The Impact of JIT on the Organization of Production Planning

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The Impact of JIT on the Organization of Production Planning
Eric Schmitz, SIG Leader
JIT will have a strong impact on your organization of production planning.
With JIT, a factory should operate in a company similar as the autonomic nervous system in the human body. For example the human body will take care of our heartbeat and our breathing during sleep without a conscious steering of our mind.
Kanban is built to help JIT as an autonomous system. Operators on the floor will judge themselves when what and how to react. No upper or middle management is needed.
As a result staff and management can start working on longer term issues while operators are working autonomous on the daily demand.
Do you have experience how management styles changed due to implementation of JIT and Kanban? Please share your experience in this forum.

An Orchestra or Cacophony?
Varadarajan, Member
JIT works like an orchestra where different instrumentalists know what to do when. Most often the conductor of the orchestra is an OEM.
The full benefits can be realized only when the suppliers themselves adopt JIT for their organization, which seldom happens. The suppliers support OEM's JIT by stocking up inventory.
To give you an example from one of my consulting experiences in the automobile sector: while the OEMs insisted on accepting components on a JIT schedule, the suppliers found it difficult to sustain that due to quality and scheduling issues and hence decided to operate a warehouse that supplied components to the OEM based on a JIT model. Stocking up components means increase in cost.
A concept that is meant to reduce cost and eliminate waste actually ended up increasing cost and piled up a lot of nonconforming inventory.
So it is essential that the JIT model percolates through the supply chain to enable deriving the full benefits of supply chain cost reduction.



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Eric Schmitz

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