...Case 2-1 Just-in-Time in Kalamazoo Summary and Assessment: President, Jim Ballenger’s, firm specializes in manufactured mini motor homes in Kalamazoo, Michigan. The majority of the mini motor homes are assembled from components purchased from outside vendors. It has come to Jim’s attention that transportation and inventory cost contributed to a relatively large portion of his components parts expenses. In an effort to reduce cost Mr. Ballenger considers implementing the just-in-time (JIT) system which was developed by the Toyota Motor Company. Mr. Ballenger and the rest of his management team are well aware of key principles, requirements and trade-offs that are necessary to occur in order to allow JIT system be successfully implemented. Unlike other kinds of management decisions, this one, due to its complicated nature, requires special consideration and financial calculations. Thus far, the company’s executive assistant created a summary of random sample of component inventory in numbers. The purpose of the summary is to identify which of two systems is more financially beneficial. Although cost-efficiency factor will have a weighty impact on management’s final decision, yet other more significant conditions will probably have a final say in the choice between the two production systems. Answers to discussion questions from chapter (pg 43): 1. What is the total annual cost of maintaining the components inventory under the present system? A: $1,151,522...
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...Just-In-Time Compilation Technique 1. Introduction Just-in-time (JIT) compilation is an effective technique for boosting the speed of program interpreters. The idea of JIT compilation is to dynamically translate input programs into native machine code, and then execute only native code. It is an old invention which dates back to 1960. The earliest published JIT compiler is generally attributed to work on LISP (McCarthy, J. 1960); in his seminal paper Recursive functions of symbolic expressions and their computation by machine, Part I, he mentions functions that are translated during runtime, thereby sparing the need to save the compiler output to punch cards. After that Smalltalk pioneered new aspects of JIT compilations. For example, translation to machine code was done on demand, and the result was cached for later use. However, the concept is still relevant today as JIT compilation is considered vital for competitive interpreter-based implementations of modern languages, like Java, .NET, C# and ML etc. JIT compilation is interesting because of the conflicting goals of producing quick code versus quickly producing code. In very simple means JIT compilation is a process of reverse-engineering the semantics of a program, and re-engineering the result back into binary code. The code is split up into blocks, some higher-level meaning is extracted from the current block of code, and native code is generated. It is used to improve the time and space efficiency of...
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...------------------------------------------------- Case: Just-in-Time Production at Hewlett-Packard, Personal Office Computer Division Question 1: Should it be easier to run JIT effectively on the 150 than on the 120? Explain. Considering information given in the beginning of the case, it should be easier to run JIT effectively on HP-150. 1) HP-150 requires less number of parts, which leads to less inventory needed (20,000 active part numbers for HP-120 and its options vs 450 part numbers for HP-150); 2) Less suppliers are needed for HP-150 (200 suppliers), comparing to HP-120 (2,000 for HP-120 and its options). It will be easier to establish and maintain efficiently a long-term trustworthy relationship. 3) HP-150 has less variety (17 types of keyboards due (languages) while CPU is the same), but for HP 120 there were an average of 6 options per product. Less variety, again, provides fewer inventories and more flexibility to the process. To reduce complexity Question 2: How serious is the forecasting problem? In other words, does success with JIT depend on good forecast? Forecasting problem seems to be severe at the plant. Case says that “…manufacturing does a lot of “second guessing” because the forecasts are terrible”. However, good forecast for JIT systems is crucial. As JIT significantly reduces the amount of raw materials, WIP inventories and finished goods on hand, it greatly relies on accurate information, i.e. on the timely delivery of exactly the...
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...Definition of Just-in-time It is a method of planning and controls an operation that aims to meet demand directly with perfect quality and no waste. Just in time also known as a systems approach that is used to develop and operate a manufacturing system in which it will organizes the production process so that parts are available only when they are needed it. This system is used as a method for optimizing processes that involves continual reduction of waste and reducing non value added costs and long run costs such as reworking defective products, product inspections and quality control which are some example of non-value-added costs. The Just-in-time used to be the management philosophy of continuous & forced problem solving and it is categorized as a pull system in term of production & purchasing where the system will control the materials whereby to use signals to the supplier or provider that there a more material is needed. This process occur by which the downstream work centers will request delivery from upstream work centers and these will be known as lean production. By implementing the Just-in-time in their production, it will act to attack all the wastage in the production process in terms of product that has not added any value to the product by the perspective of their customer. The system also will expose all the problems and bottlenecks that have cause by variability towards the product. It is also used to achieve the streamlined production by reducing...
