PROJECT WORK ON JIT Manufacturingdocshare02.docshare.tips/files/7599/75992764.pdf · 2017. 1....
Transcript of PROJECT WORK ON JIT Manufacturingdocshare02.docshare.tips/files/7599/75992764.pdf · 2017. 1....
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PROJECT WORK
ON
JIT Manufacturing
Submitted By:
Course:
Registration No: < reg No>
Symbiosis Centre for Distance Learning2011
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DECLARATION
This is to declare that I have carried out this project work myself in part fulfillment of the
Post Graduation Diploma in Business Applications (PGDBA) program of SCDL.
The work is original, has not been copied from anywhere else and has not been submitted
to any other University/Institute for an award of any degree/diploma.
Date: Signature:
Place: Name:
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Index
Title Page……………………………………………..…………1
Declaration…………………………………………..…………..2
Index………………………………………………….………….3
Acknowledgement………………………………….…………..5
Abstract ………………………………………………..………...6
Introduction…………………………………………….………..7
Background and History………………………………..………9
Elements of JIT…………………………………………….….10
JIT in Practice………………………………………………....19
JIT and Beyond………………………………………………..22
Introduction to JIT manufacturing…………………………...24
CASE Study – I
DELL…………………………………………………………...31
Manufacturing process in Dell……………………………....34
CASE Study – II
IBS………………………………………………………….….43
Presint 9………………………………………………………54
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Analysis……………………………………………………….58
Conclusion……………………………………………………62
Abbreviations…………………………………………………63
References……………………………….…………………...64
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ACKNOWLEDGEMENT
The goal was fixed, moves were calculated and I moved with full of enthusiasm, vigor
and keen interest. Initially the task looked achievable but there are times when it proved
to be on up hill task, the goal seeming beyond my reach. But as work progressed my
determination and will power grew stronger and completion of this work further confined
my belief that, “WHERE THERE IS A WILL THERE IS A WAY”.
It’s a sheer pleasure for me to state with candidly that this entire project is a sincere
attempt to reach maximum accuracy. I therefore take this opportunity to express my
utmost gratitude and respect to all who have contributed in some way.
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ABSTRACT
JIT is a management philosophy that strives to eliminate sources of manufacturing waste
by producing the right part in the right place at the right time. The Waste results from any
activity that adds cost without adding value, such as moving and storing. The idea of
producing the necessary units in the necessary quantities at the necessary time is
described by the short term Just-in-time.
The implementation of this management philosophy in industries like the automobile
industry can bring about a see saw change in both quality & quantity since in a JIT
system, underutilized (excess) capacity is used instead of buffer inventories to hedge
against problems that may arise.
JIT manufacturing is a powerful and proven system of producing products efficiently
while keeping costs low. Some of the most successfully companies in the world have
used this philosophy to improve their manufacturing processes and better meet customer
demand.
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CHAPTER I
INTRODUCTION
JUST IN TIME (JIT) is a management philosophy that strives to eliminate sources of
manufacturing waste by producing the right part in the right place at the right time. Waste
results from any activity, which adds cost without adding value, such as moving and
storing. JIT (also known as stockless production) should improve profits and return on
investment by reducing inventory levels (increasing the inventory turnover rate),
improving product quality , reducing production and delivery lead times, and reducing
other costs (such as those associated with machine setup and equipment breakdown).
The idea of producing the necessary units in the necessary quantities at the necessary time
is described by the short term Just-in-time. Just-in-time means, for example, that in the
process of assembling the parts to build a car, the necessary kind of sub-assemblies of the
preceding processes should arrive at the product line at the time needed in the necessary
quantities. If Just-in-time is realized in the entire firm, then unnecessary inventories in the
factory will be completely eliminated, making stores or warehouses unnecessary. The
inventory carrying costs will be diminished, and the ratio of capital turnover will be
increased.
The implementation of this management philosophy in industries like the automobile
industry can bring about a see saw change in both quality & quantity since in a JIT
system, underutilized (excess) capacity is used instead of buffer inventories to hedge
against problems that may arise. JIT applies primarily to repetitive manufacturing
processes in which the same products and components are produced over and over again.
The general idea is to establish flow processes (even when the facility uses a jobbing or
batch process layout) by linking work centers so that there is an even, balanced flow of
materials throughout the entire production process, similar to that found in an assembly
line. To accomplish this, an attempt is made to reach the goals of driving all queues
toward zero and achieving the ideal lot size of one unit.
This new trend in engineering production, which originally refers to the production of
goods to meet customer demand exactly, in time, quality and quantity, reduces wastage
by nearly 55-75%. "Waste" in this context is taken in its most general sense and includes
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time and resources as well as goods. This concept can really change the phase of
industrial production of goods like car & other important utilities.
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CHAPTER II
BACKGROUND AND HISTORYJIT is a Japanese management philosophy, which has been applied in practice
since the early 1980s in many Japanese manufacturing organizations. It was first
developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a
means of meeting consumer demands with minimum delays. Taiichi Ohno is frequently
referred to as the father of JIT.
Toyota was able to meet the increasing challenges for survival through an
approach that focused on people, plants and systems. Toyota realized that JIT would only
be successful if every individual within the organization was involved and committed to
it, if the plant and processes were arranged for maximum output and efficiency, and if
quality and production programs were scheduled to meet demands exactly.
JIT manufacturing has the capacity, when properly adapted to the organization, to
strengthen the organization’s competitiveness in the market place substantially by
reducing wastes and improving product quality and efficiency of production.
There are strong cultural aspects associated with the emergence of JIT in Japan.
The Japanese work ethics involves the following concepts.
• Workers are highly motivated to seek constant improvement upon that which
already exists. Although high standards are currently being met, there exist even
higher standards to achieve.
• Companies focus on group effort, which involves the combining of talents and
sharing knowledge, problem-solving skills, ideas and the achievement of a
common goal.
• Work itself takes precedence over leisure. It is not unusual for a Japanese
employee to work 14-hour days.
• Employees tend to remain with one company throughout the course of their career
span. This allows the opportunity for them to hone their skills and abilities at a
constant rate while offering numerous benefits to the company.
These benefits manifest themselves in employee loyalty, low turnover costs and
fulfillment of company goals.
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CHAPTER III
ELEMENTS OF JIT
In order to understand how JIT works a common vocabulary needs to be established from
which to further discuss the topic and gain insight into why so many firms have adopted
it. As previously stated, one of the key components of JIT is to reduce waste and add
value. There are several activities that a company must monitor as targets for reducing
waste. Among these are, excessive waste times, inflated inventories, unneeded people or
material movement, unnecessary processing steps, numerous variabilities throughout a
firm's activities and any other non-value adding activity. A key example of this is a new
plant that Caterpillar is bringing on-line in the near future. By reducing the number of
times a bucket had to be repositioned while it was being welded, Caterpillar was able to
reduce the amount of time the bucket spent in the welding line, reduce labor costs by
limiting idle time at the welding station and increase the efficiency of the entire
manufacturing process.
