In recent years, attention to the issues of increasing production efficiency has increased dramatically. The views on the construction of the economic mechanism are radically changing, organizational structures management, methods of strategic and operational planning. The transition to market relations has led to the fact that the heads of enterprises must solve qualitatively new tasks.
As the experience of successful competition in the world market of advanced firms and companies shows, special place in management processes should be given to the development and implementation of methods for reducing production costs. In particular, Japanese managers proceed from the premise that “it is not the one who earns a lot who gets rich, but the one who spends little. Methods of intra-corporate management should be directed to the implementation of this idea and the valley.
Today we can say that in world practice there are two fundamentally different approaches to the organization of intra-company planning, both of which are based on their own idea of managing inventory. These are the kanban system and the just-in-time system. But we will dwell in more detail on the method of inventory management "just in time" or "just in time", abbreviated "jit".
As you know, the system "just in time" first appeared in Japan. The organization of production at Japanese industrial enterprises has always aroused and is of great interest all over the world. Researchers of the "Japanese phenomenon" initially looked for the reasons for success not so much in economic factors as in the socio-cultural characteristics of the country. Both, of course, have played and continue to play a big role. Western sociologists attach paramount importance to the national character, the high consciousness of Japanese workers, their ability to work conscientiously, to subordinate their interests to the interests of the collective, the high quality of work, and the thirst for knowledge. But still, the main reason for success in the Japanese economy lies in management methods. And economists, among the many reasons for success, single out the Just-in-time system that was born there.
In general, while "kanban" is purely a Japanese word, "just in time" is just an English expression used in Japanese business circles and may not have a Japanese equivalent. Production veterans said that the expression "just in time" came into use around 1960. During the time period in question, Japanese manufacturers, as a result of rapid development, accumulated such large excess production capacity that the supply of steel products to the shipbuilding industry began to be carried out to the limit. short time. Shipbuilders tried to make the most of the situation by reducing the steel product inventories from a month to a three-day norm. They began to receive just-in-time steel. This idea was then taken up by other end-product companies, who also demanded just-in-time deliveries from their suppliers and incorporated the same approach into the manufacturing process.
The Just-in-Time Method became known to the whole world due to the fact that in the mid-70s, Toyota Vice President Tahiti Ono and several of his colleagues gave a clear explanation of the concept laid down in a series of reports, articles and books.
One of the pioneers in the introduction of this system was the electrical corporation General Electric. In 1980, two of its factories developed projects for the restructuring of production according to the "just in time" system, in 1981 - at 10, 1982-20 and 1983 - at 40 factories. Much of this work was done in the automotive industry in the United States. A little later, many US companies began to use this system, and even a consulting firm was created and functioned, which organized seminars and trained managers in the implementation of the JIT system.
"Right on time"- a system of planning and management of material and technical supply, providing for its full synchronization with production processes. Within its framework, raw materials, semi-finished products and components are supplied (often from other enterprises of a given company or related companies) in small batches directly to the right points. technological process, bypassing the warehouse, and finished products are immediately shipped.
The concept of "just in time" seems to be at the heart of Japan's industrial production management system and the basis for improving labor efficiency. The idea is simple: to produce and deliver finished products just in time for their implementation, component parts - in time for assembly finished product, individual parts - by the time of assembling the units, materials - by the time the parts are manufactured. As one joker put it, Japanese industry produces small batches of "just in time" goods, while Western industry produces giant batches of "just in case" goods. Of course, it is just as impossible to produce absolutely “on time” as it is to produce a product of perfect quality, but this ideal must be persistently striven for.
Such an ideal is the active use of all materials as elements of the production process, as opposed to their passive presence in the stock stage, when they play only the role of storage media. This is a way of organizing production on the principle of "from a spoon right into your mouth", when the production stocks and supply volumes approach unity, that is, the production and promotion of products is carried out by detail.
This method can give much better performance and high quality products, it makes visible the results of labor at each workplace, thereby increasing the responsibility and interest of workers in these results. The scope of the just-in-time method can also be extended to product marketing and the procurement of raw materials and materials, where its advantages are also obvious.
The system is based on "kanban", which is informational in relation to it and allows you to effectively regulate production, reduce inventory and time costs by 90%, labor - by 10-30%, indirect costs - by 50-60%; improve quality by 75-90%.
In this context, it is necessary to single out and characterize the fundamental idea of the method, which is based on three premises (their correctness has been repeatedly confirmed empirically).
First, it is assumed that consumer requests finished products should correspond not to its pre-accumulated stocks,
and production facilities ready to process raw materials coming almost to its wheels”. As a result, the amount of inventory that qualifies as frozen capacity is minimized.
Secondly, in conditions of minimal stocks, continuous rationalization is necessary in the organization and management of production, because a high volume of stocks levels out, in a sense, masks errors and shortcomings in this area, production bottlenecks, unsynchronized operations, unused production facilities, unreliable work of suppliers and intermediaries.
Thirdly, in order to assess the efficiency of the production process, in addition to the level of costs and productivity of funds, one should take into account the period for the implementation of the application, the so-called duration of the full production cycle. Short deadlines for the implementation of applications facilitate the management of the enterprise and contribute to the growth of competitiveness due to the possibility of prompt and flexible response to changes in external conditions.
What does it take to implement a just-in-time system? First of all, technological progress should be maximally adapted to all kinds of innovations, changes, improvements, rationalization, including ensuring the possibility of timely change of the nomenclature, change in output volumes, replacement of equipment, variation in other parameters and the implementation of a number of other factors that cannot be foreseen in advance and must be decided during the production process.
Therefore, the creation of a "rigid" technological process, all the parameters of which would be accurately calculated in advance, is both impossible and impractical, but the Japanese model is an example of the maximum striving for such conditions, although it does not exclude the creation of some "buffer" reserve of resources. There must be some kind of reserve that allows you to have a kind of backlash for the normal functioning of the production process.
Of course, firms were working to reduce inventories and work in progress. However, the possibilities of the classical (traditional) system of operational management of both the production process and inventories have been practically exhausted. Therefore, in order to further reduce the losses under consideration (excess inventories and a large volume of unfinished production), it was necessary to introduce a fundamentally new system of operational production management. The flexibility of management was achieved by accumulating "buffer" stocks at the base sections of the production cycle. The planning methodology, which was widely accepted at that time, coordinated (joined) the dynamics of demand for products and production programs.
Recently, in some industries in manufacturing process Increasingly, the so-called just-in-time inventory management method is being used.
Just-in-time is a method of controlling and managing inventories, in accordance with which inventories are acquired and put into production exactly at the moment when they are needed.
