just in time & kanban system of inventory management

azampgdm1

Download

Post to :

URL :

Related Presentations :

Add to Flag Embed

Views: 3083

Category: Education

Presentation Description

Just in time is technique of inventory management which states that the inventory should reach to point of production not a minute before & not a minute after. And Kanban system contains a card which tells what to produce? How much to produce? and when to produce?

Comments

By: EDIPERMANA (9 month(s) ago) Private Comment

PLEASE PERMIT ME TO DOWNLOAD THIS FILE

By: vmohankumar (17 month(s) ago) Private Comment

Pl permit me to down load this ppt

By: nacuaederlin (21 month(s) ago) Private Comment

can i download this powerpoint? i will show this in our class,.thanks

By: sammody (22 month(s) ago) Private Comment

Please allow me to download kanban ppt.

By: sammody (22 month(s) ago) Private Comment

Please allow me to download kanban ppt.

See all

Presentation Transcript

Slide 1:

BY – MOHD AZAM ANSARI YASH CHATURVEDI JIT JUST IN TIME & KANBAN SYSTEM OF INVENTORY MANAGEMENT

Slide 2:

BY – MOHD AZAM ANSARI YASH CHATURVEDI JIT JUST IN TIME SYSTEM OF INVENTORY MANAGEMENT

JUST-IN-TIME INVENTORY:

JUST-IN-TIME INVENTORY Just in Time Inventory is the minimum inventory that is necessary to keep a system perfectly running. With just in time (JIT) inventory, The exact amount of items arrive at the moment they are needed , Not a minute before OR not a minute after.

JUST-IN-TIME INVENTORY:

JUST-IN-TIME INVENTORY To achieve JIT inventory, Managers should Reduce the Variability Caused by some Internal and External Factors. What causes variability?

JUST-IN-TIME INVENTORY:

JUST-IN-TIME INVENTORY Most variability is caused by tolerating waste (inventory). (1) For example, employees or machines produce units that do not conform to standards. These are waste. And they cause variability.

JUST-IN-TIME INVENTORY:

JUST-IN-TIME INVENTORY (2) Or, machine breakdowns are again resulting in loss of production And consecutively resulting in Variability. These are the internal (controllable) factors that cause Variability. However, Some of the variability is caused by some external factors.

JUST-IN-TIME INVENTORY:

JUST-IN-TIME INVENTORY For example, customer demands may change due to some external factors (such as competitors’ actions or promotions) In summary, To achieve JIT inventory, Managers must begin with Reducing Inventory.

JUST-IN-TIME INVENTORY:

JUST-IN-TIME INVENTORY In the figure, the section called “Others” are the variability. The variability include Quality Variability, In-transit Delays, Machine Breakdowns, Large Lot-sizes, Inaccurate drawings, Employee attendance variability.

JIT PRODUCTION:

JIT PRODUCTION JIT production means (1) Elimination of Waste, (2) Synchronized Manufacturing, (3) Little Inventory.

JIT PRODUCTION:

JIT PRODUCTION Reducing the order batch size can be a major help in reducing inventory. Moreover, the smaller the lot size, the fewer the problems are hidden. One way to achieve small lot sizes is to move inventory through the shop only as needed.

JIT PRODUCTION:

JIT PRODUCTION

JIT PRODUCTION:

JIT PRODUCTION This is called a “pull” system. Japanese call this system as “Kanban” system.

HOLDING, ORDERING AND SET-UP COSTS:

HOLDING, ORDERING AND SET-UP COSTS HOLDING COSTS are the costs associated with holding or “carrying” inventory over time. It includes costs related to Storage; such as insurance, extra staffing, interest, and so on.

Some examples of holding costs are- :

Some examples of holding costs are-

Some examples of holding costs are- :

Some examples of holding costs are-

ORDERING COSTS:

ORDERING COSTS include, cost of supplies, order processing, etc.

SET-UP COST:

SET-UP COST is the cost to prepare a machine for manufacturing an order. Set-up cost is highly correlated with set-up time.

SET-UP COST:

SET-UP COST Machines that traditionally have taken long hours to set up are now being set up in less than a minute by employing new technological systems. Reducing set up times is an excellent way to Reduce Inventory.

HISTORY OF JIT:

HISTORY OF JIT

HISTORY OF JIT:

HISTORY OF JIT

JIT - DEFINITION :

JIT - DEFINITION JIT, or just in time, inventory is a inventory management strategy that is aimed at monitoring the inventory process in such a manner as to minimize the costs associated with inventory control and maintenance.

JIT - DEFINITION :

JIT - DEFINITION To a great degree, a just-in-time inventory process relies on the efficient monitoring of the usage of materials in the production of goods and ordering replacement goods that arrive shortly before they are needed.