The layout and inventories that are part of a JIT strategy may seem the most logical steps
to reduce waste and increase value. By simply redeveloping the layout of certain facilities
a firm can reduce the time it takes for supplies to get to the next step in process and cut
costs associated with that movement. One way to do this is to have work-in-progress
close to the next station in the manufacturing chain. Couple this with lowering inventories
and a powerful combination is formed to reduce costs. In lowering inventories a firm can
reap numerous benefits; batch sizes, set-up times and safety stock are all reduced, ergo
costs are trimmed and value is added. But in order to achieve these things a firm must be
willing to accept the problems that these actions can either uncover or create. Dell
Computers participates in both of these activities and they are now the industry leader.
Dell has warehouse space at their manufacturing facilities in which suppliers keep parts
directly on-site which is the quintessential JIT layout. In addition, Dell is constantly
working to achieve "JIT" inventories of only four days and in doing so are constantly
uncovering and solving supply chain problems.
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Going hand-in-hand with maintaining Just In Time inventory levels is JIT scheduling. By
working to reduce inventory to the lowest possible working levels, a firm must constantly
be adjusting its schedule of ordering and delivering. In doing so, communication both up
and down the supply chain is critical. Frequent orders are placed for supplies and small
production runs are constantly being initiated. In order to achieve this breakneck pace of
order/production schedule, a firm must constantly be making small changes to
orders/production and recognize that kanbans are of incredible importance.
Possibly the single piece of JIT that has the most relevance to a study of supply chain
management is the partnerships that are essential to making JIT truly work. A firm cannot
implement a JIT system by itself; it must have the complete cooperation of its entire
supply chain. The sheer amount of information that is needed for a JIT system to operate
well demands partnerships to be formed and nurtured, almost to the point at which an
entire supply chain operates as one firm. Examples of these kinds of partnerships are
everywhere in today's business world. XYZ-Company allows its key suppliers to work
directly at their manufacturing sites and place orders as needed for the parts that that
supplier supplies. By example Dell has its suppliers store raw materials directly at the
manufacturing plants.
Other concepts of Just In Time also need to be introduced in order to have a discussion
about what truly makes Just In Time a worthy endeavor. By the 1980s the Japanese had
achieved manufacturing greatness by practicing continuous improvement, in that a firm is
constantly working to improve in every facet of its business functions. To do this a firm
must always increase quality, look for innovative ways to solve problems and increase
focus on the quality of its suppliers. All of these are cornerstones of a modern JIT system.
Lastly, getting the workforce to buy into a JIT lean manufacturing system is important
because without the dedication of the workforce, any endeavor is sure to fail. There are
several ways to achieve workforce commitment. A simple way is to cross train the
workforce members outside of their normal business function and help increase an
employee's problem solving ability. In doing so a firm is empowering its workforce to
think about their function in a new way while looking for ways to improve and giving
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them an overall view of the entire firm, not just their single job. When this is coupled
with the support of management, an increase in resources to solve problems, and an
increase in employee roles and responsibility, a workforce will feel empowered and work
to make Just In Time a success for the business.
There are some very important elements in just in time manufacturing which makes it
a successful philosophy. They are
• Attacking fundamental problems - anything that does not add value to the
product.
• Devising systems to identify problems.
• Striving for simplicity - simpler systems may be easier to understand, easier to
manage and less likely to go wrong.
• A product oriented layout - produces less time spent moving of materials and
parts.
• Quality control at source - each worker is responsible for the quality of his or
her own output.
• Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes
• Preventive maintenance, Total productive maintenance - ensuring machinery
and equipment functions perfectly when it is required, and continually improving
it.
• Eliminating waste.
There are seven types of waste:
1. Waste from overproduction.
2. Waste of waiting time.
3. Transportation waste.
4. Processing waste.
5. Inventory waste.
6. Unnecessary movement of people.
7. Waste from product defects.
• Good housekeeping - workplace cleanliness and organization.
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• Set-up time reduction - increases flexibility and allows smaller batches. Ideal
batch size is 1item. Multi-process handling - a multi-skilled workforce has greater
productivity, flexibility and job satisfaction.
• Leveled / mixed production - to smooth the flow of products through the factory.
• Kanbans - simple tools to `pull' products and components through the process.
• Jidoka (Autonomation) - providing machines with the autonomous capability to
use judgement, so workers can do more useful things than standing watching them
work.
• Andon (trouble lights) - to signal problems to initiate corrective action.
The poka yoke system and Andon or visual control system is very significant, so are
discussed in detail.
Poka yoke system:
Poka yoke or fool proofing is a method of 100% inspection. Poka yoke is
preferred option to SQC. In SQC one has a sampling plan. If the sample is ok the lot is
ok. However this does not mean that there are no defectives in the lot. When this lot goes
to the market if a customer finds a defect then for him it is 100% defect. He is not
concerned with batch or sample. Therefore SQC is “rationalization of method of
inspection”. It does not ensure defects are not produced at all. Poka yoke does this. When
a washing machine is packed an instruction manual is placed in the carton. Packing takes
place on a conveyer out of one million cartons packed per month 7-8 customers complain
that instruction booklets were not received. When a complaint is received the packer was
asked to be more cautious. For a few days there were no complaints and then once again
it would occur. Fool proofing was carried out by providing an electric switch on the box
from which the instruction booklet was withdrawn. Now every time an instruction
booklet was with drawn the electric switch activated. This allowed the carton to move to
the next stage of the conveyer using an interlock no more customer complaints for missed
instruction manuals. This is a classical example of poka yoke in action.
Andon system:
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JIT system puts emphasis on prevention of recurrence of a problem. Using andon
board a supervisor immediately comes to know where a problem occurs. All employees
are allowed to stop production when a problem occurs. Stopping of machines or
production lines with a view to permanently eliminate the problem. One must not relieve
pain by using pain killers, one must go to the root of the problem and once and fro all
eliminate it. By stopping machines or production lines everyone’s energy is focused in
finding a permanent solution. This in a way defines management philosophy which does
not look for short term gains but for long term results. Very often when a problem occurs
emergency measures are taken parts are reworked or salvaged which then becomes a
standard practice. This causes waste. If a company management accepts this philosophy
then it is advisable that it does not attempt a JIT production system.
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Agreement with the persons holding majority interest in the company management like
members of the board or major shareholders commanding majority of voting power;
a) Purchase of shares in open market;
b) To make takeover offer to the general body of shareholders;
c) Purchase of new shares by private treaty;
d) Acquisition of share capital through the following forms of considerations viz.
Means of cash, issuance of loan capital, or insurance of share capital.
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Strengths of JIT
There is a lot of strength in incorporating JIT lean manufacturing in a company. JIT
makes production operations more efficient, cost effective and customer responsive. JIT
allows manufacturers to purchase and receive components just before they're needed on
the assembly line, thus relieving manufacturers of the cost and burden of housing and
managing idle parts. In that respect, company spokesman for Dell Venancio Figueroa,
says "With our pull-to-order system, we've been able to eliminate warehouses in our
factories and have improved factory output by double by adding production lines where
warehouses used to be" (Songini, 2000). The benefit of carrying smaller amounts of
inbound, in-process, and finished goods inventory exists regardless of the firm's operating
context (size, production technology, etc.). Just In Time appeals to many companies
because it helps prevent manufacturers from being stuck with inventory that may become
obsolete. JIT was initially developed and justified based on cost reduction and quality
improvement dimensions. Now, companies view JIT as providing an approach to
achieving excellence in the elimination of waste (thought of as all things that do not add
value to the product), as well as making the company more responsive to short-term
customer demand patterns.
