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Abstract: In today’s business world, Just in Time (JIT) has been a very popular operation
strategy. JIT or lean manufacturing provides a systematic way for minimising the wastage
from the manufacturing processes. This system follows certain principles like elimination of
waste, delivering products on the right time etc. JIT implementation can lead to various
benefits such as better product quality, inventory reduction. Though implementation of JIT
requires a series of incremental steps to get the essential outcome. As nowadays customers
are mostly focused on product quality, delivery time and price of product, successful
implementation of JIT is important for many organisations. By surveying some information
and examining the role of a company’s resources, this paper presents a case study on a local
manufacturing industry that implements the JIT system as their new resources configuration
and remove buffer system. The result and observations of this case study will display that the
removal of the buffer system led to many advantages which indicates that implementation of
the JIT system is successful.
I. INTRODUCTION
Globalisation phenomena had created the business without limitation. Nowadays the main
focuses of global organisations are Customer satisfaction and the product and service quality.
These are the two main portions that can influence the global market. To survive in today’s
competitive business environment, all organisations across the world need to take initiative
to increase the product quality to satisfy the needs and customer demands that always change
besides minimising the production cost [1]. The Just in Time (JIT) concept is one of the most
effective solutions for this initiative. The concept of JIT was first theorised and implemented
by Japan. Triggered by the economic climate of the post-World War II, Japanese
manufacturers began adopting the JIT manufacturing practices era. Following the war, Japan
faced many challenges in the economic field and lacked enough resources for big-batch
finance and also faced high unemployment issues. The system that they used to overcome
their economic decline is known as just in time manufacturing, popularised in Western media
as the Toyota Production System.
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JIT is an inventory management system used to manage the stock that is kept in the storage.
It involves receiving goods from the suppliers as and when they are required rather carrying
a large inventory at once. Gaither and Frazier state that Just-in-Time is a weapon of choice in
speeding market responsiveness. Companies use this inventory strategy to increase the
efficiency and decrease waste by goods only as they need for the production process which
reduces the inventory cost. Proper inventory system depends upon the production schedule as
per market demand. Excess of inventory can lead to increase in costs, however less inventory
can lead to a loss in sales, both are less profitable for an organisation. Therefore, a balanced
inventory management is important for the organisation to increase productivity. For this
inventory management JIT is required. Heizer and Render [2] described the goal of Just in
time is to have the minimum amount of inventory on hand to meet demand. This strategy
will make the company more efficient, reducing the wastage level which leads to a reduction
in inventory cost and increases the quantity of the company [3].
The main objective of this paper is to increase the productivity and quality of work by
implementing the JIT system which is one of the Lean Manufacturing introduced by Toyota
Motor Corporation [4]. JIT system identifies non-value-added activities in the value chain
and by removing these it reduces the production waste [5]. The fundamental focus of JIT is
the systematic elimination of nonvalue added activity and waste for the production process
[6]. The main focuses of JIT concept are on Buffer stock removal, cellular manufacturing,
group technology, layout improvement, set up time reduction, worker motivation, W.I.P.
reduction.
After taking some semi structured interviews and analysing some relevant data, the
researchers can conclude that the JIT principles are implemented successfully across many
parts of an organisation, a significant competitive advantage can be enjoyed [7]. In this
recent era there are research papers written which show the successful JIT implementation
[8]. Enhanced efficiency from waste reduction in order taking, purchasing, operation,
distribution, sales and accounting [9]. Waste management is required in JIT production,
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wastes are identified and eliminated in some areas like waste from overproduction, waste of
motion, transportation waste, processing waste and waste from product defects [10].
In this paper we have discussed the Just in Time (JIT) concept and how its implementation
could be more successful for a company in this current society. We presented a case study of
a local company that removed the buffer system and implemented a JIT system. In section 2
we showed a flowchart of the model. In section 3 we discussed different types of waste or
non-value-added activities and waste removal procedures along with the buffer system and
its removal techniques. Further using some tools and concepts like 5’s, Takt time, Kanban,
we can implement JIT as discussed in section 4. In section 5 we presented the case study and
some related graphs and data and came to the conclusion that JIT implementation is indeed a
success. Lastly in section 6 we have concluded the model and discussed the application with
managerial insight.
This is a step-by-step representation of the processes that need to be done in order to remove
the buffer system and implementation of JIT.
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After identifying the activities, the next step is to detect value added and nonvalue added
activities. Activities for which the customer is willing to pay for are known as Value-added
activity. Non-value-added activity is an action taken that does not increase the worth of the
product that is delivered to a customer. These activities are also called "waste". Non value
activities are categorised as: transportation waste, excess inventory waste, Motion wastage,
waste for defects, waste for overproduction, waste at the time of processing, waste for
waiting.
Transportation waste
Transportation waste indicates the material movement that is not directly associated with a
value addition. Processing stations should be closer to each other and material should flow
without any significant delays between the alternate processes. Poor layouts of consecutive
operating stations, complex material handling systems are mostly the reason for excessive
transportation waste.
Remedies: By using an effective material handling system and designing an effective plan
layout based on lean principles, transportation waste can be managed.
Remedies: By using Kanban system, push and pull type demand system, by sorting the
inventory using automatic storage and retrieval system, making necessary calculations for
deciding optimum Economic Order Quantity this situation can be avoided.
