HOW JIT WORKS

&
PUSH PULL SYSTEMS

Present by :- Janmejay
Munjani

How JIT(Just in Time) Works

JIT begins with a master schedule drawn for one to
three months. This is communicated to the
production personnel on the shop floor and to the
suppliers, who in turn, are expected to schedule
their work accordingly. Within a production month,
the master schedule is leveled on a daily basis.
This is done by identifying the product into
runner", repeaters, and strangers. These terms
reflecting the volume and frequency of demand
runners denote high volume product, and strangers
denote occasionally produced products.

JIT supply chains

JIT = Automotive manufacturers
Delays = stock out
1. Fixed bill of materials(BOM)
- lost sales cost
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2. Small product line
inventory
3. Ramp up production to
- lost gross
volume
profit
4. Linear & constant demand
- lost
for product
costumers
5. Vendors box - close
Management pre-limit
- #1
freight cost
priority
6. Payables = receivables
5-6-2015
8-6-2015
5-7-2015

8-7-2015

The goal is to:

reduce delivery lead times,
cut inventory,
reduce the amount of defects,
improve staff productivity and
make sure products are delivered on time

Effects of JIT Production

The block diagram to illustrate the
effects of JIT. The major effects of JIT
are in the following areas:
Productivity improvement.
Set-up time improvement.
Inventory reduction.
Quality improvement.
Space savings.
Lead times reduction.

JIT improves productivity in the

following ways:
1.Smaller lot size inventories.
2.Smaller buffer inventories.
3.Less scrap.
4.Less direct labour wasted on rework.
5.Less indirect cost of inventories.
6.Less space for inventories.
7.Less equipment to handle inventories.
8.Less inventory accounting.
9.Less physical inventory control effort.

Pull and Push Systems

In a pull system, product is made to order. In the
pull system, when a worker runs low on parts, a request is
passed back to previous operations for replacement parts.
This procedure is repeated throughout the manufacturing
operation. As a result, lot sizes must be small and set up
times must be short. Also materials handling must be
minimized and quality must be very good. JIT utilizes pull
system for production.
In a push system, the product is made to stock. This
requires lot of storage space, buffer inventories, etc. it is
not preferred by JIT manufacturing.

The Key Difference Between Push and

Pull
Push Systems:

schedule

work
releases based on demand.
inherently due-date driven
control release rate,
observe WIP level

Pull Systems:

authorize

work
releases based on system
status.
inherently rate driven
control WIP level, observe
throughput

What Pull is Not!

Make-to-Order:
Material requirements planning (MRP) with firm orders on master
production schedule(MPS) is make-to-order.
But it does not limit WIP and is therefore a push system.

Make-to-Stock:
Pull systems do replenish inventory voids.
But jobs can be associated with customer orders.

Forecast Free:
Toyotas classic system made cars to forecasts.
Use of takt times or production smoothing often involves production
without firm orders (and hence forecasts).
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Push and Pull Examples

Are the following systems essentially push or
essentially pull?
Soda vending machine:
Pure MRP system:
Doctors office:
Supermarket (goods on shelves):
Order entry server at Amazon.com:

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Advantages of Pull Systems

Low Unit Cost:
low inventory
reduced space
little rework

High External Quality:

high internal quality
pressure for good quality
promotion of good quality
(e.g., defect detection)

Good Customer Service:

short cycle times
steady, predictable
output stream

Flexibility:
avoids committing jobs
too early
encourages floating
capacity

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The Magic of Pull

Pulling Everywhere?
You dont never make nothin and send it no
place. Somebody has to come get it.

Hall 1983

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Pull Benefits Achieved by WIP

Reduces Costs:

Improves Customer Service:

prevents WIP explosions

reduces average WIP
reduces engineering
changes

Improves Quality:
pressure for higher
quality
improved defect
detection
improved
communication

reduces cycle time variability

pressure to reduce sources
of process variability
promotes shorter lead times
and better on-time
performance

Maintains Flexibility:
avoids early release (like air
traffic control)
less direct congestion
less reliance on forecasts
promotes floating capacity
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