Just In Time is one of the Key Tools used in reducing the cost burden related to high levels of Stock and Inventory within both Internal and External Supply Chains.
Implementing a Just in Time methodology, as the name suggests, ensures that materials are delivered at their point of use as and when required, not in any other quantity than that which is required, or at a time that suits the supplier rather than the recipient.
Stock can be categorised in three areas, Raw Materials, Work In Progress and Finished Goods. Internal Improvements impact on the levels of Finished Goods Stock and Work in Progress, whilst Supply Chain Initiatives in Conjunction with the Supplier/Customer interface, addresses the issues associated with high levels of Raw Material.
Our approach to Just in Time is to evaluate the actual levels of stock in the supply chain and determine optimum stock levels; any excessive stock will then be identified together with its cause. Upstream processes that are identified as the cause of excessive stock will then become the focus for optimisation under the Just in Time philosophy. A key element of JIT is to make clear the relationship between the Customer and Supplier, and emphasise their roles and responsibilities throughout the entire supply chain.
Just In Time Tools
Cellular Manufacture & Single Piece Flow
Single Piece Flow is a concept whereby processes manufacture in the lowest possible denominator (1). This size of batch is acknowledged as the most flexible form of manufacture although in some instances, for example, high-speed manufacture of small items it is recognised that this may be an inappropriate lot size.
Cellular Manufacture involves locating equipment involved in the manufacture of the same product in such a way that materials can be passed in units of (1) from one operation to the next, “Single Piece Flow”. When these individual operations are balanced and working in harmony there is little if any inventory between workstations. In its simplest form, Cellular Manufacture can be considered as merely the linking of operations.
TAKT
Takt is a German word that translates to Rhythm or Beat, it is used to describe the ideal rate of manufacture that a process should adopt to satisfy the needs of its Customer.
Manufacturing to the Takt time will ensure that processes generate outputs, which match the actual consumption of their customer, the upstream process. Manufacturing to Takt, adopting a policy of Single Piece Flow, and using Kanban to signal requirements between processes which cannot be linked will have an extremely positive effect on flexibility and stock reduction throughout the entire supply chain.
Kanban
Kanban is a signaling or communication system that is used as an integral part of the J.I.T. process so that customers can indicate when and in what quantities they require their materials to be replenished by their supplier. It is usually used to connect processes, which for operational reasons cannot be physically linked. This system is a discipline that is designed to prevent upstream suppliers from delivering materials unilaterally.
Benefits
Reduction in Lead Time
Reduced Costs of Inventory
Less Obsolescence
Quality Concerns and Waste
Improved Supplier Performance
Less chance of out of Stock situations
Greater Return on Investment
Just In Time Case Study 1
Just In Time Case Study 2
Call us now on
01733 518100
Send us an enquiry