JIT manufacturing can be a real money-saver for a company. Companies are not only
more responsive to their customers, but they also have less capital tied up in raw materials
and finished goods inventory, allowing companies to optimize their transportation and
logistics operations (UPS, 2003).
Overall, JIT manufacturing results in lower total system costs and improved product
quality. With JIT, some plants have reduced inventory more than fifty-percent and lead
time more than eighty-percent (Droge, 1998). JIT is lowering costs and inventory,
reducing waste, and raising the quality of products.
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Weaknesses of JIT
Just as JIT has many strong points, there are weaknesses as well. "In just-in-time,
everything is very interdependent. Everyone relies on everybody else" (Greenberg, 2002).
Because of this strong interdependence with JIT, a weakness in the supply chain caused
by a JIT weakness can be very costly to all linked in the chain. JIT processes can be risky
to certain businesses and vulnerable to the supply chain in situations such as labor strikes,
interrupted supply lines, market demand fluctuations, stock outs, lack of communication
upstream and downstream in the supply chain and unforeseen production interruptions.
Labor strikes, stock outs, and port lockouts can quickly disrupt an entire supply chain
while JIT processes are in place. "Adhering to the just-in-time concept can be expensive
in times of emergency such as at ports" (Greenburg, 2002). When a ship arriving from
Asia full of supplies cannot make it to shore, the company using JIT generally has very
little inventory to compensate for the emergency. This lack of inventory is exactly what
makes JIT so great to companies in reducing costs, yet making it risky as well by in some
cases not having enough buffer inventories to react and keep the supply chain moving.
Every year markets experience seasonal demand fluctuations as well as fluctuations due
to demand from disasters or other unforeseen events. "Just-in-time delivery leaves
retailers and manufacturers with little inventory as the holiday season approaches"
(Greenberg, 2002). Relying solely on JIT systems would leave supply chains in shock due
to the overwhelming seasonal market demand at different times of the year for seasonal
products. Not all products should be produced with JIT systems in place. Custom made
items will not work well with JIT as JIT systems respond best to mass produced and
highly automated production items.
Communication is king in a JIT rich supply chain. There is a risk involved with JIT when
there is a communication breakdown and the company cannot get the right amount of
supplies needed to keep the just-in-time system running smoothly. Technology is playing
a big role in JIT number, however, the reliance on technology can lead to breakdowns in
the IT systems that can be costly to work around and go back to the 'pencil and paper'
methods of doing supply/inventory demand calculations. Companies should always have
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backup systems in place to help thwart the possibility of technology or communication
breakdown.
Weaknesses in JIT systems are very important to recognize. "From Cisco routers to Dell
computers to the Gap's leather pants, companies have found their just-in-time
manufacturing systems have let them down" (Johnson, 2001). Companies must strongly
evaluate the pros and cons of implementing JIT systems. The effects and risk to their
supply chain must also be heavily considered. Although JIT has its weaknesses, in most
cases, the benefits outweigh the risks to the JIT enabled company. Planning for and
recognizing when things may go wrong with the JIT system are vital for the success of
JIT implementation across all areas of supply chains.
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CHAPTER IV
JIT in Practice
Just in time has an overall strategic focus to provide companies with an exceptional
amount of savings. There is a large variety of companies and industries that have
experienced these cost savings. For our research we will feature Dell and Toyota as two
examples to illuminate the cost saving effects that just in time offers.
To begin our discussion, Dell, which participates in the computer technology industry, is
the only company within its industry that effectively utilizes just in time. They have
"revolutionized the selling of personal computers, using a direct-business model whose
fundamental tenets include taking custom orders directly from customers, thereby
reducing inventory and streamlining distribution" (DI D RECT, 2001). After Dell has
received a customer order, they then begin production of the product that the customer
desires. This exemplifies a pull system within the supply chain. A pull system is reactive
whereby production is executed in response to a customer order. This unique supply chain
provides Dell with a competitive advantage within its industry allowing them to become
the market leader over Compaq in 2001 (DI D RECT, 2001).
Dell's position within its industry is a result of their strategic focus to reduce inventory
and streamline distribution. This strategy has allowed them to keep only five days of
inventory on hand (DI D RECT, 2001). This is the smallest amount of inventory of any
company within this industry, according to Mike Gray, Supply Chain Evangelist for Dell.
He stated that most companies within the computer industry currently hold between 20
and 30 days worth of inventory (Personal Communication March 10, 2005).
The limited amount of inventory held by Dell has "created value for their customers. The
value created for their customers is a function of integrating the entire value chain:
invention, development, design, manufacturing, logistics, service, delivery and sales" (DI
D RECT, 2001). Integrating the entire value chain creates visibility and provides stronger
relationships between Dell and their customers and suppliers. This visibility allows them
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to only "invest in what their customers want, rather than trying to guess what they might
want" (DI D RECT, 2001). In addition Dell has a philosophy to "only manufacture what
their customers ask them to make, when they ask them" (DI D RECT, 2001).
This strategy provides Dell with a time-to-market advantage. "They can get their
customers the freshest, latest, greatest Pentium 4 and all associated operating systems 85
days faster than HP. This is true in regards to research that shows Hewlett Packard has 63
days of inventory and a distribution channel with 25 to 30 days of inventory as well.
Collectively, HP has about 90 days of inventory compared to Dell's five. The minimal
amount of inventory held by Dell provides them with an economic advantage, because the
value of components and manufacturing materials declines about one per cent per week.
The five day inventory also minimizes a customer's ability to change their wants before
they receive their computer. For example, if an individual tells a manufacturer what they
want today but they do not hear the request for 90 days, chances are by this time the
customer wants something else" (DI D RECT, 2001).
Dell's use of just in time results in cost savings, superior customer satisfaction, limited
waste, and the ability to provide their suppliers with more information. In the end these
benefits all result in a cost savings for Dell and higher revenue. Since Dell holds minimal
inventory, they do not have to fund raw materials, work in process or finished goods
inventory.
Toyota Motor Corporation is another company that effectively uses just in time. They are
known as the "master and pioneer" of just in time and are currently entering the market to
provide customized vehicles to customers with a minimal wait. "Toyota has spent the last
six years revamping its ordering, manufacturing and distribution to make it easier for
dealers and customers to make changes right before production" (Fahey, 2004). "Their
goal is to reduce the average time between dealer order and delivery from Toyota's North
American factories from 70 days to 14" (Fahey, 2004). This goal accomplishment "would
not only make customers happier but also cut dealer inventory costs and the need for
Toyota to spend on rebates for slow-selling vehicles" (Fahey, 2004).