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...JUST IN TIME (JIT) ADVANTAGES OF JIT 1) Lower stock holding All manufacturing units aim at one thing, which is to minimize the expenditure that related to the ordering and carrying out inventory. The company should order only that much inventory, no more no less or hold no inventory which is needed to carry on their immediate production. So the company should not store any extra inventory that is needed in the production since it will incur an additional carrying cost. As soon as goods are finished, it should be shipped to the customer immediately without any delay in order to minimize the warehouse costs where the goods are placed. 2) Better customer satisfaction Implementing the Just-in-Time inventory management model can allow firms to serve their customers faster and more efficiently. By using Just-in-Time (JIT) model, the company can have a better control over the manufacturing process, making it easier to respond quickly when the needs of customers change where the company can cut the production of one product type and switch it to a different type product to meet changes in customer demand. According to Bonnie Conrad, a computer manufacturer that use JIT inventory control model can quickly increased the production of a hot model, while reducing the number of outdated products. 3) Elimination of waste “The seven waste” 7Ws introduced by Toyota’s Chief Engineer Taiichi Ohno as the core of the Toyota Production system also known as Lean Manufacturing in...
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...Abstract Just in Time (JIT) inventory management has its benefits and setbacks which leads to the question on its eligibility to be adopted in organizations. It has some of the benefits of being cost effective and ensuring quality production. However, it faces unpredictability in the supply chain and meeting demand, both setbacks realized in adopting it. The magnitude of the benefits and setbacks can vary depending on the industry. The current study provides details on the advantages and disadvantages of employing the policy in the manufacturing industry with implementation examples specific to the car manufacturing industry. With the policy being pioneered by Toyota, and later used by Ford, the evidence that the two organizations have benefited substantially from the policy are obvious. They have had increased profits, customer satisfaction and the quality of their products. All while reducing costs associated with the storage of excess inventories, defective production, and waste. Strategies maximizing the use of a just in time policy and avoiding some of the disadvantages will also be discussed. Just in Time Just in time production first surfaced just after World War II in Japan’s Toyota Company. Modeled after Henry Ford’s continuous flow manufacturing, it focused on eliminating waste in the postwar Japanese market (Rona, 2013). Today just in time still emphasizes the reduction of waste, but also production and resource efficiency. These efficiencies are gained through...
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...Review This review examines key concept and approaches used in this research. The review begins with the brief discussion of Just in Time and its impact on enhancing Supply Chain performance, later focus on the principles of JIT and its role on enhancing Supply Chain performance. 1- Just-in-time manufacturing system has long been an integral part of the supply chain management. It plays a vital role in enhancing the supply chain processes of any company and is very important to be looked upon in a very careful manner. In this literature review, we also look at the role of JIT in the supply chain from three perspectives; quality, buyer-supplier relationship and customer relationship. 2- Just-in-time offers a smooth, continuous and optimised workflow, with carefully planned and measured work-cycle times and on-demand movement of goods, reduces the cost of wasted time, materials and capacity. Team members can concentrate on their tasks without interruption, which leads to better quality, timely delivery, and peace-of-mind for Toyota’s customers. Just-in-time is itself, based on four key principles that work together to support this unique concept at every level: Heijunka, Elimination of waste, Takt time and Kanban. HEIJUNKA – LEVELLING THE FLOW Heijunka The term Heijunka describes the foundation of the TPS approach to just-in-time processes – ones in which inventory costs are minimised by having the parts required arrive at their point of use only as they...
