1. JUST IN TIME MANUFACTURING ‘The demand driven operation’

2. LEARNING OUTCOME …to understand the basic principles of Just-in-Time manufacturing …to understand the difference between push and pull systems

3. PRODUCTION PLANNING AND CONTROL …provides the systems, procedures and decisions that connects supply and demand PLANNING concerns the future CONTROL captures the present

4. ALTERNATIVE PRODUCTION PLANS 1.Level Capacity 2.Chase Demand 3.Control Demand Demand

5. RESPONDING TO DEMAND MATERIAL RESOURCE PLANNING (MRP) Push strategy Scheduled Level Forecasted or known demand Focus on Planning JUST IN TIME (JIT) MANUFACTURING Pull strategy Replenishment Real-time demand Focus on Efficiency Flexible production system

6. MATERIAL REQUIREMENTS PLANNING Master production schedule Materials Requirements Planning Materials plans Works orders Purchase orders Bills of materials Inventory records Customer orders Forecast demand

7. JUST IN TIME “Wherever possible no activity should take place in a system until there is a need for it. The system is driven by downstream requirements” (Christopher, 1998)

8. TRADITIONAL MANUFACTURING VS. JIT Low inventory Traditional approach Focus on high capacity utilization More stoppages because of problems High inventory reduces the chance of the problems being exposed and solved Extra production goes into inventory because of continuing stoppages at earlier stages More production at each stage JIT approach Focus on producing only when neededFewer stoppages so problems are exposed and solved No surplus production goes into inventory Lower capacity utilization, but

9. THE BASIC PRINCIPLES OF JIT Eliminate waste Involve everyone Continuous Improvement

10. ELIMINATE WASTE Eliminate overproduction Minimise waiting time Right product to right place Efficient processing Standardised process Operations focus Inventory control Zero defects

11. INVOLVE EVERYONE Total people involvement Visibility Skilled workforce Trust and interdependence Synchronised activity

12. CONTINOUS IMPROVEMENT Basic working practises Remove non value adding processes Reduce set up time Preventive maintenance Total Quality Management (TQM)