In order to seek the benefits of providing customized orders and reducing the average
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delivery time, Toyota has developed its own software that connects dealers to factories
and factories to suppliers. The integration of the value chain creates visibility for all
members of Toyota's supply chain. When a request from a dealer is received by Toyota
their "software is able to figure out the availability of parts nearby, the time to resequence
the assembly line and whether the change would unbalance the line by scheduling, for
example, too many models loaded with time-consuming options one right after the other"
(Fahey, 2004).
Toyota has also adjusted their distribution process to effectively provide customized
vehicles in a just in time process. "Toyota now sends finished vehicles to sorting docks
where they can be grouped by region. This new process cuts delivery by two days. And in
assembling cars, Toyota now considers destination, so that it may, for instance, make
vehicles headed to Seattle at the same time" (Fahey, 2004). This process adjustment has
provided Toyota with a cost savings in result.
Dell and Toyota are two model companies of just in time. They effectively get the right
products to their customers when they need it. Both companies have achieved a
competitive advantage within their industries due to utilizing the just in time process and
allowing visibility between them and other members of the value chain.
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CHAPTER V
JIT and Beyond
Just-In-Time inventory systems have come a long way through out the years improving
the efficiency of purchasing in many companies. But as with most things there is always
room for improvement and growth. JIT inventory systems have evolved over the years
with many new and exciting twists. Competition in the business world is shifting from
being between company and company to supply chain and supply chain. This is why JIT
is evolving in many different ways. JIT II is one such evolution of the efficiency of JIT.
JIT II is a way to improve the customer-supplier relationship. JIT II uses "systems
integration" which allows, "sharing of information so that the relationship is more like a
partnership" (Pragman). Essentially this equals more and more visibility throughout the
supply chain, which equals better responsiveness and lower costs, the two main goals of
supply chain management.
"JIT II, a customer-supplier partnership concept pioneered at Bose Corporation and now
practiced by major companies and their suppliers, can aid in cutting both design and
response lead time" (Pragman). This is accomplished through systems integration, which
seeks ways to improve coordination between different functional areas, as well as bridges
the gap between customer and supplier.
With JIT II the suppliers have a person within the customer's organization full time acting
as a purchasing department employee for the customer firm. JIT II has really impacted the
following areas: "the administration of the purchasing function, logistics, concurrent
engineering and value analysis and material stores and support services. In each of these
areas the lead time reductions are greater with JIT II than with conventional JIT"
(Pragman).
The administrative benefits of JIT II are due to the fact that the supplier is constantly
available in-house. JIT II reduces administrative costs for both the customer and supplier
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because the purchasing costs are not all on the customer and the supplier gets all the
business from that specific customer as it wants as long as things go well. Because the
supplier is always present "JIT II permits concurrent engineering and value analysis to
take place on an ongoing basis, not just during sporadic sales calls" (Pragman).
JIT II is not the end of the evolution of just in time systems it is actually just the
beginning. ERP is another result that spawns from the premise behind JIT II. The main
difference between the two is that JIT II is not computer system based and ERP is based
on a computer system that helps ensure the visibility of all functional areas within a
company as well as within its supply chain.
"ERP helps organizations reduce supply chain inventories due to the added visibility
throughout the entire supply chain" (Wisner, Leong, Tan). A major advantage of an ERP
system is that it allows managers to make better more informed decisions that effect the
entire supply chain. As ecommerce and global operations continue to grow a need for
visibility and data exchange between suppliers, customers and foreign offices has
emerged. Thus driving ERP more to the forefront with ERP comes decreased inventories
as well as responsiveness which is the major idea of JIT systems.
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CHAPTER V
JIT IN MANUFACTURING
According to Hirano, the introductory phases of JIT involve 5 steps.
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Step 1: Awareness Revolution
It means giving up old concept of managing and adopting JIT way of thinking. There are
10 principles for improvement: 1. Abolish old tradition concepts. 2. Assume that new
method will work. 3. No excuses are accepted. 4. It is not seeking for perfection,
absolutely zero-defect process, few defects is acceptable. 5. Correct mistakes
immediately. 6. Do not spend money on improvement. 7. Use you brain to solve problem.
8. Repeat to ask yourself 5 times before any decision. 9. Gather information from several
people, more is better! 10. Remember that improvement has no limits. The idea of giving
up old concept was especially for the large lot production, The lot production was felt that
"having fewer changeover was better", but it was no longer true. Whereas JIT is a one-
piece flow manufacturing. To compare the two, Hirano had this idea:
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Step 2: 5S‟s For Workplace Improvement
The 5S‟s stand for: Seiri - Proper Arrangement Seiton - Orderliness Seiso - Cleanliness Seiketsu - Cleanup Shitsuke – Discipline This 5S‟s should be implemented company-wide and this should be part of a total improvement program.
Seiri - Proper Arrangement means sorting what you have, identifying the needs and
throwing out those unnecessary. One example is using red-tags. This is a little red-
bordered paper saying what the production is, how many are accumulated and then stick
these red tags onto every box of inventory . It enhances the easiness to know the
inventory status and can reduce cost. Seiton - Orderliness means making thing in order.
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Examples include keeping shelves in order, keeping storage areas in order, keeping
workplace in order, keeping worktables in order and keeping the office in order.
Seiso - Cleanliness means having a clean workplace, equipment, etc. Seiketsu - Cleanup
mean maintaining equipment and tools.
Shitsuke - Discipline means following the rules and making them a habit.
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Step 3: Flow Manufacturing
Flow manufacturing means producing one single piece of product at a time but multi-
handling which follows the process sequence. There are several main points concerning
flow manufacturing:
1. Arrange machines in sequence.
2. U-shaped production line (Cellular Manufacturing).
3. Produce one-piece at a time.
4. Train workers to be multi-skilled.
5. Follow the cycle time.
6. Let the workers standing and walking around while working.
7. Use small and dedicated machines.
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Step 4: Standard Operations
Standard Operation means to produce quality safely and less expensively through efficient rules and methods of arranging people, products and machines. The basis of standard operations is:
1. Cycle time It means how long it would take to "carry out part all the way through the cell". Following are the equations for calculating cycle time.
Daily Quantity Required = Monthly Quantity Needed / Working Days per month Cycle Time = Working Hours per day / Daily Quantity Required
2. Work sequence
1. Standard stock-on-hand
2. Use operation charts
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Step 5: Multi-Process Handling
Multi-process handling means one worker is responsible for several processes in a cell.
Some points that should be aware:
• Clearly assign jobs to machines and workers.
• Make a good use of U-shaped cell manufacturing.
• Multi-skilled workers
• Operation should be able to perform multi-machine handling and multi process
handling.
• Multi-machine handling - a worker should handle several machines at once, this is
also called "horizontal handling".
• Multi-process handling - a worker should handle several different processes at
once, this is also called "vertical handling" and this is the basis for JIT
production.
• Uses casters extensively as author written, "Floor bolts are our enemies! Machines
must be movable."
