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ACKNOWLEDGEMENT
I have taken this opportunity to express my sincere gratitude towards the pillars of successful completion of this Management thesis on Just in Time Production, without whose unflinching assistance & co-operation at all times it would rather have been impossible for me to achieve the desired goal. I would like to thank Mr. A. R. Dixit, Mr. Amit Hota & Mr. Subhash Babar for his invaluable guidance and support that made my going easy and provided me a good learning opportunity. I would also like to express my sincere gratitude towards all supply chain team colleagues of CIPLA LIMITED, who have always helped me to know and learn various aspects of management at various stages. A special thanks to my parents they have always tried to give me higher education.
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Certified that this project report titled JUST IN TIME PRODUCTION is the bonafide work of SANJAY KUMAR JHA who carried out the project work under my supervision
SIGNATURE FACULTY INCHARGE Karrox college of Technology Vashi, New Mumbai, Maharashtra
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UNIVERSITY STUDY CENTRE CERTIFICATE This is to certify that the project report entitled,
Certified
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Unit-1
Executive summary
In this paper, we are examining the implementation of Just-In-Time methodology in Ford for its latest small car KA; possibly one of the most interesting manufacturing revolution where companies involved in the production are integrated not only in their business processes moreover in their physical plants. The concept has been successfully developed and implemented in Valencia, Spain and is due to be adopted in other Ford production plants. The case study clearly shows how companies can work together in a harmonic and synchronised system meeting probably the most idealistic manufacturing principles (JIT) to produce the best quality product within the shortest time frame with minimum/no wastage and cost-effective to all parties. Careful production planning, cost-benefit analysis, adequate outsourcing plans and customer orientation are being praises as the key success factors of this amazing Just-In-Time concept.
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Unit-2 HISTORY:-
Khwaja Abdul Hamied, the founder of Cipla , was born on October 31, 1898. The fire of nationalism was kindled in him when he was 15 as he witnessed a wanton act of colonial highhandedness. The fire was to blaze within him right through his life. In college, he found Chemistry fascinating. He set sail for Europe in 1924 and got admission in Berlin University as a research student of "The Technology of Barium Compounds". He earned his doctorate three years later. In October 1927, during the long voyage from Europe to India, he drew up great plans for the future. He wrote: "No modern industry could have been possible without the help of such centres of research work where men are engaged in compelling nature to yield her secrets to the ruthless search of an investigating chemist." His plan found many supporters but no financiers. However, Dr Hamied was determined to being "a small wheel, no matter how small, than be a cog in a big wheel.
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1941 As the Second World War cuts off drug supplies, the company starts producing fine chemicals, dedicating all its facilities for the war effort.
1952 Sets up first research division for attaining self-sufficiency in technological development.
1960 Starts operations at second plant at Vikhroli, Mumbai, producing fine chemicals with special emphasis on natural
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1968 Cipla manufactures ampicillin for the first time in the country.
1972 Starts Agricultural Research Division at Bangalore, for scientific cultivation of medicinal plants.
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1984 Develops anti-cancer drugs, vinblastine and vincristine in collaboration with the National Chemical Laboratory, Pune. Wins Sir P C Ray Award for developing inhouse technology for indigenous manufacture of a number of basic drugs.
1988 Cipla wins National Award for Successful Commercialisation of Publicly Funded R&D.
1997 Launches transparent Rotahaler, the world's first such dry powder inhaler device now patented by Cipla in India and abroad. The palliative cancer care centre set up by the Cipla Foundation, begins offering free services at Warje, near Pune.
1998 Launches lamivudine, becoming one of the few companies in the world to offer all
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1999 Launches Nevirapine, antiretroviral drug, used to prevent the transmission of AIDS from mother to child.
2000 Cipla became the first company, outside the USA and Europe to launch CFC-free inhalers ten years before the deadline to phase out use of CFC in medicinal products.
2002 Four state-of-the-art manufacturing facilities set up in Goa in a record time of less than twelve months.
2003
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2005 Set-up state-of-the-art facility for manufacture of formulations at Baddi, Himachal Pradesh.
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Non-Executive Directors Mr. V.C. Kotwal Dr. H.R. Manchanda Mr. S.A.A. Pinto Mr. M.R. Raghavan Mr. Ramesh Shroff Mr. Pankaj Patel
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Unit-3
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 that adds cost without adding value, such as moving and storing.JIT (also known as lean production or stockless production) should improve profits and return on investment by reducing inventory levels (increasing the inventory turnover rate), reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs (such as those associated with machine setup and equipment breakdown). 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. The goal of JIT, therefore, is to minimize the
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In a JIT system,
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Introduction Phase for Just in Time: According to Hirano, the introductory phases of JIT involve 5 steps.