Thus, the JIT management philosophy focuses specialists on "pulling" inventories through the production process "as needed" rather than "pushing" them on an "as needed" basis. This approach requires a very accurate inventory management information system, the most efficient purchasing and handling system, and extremely reliable suppliers. Of course, stocks of raw materials, goods and materials in transit cannot under any circumstances reach zero levels, but despite this, the concept of "just in time" is one of the most effective ways to reduce inventory. However, the purpose of JIT is not limited solely to their reduction, it is also to increase productivity and flexibility of production, as well as to improve the quality of products.
Factors that determine the method of "just in time":
1. geographical concentration. If the buyer company wants to get the right parts on a just-in-time basis, it is necessary that the transport of goods from the supplying plant to the customer plant is carried out in a relatively short time: less than one day. Thus, for example, the vast majority of the Japanese company Toyota's suppliers are located within 60 miles of its plant.
2. Reliable quality. A consumer company must be sure that it receives only high-quality materials and goods from its suppliers. The Japanese concept is that each production process must consider the subsequent process as its final customer. Quality control activities are aimed at controlling the production process itself, and not at weeding out defects as a result of quality control.
3. Managed supplier network. The introduction of the "just in time" system is facilitated by the maximum reduction in the number of suppliers and the conclusion of long-term contracts with them. Most Japanese automakers have no more than 250 component suppliers. For comparison, let's say that in the company GeneralMotorsCorp. only assembly production cooperates with 3500 suppliers.
4. Managed transport system. In short, the basis for this is the establishment of reliable transit routes between providers and users. For example, Japanese automakers use only trucks (either their own or contracted) to deliver parts. Deliveries of components from each supplier are carried out several times a day in accordance with a predetermined schedule.
5. Production flexibility. In a factory, the supply process must “be able” to respond quickly and provide the customer site with any required parts promptly. AT this case very important is the ability to quickly change tools. For example, in Japan, one automatic pressing equipment can be replaced by another within 6 minutes.
6. Small batch deliveries. Most Japanese automotive companies using the JIT system require batch sizes not to exceed 10% of the daily consumption of parts or materials. Ideally, they aim to achieve a one-unit batch order so that as the machine is assembled, every part is specially produced for it.
7. Efficient material acceptance and loading/unloading system. Most Japanese companies have abandoned formal acceptance operations altogether. All parts of the factories are used as receiving areas and parts and components are delivered as close as possible to their destination. Thanks to the use of loading equipment of a special design, the Japanese got rid of the need for special sedimentation tanks for it.
8. Persistent desire of the management staff to implement the "just in time" system. The JIT system should cover all departments of the plant. Management staff is responsible for providing the company with the resources necessary to effectively use this system. He must stick firmly to the intended goal during the transition to the "just in time" system, which is often quite difficult and lengthy.
For companies with relatively small production volumes, order fulfillment costs can be negligible, and storage costs are not needed if the materials go into production immediately.
In other words, the optimal lot size for a particular material order is proportional to the square root of twice the annual demand for that material.
red line method. One of the largest control systems is called the red-line method and consists of drawing a red line inside the box that stores the stock. When stocks have been used up to this line, i.e., it has become visible, an order is placed for a new batch.
Two box method. Another example is the two-bin method. In this case, stocks are stored in two boxes at once. First, materials are consumed from the first box, and when it becomes empty, an order for a new batch is placed and materials are taken from the second box. These methods are based on practical observations and are applicable in production with a large number of small parts, as well as in repair shops.
Computer systems. Large companies use computerized inventory control systems. First, information about all types of stocks is entered into the computer's memory, then the consumption of materials is automatically recorded and the balances are adjusted. When the moment of restocking is reached, information about the order of a new batch is transmitted to the supplier via a computer network, and after receiving it, the balances are adjusted again. In this case, data on the balances for each type of product is entered into the computer, and there is a magnetic code on the product itself. When buying and paying through an electronic cash register, information is transferred to a computer and, thus, the balance of this product is automatically reduced. When the point of placing a new order is reached, information about it is transmitted directly to the supplier's computer.
However, for the optimal order size model to work, the following assumptions must be met:
1. sales volume must be perfectly predicted;
2. sales are evenly distributed throughout the year;
3. Orders are fulfilled without delay.
One of the most widely used logistics concepts/technologies in the world is the concept of Just-in-time - (just in time). The emergence of this concept is attributed to the end of the 1950s, when the Japanese company Toyota Motors, and then other automotive companies in Japan, began to actively implement the KANBAN system. Initial slogan concept JIT was the exclusion of potential stocks of materials, components and semi-finished products in the production process of assembling cars and their main units. The original task looked like this: if a production schedule is set, then it is necessary to organize the movement of material flows so that all materials, components and semi-finished products arrive in the right quantity, at the right place (on the assembly line) and exactly at the appointed time for the production or assembly of the HP. With such a formulation of the problem, large insurance reserves, freezing the company's funds, turned out to be unnecessary.
JITcan be defined both as a concept and as a technology:
In a broad sense, it is an approach to achieve success based on the consistent elimination of waste (waste refers to any action that does not add value to the product).
In a narrow sense, it is the delivery of materials at the right time to the right place.
Conceptually JIT- the approach served as the basis for the subsequent introduction of such logistics concepts / technologies as Lean Production, (“Flat”, or “thin” production) and Value added logistics - “Value Added Logistics”.
From a logistical standpoint JIT- a fairly simple inventory management logic without any restriction on the minimum inventory requirement, according to which the MP flows are carefully synchronized with the demand given by the production schedule for the release of the GPU. Such synchronization is nothing more than the coordination of two functional areas of logistics: supply and production support. In the future, ideology JIT was successfully promoted to the distribution of GPs, and at present - to macrologistics systems different levels and appointments.
Main benefits Just-in-time technologies that explain their widespread use in logistics practice are:
Low stocks of MP, NP, GP.
Reducing production space.
Improving the quality of products, reducing marriage and rework.
Reducing production time.
Increase flexibility when changing the product range.
Smooth production flow with rare failures caused by quality problems; shorter terms of preparation of the production process; multi-skilled workers who can help or replace each other.
High performance and equipment efficiency.
Participation of workers in solving production problems.
Good relationship with suppliers.
Less non-manufacturing work, such as warehousing and moving materials.
JIT - a modern concept / technology for building drugs as a whole or organizing a logistics process in a separate functional area of business: production, supply and distribution, based on the synchronization of the delivery processes of MP, NP, GP in the required quantities by the time the elements / links of the drug need them, in order to minimize the costs associated with guaranteed reserves.
