Just in time

After studying and experience of Kaizen project, I will like to make a summary of the understandings of “just in time” concept and it affects the portion in company.

I will divide the JIT (just in time) to two portions in internal and external. We know JIT is closely relative to material flow; therefore, I identified the material flow in or out of company as the external JIT. On the opposite side, the material flow within the company will identify as internal JIT.

External JIT:

Most of company is monitoring this portion very closely. I can also say they are working well for that area. External JIT includes the raw material flowing in to warehouse and the finished goods flowing out to customer or logistic company. Because of the direction of minimize the raw material inventory, we are requesting the supplier to ship the material daily, or hourly. It helps to minimize the space for warehouse and material handling.

On the other hand, we established the system of build-to-order. We only build the finished goods to customer according to their demand and our shipping time. We won’t keep finished goods inventory more than the sales or market demand. It directly relates to our capital investment and most of company can perform a good result in now a day.

Internal JIT:

I would like to say that not many companies can fully understand and performs in proper way for this portion. The internal JIT is relating the material flow from warehouse to production, the first process station to the next station still the end, from the last station back to warehouse. We always ignored the internal customer relationship and the internal JIT needs cooperation between many parties such as material planning, customer service, quality control, warehouse and production. Self-regarding of the department always blocks the way of improvement. Huge amount of idle raw material and WIP abundant in every corner in the factory. Kaizen project merely a beginning but creating a lean culture is an important factor of success.

Summary:

External just in time
1. Flow from supplier to warehouse.
2. Flow from warehouse to customer.

Internal just in time
1. Flow from raw material warehouse to first manufacturing station.
2. Flow from first station to next station still the end of process.
3. Flow from end of process to final inspection.
4. Flow from final inspection to finished goods warehouse.

From lean concept, flow is existing in everywhere of company.
1. Flow of material
2. Flow of people
3. Flow of workstation (layout)
4. Flow of information (invisible flow)

Based on the last blog, just in time is very important factor of material flow. From external JIT to internal JIT back to external JIT again, it forms a continuous flow just like water. We can imagine only one part of JIT was ignored, the turbulent flow will make water flowing out everywhere. To maintain the material in linear flow, we must ensure all the connection between external JIT and internal JIT joint in right position.

When a KPO run a kaizen project to improve the material flow, he should act as a pipe fitter. Identify piping system (overall material flow system), and then he should check which joint is mismatch with wrong pipe. In some case, there are some pipes missed (external or internal JIT), he will get a new pipe (individual flow system) and cut in a suitable size (fine tuning), fit into the overall pipe system.

OK, make sure that water comes out in right place and no leakage!!!