and they co-produced information flows to SPARKS. Although the bottleneck still says Clegg.

Maintenance Management. (Maintenance management)

By Christer Idhammmar.

President of IDCON Inc., Raleigh, NC, a company specialized in training and implementation of improvised operations and maintenance of organizations and their practices.

Preventive Maintenance.

We believe the right thing to do is do preventive maintenance by instituting essential care practices. The best thing is to do an engineering role according to the number of existing machines. We have to take into account the following details for our role:

• Detailed component cleaning Lubrication Operating practices On-the-fly adjustments Balance standards Alignment standards Maintenance and make-up time Root cause, analysis and actions to design maintenance

Repeatedly, the listed essentials are poorly practiced. However, we don't always recognize it; in some only a few consider this is called a "world class".

These also serve to evaluate the equipment and are also a good idea in terms of objectives.

An example is when I visited the Pulp & Paper where I was shown the calendar where only three prevention mechanisms were assigned and it was in the paper machine. I inspected the paper machines and they were missing a lot like motor components and a lot of things that cannot be seen with the naked eye. How can they monitor this? The oil levels were overfill and how to know when the oil level is too high or low.

In this case the managers of the two paper machines wanted to minimize the number of machine parts or areas to apply preventive maintenance.

An analytical method for performance evaluation of kanban controlled production systems.

• By María Di Mascolo and Yannik Frein, Grenoble Laboratory, Saint Martin France, Yves Dallery, University of Pierre et Marie Curie, Paris, France.

The production system, decomposed into serial scenarios, considering each scenario as a given number of kanbans.

The controlled kanban production system is modeled as a critical path network with a synchronized mechanism.

The basic principle of this purpose is to decompose the original kanban system into a set of subsystems; Each subsystem begins associated with a particular scenario. Each subsystem is analyzed in a production form parameter. The numerical results that the method shows are far from exact.

Common sense manufacturing, a method of production control.

By Herbert J. Betz, Jr.

Lucent Technologies Reading, PA 19612.

The system called common sense manufacturing (CSM), used at Lucent Technologies, is part of AT & T's work at Reading to build the benefits of just-in-time and material requirements planning (MRP).

This leverage of process control requires good planning for capacity calculations, parts orders, demand analysis, and acceptance schedules.

For these tasks, the MRP process is widely used in revealing the work plan. The computational benefits of the computerized system employed by MRP to assist these tasks in other assignments that are focused following improvisation. The current production point, the kanban, is best used. CSM's production control system results from combining the distances of the MRP and the JIT. An examination of the CSM system shows the structure for making meaningful improvisations in production.

Changes in production planning and control systems with implementation of cellular manufacturing.

By Festus O. Olorunniwo, PhD

Business School, University of Tenesee in Martín, Martín, TN 38238.

In cellular manufacturing (CM), part of a family of parts that are produced and dedicated to work centers called cells. Each cell consists of a cluster of dissimilar functional machines or processes that are manufactured in a set of family parts. Production planning is used to regulate the flow of materials in the manufacturing process, cellular or not.

The way of production planning is brought in to change the CM implementation. To understand the nature of the changes and research many other CM implementation journals, a CM implementation firm was made. While 81.8% of the firms survived the PP system before implementing CM, it is evident that the firms lag less only in PP systems.

Examining a kanban material acquisition system.

• By Michle Markey. Consultant with The Leawood Group Ltd., located in Leawood, Kansas.

The concepts involved in just-in-time are a bit more common sense. The rate of pushing large amounts of inventory, constant flow of parts that are pulled when needed. The result is a smooth flow of parts or parts of work in process. Implementing JIT manufacturing has effects on the business areas.

Changes are often uncomfortable for the organization. JIT Kanbans require a great philosophy to be adopted.

Kanban's material procurement system is simple. This provides a visual meaning to provide consumers with the product. Paradigms can be accommodated in revolutionary ideas. Many policies and procedures, such as old materials procurement rules.

1. Raw material software

Internet: www.develop.pantrol.com/pbrief/IN

Since the cost of materials accounts for 40 or 50% of sales per dollar, inventory control is vital to the survival of the company. Pantrol's raw material inventory system consists of following the following subsystems:

• Control shipping order Individual accounting Items to be accounted for (size, weight, color, grade, brand, finish) Locations Use Processing physical inventory (with barcode or manual) LIFO / FIFO report Warranty

The impact of lot-size reduction on quality.