JIT - DEFINITION :

JIT - DEFINITION This simple strategy helps to prevent incurring the costs associated with carrying large inventories of raw materials at any given point in time.

JIT :

JIT a corporate system or corporate strategy or corporate philosophy designed to produce output within the minimum lead time and at the lowest total cost by continuously identifying and eliminating all forms of corporate waste and variance.

Seven Basic Types of Waste:

Seven Basic Types of Waste

COMMON CAUSES OF WASTE :

COMMON CAUSES OF WASTE

COMMON CAUSES OF WASTE :

COMMON CAUSES OF WASTE

OBJECTIVE OF JIT :

OBJECTIVE OF JIT

OBJECTIVE OF JIT :

OBJECTIVE OF JIT

JIT PRINCIPLES :

JIT PRINCIPLES

LIMITATIONS OF JIT :

LIMITATIONS OF JIT

LIMITATIONS OF JIT :

LIMITATIONS OF JIT

MAIN BENEFITS OF JIT :

MAIN BENEFITS OF JIT

MAIN BENEFITS OF JIT :

MAIN BENEFITS OF JIT

OTHER BENEFITS OF JIT:

OTHER BENEFITS OF JIT

OTHER BENEFITS OF JIT:

OTHER BENEFITS OF JIT

Slide 39:

BY – MOHD AZAM ANSARI YASH CHATURVEDI KANBAN SYSTEM OF INVENTORY MANAGEMENT

WHAT IS KANBAN:

WHAT IS KANBAN Kanban , also spelled kamban and literally meaning "signboard" or "billboard", is a concept related to just-in-time (JIT) production. According to Taiichi Ohno, the man credited with developing Just-in-time, kanban is one means through which JIT is achieved.

WHAT IS KANBAN:

WHAT IS KANBAN Kanban is not an inventory control system. Rather, it is a scheduling system that tells you what to produce, when to produce it, and how much to produce .

ORIGIN OF KANBAN :

ORIGIN OF KANBAN Kanban became an important part of the Japanese mercantile in the 17th century in military.

ORIGIN OF KANBAN :

ORIGIN OF KANBAN In the late 1940s, Toyota began studying supermarkets with a view to applying store and shelf-stocking techniques to the factory floor, figuring, in a supermarket, customers get what they need, at the needed time, and in the needed amount.

ORIGIN OF KANBAN :

ORIGIN OF KANBAN Furthermore, the supermarket only stocks what it believes it will sell, and customers only take what they need because future supply is assured.

ORIGIN OF KANBAN :

ORIGIN OF KANBAN The customer process goes to this store to get needed components, and the store restocks. As in supermarkets, originally, signboards were used to guide "shoppers" to specific restocking locations.

ORIGIN OF KANBAN :

ORIGIN OF KANBAN "Kanban" uses the rate of demand to control the rate of production, passing demand from the end customer up through the chain of customer-store processes. In 1953, Toyota applied this logic in their main plant machine shop.

OPERATION :

OPERATION An important determinant of the success of production scheduling based on "pushing" the demand is the quality of the demand forecast that can receive such "push." Kanban, by contrast, is part of an approach of receiving the "pull" from the demand.

OPERATION :

OPERATION Therefore, the supply or production is determined according to the actual demand of the customers. In contexts where supply time is lengthy and demand is difficult to forecast, the best one can do is to respond quickly to observed demand.

OPERATION :

OPERATION This is exactly what a kanban system can help with: It is used as a demand signal that immediately propagates through the supply chain. This can be used to ensure that intermediate stocks held in the supply chain are better managed, usually smaller.

OPERATION :

OPERATION Taiichi Ohno states that to be effective kanban must follow strict rules of use (Toyota, for example, has six simple rules, below) and that close monitoring of these rules is a never-ending task to ensure that the kanban does what is required.

OPERATION :

OPERATION Kanban cards, in keeping with the principles of Kanban, should simply convey the need for more materials. A red card lying in an empty parts, would easily convey to whomever it would concern that more parts are needed. In the last few years, Electronic Kanban systems, which send Kanban signals electronically, have become more widespread.

TOYOTA'S SIX RULES :

TOYOTA'S SIX RULES

TOYOTA'S SIX RULES :

TOYOTA'S SIX RULES

KANBAN CARDS :

KANBAN CARDS Kanban cards are a key component of Kanban that utilizes cards to signal the need to move materials within a manufacturing or production facility or move materials from an outside supplier to the production facility.

KANBAN CARDS :

KANBAN CARDS The Kanban card is, in effect, a message that signals depletion (reduce) of product, parts or inventory that when received will trigger the replenishment of that product, part or inventory.

KANBAN CARDS :

KANBAN CARDS Consumption drives demand for more. Demand for more is signaled by Kanban card. Kanban cards thus, in effect, help to create a demand-driven system.