Concept JIT is closely related to functional logistics cycles and their components. Ideally, MP, NP or GP should be delivered to a specific point supply chain(channel) exactly at the moment when they are needed (not earlier and not later), which eliminates excess stocks in the functional areas of the company's business. Many modern drugs based on the approach JIT, are focused on short components of logistics cycles, which requires a quick response of ZLS to changes in demand and, accordingly, a flexible production program.
Logistic concept JIT characterized by the following main features:
Minimum (zero) guarantee/insurance reserves MP, NP, GP;
Short production (logistics) cycles;
Small volumes of GP production and replenishment of stocks (supplies);
Relationships (purchasing MP) with a small number of reliable suppliers and carriers;
Effective information support;
High quality GP and logistics service.
Implementation and dissemination of the concept JIT in the world led to a change traditional approach management to inventory management. In table. 2.7 formulated the main differences between these approaches to the management of production, supply and distribution.
Table 2.7
Comparison of the concept of LT with the traditional method of inventory management
| JIT approach | Traditional approach | |
| Stocks | play a negative role. All efforts are aimed at minimizing them. Safety stocks are absent (or minimal) | Required control. Protect production from forecasting errors and unreliable suppliers. Most of the reserves are "insurance". Large volumes of stocks are explained by: - discounts when buying a large lot; - economies of scale; - insurance reserves. |
| Stock size, number of purchases MP | The stock size only shows the current demand. The minimum MP quantity in a shipment applies to both the manufacturer and the supplier. To determine the scope of delivery, the EOQ model (the optimal size of the purchased consignment of goods) is used. | The volume of stock is determined by the standard or by the EOQ formula. The change in stock is not taken into account when the costs in sales change when switching to smaller volumes of GP or MR. |
| Distribution | High priority. Accounting for changes in demand through rapid changeover of equipment. Production of small batches of HP | Low priority. The goal is to maximize the volume of GP output. |
| Oil reserves | Elimination of oil reserves. If there are small stocks between production units, they must be fixed and eliminated as early as possible | Required element. Oil reserves are accumulated between structural divisions, being the basis for subsequent production and technological cycles |
| Suppliers | Considered as production partners. Relations only with reliable suppliers. Few suppliers | Professional long-term relationships with suppliers are maintained. As a rule, a large number of suppliers between which competition is artificially maintained |
| .Quality | The goal is "zero defects". Exclusion of input quality control MP. Ideology of TQM | A small number of defects are allowed. Random Quality Inspections GP |
| Support for technological equipment | Prior support is essential. The process may be interrupted if support does not ensure the continuity of MP delivery, NP on time | As needed. Not critical as long as supplies are maintained |
| Duration of logistics cycles | Reducing the duration of logistics cycles. At the same time, the reaction speed of logistics decisions increases and the uncertainty associated with the demand forecast decreases. | Long logistics cycles. There is no need to reduce them as long as there is compensation from safety stocks |
| Staff | Requires coordination of actions of the working and managing personnel. You can not make changes to the logistics process until there is agreement | Management is carried out general management. Change does not depend on the lower levels of personnel |
| Flexibility | Short production cycle; maximum flexibility | Long production cycle; minimal flexibility |
| Transportation | Full service, reliability | Minimum overhead within a basic service level |
Implementation of the concept JIT, as a rule, improves the quality of GP and service, minimizes inventory and can, in principle, change the corporate style of management by integrating logistics functions.
In fact, this logic does not necessarily contradict the traditional approach where the optimal lot or order size is determined (for example, using the EOQ-optimal/economical order size model). The difference is that JIT allows you to minimize the size of the delivery lot (order). In other words, the concept is aimed at reducing production costs and costs associated with the organization and delivery of the order.
The traditional approach to determining the size of the order is associated with increasing the size of the MP / GP lot - to reduce unit (unit) costs due to price discounts and economies of scale. This approach is also typical for other parts of the supply chain. At the same time, buyers usually tend to transport cargo in large (consolidated) shipments, for example, in a container or in a fully loaded truck (trailer), refusing a smaller order, citing an increase in transportation costs. Undoubtedly, such an approach contradicts the concept JIT, according to which deliveries are made in small batches, quite often and exactly at the time set by the client.
The task of logistics management is to find a compromise when changes in needs (for example, order size) do not entail an unreasonable increase in costs. The main idea of the concept JIT- a guarantee that all elements of the supply chain are synchronized and precisely balanced, the time of deliveries and replenishment of stocks is set. Most importantly, they must be planned absolutely precisely. With respect to the latter, it is the client's responsibility to create a preliminary schedule in order to "freeze" it. In other words, once the requirements are communicated to the supplier within the agreed cycle, they cannot be changed.
If the excess inventory held by the supplier must be canceled or reduced, then the task of managing the incoming material flows into the drug becomes a critical problem. Not surprisingly, the rise and spread of technology JIT coincided overseas with a rise in the number of distribution intermediaries and logistics companies specializing in inbound consolidation services.
Resellers can manage the supply of materials and components using a distribution center or freight terminal to sort and consolidate shipments. They may also perform certain logistics activities that add value to the product, such as quality control, picking, etc.
Necessary condition effective use of technology "Just in time" is the most efficient communication between the client and the supplier. It must be emphasized that not all solutions within the JIT may be justified and appropriate. The size of the purchase is not the most important issue that justifies the application of this concept. Sometimes a large and therefore predictable demand will be economically more profitable if you work on the basis of classical economic principles and the traditional inventory management scheme.
Interestingly, the distribution JIT and KANBAN turned out to be significantly less than the initial interest in them. And there are several very important reasons for this. It is very difficult to avoid errors in the assortment and delivery deadlines even in the conditions of Japan and the USA, and each such “failure” can lead to a stoppage of production in the conditions of “precise” technologies. Therefore, it is necessary to keep a “hot stock” in the amount of at least a one-time load of equipment, which can be expensive in large-scale production. Therefore, it is impossible to avoid a cardinal cost item - capital investments in storage facilities and equipment. However, in some sectors of production, such as small-scale assembly and construction, this technology is common, in particular, in most high-tech companies: Nortel, Xerox, HP, Honda, Toyota, Sony. Industries where it is used are characterized by the low power of machining centers, as a rule, multi-purpose ones, the stability of assembly specifications and technological maps 62 .
The variables that really affect the life support of Just-in-Time technology are multiple samples within the same product category (for example, multiple styles, shapes and colors of bumpers on Volkswagen cars, see example below) and the cost of each option. Generally, the more diverse the demand and the higher the cost, the more preferred the Just-in-time concept becomes in a particular synchronized delivery.
As example consider the use of the Just-in-Time concept by a company Volkswagen.
