Just-In-Time (JIT) system

The “Just in time” system, literally translated: “just in time or just in time,” was developed by the Japanese automobile company Toyota. Its author was Taiishi Ohno (who eventually became vice president of the company) and several of his colleagues. The system involves the delivery of the necessary material resources to the place of their production consumption in the required quantity and at the right time, bypassing intermediate warehouses. This helps keep unwanted inventory to a minimum.

With this system, the task is brought to the last link of the production chain - the finished product warehouse, bypassing other divisions of the enterprise. From the finished product warehouse, the task is sequentially sent to the departments that carry out operations at the previous stages of the technological cycle. The manufacturer does not have a complete work plan and schedule and is associated with a specific consumer order. Detailing of plans is carried out by the direct performers of the work, taking into account the volume of the task received and the timing of its execution. The "Justin time" system involves cooperation with a single source of supply on the basis of a long-term contract. Purchases are carried out, as a rule, in small quantities. The main requirement for the supplier is to ensure high quality of the supplied products, since the products are mainly supplied to industrial consumption “from the wheels”.

The Just-in-Time system is a logistics concept for an enterprise in which the movements of products during the production process and deliveries from suppliers are carefully planned in time - so that at each stage of the process the next (usually small) batch arrives for processing exactly at that moment, when the previous batch is completed.

Overall, the Just-in-Time supply system avoids the problem of overproduction, reduces inventories to the minimum possible level and eliminates unreasonable warehousing costs. Such a system, among other things, allows you to organize production with a minimum of defects. Finally, with Just-in-Time deliveries, businesses are always striving to improve production quality and are always looking for new ways that will allow them to work more efficiently.

It is widely believed that Just-in-Time is simply appropriate production planning that results in minimum levels of work-in-process and inventory. But, in essence, the system is a specific philosophy that covers every aspect of the production process, from development to product sales and after-sales service. This philosophy strives to create a system that functions well with minimal inventory, minimal space, and minimal paperwork. It must be a system that is not subject to failures and disruptions and is flexible (with regard to changes in the range of products and production volume). The ultimate goal is to have a balanced system with a smooth and fast flow of materials through the system. In the system, quality is “built-in” both into the product and into the production process. Companies that use the system have achieved a level of quality that allows them to work with small production runs and tight schedules. These systems are highly reliable, the main sources of inefficiency and disruption are eliminated, and workers are trained not only to work in the system, but also to continuously improve it.

A number of companies, Toyota among the first, spent years in the 1970s developing the concept of just in time, or JIT, another name for just in time. These methods have proven so effective that all major organizations now use elements of this approach to one degree or another. The traditional approach to organizing work assumes that inventory is an important element of the entire system, ensuring that operations do not fail. MRP reduces inventory by using the master schedule in a manner that provides a closer match between supplies of materials and demand for them, while still maintaining some safety stock in case of unforeseen problems. Obviously, the higher the degree of correspondence between supply and demand is ensured, the less inventory we will need. If we can completely eliminate the mismatch between supply and demand, we won't need inventory at all. "Just in time" is based on this.

An interesting example illustrating the essence of the “Just in time” work is the operation of a gas stove using bottled gas and gas supplied through a pipeline. In the first case, sometimes there is a discrepancy between the availability of fuel in the cylinder and the need for it. To eliminate interruptions, you need to purchase gas cylinders in advance, i.e. create a stock. In the second case, gas supply exactly matches demand, and the consumer does not have any fuel reserves. This concept is based on the belief that inventories arise due to poor management, poor coordination of work, and therefore problems are hidden in inventories. From this follows the conclusion that it is necessary to find the reasons causing the difference between supply and demand, improve the execution of operations, after which the stocks will disappear. In a broader sense, Just in time considers the enterprise as a set of problems that interfere with the efficient execution of operations, for example, long lead times, instability of order delivery, unbalanced operations with each other, limited capacity, equipment breakdowns, defective materials, interruptions in work, unreliable suppliers , poor quality of GP, too much paperwork and much more. Managers try to solve these problems by creating reserves, purchasing additional capacity, installing backup equipment, inviting firefighting specialists, etc. However, in reality, these actions only hide the causes of the problems. The constructive approach is to identify the real problems and solve them. The Just in time concept leads to changes in views in the following areas:

Stocks in Just in time. Organizations must identify and resolve problems leading to inventory, aiming for minimum (zero inventory) MR, work in process.

Quality in Just in time. It is necessary to achieve not an acceptable level of defects, but its complete absence on the basis of integrated quality management.