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Seiri - Proper Arrangement Seiton - Orderliness Seiso - Cleanliness Seiketsu - Cleanup Shitsuke Discipline This 5Ss 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. 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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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:
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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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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." Elements of Just in Time According to Cheng, the basic elements of JIT manufacturing are: People Involvement Plants System
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3. Reduce unwanted wastes. Wastes that do not add value to the products itself should be eliminated.
4. Develop a reliable relationship between the suppliers. A good and longterm relationship between organization and its suppliers helps to manage a more efficient process in inventory management, material management and delivery system. It will also assure that the supply is stable and available when needed.
5. Plant design for maximizing efficiency. The design of plant is essential in terms of manufacturing efficiency and utility of resources.
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Traditional Approach The traditional approach in manufacturing is to store up a large amount of inventory in the means of backing up during bad time. Those companies rely on safety stocks may have a problem with the use of JIT. Difference in implementation of JIT Because JIT was originally established
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Just In Time is a philosophy and not the technique for elimination of wastes. The JIT strategy is to have "the right product at the right place at the right time." The Just-in-time philosophy that emerged, is a management logic based on simplicity and continuous improvement. It may be applied to any process where it will aim to make improvements through elimination of excess, waste and unevenness. The Just-in-Time concept comprises methods and techniques that aim to increase the potential for short times to delivery. Production system in which both the movement of goods during production and deliveries from suppliers are carefully timed so that at each step of the process the next (usually small) batch arrives for processing just as the proceeding batch is completed The "Just in time" (JIT.) inventory concept, also called Kanban, asserts that just enough inventories, arriving just in time to replace that which was just used, is all the inventory that is necessary at any given time. Excessive inventory unnecessarily ties up money, adds warehousing costs, increases risk of damage and risks obsolescence, and most of all, can possibly obscure opportunities for operational improvements.
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following
Just In Time (JIT) Manufacturing Just in Time manufacturing is a systems approach to developing and operating a manufacturing system. It is based on the total elimination of waste. JIT is not a new concept. It has been part and parcel of the Japanese manufacturing industry adopted approach for quite some time. It requires that equipment, resources and labor are made available only in the amount required and at the time required to do the job. It is based on producing only the necessary units in the necessary quantities at the necessary time by bringing production rates exactly in line with market demand. In short, JIT means making what the market wants, when it wants it. JIT has been found to be so effective that it increases productivity, work performance and product quality, while saving costs. JIT AND COSTS JIT can affect the bottom line in a variety of ways. Improvement in quality and delivery times can increase demand and, thus, revenue. Costs are also affected; the JIT philosophy contends that inventory reduction and increased quality reduce costs. Traditional cost accounting Systems often makes it
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in the container and scheduled for delivery before finally delivered by trucks. This common process is found to be inefficient as every part has to be continuously handled by human and this causes big risks of damages, misplaced and and airbags. With the new developed JIT system supported with sophisticated aerial tunnels connecting Ford with its suppliers, production lead times can be minimised, product quality can be improved, responsiveness towards customer demands can me boosted and the most important thing is inventory, space requirements, handling and transportation cost can be dramatically reduced (Kochan, 1997). Ford is now connected with more than 50 suppliers in Valencia with specifically designed aerial tunnels. These
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implementation: Minimum of 15 weeks to reach full production capacity Required at least 3,000 parts to be assembled for each car Very small outsourcing involve for car components All parts from suppliers are delivered on trucks Stock must be kept at certain level to assure the continuity of production Parts are often damaged during packaging, handling or delivery Spent over $6 million for inefficient delivery system (250+ trucks per day) 80 per cent automation in overall Manual seats and battery placement and this may cause injury for employee
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interest
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Precast concrete wall 2. Steel Formwork Systems Tunnel forms, beams and columns molding forms, permanent steel formworks (metal decks, etc;
Steel formwork system 3. Steel Framing Systems Steel beams and columns, portal frames, roof trusses, etc;
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Steel roof trusses 4. Prefabricated Timber Framing Systems Timber frames, roof trusses, etc;
Prefabricated timber framing system for a double storey house 5. 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
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Figure 3 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
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The material distribution facilities were established so that materials can be delivered to the site JIT. In addition, the JIT material distribution network was set up to link the field office,branch offices, and material distribution facilities, Necessary materials are delivered to the predetermined location( Room C on Floor B at Site A,for example)in time. To visualize the JIT delivery process, the JIT delivery system board is posted to boost awareness. Time is Money among
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AN OVERVIEW ON THE CASE STUDY PROJECT Presint 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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FIGURE 2: 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
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CONCLUSION After 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
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ABBREVIATIONS
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Just In Time Material Requirement Planning Bill Of Material Master Production System Manufacturing Resource Planning Always Better Control Analysis Architectural Engineering Integrated Business Strategy Direct Automated Delivery Total Quality Management
10- TQM
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