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CHAPTER VI
CASE STUDY - I
DELL
Dell Inc. (NASDAQ: Dell, HKEX: 4331) is an American multinational information
technology corporation based in Round Rock, Texas, United States, that develops, sells
and supports computers and related products and services. Bearing the name of its
founder, Michael Dell, the company is one of the largest technological corporations in the
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world, employing more than 103,300 people worldwide. Dell is listed at #38 on the
Fortune 500 (2011).
Dell has grown by both organic and inorganic means since its inception—notable mergers
and acquisitions including Alienware (2006) and Perot Systems (2009). As of 2009, the
company sold personal computers, servers, data storage devices, network switches,
software, and computer peripherals. Dell also sells HDTVs, cameras, printers, MP3
players and other electronics built by other manufacturers. The company is well known
for its innovations in supply chain management and electronic commerce.
On May 3, 2010, Fortune Magazine listed Dell as the 38th largest company in the United
States and the 5th largest company in Texas by total revenue. It is the 2nd largest non-oil
company in Texas (behind AT&T) and the largest company in the Austin area.
HISTORY
Dell traces its origins to 1984, when Michael Dell created PCs Limited while a student at
the University of Texas at Austin. The dorm-room headquartered company sold IBM PC-
compatible computers built from stock components. Michael Dell started trading in the
belief that by selling personal computer systems directly to customers, PCs Limited could
better understand customers' needs and provide the most effective computing solutions to
meet those needs. Michael Dell dropped out of school in order to focus full-time on his
fledgling business, after getting about $300,000 in expansion-capital from his family.
In 1985, the company produced the first computer of its own design—the "Turbo PC",
sold for US$795. PCs Limited advertised its systems in national computer magazines for
sale directly to consumers and custom assembled each ordered unit according to a
selection of options. The company grossed more than $73 million in its first year of
trading.
The company changed its name to "Dell Computer Corporation" in 1988 and began
expanding globally—first in Ireland. In June 1988, Dell's market capitalization grew by
$30 million to $80 million from its June 22 initial public offering of 3.5 million shares at
$8.50 a share. In 1992, Fortune magazine included Dell Computer Corporation in its list
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http://en.wikipedia.org/wiki/Fortune_(magazine)http://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Irelandhttp://en.wikipedia.org/wiki/Gross_profithttp://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/IBM_PC_compatiblehttp://en.wikipedia.org/wiki/IBM_PC_compatiblehttp://en.wikipedia.org/wiki/University_of_Texas_at_Austinhttp://en.wikipedia.org/wiki/Michael_Dellhttp://en.wikipedia.org/wiki/Austin,_Texashttp://en.wikipedia.org/wiki/AT%26Thttp://en.wikipedia.org/wiki/Texashttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Fortune_Magazinehttp://en.wikipedia.org/wiki/Electronic_commercehttp://en.wikipedia.org/wiki/Supply_chain_managementhttp://en.wikipedia.org/wiki/HDTVhttp://en.wikipedia.org/wiki/Peripheralhttp://en.wikipedia.org/wiki/Computer_softwarehttp://en.wikipedia.org/wiki/Network_switchhttp://en.wikipedia.org/wiki/Data_storage_devicehttp://en.wikipedia.org/wiki/Server_(computing)http://en.wikipedia.org/wiki/Personal_computerhttp://en.wikipedia.org/wiki/Perot_Systemshttp://en.wikipedia.org/wiki/Alienwarehttp://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Mergers_and_acquisitionshttp://en.wikipedia.org/wiki/Inorganic_growthhttp://en.wikipedia.org/wiki/Organic_growthhttp://en.wikipedia.org/wiki/Fortune_500
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of the world's 500 largest companies, making Michael Dell the youngest CEO of a
Fortune 500 company ever.
In 1996, Dell began selling computers via its web site, and in 2002, Dell expanded its
product line to include televisions, handhelds, digital audio players, and printers. Dell's
first acquisition occurred in 1999 with the purchase of ConvergeNet Technologies. In
2003, the company was rebranded as simply "Dell Inc." to recognize the company's
expansion beyond computers. From 2004 to 2007, Michael Dell stepped aside as CEO,
while long-time Dell employee Kevin Rollins took the helm. During that time, Dell
acquired Alienware, which introduced several new items to Dell products, including
AMD microprocessors. To prevent cross-market products, Dell continues to run
Alienware as a separate entity but still a wholly owned subsidiary.
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Manufacturing process in DELL
DELL has Just In Time (JIT) manufacturing process which is explained in following pages.
Introduction
Not often we get the chance to look inside the kitchen of a successful computer
manufacturer such as Dell or EMC. Usually they keep the details of their manufacturing
process under wraps and don’t really let journalists in to take a peek, let alone take
photos. So we welcomed their invitation to visit their European manufacturing facilities
in Limerick and Cork, Ireland, last week, to see for ourselves how Dell and EMC get the
job done. The Dell facility is located in Limerick and with its 3,500 employees caters to
the European and African markets and is one of the five manufacturing plants Dell has
around the globe. They manufacture over 20,000 PCs every day and ship these to
countries in the Europe, Middle-East and Africa region.
Dell are one of the most successful computer manufacturing companies in the world that
manufacture and ship about 120,000 computer systems worldwide, ranging from
notebooks to servers, every day of the week. EMC however is a storage company that
caters to the corporate markets, with network storage solutions such as SAN, NAS and
CAS that drive the need of their customers to have fast and reliable high capacity storage.
Dell and EMC have recently entered an alliance where they both address a portion of the
market. Dell typically takes the low and mid-range whereas EMC will cater to the high-
end market. Dell also handles the manufacturing of EMC's low-end products. As such
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both companies state that they compliment each other really well, without too much of an
overlap. In the next few pages we’ll take you along a tour of Dell’ facilities and see just
how their products are manufactured from the ground up.
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Parts and Components
During the press briefing Dell mentioned they manufacture more than 20,000 computer
systems every weekday in their Limerick facility, which is enough to fill about 70 to 100
trucks. Part of the Dell business model is that they don’t keep inventory, they don’t have
any parts on stock for more than a few hours. This means that their suppliers must be able
to deliver the needed parts and components to the Dell facility within two till three hours.
In order to streamline all of this, and process the massive amount of inventory being
delivered to the Dell facility, it is equipped with forty hangars where trucks can pull right
up and unload their cargo.
Parts Delivered
Parts tagged with Bar Code
Distribution and Assembly
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Whenever you order a computer at Dell it creates a custom order for that configuration
and it will be assembled from the ground up. Unlike other manufacturers Dell
manufactures build to order computers, they don’t have a baseline configuration to which
they add parts, each computer is manufactured individually. The parts that are needed to
fill the order are taken out of the inventory, scanned in to make sure the right parts are
used, and placed in a large anti-static box that is then transported by conveyor belt to the
next available spot in the assembly line. Dell has three separate production lines set up,
one handles all desktop orders, the other servers, whereas the last takes care of all of the
notebook orders.
Parts being transported to assembly Line
Large anti-static boxes are used to transport all the parts of the order.
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Assembly line, here’s where the parts will be assembled to complete the order.