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...Let’s first understand the difference between the forecast driven system and the JIT (Just in Time) demand based system so that we can reflect on the benefits and disadvantages of each one of the systems. Let’s first take a look at the forecast driven system because it one of the most traditional way and also used quite extensively in the manufacturing firms in USA. In a layman’s language the way this system works is by predicting a forecast of sales demand based on statistical forecasting models (Decision Maker’s Direct, 2010). This forecast is then passed down the supply chain so that a manufacturing plan can be made to meet the sales demand. Since the manufacturing often produce more than one variations of an item and many times the products are customized and this makes this forecasting process very complex. For example take the case of Silly Bandz factory. I agree that all the items are rubber bands but for every variation the machines have to be set up again and this complicate the process of production management and inventory management and control. In order to understand the imperfection of the forecasting it is necessary to understand first how the process works. Each firm has some indicator for their future sales demand but rarely any firm has the complete and perfect information. The future demand is dependent on various factors like structure and nature of the business (Decision Maker’s Direct, 2010). In some cases the customer themselves provide the...
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...Just in time production (JIT) Just in time is a ‘pull’ system of production, so actual orders provide a signal for when a product should be manufactured. Demand-pull enables a firm to produce only what is required, in the correct quantity and at the correct time. This means that stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum. This requires a carefully planned scheduling and flow of resources through the production process. Modern manufacturing firms use sophisticated production scheduling software to plan production for each period of time, which includes ordering the correct stock. Information is exchanged with suppliers and customers through EDI (Electronic Data Interchange) to help ensure that every detail is correct. Supplies are delivered right to the production line only when they are needed. For example, a car manufacturing plant might receive exactly the right number and type of tyres for one day’s production, and the supplier would be expected to deliver them to the correct loading bay on the production line within a very narrow time slot. Advantages of JIT Lower stock holding means a reduction in storage space which saves rent and insurance costs As stock is only obtained when it is needed, less working capital is tied up in stock There is less likelihood of stock perishing, becoming obsolete or out of date Avoids the build-up of unsold finished product that can occur with sudden...
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...Project “JUST IN TIME” Just-in-time (or JIT) manufacturing is a way of managing manufacturing systems that could reduce waste, and lower cost, thus increasing profit. Just-in-time can also be defined as a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. It has been described as an approach with the objective of producing the right part in the right place at the right time, hence the phrase Just-in-time. JIT should improve profits and return on investment by reducing inventory levels, reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs, such as those associated with machine setup and equipment breakdown. Just-in-time applies to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that of an assembly line. JIT can be traced back to the late 1700’s. Eli Whitney contributed his concept of interchangeable parts to the idea of JIT manufacturing in 1799. The basic elements of JIT were developed by a Toyota motor company in Japan in the 1950’s. In order to begin use of JIT manufacturing in Japan, they first researched American production methods focusing on Ford’s practices. In Japan Just-in-time manufacturing...
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...Just-in-time (JIT) is easy to grasp conceptually, everything happens just-in-time. For example consider my journey to work this morning, I could have left my house, just-in-time to catch a bus to the train station, just-in-time to catch the train, just-in-time to arrive at my office, just-in-time to pick up my lecture notes, just-in-time to walk into this lecture theatre to start the lecture. Conceptually there is no problem about this, however achieving it in practice is likely to be difficult! So too in a manufacturing operation component parts could conceptually arrive just-in-time to be picked up by a worker and used. So we would at a stroke eliminate any inventory of parts, they would simply arrive just-in-time! Similarly we could produce finished goods just-in-time to be handed to a customer who wants them. So, at a conceptual extreme, JIT has no need for inventory or stock, either of raw materials or work in progress or finished goods. Obviously any sensible person will appreciate that achieving the conceptual extreme outlined above might well be difficult, or impossible, or extremely expensive, in real-life. However that extreme does illustrate that, perhaps, we could move an existing system towards a system with more of a JIT element than it currently contains. For example, consider a manufacturing process - whilst we might not be able to have a JIT process in terms of handing finished goods to customers, so we would still need some inventory of finished goods, perhaps...
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...concept of just in time is to have exactly the right amount of inventory on hand at any given time, no more or no less. Just in time is a production and inventory and planning control system which takes a disciplined approach to achieving and maintaining continuous improvement in performance. It is centered on the elimination of waste from raw materials stage throughout the shipping stage. Just in time is defined as” the production of the minimum number of different units in the smallest possible quantities at the latest possible time, thereby eliminating the need to stockpile inventory. This manufacturing technique attempts to achieve a standard of excellence within the company by promoting respect for people in the workplace along with eliminating sources of waste by ordering only the needed amount of product at the times which they are needed. Just in time requires efficiency and stimulates improvement in quality and productivity throughout a company as whole. Taiichi Ohno is considered to be the father of the just-in-time philosophy. He developed this technique during the 1970s while he was working at a Toyota manufacturing plant. Even before he was allowed to implement this new philosophy he could see the benefits of constructing a lean system. Ohno often inquired about why it was necessary to stockpile large amounts of inventory in warehouses as opposed to receiving smaller more frequent deliveries from suppliers. He understood that in order to implement just in time...