At the end of 1988 the company Volkswagen launched two new assembly lines for the Passat model at the plant in Emden. Pepoform, which specializes in the production of components, was chosen to supply Passat bumpers ready for assembly using Just-In-Time technology.
At the new Pepoform plant in Oldenburg, 50 km from Emden, the company's assembly plan Volkswagen is drawn up six months before the actual start of work, it is constantly adjusted, taking into account the necessary shape and color of the bumpers, which are stored in the warehouse in 84 options.
Six hours before the actual assembly in Emden, Pepoform receives the final assembly plan. Every 39 seconds, a set of bumpers is transferred from the intermediate warehouse in the correct sequence to coincide with the final assembly in Emden six hours later.
The kits move to two assembly lines, where the bumper is completed with steel inlays, lamps and other fixtures. There are over 300 configuration options.
The assembly line releases bumpers every 78 seconds. Bumpers are mounted on special pallets that are loaded onto trucks. As soon as the car is fully loaded, it is sent to the company's factory Volkswagen in the city of Emden. Loading at Oldenburg and unloading at Emden are organized so that the final assembly is not interrupted. From the moment the car is unloaded to the start of assembly, one hour passes.
The prerequisites for the successful application of the Just-in-Time concept in LS are:
♦ clear planning of incoming flows;
♦ a high degree of interaction and planning between logistics partners;
♦ frequent use of the services of logistics intermediaries to manage consolidated deliveries;
♦ diversity Vehicle allowing fast and easy loading and unloading of small batches;
♦ the magnitude and variety of MP required is consistently above average.
Drugs that use ideologyJIT, are the so-called "pulling" systems, in which an order for replenishment of stocks of MP or GP is made only when their quantity in certain PLPs reaches a critical level. Inventory is "pulled" through physical distribution channels from suppliers or logistics intermediaries in the distribution system. In concept JIT an essential role is played by demand, which determines the further movement of raw materials, materials, components, semi-finished products and GP. Thus, no product needs to be produced and no components will be ordered before the demand is made. This JIT differs from the traditional "push" system, where HP / NP are already produced or assembled in anticipation of demand, and their stocks are used in drugs as "buffers" between various functions and links.
Short stages of logistics cycles in drugs that apply ideology JIT, contribute to the concentration of the main suppliers of MP near the main firm that carries out the process of production or assembly of HP. The firm tries to select a small number of reliable suppliers, as any failure can disrupt the production schedule. In concept JIT suppliers become essentially partners with GPU manufacturers.
In the implementation of the concept JIT quality plays a key role. Japanese automotive firms implementing the concept JIT and the KANBAN system into production, fundamentally changed the approach to quality control and management at all stages of the production process and subsequent service. Ultimately, this resulted in the philosophy of TQM - Total Quality Management (Comprehensive Quality Management), which puts quality first in all strategic and tactical goals of the company. Concept JIT allows you to control and maintain quality in all components of the company's logistics strategy.
logistics technology JIT associated with the synchronization of all processes and stages: delivery of MP, production schedule, delivery of HP to consumers, it requires accurate information and reliable forecasting. This explains, in particular, the short components of logistics (production) cycles. For effective implementation of technology JIT reliable telecommunication systems and information and computer support are needed.
Modern JIT technologies in LS are combined from various options for logistics technologies and modules of automated production systems, such as MRP and DRP systems, logistics subsystems for rapid response, stock leveling, group technologies, preventive flexible production, modern systems control over product quality management cycles, etc. Therefore, it is now customary to call such technologies JIT II.
The main tasks of logistics technology JIT II are the maximum integration of all logistics functions of the company to minimize stocks in an integrated LS, ensuring high reliability and quality of production and service for maximum customer satisfaction. In systems based on ideology JIT II , uses flexible manufacturing techniques to produce small volumes of group-range GPs based on early prediction of customer demand. At present, logistics technology JIT II actually transformed into APS/SCM technology.
7. KANBAN system
One of the first attempts at the practical implementation of the LT concept was the KANBAN system developed by Toyota Motors Corporation (translated from Japanese - “map”). The KANBAN system is the first "pull" drug in production, which took Toyota about 10 years to implement from the start of development. Such a long period is due to the fact that the KANBAN system itself could not work without an appropriate logistics environment. The key elements of this environment were:
Rational organization and balance of production;
Comprehensive quality management at all stages of the production process and the quality of the original MP from suppliers;
Partnership only with reliable suppliers and carriers;
Increased professional responsibility and high labor morale of all personnel.
The KANBAN system, first introduced by Toyota Motors Corporation in 1972 at the Takahama plant (Nagoya), is a system for organizing continuous production, which allows you to quickly rebuild production and practically does not require safety stocks. The essence of the KANBAN system lies in the fact that all production departments of the plant, including the final assembly lines, are supplied with MP only in the quantity and by the deadline that is necessary to fulfill the order placed by the consumer department. Thus, in contrast to the traditional approach, the structural division-manufacturer does not have a common rigid operational schedule of production, but optimizes its work in the volume of the order following the production and technological cycle of the division of the company.
The KANBAN micrologistics system is born from assembly line production, but its principles can be applied throughout the supply chain and in any type of production. KANBAN is a "pull" system driven by demand at the "right" point of the supply chain. The main goal is to produce only the required amount of products in accordance with the demand of the final or intermediate (subsequent) consumer. For example, when components are needed on a conveyor, they are delivered from the previous production site along the chain in the right quantity and at the time they are needed. And so on throughout the entire supply chain.
The KANBAN system significantly reduces the stocks of MP at the input and NP at the output, allowing you to identify "bottlenecks" in the production process. Management can direct attention to these "bottlenecks" to solve problems in the most profitable way. When the problem is solved, the buffer stock is reduced again until the next bottleneck is found. Thus, the KANBAN system allows you to establish a balance in the supply chain by minimizing stocks at each stage. The ultimate goal is "optimal batch of one delivery".
The means of transferring information in the system is a special capbap card in a plastic envelope. Two types of cards are common: selection and production order. The selection card indicates the number of parts (components, semi-finished products) that must be taken at the previous processing (assembly) site, while the production order card indicates the number of parts that must be manufactured (assembled) at the previous production site. These cards circulate both within Toyota enterprises and between the corporation and the companies interacting with it, as well as at affiliated enterprises. Thus, kanban cards carry information about the quantities consumed and produced.
Consider an example illustrating the operation of the KANBAN system (Fig. 2.12).
The diagram shows two machining centers (MCs): MC1 using parts A to produce semi-finished product B, and MC2 using semi-finished products B to manufacture product C. First of all, it is necessary to decide on the types of containers that should be used for each position A, B , C, and their sizes, i.e. how many units of each item can fit in a container.