Suppliers in Just in time. Customers must rely entirely on their suppliers, so they need to establish long-term partnerships with a small number of reliable suppliers and carriers.

Volume of games in Just in time. It is necessary to look for ways to reduce the volume of production batches, to achieve short production cycles so that excess production does not accumulate in SOE stocks.

Order fulfillment time in Just in time. It is necessary to reduce lead times to reduce uncertainties that can change the situation during long delivery times.

Reliability in Just in time. All operations must be performed continuously without failures, i.e. there should be no equipment breakdowns, defects, absenteeism, etc.

Workers at Just in time. A spirit of cooperation is necessary, both between workers and between managers and workers, because... the well-being of everyone depends on overall success at work; all employees should be treated equally and fairly. Any creative initiative expressed by any employee regarding possible improvements in work is encouraged.

Information support in Just in time should allow for the rapid exchange of information and synchronization of all processes of MR delivery, production and assembly, and GP supply.

Thus, Just in time is not only a way to minimize inventories, but also to eliminate waste for any type of resource, improve coordination and increase operational efficiency.

The ultimate goal of the system is a balanced system; that is, one that ensures a smooth and rapid flow of materials through the system. The main idea is to make the process as short as possible, using resources in an optimal way. The degree to which this goal is achieved depends on the extent to which additional (auxiliary) goals are achieved, such as:

Eliminate failures and disruptions in the production process.

Make the system flexible.

Reduce preparation time for the process and all production times.

Minimize inventory.

Eliminate unnecessary costs.

Failures and disruptions in the process have a negative impact on the system, disrupting the smooth flow of products, so they must be eliminated. Disruptions are caused by a variety of factors: poor quality, equipment failure, changes in schedules, late deliveries. All these factors should be excluded if possible. Preparation time and production lead times lengthen the process without adding anything to the cost of the product. In addition, the length of these deadlines negatively impacts the flexibility of the system. Therefore, their reduction is very important and is one of the goals of continuous improvement.

Inventories are unused resources that take up space and increase the cost of production. They should be minimized or, if possible, eliminated altogether. Unnecessary expenses represent unproductive resources; eliminating them can free up resources and expand production. In the Just-in-Time philosophy, unnecessary expenses include:

overproduction;

waiting time;

unnecessary transportation;

storage of inventories;

defects and waste;

ineffective work practices;

product defects.

The presence of such discretionary expenses indicates an opportunity for improvement, or the list of discretionary expenses identifies potential targets for continuous improvement.

Advantages of just-in-time systems.

“Just-in-time” systems have a number of important advantages that attract the attention of companies with a traditional approach to production. The main advantages are:

• - reduced level of inventories in the production process (work in progress), purchases and finished goods.
• - smaller requirements for the size of production areas.
• - improving the quality of products, reducing defects and rework.
• - reduction of production time.
• - greater flexibility when changing the range of products.
• - smoother flow of production with very rare failures caused by quality problems, shorter preparation times for the production process; multi-skilled workers who can help or replace each other.
• - increased levels of productivity and equipment utilization.
• - participation of workers in solving problems.
• - the need for good relationships with suppliers.
• - less need for non-production work, such as storing and moving materials.

Currently, the system is used by the largest Japanese, American and European enterprises in various industries. The system is based on the principle: produce products only when they are needed in less quantity than what is required. The just-in-time method is based on the logistics concept - “nothing will be produced until it is needed.” Refusal to produce products in large quantities. Supply of production is carried out in small batches in accordance with need, as a result of which a reduction in the level of inventory inventories is achieved.

The use of this technique allows the enterprise to get rid of unnecessary costs by reducing unproductive expenses, which consist, in particular, of the production of excess products, downtime of equipment and personnel, maintenance of excess warehouse space, and losses associated with the presence of product defects. At the same time, demand accompanies products throughout the entire production volume. Inventories are delivered at the time they are used in the production process. Part of the indirect costs is transferred to the category of direct ones. The main emphasis is on the quality, availability and overall cost of products, and not on the level of purchase prices. The term just-in-time (JIT) is used to refer to industrial systems in which the movement of products during production and deliveries from suppliers are carefully planned in time - so that at each stage of the process the following usually small, the batch arrives for processing exactly when the previous batch is completed. Hence the name just-in-time (just in time, only on time). The result is a system in which there are no passive units waiting to be processed, or idle workers or equipment waiting for items to be processed.