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Assembly and Testing
As mentioned each part is tagged with a bar code at the delivery and scanned multiple
times during the assembly process to ensure the order is filed exactly to the customer’s
demands. It also helps Dell to manage their inventory and tracks any errors or bad batches
of parts so they can quickly act on anything that might cut into their productivity or other
problems that might prevent the completion of an order. When a system is completely
configured it will be tested for a minimum of two hours, prior to the software being
loaded. When the test is completed successfully and the software loaded, it’ll be prepared
for shipping and sent off to the customer at the end of the day.
A barcode scan of a part needed to complete and order, a 24 speed CDROM.
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A large number of systems being tested for at least two hours, prior to shipping.
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Packaging and Shipping
The last part of our tour covered the packaging and shipping of the newly manufactured
computers. Dell uses as much environmentally friendly packaging as possible for the
20,000 systems that get shipped out of their Limerick facility every day. Contrary to what
we thought these systems are shipped out of Limerick by road, using up to a hundered
trucks that pull right up to the facility' loading bays. Distribution is then done throughout
the Europe, Middle-East and Africa region either by road or air by local distribution
centers on mainland Europe.
Hundreds of carton boxes containing PCs, servers, notebooks, etc.
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Loading the trucks with hundreds of boxes, ready to be shipped off.
One thing was obvious though in Dell's facility, this facility is able to produce and ship an
amazing number of computers every day. The rate at which we've seen PCs come off the
assembly line was astonishing; we've seen workers put a whole PC together in about three
minutes and notebooks in less than that.
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CHAPTER VII
CASE STUDY – II
IBSThe term Just-In-Time‟ (JIT), used for instance to describe the delivery of materials to a construction site, suggests that materials will be brought to their location for final
installation and be installed immediately upon arrival without incurring any delay due to
storage in a lay down or staging area. JIT is a concept developed by the Japanese who
created the Toyota Production System, later translated into English as the lean production
system. The ultimate objective of JIT production is to supply the right materials at the
right time and in the right amount at every step in the process. Thus, IBS is one example
of JIT in construction. Rahman and Omar (2006) defined IBS as a construction system
that is built using pre-fabricated components. The manufacturing of the components is
systematically done using machine, formworks and other forms of mechanical equipment.
IBS is defined as products, systems and techniques used in making construction less
labour-oriented, faster as well as quality controlled. It generally involves prefabricated
products, factory manufactured elements that transported to the construction sites and
erected. (Shaari, Bulletin Ingénieur, 2003) According to Abraham Warszawski (1999),
IBS is defined as a set of element or component which is inter-related towards helping the
implementation of construction works activities. He also expounded that an
industrialisation process is an investment in equipment, facilities, and technology with the
objective of maximising production output, minimising labour resource, and improving
quality while a building system is defined as a set of interconnected element that joint
together to enable the designated performance of a building. Classification of IBS
According to Badir- Razali, generally, there are four types of building systems currently
available in Malaysia‟s building system classification (Badir et al. 1998), namely conventional, cast in-situ, prefabricated and composite building systems. Each building
system is represented by its respective construction method which is further characterised
by its construction technology, functional and geometrical configuration. Type of
building system in Malaysia Nonetheless, according to CIDB (2003), the structural
aspects of IBS of the systems, divided into five major types as follows: 1. Precast
Concrete Framing, Panel and Box Systems Precast columns, beams, slabs, 3-D
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components (balconies, staircases, toilets, lift chambers), permanent concrete formwork,
etc;
Precast concrete wall
1. Steel Formwork Systems Tunnel forms, beams and columns molding forms,
permanent steel formworks (metal decks, etc;
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Steel Framework System
2. Steel Framing Systems Steel beams and columns, portal frames, roof trusses, etc;
Steel roof trusses
3. Prefabricated Timber Framing Systems Timber frames, roof trusses, etc;
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Prefabricated timber framing system for a double storey house
4. Block Work Systems Interlocking concrete masonry units (CMU), lightweight
concrete blocks, etc.
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Lightweight concrete blocks are used for wall construction The pre-cast concrete
components are among the most common prefabricated elements that are available both
locally and abroad. The pre-cast concrete elements are concrete products that are
manufactured and cured in a plant environment and then transported to a job site for
installation. The elements are columns, beams, slabs, walls, 3-D elements (balconies,
staircase, toilets, and lift chambers), permanent concrete formwork and etc. The steel
formwork is prefabricated in the factory and then installed on site. However the steel
reinforcement and services conduit are installed on site before the steel formwork are
installed. The installation of this formwork is easy by using simple bracing system. Then
concrete is poured into the formwork and after seven days, the formwork can be removed
and there is some system whereby the formwork served as a part of the structure itself
after concreting. The steel formwork systems are used in tunnel forms, beams, column
moulding forms and permanent steel formworks.
The elements of steel framing system are rolled into the specific sizes and then the
elements are fabricated that involves cutting, drilling, shot blasting, welding and painting.
Fabricated elements are sent to the construction site to be then erected whereby welding
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and the tightening of bolts at joints are conducted. The elements include steel beams and
columns, portal frames and roof trusses the prefabricated timber framing system is
normally used in the conventional roof truss and timber frames. The timber is
prefabricated by joining the members of the truss by using steel plate. It is important that
all members are treated with the anti pest chemical. Then, the installation is done on site
by connecting the prefabricated roof truss to the reinforcement of the roof beams. The
elements of block work system include interlocking concrete masonry units (CMU) and
lightweight concrete blocks. The elements are fabricated and cured in the factory. The
elements are normally used as bricks in structures and interlocking concrete block
pavement.
Value Stream Mapping Koskela (1992) pointed out that architects, engineers, and
construction practitioners have for the longest time focused on conversion activities and
overlooked issues of flow. Flow is important because work or materials that do not flow
sit idle in inventory, tying up money (including the procurement cost of ingredients plus
labor and machine time to bring them to the stage of completion they are in) as well as
space. They stand the risk of being damaged or becoming obsolete due to design changes
or market competition. Inventory means productwaits: its cycle time increases, that is, it
takes longer for the product to traverse all production steps it needs to go through before
reaching its customer. As a result, project durations are larger than they would have been
had flow not been inhibited. Most tools used today by practitioners who manage
construction, such as those fordesign, planning, scheduling, and costing, do not
acknowledge flow: they do not explicitly capture changes of resource characteristics over
time. Process modeling tools for discrete event simulation are an important exception and
warrant more attention by the lean construction community. Such models can incorporate
input regarding individuallycharacterized components, uncertainties of numerous kinds,
and sequencing rules (e.g., Tommelein 1997) and then produce output data regarding
buffer sizes, cycle times, idle times, production rates, etc.
The symbols commonly used to depict process models for construction, however, have
yet to distinguish how processes are being managed, for instance, whether or not a JIT
system has been implemented. Practitioners in manufacturing, working for Toyota and
then later for other companies „going lean‟ developed their own pictorial language to help focus attention on what matters in their transition. We borrowed such symbols from
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Rother and Shook (1998) and used them to map structural steel supply chains. Boxes
denote value-adding processes or tasks, such as ordering raw materials, fabricating steel,
and transporting shipments to a site. A triangle denotes work in progress or inventory. It
represents an accumulation of product (materials or information) possibly of unlimited
amount and for an indeterminate duration. An inverted triangle is an order to batch.