There is no on-site warehousing in the system, containers are moved from one storage center to another using technological transport.
Each fully filled container has a kanban card with the following information:
♦ product code (semi-finished product, NP);
♦ description;
♦ products (final, intermediate) where these components are used;
♦ workplace number (worker code) where the product is manufactured;
♦ OC number (worker code) that this component uses;
♦ number of items in a given container;
♦ the number of containers (kanban cards) next to the OC.
Kanban cards come in two colors: white and black. White cards are on the containers at the entrance (in) for OC1 and OC2 and are intended for transportation. Black kanban cards are located on the containers at the exit position (out) and indicate permission to process.
The information on the cards attached to the containers refers to the specific container.
The black product card C is the output of an empty container. In this case, it denotes the decision for OC2 (worker behind this center) to produce as many units of product C as required to fill an empty container. To do this, OC2 uses the whole container of parts B, where they were stored at the entrance of OC2, and releases the white kanban card (Diagram 2).
This card authorizes the transport of another container of parts B from OC1 (from the exit) to the entrance of OC2. A worker on a forklift with an empty container and a white card arrives at SC1, where he removes a black card from a container filled with parts B and leaves it next to an empty container, while he attaches a white card to a filled container with parts B and transports it to OC2. Free black card B is an order for OC1 to manufacture the next full container of parts B. During the manufacturing process, a container of parts A is emptied, and the white card signals the supplier to replenish the stock of parts A for one container, etc.
The considered example is a typical scheme of "pulling" intra-production LS, where containers with parts (constituting the production stock) are moved only after the consumption of parts in subsequent sections.
Important elements of the KANBAN system are information support, which includes not only cards, but also production, transport and supply schedules, flow charts, information light displays, etc.; a system for regulating the needs and professional rotation of personnel; a system of integrated (TQM) and selective ("Jidoka") product quality control; production leveling system and a number of others.
The introduction of the KANBAN system, and then its modified versions, makes it possible to: significantly improve the quality of products; reduce the duration of logistics cycles, thereby significantly increasing the turnover of working capital of firms; reduce the cost of production; virtually eliminate insurance reserves and significantly reduce the reserves of OP. An analysis of the world experience of using the KANBAN system by many well-known engineering firms shows that it makes it possible to reduce inventories by 50%, commodity - by 8% with a significant acceleration of turnover. working capital and improving the quality of GP.
Since the late 1980s, in many Western manufacturing firms the logistics concept / Lean production technology has become widespread, which can literally be translated as “slender / flat” production. The idea of such a technology is essentially a development of the Just-in-time approach and includes elements such as the KANBAN and MRP II systems. The essence of the Lean production logistics technology is the creative combination of the following main components:
High Quality;
Small sizes of production batches;
Low inventory;
Highly qualified personnel;
Flexible equipment.
The idea behind this technology is called "lean/flat" production because it requires far fewer resources than mass production - less inventory, less time to produce a unit, less wastage, and so on. Thus, Lean production combines the advantages of mass production (large production volumes - low cost) and small-scale production (product variety and flexible assortment).
The main objectives of Lean production in terms of logistics are:
High product quality standards;
Low production costs;
Quick response to consumer demand;
Short changeover times.
The key elements of the logistics process in Lean production technology are:
1. Reducing the preparatory and final time.
2. Reducing the size of production batches.
3.Shortening the main production time.
4.Quality control of all processes.
5.Reduction logistics costs production.
6.Partnership with reliable suppliers.
7. Elastic flow processes.
8. "Pulling" information system.
Let's take a closer look at some of the key elements. Reducing batch sizes, inventory, and production time can greatly increase the flexibility of the production process, responding faster to changing market demand.
The use of KANBAN and MRP systems in Lean production makes it possible to significantly reduce MP inventory levels and work with almost minimum safety stocks without storing MP, which is facilitated by cooperation with reliable suppliers.
Much attention in the organization on the principles of Lean production is paid to maintenance and repair technological equipment in order to maintain it in a state of continuous readiness, the practical elimination of failures, improve the quality Maintenance and repair. Along with comprehensive quality control, effective support allows you to minimize the stocks of OP (buffer stocks) between production and technological areas. An important role is also played by the training of personnel of the middle and lower levels of production and logistics management, which should:
♦know the output specifications and requirements of their production and logistics processes and procedures;
♦ be able to measure the results of work and control logistics operations/functions;
♦have the necessary qualifications and have necessary instructions and powers;
♦clearly understand ultimate goal management.
As in the LT concept, relationships with reliable suppliers play one of the key roles in Lean production. Partnering with trusted MP suppliers is reflected in the following highlights:
♦supplier is a partner, not a competitor;
♦ MP seller and buyer coordinate their actions for market success;
♦ the seller certifies the products in accordance with international quality standards; the buyer does not check the quality of the original MP;
♦ with stable long-term relationships with buyers, the seller seeks to reduce prices for their products;
♦MP seller cooperates with buyer when making changes to MP attributes or developing new products;
♦the seller integrates its logistics functions into the logistics processes of the buyer MP.
The purpose of this partnership is to establish long-term relationships with a limited number of reliable suppliers for each type of MP. When organizing Lean production, suppliers are considered as part of their own production, marketing and logistics structure that ensures the fulfillment of the company's mission. If suppliers provide this level of quality, then there is little to no MP input control, and then they can be considered true business partners. This allows supply to be reliably integrated into the company's logistics strategy.
MP vendors must meet the following basic expectations of the GPU manufacturer:
♦MP delivery is carried out in accordance with the LT technology;
♦MP meets all requirements of quality standards; input control MP is not required;
♦prices for MP have been reduced due to long-term economic relations, but they do not “cancel” the quality of MP and the accuracy of delivery to the consumer;
♦ MP sellers resolve emerging problems and difficulties with the consumer in advance;
♦sellers accompany deliveries of MP with documentation (certificates) confirming their quality control, or documentation on the organization of such control by the manufacturer;
♦ sellers help the buyer to conduct examinations or adapt their technologies to new modifications of the MP;
♦ MPs are accompanied by appropriate input and output specifications.
Comprehensive quality control at all levels of the production cycle is of great importance for the organization of Lean production in intra-production drugs. As a rule, most foreign firms use the TQM concept and a series of ISO standards for quality management system certification to control the quality of their products.
In Lean production, five components are usually distinguished:
Transformation (MP turn into MP);
Quality control (at each stage of the production cycle);
Transportation (MP, NP, GP);
Warehousing (MP, NP, GP);
Expectations/delays (in the production cycle).
