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 days 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is needed, less working capital is tied up in stock There is less likelihood of stock perishing, becoming obsolete or out of date Avoids the build-up of unsold finished product that can occur with sudden changes in demand Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time

Disadvantages of JIT

There is little room for mistakes as minimal stock is kept for re-working faulty product Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders however, JIT is a very responsive method of production

Lean Production - introduction

Lean production is a Japanese approach to management that focuses on cutting out waste, whilst ensuring quality. This approach can be applied to all aspects of a business from design, through production to distribution. Lean production aims to cut costs by making the business more efficient and responsive to market needs. This approach sets out to cut out all activities that do not add value to the production process, such as holding of stock, repairing faulty product and unnecessary movement of people and product around the plant. The most important aspects of lean production for current UK A-level specifications are as follows:

Just in time production (JIT) Cell production Kaizen (Continuous improvement) Quality Circles Total Quality Management (TQM) and zero defect production - see notes on quality management Time based management Simultaneous engineering

Cell production
Cell production has the flow production line split into a number of self-contained units. Each team or cell is responsible for a significant part of the finished article and, rather than each person only carrying out only one very specific task, team members are skilled at a number of roles, so it provides a means for job rotation. Cell production is a form of team working and helps ensure worker commitment, as each cell is responsible for a complete unit of work, which Herzberg sees as part of job enrichment. Cells would usually have responsibility for organising work rosters within the cell, for covering holiday and sickness absences and for identifying recruitment and training needs. Cells deal with other cells as if they were customers, and take responsibility for quality in their area. Also see notes on Kaizen, under Improving Quality. Benefits of cell production

Closeness of cell members should improve communication, avoiding confusion arising from misunderstood or non-received messages Workers become multi-skilled and more adaptable to the future needs of a business Greater worker motivation, arising from variety of work, team working and more responsibility Quality improvements as each cell has ownership for quality on its area

Evaluation Lean production and cell production can be very effective approaches to improving efficiency in a wide range of businesses. Some possible notes of caution:

The company culture has to encourage trust and participation, or workers can feel that they are being constantly pushed for more and more output with no respite The company may have to invest in new materials handling and ordering systems suitable for cell production Cell production may not allow a firm to use its machinery as intensively as in traditional flow production Some small scale production lines may not yield enough savings to make a switch cell production economically worthwhile The allocation of work to cells has to be efficient so that they have enough work, but not so much that they are unable to cope Recruitment and training of staff must support this approach to production

quality circles and kaizen teams

Continuous improvement means just what it says. It is a philosohy that encourages all employees in an organisation so that they perform their tasks a little better every day. It starts from the assumption that business processes (e.g. production methods, purchasing, recruitment) can always be improved. So why the use of the term Kaizen? Kaizen is a system for generating and implementing employee ideas developed in Japan. The Kaizen suggestion scheme helped many Japanese companies improve quality and productivity, which allowed them to offer better products at lower prices and therefore increase their market share. Much of the success of Kaizen came about because the system encouraged many small-scale suggestions that were cheap and quick to implement. They also came from shop-floor employees - who had a detailed appreciation of the benefit each change might make to the process concerned. By implementing many small improvements, the overall effect was substantial. One of the most publicised aspects of the Japanese approach to quality management is the idea of Quality Circles or Kaizen teams. Professor John Oakland (a leading authority on quality) defines a Quality Circle/Kaizen Team as a group of workers who do similar work and who meet:
Voluntarily Regularly In normal working time Under the leadership of their supervisor To identify, analyse and solve "work-related" problems To recommend solutions to management

Evidence of successful Quality Circles suggests that there are no formal rules about how to organise them. However, the following guidelines are often suggested:
The circle should not get too large - otherwise it becomes difficult for some circle team members to contribute effectively Meetings should be help away from the work area - so that team members are free from distraction The length and frequency of quality circle meetings will vary - but when a new circle is formed, it is advised to meet for about one hour, once per week. Thereafter, the nature of the quality problems to be solved should determine how often the circle needs to meet Quality circles should make sure that each meeting has a clear agenda and objective The circle should not be afraid to call on outside or expert help if neede