Kanban (introduced in Figure 1) denote orders to withdraw or produce product, in order
to deplete or replenish a supermarket. A supermarket, represented by , refers to controlled
inventory in terms of how much material is kept on hand and how replenishment takes
place. The FIFO symbol denotes the first-in-first out release of resources output by a task.
The circular arrow denotes a physical pull of materials from a supermarket. It differs from
the withdrawal kanban in that it pertains to the amount of product needed at the time of
the withdrawal and not necessarily a predetermined fixed quantity. A dashed line with an
arrow designates the flow of product. A solid white line is transportation of product to the
customer site. A black-andwhite dotted line shows that product is pushed into inventory.
Rother and Shook (1998) use these symbols for so-called “value stream mapping” where
the term “value” pertains mainly to reducing work n process inventories and product
cycle times. Our use of this notation stems as much from our desire to engage in mapping
the structural steel supply chain as it does from our desire to test the adequacy of those
symbols in representing architecture/engineering/construction processes and in capturing
value.
Example Structural Steel Supply Chain for Building Construction The structural
steel supply chain for building construction differs in several regards from the one for
industrial construction. The building‟s frame may in fact be more complex, especially when it supports a very tall structure, so the major steel sections require extra
procurement effort. The industry is also organized differently. On design-bid-build
projects, a common delivery method for buildings, the owner typically hires an
architectural engineering (AE) firm, which in turn hires a structural designer.
When the AE has prepared all bid documents, the project is put out for bid. A general
contractor (GC) is then selected. The GC subcontracts the steel work to the fabricator,
who in turn subcontracts field installation work to a structural steel erector. The latter
essentially provides the crane and skilled labor, whereas the former is responsible for
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acquiring, fabricating, and shipping the materials to site in the sequence needed for
erection. The fabricator may also subcontract the structural steel detailing work.
Fabricator and erector work as a tightly knit team. The GC will meet with them during
bid preparation. They must assess the project site constraints to position the erector‟s crane, as it determines not only the steel erection sequence but also the layout of other
temporary facilities and thus the flow of many construction resources. This sequencing in
turn drives the fabrication schedule. It must of course meet the GC‟s master schedule but must also be efficient4 the fabricator who subcontracts the erection work has an incentive
to minimize that work and does so by thoroughly planning the sequencing and site
delivery of steel pieces in the order they will be needed. As for logistics, a big difference
between the industrial and the building
sector is that more often than not building space is very tight, especially on projects
located in an urban environment. Industrial projects tend to be more remotely sited.
Materials deliveries to building projects accordingly are constrained by traffic patterns
and transportation permit requirements. Trucks parked in the street along the edge of a
site ready to off-load steel may not remain there for any extended time. When deliveries
take place, the crane gets dedicated to off-loading and moving pieces to a staging area,
namely the highest floor with decking, from where steel will subsequently
be picked up and moved into final position. Only in exceptional cases will steel be erected
directly off the flatbed truck. This saves extra handling steps but can be done only when it
is acceptable to tie up the truck longer and provided the steel has been loaded in inverse
order needed. Differences in value stream maps between industrial and building
construction are therefore expected at least near the end of the chain, especially in the
way delivery to the project site is organized. If JIT is practiced in industry today one
possible way is depicted in figure.
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Figure includes two supermarkets, which illustrate the presence of pull mechanisms. The
steel mill (IV) still takes special orders. The resulting output is stored in a generic buffer
(triangle). The buffer is not specifically controlled in size but it is filled only based on
firm customer orders. That product is sold so it is unlikely to become obsolete (waste).
The mill also produces run-of-the-mill product in anticipation of customer orders. As was
the case in figure 2, this is denoted by a supermarket where quantity-on-hand will not
exceed a threshold value and gets replenished at appropriate times. A second supermarket
is shown in figure 3 to handle output from fabrication (III). For instance, the fabricator of
a 20-story building could complete the steel for stories 1 through 3, then await orders
from the construction site (withdrawal kanban) to ship them steel for story 1 before
starting work on story 4 (production kanban). A smaller inventory buffer may be well
suited provided fabrication can keep pace with erection. Since there is virtually no storage
space on site, no buffer of materials is shown preceding ERECT [ion] (VI). The creation
of large buffers either at the contractor‟s or fabricator‟s site is contrary to JIT production system design. As the word JIT suggests, materials must be fabricated or delivered on
time, which means not too late but not too early either. This implies that variability
regarding timing, actual pieces released, as well as quality must be limited and controlled.
In a true JIT system, this timeliness pertains not only to a single hand-off between two
production steps, but rather, one aims at achieving JIT flow between all production steps.
In the idealistic extreme, this means having no buffers at all! In practice, this means
buffers must be determined trategically. Admittedly, doing so is not an easy task,
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especially in a production system of complex products that involve several organizations
as is the case for structural steel. But this is what lean Because of construction‟s one-of-a-kind project nature, the structural steel supply chain differs from manufacturing systems
for more standardized products, which can be likened to the Toyota Production System.
The manufacturing symbols used here for mapping the steel supply chain provide no
room for defining individually-characterized resources or detailed sequencing rules.
While their ability to show processing durations and delay times has not been used in this
report.
The current practice of buffering stems from the desire to optimize labor and machine
utilization and from admitting that uncertainties exist in the supply chain. Many
uncertainties are the result of variability, which could be understood better if at least it
were measured and explicitly accounted for. This is not the current practice in
construction. Uncertainties and variability should not be taken for granted. They should
be acknowledged, managed, and minimized to a reasonable degree. In fact, one technique
to identify them is to reduce buffer sizes in-between various production steps in order to
see and learn the extent to which they are needed. Process improvement efforts can then
focus on those steps where the impact on throughput of the system as a whole will be
most significant. Example improvements in construction are those that aim at reducing
uncertainty, as is done for instance through reliable planning by the Last Planner (Ballard
and Howell 1998), work methods design, and work structuring (Ballard et al. 1999).
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Presint 9Presint 9 is the selected project to be used as our case study in this task. The selection was
made because Presint 9 is one of the examples of constructions using the IBS technique.
Located in our Government administration areas, this Presint 9 is one of the projects in
the development of Putrajaya areas. Presint 9 is the residential area construct by Setia
Putrajaya Sdn. Bhd. The company had managed to complete the construction of Presint 9
in a minimum time by using the IBS method of construction.
Based on the observation carried out by Putrajaya Holdings, noticed that the contractor
only need four (4) month to complete the full structure of the apartment until level six (6)
comparing to the used of conventional method that can only construct full structure of the
building until level four (4) in the same period. Based on this statement prove that by
using the IBS system to the construction of the building may reduced the time for the
completion. It also be noted that this IBS system not only give the advantages in term of
time to this construction but also give benefit in term of cost for the development. The
contractor managed to reduced cost on labor because this method will reduced the used of
labor in the construction. Moreover, there will be a reduction in the cost of project, this is
because this method will reduced the waste in the construction that will contribute to the
minimizing the cost of project. These prove that the application of IBS method is one of
the techniques that can achieve the implementation of JIT approach.
