Lean Manufacturing Just In Time : The Ultimate Inventory System
Lean manufacturing is a powerful type of production system that was created by Toyota after the World War II. It involves 5 tools and principles that contribute to its success such as 5’S, Kaizen, JIT or Just in Time, Value Stream Mapping and Kanban. The focus of this article is about just-in-time that works excellently in manufacturing industries.
Just In Time – A Smart Approach
The many changes in business such as more demanding clients along with the shorter life cycle of products have affected known inventory methods. Although businesses can resort to over stocking as a solution to these concerns, this leads to overspending. With this, JIT can be a wise method that can make a difference when it comes to managing stocks.
This tool works best in production industries which produce huge volumes of undifferentiated goods over and over again. This works by ensuring that the production will take place in the right place and the correct time. But then, there are prerequisites for this tool to become successful and these are what will be tackled below.
Pre-requisites to JIT
Fast Setup
Manufacturing processes that involve long setup periods will not be versatile enough for JIT process. With this, appropriate planning can help a lot to optimize the process despite the fact that the speed of the process will depend on the complexity of process and equipment.
Stable Manufacturing Schedule
This is very crucial to an effective inventory management. JIT can be successful if there is an expected demand pattern and a predetermined schedule for manufacturing in order to meet the demands.
Lot Sizes
Basically, maintaining the production as well as the distribution into smaller batches is more realistic. Thus, smaller inputs or batches can lead to significant amounts of savings. But then, it needs to have a strong back up such as a dependable vendor network for seamless work.
Lead Times
The period between making an order and the receipt of items is referred to as lead time. The shorter the lead time is actually the better. In order to reduce this, creating a supplier network that is proximal to the production place is the best way to do this. Another way is to set all the production stations in a single place.
Idle Time Redeployment
The JIT system will be most effective and efficient if there is less wastage. For instance, if there are waiting times for workers or machines in between tasks it will be best to arrange the resource for another work. Preventive maintenance can also do a lot to reduce the loss of productive time because of equipment breakdown.
Trained Employees
For best functioning, JIT system needs a group of competent and devoted workers who are actually implementing the process. Thus, the employees must undergo training so that they will be more able to manage multiple tasks.
Reduced Error Rate
Employees must be held liable for keeping the quality along with a strong quality assurance program and software that will decrease the chances of error hastening just in time production and delivery.
Overall, the JIT system when used correctly can bring out plenty of rewards.
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