the JIT concept of production Structure Importance of

the JIT concept of production

Structure Importance of Logistic n Push and Pull concepts n JIT n Outline problems n Conclusion n Questions n

Logistic BOOM n n. The Almost all successful enterprises are using one or another logistic concept. It gives them a lot of advantages. main advantage is decreasing costs

Logistic concepts: n All logistic concepts are divided on two groups: PUSH MRP II DRP ERP and PULL JIT KANBAN

PUSH concepts According to the push concept, manufacturing activities are planned basing on the market forecast rather than actual demand. There is an emphasis placed on a central planning function. n Schedule planning is a central function.

PULL concepts Pull logistics is demand-driven system. The aim is to produce no more than the required quantity.

JIT DRP KANBAN Lean production ERP JIT MRP II

JIT n Was pioneered by Taiichi Ohno at the Toyota company in 1970 JIT philosophy: - elimination of waste in its many forms; - belief that ordering/holding costs can be reduced; - continuous improvement, always striving to improve;

JIT JIT JIT requires: Reliable suppliers; n High level of Corporate culture; n Good Road infrastructure; n Standardization; n JIT

Long distances 200 km 500 km

Corporate culture Companies focus on: n combining of talents and sharing knowledge n problem-solving skills n ideas and the achievement of a common goal