Motion wastage
Motion wastage is the increased motion of machinery or a person due to an inefficient
manufacturing process. The main causes of the waste of motion are with regards to cell
layout, poorly organised place, poor methods of transferring parts from one to another,
disorganised tools.
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Remedies: To reduce overproduction waste use piecewise production and Kanban process,
Improve the overall order of delivery cycle, adopt most suitable method of aggregate
planning
Processing Wastage
Over processing or under processing causes extension in processing time which thereby
results in delays. The major causes of processing waste are unclear standards and
specifications, unawareness of the operators, non-standardized working practices.
Waste of Waiting
When two interdependent processes are not fully synchronised, some idle time is produced
that is known as a waste of waiting. Poor machine coordination, long changeovers, unreliable
process and excess time required for reworking cause waiting wastage.
Waste of Defects
Improper operating processes cause some defects in manufacturing or processing the
required service or product and correction of those defects include extra work so this type of
waste is called waste of defects. The causes of generated defects are: Inadequate training and
lack of skills, Process instability and operator errors.
Remedies: By checking process capability index and process reliability and providing
training to the employees can solve this problem.
Just-in-time (JIT) is a stock control method where the organisation doesn't have to store any
raw materials. It has regular deliveries that are only needed before existing raw materials are
finished. So using JIT we can control the buffer system therefore much wastage (like
wastage for waiting, wastage for over processing, wastage for inventory etc) can be reduced.
For every organisation Improvement in quality, flexibility and productivity are commonly
required focusing on the elimination of buffer stocks to highlight production problems
scheduled by high inventory level. Implementation of JIT in any organisation starts with the
improvement in level of education and training to the employees by encouraging them with
various suitable incentive schemes and promotions.
A. JIT Tool
"5’s"
The basis of implementation of JIT lies in the "5s" concept (Vikas Panchal et al., 2013).
5s" is an abbreviation of five Japanese words beginning with the letter “s”.
‘Seiri’ focuses on sorting out all the tools, equipment, materials, etc. in the workplace
and maintaining only necessary items which thereby minimises work interference.
‘Seiton’ focuses on arranging the tools and equipment in its proper location so that
extra motion can be eliminated. ‘Seiso’ focuses on systematic cleanliness and regular
restoration of equipment at appropriate places. ‘Seiketsu’ focuses on standardisation of
operating practices in a consistent manner. ‘Shitsuke’ focuses on nourishment of
standards that were present during the initial 4s establishment process.
Takt Time
The rate at which suppliers need to finish a product or service to meet customer demand
is known as takt time. For example, if one receives a new product order every 2 hours,
their team needs to finish that product within 2 hours or less to meet the demand of their
customer. Takt Time allows one to optimise their capacity in the most efficient way to
Takt time = Available operating time per shift /Customer order per shift
meet demand without keeping too much inventory in reserve. Mathematical Formulation:
Kanban
Kanban is a scheduling system for lean manufacturing(Tung-Hsu (Tony) Hou).Taiichi
Ohno, an industrial engineer at Toyota, developed kanban to improve manufacturing
efficiency.Kanban became an effective tool for supporting an organisation to run a
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V. CASE STUDY
In this study the author will discuss the result of the survey taken from a local stamp
processing company. Here, JIT implementation is implemented by following the concept of
‘Kanban’. By observing the graphs and other information, authors can conclude why the JIT
system is much more beneficial than the previous buffer system.
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Case 3: Winding to
packing
Case 4: Packing to
delivery
By observing the graphs and analysing some data taken from the survey, we can conclude
that after JIT implementation raw material are always in enough quantities, work in
processes are at the minimum quantities, delivering raw materials depends on demands of the
customers and more often in small sizes, buffer stocks are at least quantity and finished
goods will directly deliver to the buyers on right time. This observation indicates the fact that
implementation of the JIT system in this local company is a huge success.
VI. CONCLUSION
From this paper we can identify that in the purpose of waste management JIT
implementation is very much successful. By using various tools wastages are identified as
well as removed. Just in Time manufacturing makes outstanding improvement in area of cost
and productivity by focusing on waste elimination and time reduction. This paper has
examined the role of an organisation's resources by surveying related information.The
outcome of this paper shows that implementation of the JIT system is successful and leads to
many advantages in managerial point of view.
REFERENCES
[1] Canel, C., et al. (2000). Just-in-time Is Not Just for Manufacturing: A Service
Perspective.Industrial Management and Data System. 100(2). 51-60.
[2] Heizer, J., & Render, B. (2014). Operations Management Sustainability and Supply Chain
Management (11th ed.). New York: Pearson Education.
[3] Gaither, N. and Frazier, G. (2002) Production and Operations Management. Thomson
Learning, São Paulo [4] Cheng, Podolsky; “Just-in Time manufacturing-an introduction”;
New York: Chapman and Hall, 1993.
[5] Vendan,S. P., Sakthidhasan; “Reduction of Wastages in Motor Manufacturing Company”;
JJMIE, 2010.
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[6] Dalgobind Mahto; Anjani Kumar; “Novel Method of Productivity Improvement and
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[7] Rosemary R. Fullerton; “The production performance benefits from JIT implementation”;
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[8] Tung-Hsu (Tony) Hou, “An integrated MOGA approach to determine the Pareto-optimal
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[9] Green, Amenkhienan, Johnson; “Performance measures and JIT”; Management
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