The Ultimate Goal Of JIT

The Ultimate Goal Of JITJIT is a Nipponese concept. Also called the Toyota turnout system, it aims at producing the necessary parts in quantities privationed, at the quantify they are required. The final goal of JIT is to eliminate inventory, to have minimal work in appendage inventory monitored by reduction in working capital.JIT considers 7 types of wastes.Overproductionproducing more than than the guest needsTransportationAnywhere where nices are moved within a processWaitingwhere waiting time occurs, traditionally where one process waits for another to finish before it can start.Inventorytypified by stock or materials that are not being workd in the process or current activity.Motion Poor planning and transcriptional layout often cause motion wasteOver touchwhere go occur in the production process that do not add value to the end customer this is termed overproductionDefectsThe process results in an error or requires reworkJIT divides all industrial plant into value adding and non-value adding activities and then eliminates all non value adding activities. Kanban is one means through which JIT is achieved. It is a scheduling system that tells you what to produce, when to produce it, and how much to producePoka-yoke is a Japanese term that means fail-safing or mistake-proofing. Its purpose is to eliminate product defects by preventing, correcting, or drawing attention to human errors as they occur.Autonomation describes a feature of instrument design to affect the principle of jidoka. At Toyota this ordinarily means that if an abnormal situation arises the machine stops and the worker will stop the production line.Kaizen refers to the school of thought or practices that focus upon continuous improvement of processes in manufacturing, engineering, supporting business processes, and management.Literature reviewWeiters (1984) in one of the first literatures on this topic states that pecuniary justification of JIT in helping industries is less likely but in divine receipts industries JIT offers intangible benefits in terms of improved service quality and customer satisfaction.(cited by Inman and Mehra 1990)Benson (1986) was the first to point out benefit subprograms are organised systems of production processes with the same(p) potential of improvement through implementation of JIT precepts as manufacturing operations Cited by Duclos et. al. 1995Berling and Geppi (1989) studied the supply chain of healthcare sector and offered JIT as an approach to hospitals in consecrate to reduce inventory. They suggested closer relationships between hospitals and distributors.Billesbach and Schniederjans (1989) prove a scale take up on JIT application in an administration setting. The case was on a big corporation and JIT programme was implemented in the headquarters of this corporation. Their approach was based on examining activities and the ones not contributing to result to be eliminated.Inman and Mehra (1990) had worked on F edEx. This package tar company implements JIT to reduce their inventory of quasi-MRO goods (mainly packaging, labelling supplies).aimed at improving their service quality and competitiveness through implementation of JIT and anticipated that inventories would be reduced as a result.Lee (1990) presents a case study of a small bank. Study is focused on this banks loan approval process. Bank follows a 2 phase process and first evaluates the applications and makes the decision of contribute in second phase. This process usually takes 12 days. Applying JIT approach whole process is redesigned and several tasks are unified. New approval process takes 4-5 days.Wasco et. al.( 1991) presents a case Kodaks quality assurance division. This division provides go to worldwide chain of Kodak. An MRP II system is implemented with JIT approach and conclusion of the study is JIT techniques enhance the potential of MRP application. peerless of the most radical case studies is presented by Barlow ( 2002). He investigates the applicability of JIT techniques to hotel exertion. Weakness of this study is it concentrates on liquor stocks of these hotels and draws conclusions on if statements and these hotels actually do not take on any JIT techniques.Ruiz (2003 pp.1) JIT focuses on the process, not product. Therefore it can be applied (in theory) to any group of processes, whether manufacturing or service. Ultimate goal of JIT is to produce a good and a service without wasteLiterature on the matter quite confidently states that JIT can be applied in operate and through account case studies evidence is provided. JIT applications in service industries are vague in some sense. There are no empirical studies and reported case usually resembles manufacturing setting.Service operations management evolutionHow to implement JIT in services?A philosophy of manufacturing excellence based on pursuit of the planned liquidation of all waste and consistent improvement of productivity. It e ncompasses the successful execution of all manufacturing activities required to produce a final product from design engineering to delivery and including all stages from conversion of raw material onward (APICS, 1992).Total visibility of equipment, people, material and processesSynchronization and balance of production to sales and supply to production assess for people greenback operators is responsible for production, problem solving and improvement tractableness adapt production to customer needsContinuous improvement never conform to with the processResponsibility