Tuesday, October 25, 2011

JIT Philosphy in GE-wilmington plant

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According to JIT definition, JIT is a philosophy of continuous and forced problem solving that drives out waste and unwanted variability. With no excess inventory or excess time in JIT system, costs associated with unneeded inventory are eliminated and throughput improve which this is helpful to support strategies of rapid response and low cost. Basically, the application of JIT deals with suppliers, layout, inventory, scheduling, quality, and employee empowerment. For Willimington case, Wilimington plant faced with its obstacles to use a JIT system that is described in the following application of JIT


a) Suppliers


· Some suppliers, located outside the Northeast, are far from the plant that is hard for the company to make the plan.


· Almost 60% of purchasing order comes from West Lynn that currently decline in quality and reliability. With this low quality of the material, the company needs to buy in double of the actual quantity needed.


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b) Layout


· There are the idle worker and waiting time due to little cross function training for the responsibility on several functions.


c) Inventory


· There are high setup times due to large lot sizes.


· There are high inventory levels.


· Changing and modifying programs in inventory control system, they did not update on documents so this will make the trouble for the company to integrate the new module or modify some programs in future.


· To loose inventory management procedure on the accounting for inventory and inventory control, so this makes material loss due to lacking on tracking inventory.


· For stocking finished goods inventory on one month in advance, this increases the operating expenses.


d) Scheduling


· Customer’s order, like DWO, makes the chaos on production schedule because they based on forecast rather than confirmed order.


· With four week ahead of production plan, this makes more work-in-process inventory.


e) Quality


· To have high scrap rate due to low percentage yield of raw materials.


· While the company has inspected every sub-assembly, the defect rate is still high such as % defect rate on the welding.


· Lacking on tracking inventory.


f) Employees


· With the payment on piece rate policy, workers focus on produce parts that have the loosest standards rather than the greatest demand. Consequently, there was the excess of some parts and shortages of others. Moreover, this brings to have more reworks.


From above problem’s list, there are three major problems that obstacle to the successful introduction of a JIT production system;(1) the company uses “push system in production that emphasizes on the big lot size. Consequently, this brings to waste in operation such as idle time of worker, over production, high recycle time, high defect rate, and more rework;() with current problem of sole-source supplier, the plant faces with low quality of materials and delay to deliver the items; and () with existing payment rate for worker, this is not attractive for worker to enjoy working and pay attention on the job.





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