Logistics management these components should be aimed at realizing the goals of Lean production. Transformation and transportation; quality inspections are necessary elements, but they should be carried out as rarely as possible (in accordance with the TQM concept), and the “warehousing” and “waiting” elements should be excluded altogether. In other words, it is necessary to remove useless operations - this is the idea of Lean production - a method of organizing production that requires the least costs, which produces the minimum necessary batches of products and, in general, uses the minimum amount of resources.
Consider, using a conditional example, how it is possible to transform a production process from an ordinary one (frequently encountered in practice) into a process corresponding to the Lean production ideology (Fig. 2.13).
The left side of the figure shows a typical production cycle with the so-called "broken" flow. The diagram shows the operations corresponding to this cycle.
As can be seen from the chart comparison, the elimination of "useless" activities, such as warehousing and waiting/delay in the production cycle, leads to a significant reduction in unproductive logistics costs and production time.
Another element of Lean production is the principle of Pull systems, or " hauling systems". For the concept of Lean production, this means liquidation, minimal inventory on the shelves, placement of all inventory in the workplace, i.e. use only those components that are necessary to satisfy the customer's order.
In such systems, the decrease in inventory in assembly, caused by market demand, produces automatic dispatch of orders for production departments. This, in turn, activates the chain of orders feedback from internal suppliers, and eventually the order reaches the external supplier. A diagram illustrating the operation of the "pulling system" is shown in fig. 2.14.
9. DDT Logistics Technology - Demand-driven Techniques/Logistics (Demand-Driven Logistics)
AT foreign practice Among the logistics technologies in distribution over the past decade, various variants of the DDT concept / technology - Demand-driven Techniques / Logistics - Demand-Driven Logistics have become widespread. This technology was developed as a modification of the concept of RP ("requirements planning") in order to improve the response of the company's distribution system to changing consumer demand. The most famous are the following four variants of the concept: rules based reorder (RBR), quick response (QR), continuous replenishment (CR) and automatic replenishment (AR).
In the late 1990s, improved versions of the DDT-Effective Customer Response (ECR) concept appeared - “Effective response to consumer requests” and Vendor Managed Inventory (VMI) - “Supplier Inventory Management”, based on new capabilities of logistics information systems and technologies.
RBR technology is based on one of the oldest inventory control and management methods based on the concept of reorder point (ROP) and statistical parameters of demand (consumption) of products. This technology is used to determine and optimize safety stocks in order to even out fluctuations in demand. The effectiveness of the method largely depends on the accuracy of demand forecasting, as a result of which it has not been very popular with logistics managers for a long time. Since consumer demand forecasts for HP did not differ high precision, the RBR technology did not find practical application in logistics. The revival of the method is associated with a revolution in information technology, when it became possible to receive and process demand information from each point of sale in real time using modern telecommunications and information and computer systems. This was also facilitated by new flexible production technologies, which significantly reduced the duration of production and logistics cycles. RBR is mainly used to regulate safety stocks. Other DDT-oriented methods are also used.
Logistics technologies QR, CR and AR are based on the methodology of "quick response" to the expected demand by concentrating or quickly replenishing stocks at market points close to the predicted expansion of demand. These technologies have much in common, as they are mainly aimed at maximizing the response time of drugs to changes in demand, they also provide preventive solutions for managing stocks of HP, anticipating demand dynamics.
QR (Quick Response) technology enables logistical coordination between retailers and wholesalers to improve the promotion of SOEs in distribution networks in response to anticipated changes in demand. This technology is implemented by monitoring sales in retail(for example, by scanning barcodes) and transmitting information on sales volumes for the specified nomenclature and assortment to wholesalers and from them to manufacturers of GPs. Information support ensures the division of the QR process between retailers (retailers), wholesalers and manufacturers. Perfection information technologies contribute to reducing uncertainty in the timing of delivery of SOEs, production and replenishment of stocks, opening up opportunities for maximum flexibility in the interaction of partners in integrated logistics networks. QR technology makes it possible to reduce stocks of GPs to the required level, but not below the value that allows you to quickly meet consumer demand, and at the same time significantly accelerate inventory turnover.
CR (Continuous Replenishment) logistics technology is a modification of QR technology and is designed to eliminate the need for SOE replenishment orders. The goal of CR is to create an effective logistics plan aimed at the continuous replenishment of GP stocks from retailers. Daily processing of information on sales volumes from retailers and SOE shipments from wholesalers allows the product supplier to calculate the total demand by quantity and assortment. An agreement is then reached between the supplier, wholesalers and retailers to replenish their stocks of GPs, to which a purchase commitment is signed. The supplier, based on the processing of information about sales and demand forecast, continuously (or quite often) replenishes stocks from retailers himself or through wholesale intermediaries. In some cases, freight through or direct delivery to SOE retailers, bypassing wholesalers, is used to reduce restocking time. For the effective operation of CR-oriented drugs, two main conditions must be met: first, reliable information from retailers and reliable delivery of GPs must be provided; secondly, the size of freight shipments should correspond as much as possible to the cargo capacity of vehicles.
A further modification of the QR and CR methods was the AR logistics technology - the "automatic replenishment" method. The AR method provides GP suppliers (manufacturers) with a set of necessary rules for making decisions about product attributes and categories. The category contains information about sizes, colors and related products, usually presented at the same time in a certain point of sale retail network.
By applying the AR method, the supplier can meet the needs of the retailer in the product category, eliminating the need to monitor single sales and inventory levels for quick-selling items. Product category accounting allows suppliers to increase flexibility and replenish inventory efficiently. Supplier management of retailers' inventory increases their responsibility for supply reliability and maintaining inventory levels in line with demand. From the retailer's point of view, the result of the implementation of AR technology is a safety stock replenishment program that allows maximizing sales for each product category. This strategy also reduces retailers' costs associated with stock separation and replenishment reliability.
While QR, CR and AR restocking methods are more focused on retailer satisfaction, they benefit both manufacturers and wholesalers who have established an integrated relationship. There are two main reasons for this alliance. The first is that information flows reflecting customer requirements, order procedures, and GP delivery schedules give suppliers (manufacturers and wholesalers) a better view of inventory management issues in distribution. Manufacturers and wholesalers can plan supplies more reliably when they know sales volumes and FG inventory levels at retailers, distribution centers, and factories. This better vision helps suppliers respond more quickly to changes in demand, deal with the organization of the collection of orders, the location of warehouses and production units. Awareness in integrated logistics channels helps suppliers to prioritize production and distribution between products and consumers.
The second is based on the factors of time and information. The alliance between HPs, based on information sharing and risk mitigation, contributes to increased operational efficiency, establishing long-term partnerships that are beneficial to all parties.