for the operations environment those who design, manage and operate the processes are responsible for the outcomeHolistic approach companywide philosophy of elimination of waste severally of these JIT themes whitethorn be applicable to service organizationsSynchronization and balance of information and work flowmatching output with customer demand one of the all-important(prenominal) aspects of service opera tions often cannot inventory the output of their processes making balance even more vitalSemantodontics, a direct marketing company change nationwide by catalogue to dentists, also found JIT an appropriate approach for reducing the time to process paperwork (Conant, 1988) and, hence, the time required for a dentist to engender an do. The idea of making lot sizes as small as possible was implemented by decreasing the batch size in which telephone orders were aggregated. As a result, telephone orders were moved to the second stage of the process three quantify daily rather than once a day, as was the previous norm. Set-up time for entering new customer records was reduced by moving the process to the original telephone operation where the data were first gathered. The decrease in order batch size had a behavioural impact on employees as well.From the sense of satisfaction gained on completion of multiple small batches, employees tended to work prompt and more efficiently.Atlanti c Envelope Company uses kanban trays at its Atlanta facility to move documents within the order entry department. Order entry time send away to under a day from a previous uncertain number of days.Total visibility of all components of the processNorthern Telecom Inc.s (NTI) Customer Service Centre borders the traditional manufacturing environment (Savage-Moore, 1988) and the implementation is a good usage of providing visibility through the use of work cells. This unit of NTI has the labour-intensive responsibility of repairing printed hitch packs ( caregivers). For an individual PCP, it is difficult to predefine the specific repair process required, not unlike a job shop environment. The work cell concept was applied to suffer all work on a PCP performed within a single cell and by one team of employees. This provided all employees repairing a PCP with visibility as to the repair needs and processes used to repair the product. Additionally, employees were cross-trained to staff the cells and jobs were redefined to recognize employee training efforts. Over a two-year period, NTI saw customer service levels increase from 85 per cent to 100 per cent and quality levels significantly improved. Work-in-progress inventory was reduced by 75 per cent and repair cycle times reduced from one week to less than 48 hours.Continuous improvement of the processThe Manufacturing Quality Assurance Organization at Kodak in Rochester, New York provides specialise services in the form of sample testing of photographic film, chemical and environmental testing, equipment development and calibration control. JIT precepts were introduced to provide a framework for involving the entire organization in continuous improvement (Wasco et al., 1991).Fifty JIT cells were established to start the JIT delivery of products or services based on functional precepts. JIT activities were used to reduce work-handling steps and run times. Improvements through JIT techniques saved an average of $ 33,000 per month in 1990.Holistic approach to elimination of wastesuppliersFew suppliersNearby suppliersRepeat business with same suppliersActive use of analysis to enable preferable suppliers to become/stay price-competitiveClusters of remote suppliers, competitive bidding mostly limited to new part poemBuyer plant resists vertical integration and subsequent wipe-out of supplier businessSuppliers are encouraged to extend JIT buying to their suppliersQuantitiesSteady output rate (a desirable prerequisite)Frequent delivery in small quantitiesLong-term attempt agreementsMinimal release paperworkDelivery quantities variable from release to release, but dictated for whole contract termLittle or no permissible overage or underage of receiptsSuppliers encouraged to package in exact quantitiesSuppliers encouraged reducing their production lot sizes (or store unreleased material)QualityMinimal product specifications imposed on supplierHelp suppliers to meet quality requirementsClose rel ationships between buyers and suppliers quality assurance peopleSuppliers encouraged to use process control charts instead of lot sampling inspectionshippingScheduling of inbound loadingGain control by use of company-owned or contract shipping, contract wareho victimisation, and trailers for freight consolidation/storage where possible instead of using common carriers.Flexibility in the use of resourcesBookbinder and Locke (1986) present a mystify to determine if JIT distribution methodology is a feasible alternative to traditional distribution methods. They investigated the behaviour of two different distribution models for JIT organizations. In the first, a factory-warehouse-retailer distribution system, the warehouse holds stock. In the second, stock moves from factory directly to retailers.The models were compared using statistical tests, and the second model was opinionated to be the superior distribution system because it furnished essentially the same service level to ret ailers while carrying one less echelon of stock.Another mathematical model is offered by Ramasesh (1990) for the implementation of JIT techniques in purchasing systems