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PICTURES OF THE PRESINT 9 PROJECT USING IBS
Problem in the implementation JIT Approach into the Construction Industries JIT
gives a lot of benefits to our construction industries, but there are several problems that
may contribute to the failure on its implementation. The problems that occur may
contribute to the inefficiency and ineffectiveness for JIT approach been implemented. The
problems may occur based on the unique characteristic of the construction industries
itself. Below are several problems that been identified faced in the implementation of JIT
approach in the construction industries.
Material Shortage
Material is one of the crucial items in the process of production in the construction
industries. Shortage in the material supply is one of the problems in our industries.
Therefore, the material cannot be distributes to the site on time and this situation may
affect the time factor for the project progress.
Weather The production place for the construction is unique and not similar to other
manufacturing production. Generally, construction activities located in the open space
known as site omparing with manufacturing production that were conducted in the
building. Weather is one of the factors that may contribute to the interruption in the
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construction activities. The uncertainty of weather may contribute to the problems in the
JIT implementation.
Design Changes To fulfill the client satisfaction, most of the procurement methods in our
industries give a space for the client to makes changes in the design during the
construction progress. This factor may effect the time and the cost for the project. We
cannot achieve the completion dates because the changes may influence to extend and
add the time of completion for the project. Therefore, JIT approaches are not applicable to
this kind of construction.
Cost
IBS system been said as the effective construction technique in the implementation the
JIT approach. IBS system may cut the time factor for the construction industries and
reduce the numbers of delays on the project. The problem is the cost to be used in this
system is higher compared to the conventional techniques used in this construction
industry.
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Workflow in IBS System
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ANALYSIS
Analysis 1-JIT Principles to Project
Analysis – I
JIT prinicples to project that use IBS
1. Pull System
Strong joint effort with supplier allows the technical department and the contractor to
have a better managed on "pull" demands system from the workstation without
overproducing unrelated prefabrication components. This effort had help in expedite the
construction of various types of multilevel apartments of Presint 9.
2. Top management commitment and Employee involvement
The determination of top management of Putrajya holdings in handling IBBS project in a
mechanical intensive way suits with their corporate vision that leads them to the greatest
property developer in the country.
3. Elimination of waste
IBS method emphasized on the usage of the natural environmental techniques and
reduction of construction material.
Conventional techniques that involve unskilled labor, such as laying up bricks, brickwork,
plastering and concrete
Work done off-site will only caused accidents to occur for untidy and messy site
especially for big project in Putrajya.
4. Total quality control
IBS system maintain the quality and high aesthetic and products for the whole building
structure and envelope as it ensures a proper arrangement of prefabricated beam bad
column that fits to the building. This method will give a fine
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Look of the building without any design or material discrepancies that will spoil the
architectural style of the Building.
5. Uninterrupted Workflow
The successful application of IBS system must be accredited to the effort of Seba Precast
Sdn Bhd; one of the local IBS experts. The IBS specialist conceived, planned, fabricated
the components at their factory before it were Transported and erected on site. This
process allows Setia Precast to ensure that the right components are produced
At the right time. In the right order and without defect. The systematic approach will not
only sustain the quality of the project but it also ensures that the project is completed on
right time.
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Analysis – II
JIT advantages with JIT project case
1. Quality of work
From applying Total Quality Control (TQC) principle, we can see that Putrajya Holding
Sdn Bhd can maintain the quality and high aesthetic end products. they admitted that the
quality of work is satisfying from the fine look of the building. So having TQC in
implementation IBS system gives maximal advantages n terms f quality of work.
2. Speed up of construction process
from applying uninterrupted workflow principles, Putrajya Holdings Sdn Bhd gets the
following advantages of a fast construction period comparing the conventional method.
With the project in Presint 9, they have proven that it only take four months for Six storey
building. If the workflow was interrupted, then there will be a big chance that the
advantages of IBS regarding speed up of construction process can not be achieved.
3. Increase Production
From applying top management commitment and employee involvement principle, one of
the benefit of putrajya Holding Sdn Bhd that this lead to their corporate vision as the
greatest property developer in the country where this will influence their productivity.
From applying elimination of waste principles, Putrajya HoldingsSdn Bhd proved that
construction productivity can be increased with low risk and higher innovation.Putrajya
Holdings also managed to increase the work productivity and reduce the local currency
exchange by foreign workers to their origin country.
4. Cost Saving
From applying supplier relation with only one source of supplier, Putrajya Holdings Sdn
Bhd admitted that it really influences the efficiency of project. In a construction project,
good efficiency means good cost saving.
5. Applicable to all type of buildings
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From applying pull system in IBS project, Putrajya Holdings Sdn Bhd admitted that it
helps in expedite the construction of various tyes of multilevel apartments of Presint9. It
is optimistic that it can be applicable to other kinds of buildings.
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FindingsAfter doing two times analysis (see analysis I and II) we can see for this particular project
how the correlation between adopting JIT principles and advantages in IBS system.
Putrajaya Holding Sdn Bhd doing IBS system in their project in Presint 9. We can see
that in their process of implementation IBS project they fulfill six (6) JIT key principles
in the first analysis. Then we try to relate with the main advantages of IBS in second
analysis. We can see that Putrajaya Holding Sdn Bhd also can obtain all the main
advantages of IBS. From this case study analysis, as a conclusion we can say that if a
contractor doing an IBS project and applying JIT six (6) key principles completely, there
is a big opportunity that the contractor can obtain the maximal of IBS system. From the
theory framework (see figure 2), it could be explained that this parallel correlation
between JIT and IBS because both of it comes from the manufacture philosophy. And
with this case study, we can recommend that if you want to gain maximal advantages of
IBS system, by applying JIT in the process can give you a big guaranty of the successful
of the project. This recommendation can be use if Malaysian promoting IBS system in
their construction industry in the future.
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CHAPTER VIII
CONCLUSION
Just-in-time manufacturing is a philosophy that has been successfully implemented in
many manufacturing organizations. It is an optimal system that reduces inventory whilst
being increasingly responsive to customer needs, This is not to say that it is not without
its pitfalls.
However, these disadvantages can be overcome, with a little forethought and a lot of
commitment at all levels of the organization.
In this modern competitive world, where only those industries, which provide maximum
customer satisfaction at attracting prices, can succeed, the JIT system plays an important
role, as it reduces the manufacturing time & wastage, during production. Thus it increases
the amount of goods produced and decreases the cost of production of these goods.
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ABBREVIATIONS
1- JIT Just In Time
2- MRS Material Requirement Planning
3- BOM Bill of Material
4- MPS Master Production System
5- MRP II Manufacturing Resource Planning
6- ABC Always Better Control Analysis
7- AE Architectural Engineering
8- IBS Integrated Business Strategy
9- DND Direct Automated Delivery
10- TQM Total Quality Management
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REFERENCES
www.dell.com
www.managementparadise.com
www.google.com
www.scribd.com
www.bdaconnect.com/india/ficci
www.wikipedia.org
www.ibef.org
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http://www.dell.com/