The concept of Effective Customer Response (ECR) - “Effective response to customer requests, known in the literature on logistics as “Effective customer response”, is often considered by logistics professionals as a synonym for the concept of LT in the distribution of consumer goods. This concept is an evolution of the Quick Response (QR) method and involves the use of computerized systems by manufacturers and retailers to automatically process orders during the same type of transactions, which allows you to follow the movement of goods in the distribution network. Effective response to consumer requests includes the QR method and focuses on the distribution, promotion and sale of goods.
Industry studies evaluating the effectiveness of using the ECR concept in the United States have shown that it can save up to 10.8% on the consumer price. Savings consist of four main components:
1. More efficient range and best use store space (1.5%), better use of retail store space due to reduced storage space and increased inventory turnover.
2.More efficient restocking system (4.1%), constant inventory management (eg, stocks are constantly moving instead of the typical system stops and starts; automatic order management system instead of manual order processing system).
3.More effective promotion of goods (4.3%); reduction of costs for the maintenance of warehouse stocks. In the past, deals at low prices were supported by large inventories often moved within the system as a result of downturns in sales.
4.More effective development products (0.9%), fewer unsuccessful attempts to promote goods on the market, higher quality of goods.
ECR systems are widely used in the US grocery industry, as well as in other industries that produce consumer products. Typically store sales data was directly used to restock the distribution network. ECR systems offer new approaches to organization wholesale trade and work with distribution channels. In the past, low price deals were offered to retailers when purchasing large volumes of products to sell at a reduced retail price. The retailer may have delayed placing an order or placed a new low volume order in anticipation of a new offer. ECR systems enable more accurate order fulfillment, regular product flows and less inventory.
Traditionally, consumers place orders with suppliers. Although this process seems obvious, it is not efficient. Firstly, the supplier does not have preliminary information about orders - he is forced to make forecasts, as a result of which he is forced to keep sufficiently large safety stocks. Secondly, the supplier is often faced with unforeseen short-term fluctuations in demand, which leads to constant changes in the assortment, delivery schedules and, accordingly, to additional logistics costs. As a result, consumers suffer from an inevitable higher price level.
At the present stage of development of logistics, an alternative way of managing inventory at the consumer has appeared (the consumer in this case can be an industrial company, wholesale or retail enterprise). Instead of placing orders, the consumer simply exchanges information with the supplier. This information relates to the actual demand or sales of the product, the supplier's current inventory, and details of any additional marketing activities, such as, for example, the promotion of goods on the market. Based on this information, the supplier takes responsibility for replenishing the customer's inventory. Orders are not taken, and consumers are informed about the lower and upper limits of stocks they are allowed to have. The supplier is responsible for maintaining the required amount of stock at the customer.
Such a logistics system for managing demand and replenishing stocks is called Vendor Managed Inventory (VMI) - “Supplier Inventory Management”. Here agreements are built on close cooperation between the customer and the supplier. Perhaps the term "joint inventory management" would be more appropriate in this case.
Consumers benefit from significantly lower inventory levels, while the risk of stockouts is also reduced. In addition, it often happens that the buyer does not pay for the goods until it has been sold or used. The advantage of the supplier lies in the fact that, thanks to access to information about real demand, which is distributed through electronic means exchange of information, it can more accurately schedule production and distribution, thus increasing the effective use of MP (sales volume of HP) and at the same time reducing the level of safety stocks.
1In the course of the study, the main goals and objectives of the system, the principles and advantages, as well as the features of organizing work on the Just-in-Time system were considered. Implementation experience provided JIT concepts in Russia. The main directions for improving the concept of "Just in Time" at domestic enterprises are considered.
logistics
costs
competitiveness
logistics concept
manufacturing process
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2. Logistics: textbook / Ed. B.A. Anikina. – M.: INFRA-M, 1999. – 327 p.
3. Rogozhina N.V. Usage logistics systems on the industrial enterprises// Problems of the modern economy: Eurasian International Scientific and Analytical Journal [Electronic resource]. – Access mode: http://www.m-economy.ru/art.php?nArtId=2040.
4. Sergeev V.I. Corporate logistics. 300 answers to the questions of professionals - M .: INFRA-M, 2005. - 976 p.
5. Encyclopedia production management[Electronic resource]. – access mode: http://www.up-pro.ru/encyclopedia/just-in-time.html.
The purpose of the work is to study the JIT production system, as well as to assess its applicability in Russian enterprises.
Today in Russia there is a fairly high level of logistics costs for placing orders, supplying products, warehousing, and external transportation. These indicators significantly reduce the efficiency of trade and production, and they also negatively affect the competitiveness of companies and the country as a whole.
The main task for the manager in the event of such problems is to determine just such a logistics concept that would help to competently get out of such situations.
One of such concepts, used all over the world, as well as in Russia, is the technology "just in time" (Just-in-time).
The relevance of the application in Russia of the concept of "just in time" is the reduction of large inventories and costs in the production sector.
The concept of "just in time" is the concept of "pull" systems. JIT is a technology for building the organization of a logistics process that provides an abundance of material resources for work in progress, as well as finished products in the required quantity, exactly at the appointed time and place.
The use of the concept of "just in time" allows the organization to improve relations with customers, increase the volume of sales, stabilize the market position, improve financial condition, as well as increase competitiveness.
The JIT system's main goal is to save the enterprise from any unnecessary expenses, effectively use the production potential of the enterprise, and ensure a high level of product quality and reliability.
The essence of the JIT concept is to ensure that the enterprise creates continuous-flow subject production.
Currently, many domestic enterprises are trying to implement and put into practice this concept in order to avoid a rapid increase in costs.
One of such companies that already uses the Just in time system is the KAMAZ Corporation. The company's first step in this direction was: "Optimization of warehouse and transport transportation through the use of interchangeable bodies." The application of this approach made it possible to speed up domestic transportation by 5-6 times.
Another important major project for the implementation of the "just in time" system in our country is the organization of the delivery of rolled products from Magnitogorsk using traction arms - the Kamateiner transportation system. This technology has made transportation ten times faster, while reducing costs by several times.
For managers, when applying this concept, the goal is to obtain economic effect, but for this the company should adhere to such principles as:
1. Produce products only when there is a demand for it.
2. When performing each operation in the production process, only what is required in the subsequent stage of production should be produced.
3. In the production process, materials are only delivered at the point of use.
So the above principles domestic production used by many companies, for example, "Master-SNAB" - a leading supplier of industrial equipment, "EURO-SIB-Logistics" - the supply of auto complexes and large diameter pipes, as well as OJSC "Severstal", which since May 2003 began to supply material flow to LLC "Caterpillar Tosno" based on the principles of JIT.