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...Case Study: Just in Time for the Holidays Answer 1 Problems in North Pole Workshop North Pole Workshop (NPW) is a kind of agency in which the children place their letters to make a wish to Santa Clause and Santa will fulfill their wish by giving them toys on Christmas. Due to the changes in the technology as well the demands of the children, North Pole Workshop is facing many problems. One of the biggest problems faced by North Pole Workshop is the manufacturing problem. Manufacturing problems means, problem in the design of toys that are not preferred by the children. According to the given case study, the children are not getting the toys as per their expectations. Due to the lack of sufficient manufacturing facilities, it would be difficult for the workshop to match the demand level of the children within the limited time period. Santa found that children prefer ‘Timmy’ and its demand is continuously increasing (McNulty, 2005). According to the statement of chief shop runner, Dexter Pepperflepper, they were not sure to match up the demand level. He stated that they were not expecting such as high demands for Timmy. Santa found that, some months ago, it would be easy for the workshop to match this demand level but in the very short time, it is very much difficult because all the lines are running full tilt (McNulty, 2005). Another problem with the North Pole Workshop is the forecasting dilemma. The members of the workshop have not evaluated the strengths of the competitors...
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...We all have to deal with politicians at one time or another but what if at least one of your Agency's political representatives is also proposing to become your Agency's vendor? To make matters even more difficult, you live in a suburban community - in fact, it's rural - some might say remote. Your Agency is contemplating issuing a solicitation for a fairly substantial piece of work. One of your Agency's Councilors/Board of Commissioners actually owns a company that provides the goods/services in which you are interested. Research determines that your local politician's company is the only one in your area, and for quite some distance, that does provide the goods/services. Can you ethically contract with this company? Highlight the pros and cons and how you propose to proceed. “A man without ethics is a wild beast loosed upon this world.” - Albert Camus The ethicalness of the question posed in the situation to be considered for this exercise will test the procurement professionals’ procedural knowledge, legal and policy attentiveness and attention to the political and social aspects of the matter. Personal morals and beliefs and our integrity compass may be temporarily skewed but not loosened from their foundation as we struggle to align the public procurement tenet of “fair and equal treatment for all” with prevalent situational mores as implied. Provisionally we may be limited by political and practical realities and forced to acquiesce to higher powers or diligently...
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...productos llegan justo a tiempo, bien para la fabricación o para el servicio al cliente“. Sus bases son la reducción de los “desperdicios”. Esta filosofía se basa principalmente en dos expresiones que resumen sus objetivos, “el hábito de ir mejorando “y la “eliminación de prácticas desperdiciadoras“. Nacimiento del Just in Time Nació en Japón, donde fue aplicado por la empresa automovilística Toyota que lo empezó a utilizar a principios de los años 50 y el propósito principal de este sistema era eliminar todos los elementos innecesarios en el área de producción y es utilizado para alcanzar reducciones de costos nunca imaginados y cumpliendo con las necesidades de los clientes a los costos más bajos posibles como se ha comentado en la introducción. Rápidamente al aplicar este método, Toyota se convirtió en líder mundial en su sector. Estas cinco fases forman la base de la puesta en práctica del J.I.T Primera fase: Poner el sistema en marcha. Segunda fase: educación. Tercera fase: conseguir mejoras del proceso. Cuarta fase: conseguir mejoras del control. Quinta fase: ampliar la relación proveedor / cliente. Principios fundamentales del Just in Time 1. Atacar los problemas fundamentales. La filosofía del J.I.T. indica que cuando aparecen problemas debemos enfrentarnos a ellos y resolverlos. Cuando hay una máquina o un proceso que forma un cuello de botella, uno de los enfoques occidentales tradicionales ha sido intentar conseguir una programación mejor...
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