• Anthony Inman Production and Inventory Management Journal First quarter 1994

The most commonly listed benefits of using JIT are: reduced time, reduced inventory, reduced workspace, increased quality, increased equipment utilization, and increased inventory turnover.

Reducing the batch size has been a means of making such improvements. This research was conducted to learn the benefits of quality improvements as a result of lot size reduction. Specifically, the relationships that these two factors have with each other are examined.

Lot size and quality .

Many authors talk about the benefits of JIT and the reduction of batches, scrap and rework. Such as the improvement in quality due to the reduction in scrap and rework, to a faster reaction time due to a lower inventory in process, to a less need for inspectors, due to the less quantity of material in the line, to the cost reduction due to rework and wasted materials.

They also explain that defects are discovered more quickly, and state that "without even working on quality improvement, reducing batch sizes considerably reduces rejection rates.

The question the author asks himself is whether a producer can expect such results and justify reducing the lot size.

An investigation was carried out in 114 manufacturing companies that had implemented the JIT philosophy. Factors such as reduction percentages achieved in batch sizes, scrap and rework were studied. Only the results of the companies that had reduced the lot size were used.

The results that were obtained were that the rates of rejected products were possibly improved proportionally to the reduction in lot size. However, this statement must be considered.

Data obtained from companies shows that similar results obtained in the areas of supplier quality certification, use of SPC, preventive maintenance, employee suggestions, reduction of workspaces, quality circles and training, can and obviously directly affect or indirectly the reduction in scrap and rework.

Based on this, if the decision to reduce batches is in expectation that rejection rates will improve proportionally to the reduction in batch size, it can bring disappointment.

1. Conclusions and recommendations.

Conclusions.

During the preparation of this work, we pointed out advantages, factors and relevant facets about a method whose implementation does not seek more than continuous improvement in processes, material flow and inventory reduction within a company.

Kanban should be used as a tool to achieve a competitive advantage over other companies in the same industry, since its ultimate goal is to deliver products on time, with the quality it requires, and at a better price.

Today most companies seek to streamline their processes and be more effective, this is where Kanban comes in as a very useful and effective help.

Although Kanban is a solution for many problems, its implementation is not that simple, it can be easy if it is implemented following the proper procedures, with a lot of patience, commitment and dedication, Kanban is not a unique tool, it implies the efficiency and implementation of many systems and strategies for manufacturing, in this way there is no doubt that the implementation and development of Kanban will be a success.

If it is not implemented with the points already indicated, it is certain that Kanban will not work, it is important to point out this and not believe in Kanban as an automatic miracle for our plants.

Recommendations.

The rapid growth and expansion of the Japanese industry in recent decades has been a phenomenon of great interest to researchers and entrepreneurs who have tried to decipher the secret of its success.

Different points of view have emerged regarding the phenomenon. Some authors consider Japanese excellence as a consequence of the application of a series of productive techniques known as Just-in-Time (JIT).

Others look at the phenomenon from a socio-technical perspective, according to which success does not reside only in the application of JIT techniques, but in the fusion of these with the particular Japanese style in the management of human resources and relationships with suppliers and distributors, which is in many cases rooted in the Japanese culture and idiosyncrasies.

There has been great interest in the manufacturing market for the Japanese approach to manufacturing, which goes beyond ways to increase productivity and decrease inventories.

It is clear that the performance of the kanban system is sensitive to the manufacturing environment. Raises expectations in attractive environments and performs relatively poorly in unfavorable environments. The only statistically significant factor groups for kanban are inventory, process, and product structure.

Working with certain factors to "form" a manufacturing environment with smoother workflows and flexibility to adjust to changing capacity requirements is the key to improving performance. These factors are as follows:

• Batch size Setup time Loss in performance Workforce flexibility Degree of product customization; and, Product structure.