Some Just-in-time principles apply when hiring staff. This method is effective for enterprises that hire temporary workers precisely at the time when they are needed, instead of maintaining a large staff of permanent workers. An example of such a situation is a seasonal increase in the volume of work. The use of the concept of "just in time" in such situations seriously saves the resources of the enterprise.
It can also be said that the JIT concept provides for advantages in its implementation in production. These benefits include: cost savings, shorter lead times, faster material availability, long-term planning.
Examples Russian companies, which showed a positive effect during the initial implementation of the JIT system:
1. A network of self-service stores in Moscow "ABK" supplied goods using the JIT system. In turn, this made it possible to significantly increase the volume of retail space, to avoid an overabundance of goods.
2. The Ulyanovsk plant, when introducing the JIT system into production, increased time savings up to 20%.
3. Ural Machine-Building Plant, which upgraded production according to the "JIT" system. Labor productivity has increased, the quality of machines has improved significantly.
4. Pavlovsk Bus Plant, with the introduction of this system, increased sales by 40% during the year
5. JSC "Zavolzhsky Motor Plant" improved the quality of its products, increased productivity.
It should also be said that with the concept of "just in time" the elimination of work in progress and the fulfillment of production orders by the day or by the hour are fully achieved.
Just-in-time is being implemented and applied in Russia in the construction, transport, and market sectors. So, Russian-Czech construction company U-Group, using the JIT system, offers its services in the construction and design of facilities using prefabricated steel structures. Also, the use of JIT in our country was an impetus for the introduction of modern information technologies in the field of road transport, as it is more suitable for delivering goods "right off the wheels from door to door" in accordance with the concept of "just in time". So, for example, one of such firms is the company "TransLogistic-Moscow". Its software and hardware complex is built according to the technology and provisions of JIT and is a set of circuits that are responsible for the activities motor transport company. These circuits include:
The TL-Route contour allows you to implement all the standard capabilities of the RS Miler/Europe complex for calculating routes and a number of its own functions (for example, to specify your warehouses that can be included in the calculated routes).
The TL-Map contour allows you to view the calculated route on the map, as well as view the calculated parameters for each stop point specified by the user.
The TL-Planning contour allows you to build an optimal route, as well as build a temporary schedule for the movement of a road train, and conduct an economic assessment of the upcoming transportation.
The contour "TL-Waybill" allows you to quickly prepare a normalized route.
"TL-Normative route" processing of normalized route calculations.
Thus, the concept of "just in time" is aimed at synchronizing work and ensuring strict discipline in contractual relations. The introduction of the JIT concept to domestic enterprises helps them reduce lead times; reduce capital expenditures on the maintenance of storage facilities for stocks, this leads to a reduction in the risks of obsolescence of stocks; reduce the volume of documentation, as well as reduce losses from marriage and reduce the cost of sending products to the workshop for processing.
Practice shows that for the effective implementation of the Just-in-Time strategy, it is necessary to change the way of thinking of the whole team dealing with production and marketing issues. The traditional “more is better” mindset should be replaced by “less is better” when it comes to inventory levels, capacity utilization, lead times, or lot sizes. Let's hope that such a system of organizing production will be more widely used at Russian enterprises and will give a new impetus to increasing the competitiveness of domestic enterprises.
Bibliographic link
Mugak T.A., Terekhin I.A. APPLICATION OF THE JUST-IN-TIME CONCEPT AT DOMESTIC ENTERPRISES // Successes of modern natural science. - 2014. - No. 7. - P. 141-143;URL: http://natural-sciences.ru/ru/article/view?id=34163 (date of access: 02.02.2020). We bring to your attention the journals published by the publishing house "Academy of Natural History"
5. Carrying out preventive maintenance. Preventive maintenance of equipment should be carried out during periods of downtime or non-working hours.
6. The use of a "universal" workforce. Just-in-time system involves training workers in management various types equipment and technology. This allows workers to carry out maintenance and quality control operations from their workplace. JIT requires the creation of competent production teams who are fully responsible for the results of their work.
7. Application of the Zero Defects program. For the Just in Time system to work, all actions that lead to defects or defects must be eliminated, because. this system does not provide reserves for their elimination. The implementation of the program makes it possible to achieve personal responsibility of employees for the quality of the work they perform. Also, in the JIT system, each worker should have the right to stop production if a violation of the quality of work is possible.
8. The use of small batches when moving. To implement this element, the JIT system provides for the use of a signaling system (for example, kanban cards). This ensures the transfer of parts between workstations ( production equipment) in small quantities. Ideally, one part should be transferred per unit of time.
Advantages and disadvantages of Just in Time
Just in Time is a system that has been successfully applied to many manufacturing enterprises. Like any production system, JIT has certain advantages and disadvantages. The main advantages of the system Just in time include:
1. Reduction Money required for inventory management. Less inventory reduces the quantity financial resources"frozen" in stocks.
2. Possibility to use for other needs the areas previously reserved for reserves. The Just-In-Time system reduces inventory of raw materials, inventory in production, and inventory of finished goods. As a result, significant areas can be released that can be used for other purposes.
3. Reducing the volume of unsold goods with a reduction in demand. The goal of the Just-In-Time system is to produce as much product as the customer needs. Therefore, if the demand for products drops sharply, then in the JIT system the amount of unsold goods will be minimal.
4. Reducing the volume of batches of manufactured products. This allows you to quickly respond to changing market needs. Due to the small batches in the JIT system, it is possible to introduce changes faster based on customer needs.
5. Reducing the number of defects, which leads to a reduction in marriage and the cost of its correction. For the system to work effectively Just in time, the number of defects detected in production should tend to zero. To achieve this, a lot of efforts are being made to improve the quality of work.
The most serious and obvious shortcomings of the Just in Time system are:
1. Decrease in the ability to correct a marriage that has arisen and missed for the next operation. Because JIT does not provide for stocks and reserves, both material and temporary (or they are minimized), then in the production process it becomes quite difficult to remake or correct the marriage. To correct the marriage, it is necessary to stop all production.
2. Strong dependence of production on the quality of work of suppliers. Suppliers are usually outside the control of the company, so any problems in the supply chain can cause a stop in production.
3. Few opportunities to meet the sudden increase in demand. Because Since the JIT system does not include stocks of finished goods, additional time is required to meet the increased demand.
Implementation of the Just in Time system
The implementation of the JIT system requires a large and long-term effort from the organization. Key Factors implementation success are:
- Support by managers of all levels of management of the organization;
- Adequate allocation of resources;
- Building long-term, trusting relationships with suppliers;
- Changing the corporate culture of the organization;
- Changing the flow of processes and principles of organization of production;