Waste Identification and Planned Elimination: Philosophy of Manufacturing
JIT, Kanban, Kaizen
Contents
• Just In Time (JIT)
• Kaizen
• Kanban
2
Contents
• Just In Time (JIT)
• Kaizen
• Kanban
3
What is JIT
• A philosophy of manufacturing based on Waste Identification and
Planned Elimination to achieve continuous improvement in productivity. •
It’s a philosophy not a technique
Emergence of JIT
• Evolved in Japan after world war II, as a result of their diminishing market share in the auto industry.
• First developed & perfected within the Toyota manufacturing plants by
“Taiichi Ohno” as a means of meeting consumer demands with minimum delays. • Taiichi Ohno, is called the father of
JIT.
• There are strong cultural aspects associated with the emergence of
JIT in Japan. The Japanese work ethic involves the following concepts. – Workers are highly motivated to seek constant improvement upon that which already exists.
– Although high standards are currently being met, there exist even higher standards to achieve.
– Firms focus on knowledge sharing , problem-solving. – Work takes precedence over leisure. It is not unusual for a
Japanese employee to work 14hour days.
– Employees tend to remain with one company throughout the course of their career span.
4
Functioning of JIT
• Involves keeping stock level to a minimum. • Stock arrives just in time
• Works best when there is a mutual understanding between manufacturer & supplier
• Goods are not produced until an order is received from the customer. • No demand! No production!
• A proven method of production control. • Anticipated/planned demand triggers production.
• Finished goods assembled just in time to be sold to the customer.
• Materials purchased just in time to make the component.
Companies who adopted JIT
AND……..
5
Advantages of JIT
• Capital not tied up in inventory • Less space required for inventory Disadvantages of JIT
• Risk of disrupted production due to nonarrival of
Contents
• Just In Time (JIT)
• Kaizen
• Kanban
2
Contents
• Just In Time (JIT)
• Kaizen
• Kanban
3
What is JIT
• A philosophy of manufacturing based on Waste Identification and
Planned Elimination to achieve continuous improvement in productivity. •
It’s a philosophy not a technique
Emergence of JIT
• Evolved in Japan after world war II, as a result of their diminishing market share in the auto industry.
• First developed & perfected within the Toyota manufacturing plants by
“Taiichi Ohno” as a means of meeting consumer demands with minimum delays. • Taiichi Ohno, is called the father of
JIT.
• There are strong cultural aspects associated with the emergence of
JIT in Japan. The Japanese work ethic involves the following concepts. – Workers are highly motivated to seek constant improvement upon that which already exists.
– Although high standards are currently being met, there exist even higher standards to achieve.
– Firms focus on knowledge sharing , problem-solving. – Work takes precedence over leisure. It is not unusual for a
Japanese employee to work 14hour days.
– Employees tend to remain with one company throughout the course of their career span.
4
Functioning of JIT
• Involves keeping stock level to a minimum. • Stock arrives just in time
• Works best when there is a mutual understanding between manufacturer & supplier
• Goods are not produced until an order is received from the customer. • No demand! No production!
• A proven method of production control. • Anticipated/planned demand triggers production.
• Finished goods assembled just in time to be sold to the customer.
• Materials purchased just in time to make the component.
Companies who adopted JIT
AND……..
5
Advantages of JIT
• Capital not tied up in inventory • Less space required for inventory Disadvantages of JIT
• Risk of disrupted production due to nonarrival of