To achieve the above objectives, the system must meet the goals of three subsystems, which are:

1. Quality Control, which designs and develops a system that adapts to fluctuations in daily or monthly demand in terms of the quantity and variety of products.Quality assurance, this component ensures that each process can only manufacture good items (from quality) for the following processes. world-class manufacturer primarily seeks prevention techniques and problem solving is the responsibility of everyone, from the newcomer to the company to the CEO Respect for staff, who need to be trained and trained, during As long as the system uses people to achieve its objectives, people are the most important asset of the entire company.Employees are trained to perform a greater number of operations and are able to take on different and greater responsibilities and are paid based on individual flexibility, employee involvement, knowledge, skills, problem-solving ability, and willingness. to work in teams.

Finally, we can say that the Toyota production system can be applied in all companies, regardless of size or business, the only thing we have to be convinced of, that the training of personnel and the commitment of these personnel, is which can give us competitiveness in the world market. Globalization is here and local competition no longer exists.

1. Glossary

¹ "PULL" OR PULLING SYSTEM.- It is a way of conducting the manufacturing process in such a way that each operation, starting with the dispatch dock and going back to the beginning of the process, is pulling the product only when needed. The customer is the one who determines what is going to happen next because he indicates a specific demand to the business.

^twoJUST-IN-TIME (JIT) OR ADJUSTED PRODUCTION.- It is a philosophy based on the total development of people who see the continuous improvement of manufacturing processes with quality assurance, through the elimination of waste and operational simplification, enabling the flexibility in meeting customer needs. JIT is not the result of an application of a specific technique. It requires a systematic approach accompanied by profound changes in the technical, managerial, operational and human fields. It should be implemented respecting the operational characteristics of each company, as well as the best environment where the company operates. The JIT philosophy is born around the objective of satisfying the customer's needs instantly, maintaining perfect quality and with minimal waste.This philosophy has been translated into a series of production process management techniques, which, in some cases, have been considered as the only constituents of Japanese success (technical perspective). It is more than a set of production techniques and also involves a particular way of understanding human resource and supplier management (socio-technical perspective). The most commonly listed benefits of using JIT are: reduced time, reduced inventory, reduced workspace, increased quality, increased equipment utilization, and increased inventory turnover.It is more than a set of production techniques and also involves a particular way of understanding human resource and supplier management (socio-technical perspective). The most commonly listed benefits of using JIT are: reduced time, reduced inventory, reduced workspace, increased quality, increased equipment utilization, and increased inventory turnover.It is more than a set of production techniques and also involves a particular way of understanding human resource and supplier management (socio-technical perspective). The most commonly listed benefits of using JIT are: reduced time, reduced inventory, reduced workspace, increased quality, increased equipment utilization, and increased inventory turnover.

³ SET UP.- The set-up time is the amount of time necessary to change a device of a team, and prepare that team to produce a different model; to produce it with the quality required by the customer and without incurring costs for the company, and thereby reduce production time throughout the process. Consequently, the product that comes to market first enjoys a high percentage of profit associated with the initial introduction of the product.

⁴ LABELED / MIXED PRODUCCIÓN SCHEDULE.- It is to determine a production scheduling system for final assemblies, to develop a mixed production and labeling system.

⁵ POKA-YOKE.- When we refer to Poka yoke we are referring to any method of error detection. In Japanese it means trial - error. Poka Yoke practice arose in the Japanese manufacturing community to improve the quality of products, to avoid errors in the production line. The concept is simple. If errors are not allowed to enter the production line, then quality will be high and rework low. This results in higher customer satisfaction and lower cost at the same time. The result is a high customer value. Not only the concept is simple, but also the situations are simple.

⁶ NUMMI.- Japanese plant established in the United States, jointly by Toyota and Generals Motors, considered as an ambassador of JIT production, to test the adaptability of this system in the West, and used as an example against those who allege the existence of strong cultural barriers to JIT implementation outside of Japan.

⁷ WA.- It means in Japanese «harmony»; in particular, it is part of the mentality of Japanese workers, and in general, it belongs to the entire Japanese culture. It is based on cooperation, teamwork and respect for seniority, it has been considered by some authors a fundamental factor for the success of the JIT. According to them, not only an organizational transformation is enough, but a major cultural change is also necessary.

⁸ STOCK.- Provision, assortment, reserves, stocks of any good, product, value or capital.

⁹ KAIZEN.- Also called «continuous improvement». In JIT production this fundamental principle reigns. This principle is always present in all processes, which are open to changes and improvements that are promoted with the participation of all through, for example, quality circles.