that have not yet advanced to the ultimate level of JIT purchasing (lot size of one).He treated the fixed costs associated with the adoption of JIT as investment, and justified it based on the savings generated using any of the techniques of investment analysis. He modified the traditional economic order quantity model to include explicitly the costs of small-lot shipments. He also provided guidelines and formulae for determining the order quantity and the optimal number of shipments.Case studiesDHL- impact of JITThe founders began to personally ship papers by airline from San Francisco to Honolulu, beginning customs clearance of the ships cargo before the actual arrival of the ship and dramatically reducing waiting time in the harbour. With this concept, a new industry was born international air express, the rapid d elivery of documents and shipments by airplane. DHL network continued to grow at an incredible pace. The company expanded westward from Hawaii into the Far East and Pacific Rim, then the Middle East, Africa and Europe. By 1988, DHL was already present in clxx countries and had 16,000 employees.The different business units of the company areDHL ExpressDHL FreightDHL Global ForwardingDHL Exel SupplyDHL Global MailThe process above mentioned was improved using JIT with following waysInventory Management Concerning ServicesFor instance, in the case of DHL, vehicles, bicycles and other assets that facilitate service delivery must be accounted for, serviced, ready and operational to be used for work purpose.Quality Management Concerning ServicesTangiblesReliabilityResponsivenessCompetenceCourtesyAccessSupplier Relations Concerning Services benignant Resource Management Concerning ServicesJIT in retailThe key principles of JIT in any system areNo wastage,Total visibility, andFlexibility in the use of human and material resourcesIn any environment these principles translate into three simple rulesdont start any work unless the demand signal indicates a need for more materialif the demand signal indicates a need, work to fill that needand, never exceed the queue-size limitAutomatic Replenishment Systems (ARS) is also an example of application of JIT in retail.JIT in Indian service industryA survey was done on the Indian service industry. The data was collected from the selected service industries and analyzed. The results of degree of importance are given in the tableThe most important element recognized by the Service industries was waste reduction (mean=0.8929). The to the lowest degree important element was JIDOKA (mean=0.5625).The elements of the study are mentioned in appendix table 1JIT in hospitalsMost research in the health care industry has been directed toward process and information system improvements.Generally, service environments such as health care a re likely candidates for JIT if their operations are repetitive, have reasonably high volume, and deal with tangible items such as mail, checks, bills or letters.In hospitals, there is a vital department named CSSD (Centre for Sterilization Service department), the functions of which include materials management, instruments reception, washing, wadding and sterilization, sterile store, instruments distributionAs an illustration a previous supplier model can be analysedAnd compared with an improved model, which centralises and streamlines the supply chainJIT in administrative settingJIT practices and their effect on quality can be analysedHuman elements of JITSteps in implementation of JIT in service industryEliminate disruptions in work of the employees and make the service system flexible and train the workers to handle more variety. reduce set-up time and eliminate waste including errors and duplicate work and minimise work-in process e.g. Packages waiting to be delivered, call s waiting to be answered, pending orders to be processed, trucks waiting to be loaded/unloadedGenerally, service environment may benefit from jit system if the operations are repetitive, have high volume, and deal with tangible items e.g. Sandwiches, mail or bills services must involve manufacturing like operationConsistently high qualityservice employees can be taught the value of providing defect free servicesuniform facility loadingreservation systems and differential gear pricing are ways to level the load on the facilitiesstandardised work methodshigh efficiencies achieved by analysing work methods and standardisingClose supplier tiesvolume services such as fast-food joints and mass merchandisers require close supplier contacts to ensure frequent short lead time and high quality shipment of supplies conciliatory work forcegreater the customisation in the service, greater is the need for a multi-skilled workforce e.g. Electronic repair shops needing wider experienced workforce t o diagnose the problems and repair the defectsLine flow strategymangers can recognise their employees and equipment to provide uniform flows through the system, and eliminate wasted employee time e.g. Banks use this system in their cheque processing operationsProcess improvement and problem solving can contribute to streamlining a system, resulting in increased customer satisfaction, and higher productivity e.g. Self service system including retail operations, ATM, vending machines, service stations etc which is the ability to provide services when requiredsimplify the process, especially when customers are part of the system jit services , if achieved , can be a major competitive advantage for companiesA FrameworkAppendixTable 1