¹⁰ LAYOUT.- It means to extend, apply, cover, draw up a plan.

¹¹ JIDOKA.- Automation with a human touch, install sensors on the machines so that if there is a problem, stop the machine. Autonomization (Jidoka), which is Japanese for autonomous defect control. Autonomization never allows defective units from one process to flow to the next process, there must be devices that automatically stop the machines and no more defects occur. The worst is not to stop the process, the worst is to produce articles with defects. It is an automatic control by means of sensors introduced in the process (jidoka), which check that one hundred percent of the production meets minimum requirements.

¹² READINESS TIME.- It is the time required to go from a quality product to another quality product. Prepare the way for the other elements of the JAT. You need to know:

• What is being done, why is it being done, who is doing it?

¹³ PMN.- They are the acronym for Necessary Materials Planning (PMN). It is a system that takes advantage of the computer's ability to perform thousands of simple calculations in order to transform a master program of final products into the number of parts required. But like PDR, this method is batch oriented; that is, the computer collects all orders for a certain part number from a given period and recommends that the part number be produced or purchased in a good size lot. Companies that resort to planning for necessary materials order in batches, rather than piece-by-piece (just-in-time), because they haven't cut their setup times to make small batches inexpensive. If they did, the logical choice would be a simple manual kanban, rather than this complex system,expensive and computer-based.

¹⁴ PDR.- These are the initials for Reposition Point. The simple replenishment point rule says: "When stocks go down, you order more." Even squirrels follow that rule to replenish their stock of nuts. But the PDR leads to a lot of inventory. More parts and raw materials are requested to meet the rule, rather than out of necessity. Manufacturers using PDR do so because they have difficulty associating the need for parts with the end product schedule.

¹⁵ LEADTIME.- It is the total manufacturing time of a given product.

¹⁶ SHOJINKA.- Which means varying the number of workers to adjust to changes in demand; At the very least, employees must know the operations, before and after the one they are carrying out, and must be capable and willing to carry out different types of activities in any area of ​​the company. That is, you need a flexible workforce

¹⁷ SOIKUFU.- What it means to capitalize on the suggestions of the workers, for which it is necessary to have available resources to respond to those suggestions. It is better not to have an employee engagement program than to have one that is not given due attention. If we are asking for suggestions to improve the company, we must have a response system to those suggestions. It is channeling creative thinking or creative ideas.

1. Bibliography

• "Japanese Manufacturing Techniques". Author: Richard J. Schonberger "The Toyota Production System from the point of view of Engineering." Author: Shigeo Shingo 2nd. Edition. "A new look at the Kanban production control system". Mark Keaton. Production and Inventory Management Journal Third Quarter 1995. "Examining a Kanban material acquisition system." Michele Markey IM. May-June 1996. "The impact of lot-size reduction on quality." R. Anthony Inman Production and Inventory Management Journal First quarter 1994. "Changes in production planning and control systems with implementation of cellular manufacturing." By Festus O. Olorunniwo, PhD Business School, University of Tenesee in Martín, Martín, TN 38238. «Implementation of JIT in a small Manufacturing Firm» Amrik S.Sohal Production And Inventory Management Journal First Quarter 1992 "A Manufacturing process With Different Flavor: JIT and Ice Cream Industry." Mosha Dov IM March / April 1992. «Kanban to Kanbrain» Lewis J Perelman Forbes ASAP.Monographies.comcom

Area: administration and finance (companies).

Summary

At present, the need to produce efficiently without causing disruptions or delays in the delivery of a given product is a factor of utmost importance for companies that want to remain active in a market like the current one, which requires quick responses and quality compliance, quantity and delivery times.

Therefore, the implementation of more efficient production systems has become a factor that must be marked as essential to implement in production plants.

The implementation of production systems that are currently able to meet market demands does not necessarily imply having to make large investments in expensive automation systems, or in large mobilizations and redesigns of layout, and production lines. In reality, with an adequate analysis of the situations and the elements that are available, it is possible to develop an effective system that meets the needs and that is not the cause of a greater investment.

The results shown by the Kanban system when it has been implemented have been described as exceptional. Below is a work where you discover what this technique consists of.

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