The just-in-time (JIT) phenomenon is characteristic of manufacturing systems that operate with very little "fat" (eg, excess inventory, excess labor, excess production space). JIT refers to the timing of movement through a system of parts and materials, as well as services. Companies that use a JIT approach usually have a significant advantage over their competitors who use a more traditional approach. They have lower production costs, fewer defects, greater flexibility, and the ability to quickly bring new or improved products to market. In this publication, we will look at the just-in-time (JIT) system, including its main elements and the factors that are required for effective operation.

Implementation problems.

• - High initial investment and implementation costs Just in time.
• - Inability to cope with unforeseen circumstances (breakdowns, strikes of supply workers, etc.);
• - Dependence on high quality materials supplied. · Need to operate in a stable production environment, although demand often fluctuates.
• - Reduced flexibility in meeting changing consumer demands.
• - Difficulty in reducing changeover time and associated costs.
• - Inability of individual suppliers to work in Just in time mode.
• - Problems of linking Just in time to other information systems of partners.
• - The need to change the general layout of structures.
• - Work of employees in an environment of increased stress.
• - Lack of spirit of cooperation and trust between employees.
• - Inability of individual employees to take on greater responsibility.

The concept of effective response to consumer requests. Just in time forces suppliers to change the way they work to ensure faster deliveries, higher quality, smaller batch sizes and absolute reliability. An obvious way to meet these demands is for suppliers themselves to adopt Just in time methods. This ensures that the entire LC operates in a coordinated manner based on the same goals and principles. Necessary conditions for the implementation of the just-in-time concept. Availability of reliable suppliers in the economic system. For example, American and European manufacturers were able to introduce this concept 10-15 years later than the Japanese due to low supply reliability.

Partnership relationships between organizations in the supply chain. Use of systems for exchanging information about the required MR, for example, Kanban for Just in time and electronic data interchange for ECR. High speed of physical delivery of MR, including by reducing the time of intermediate storage and waiting for cargo processing. Accurate information about the current state of production, accurate forecasts for the near future. To achieve this, reliable telecommunication systems and information and computer support must be used in the organization and operational management of production processes. One of the most widely used logistics concepts/technologies in the world is the JIT concept. The emergence of this concept dates back to the late 1950s, when the Japanese company Toyota Motors, and then other Japanese automakers, began to actively implement the KANBAN system. The original slogan of the JIT concept was the elimination of potential stocks of materials, components and semi-finished products in the production process of assembling cars and their main units.

The original task looked like this: if a production schedule is given, then it is necessary to organize the movement of material flows so that all materials, components and semi-finished products arrive in the right quantity, to the right place (on the assembly line) and exactly on time for the production or assembly of finished products. With this formulation of the problem, large safety stocks, freezing the company's funds, turned out to be unnecessary. The ELA Terminology Dictionary defines JIT as a concept and as a technology: “Broadly speaking, it is an approach to achieving success based on the consistent elimination of waste (waste is defined as any activity that does not add value to the product). In a narrow sense, it is the delivery of materials at the right time to the right place.”

Conceptually, the JIT approach served as the basis for the subsequent implementation of such logistics concepts/technologies as Lean Production (“flat” or “thin” production) and Value added logistics. From a logistics perspective, JIT is a fairly simple binary inventory management logic without any restriction on the minimum inventory requirement, according to which material flows are carefully synchronized with the demand specified by the production schedule for the release of finished products. Such synchronization is nothing more than the coordination of two functional areas of logistics: supply and production support. Subsequently, the JIT ideology was successfully promoted into product distribution, and now into macro-logistics systems of various levels and purposes.

The main advantages of just-in-time technologies, which explain their widespread use in logistics practice, are:

Low inventory levels.

Reduction of production space.

Improving product quality, reducing defects and rework.

Reduced production time.

Increased flexibility when changing product ranges.

Smooth flow of production with rare failures caused by quality problems; shorter preparation times for the production process; multi-skilled workers who can help or replace each other.

High productivity and efficient use of equipment.

Participation of workers in solving production problems.

Good relationships with suppliers.

Less non-production work, such as warehousing and moving materials.

JIT is a modern concept/technology for constructing medicines as a whole or organizing the logistics process in a separate functional area of ​​business: production, supply and distribution, based on the synchronization of the delivery processes of MR, GP, GP in the required quantities by the time the medicine elements/links are in they are needed in order to minimize the costs associated with safety stocks. The JIT concept is closely related to functional logistics cycles and their components. Ideally, MR, IR or GP should be delivered to a certain point in the supply chain (channel) exactly at the moment when they are needed (not earlier and not later), which eliminates excess inventory in the functional areas of the company's business. Many modern drugs based on the JIT approach are focused on short components of logistics cycles, which requires a quick response of the plant to changes in demand and, accordingly, a flexible production program.

The JIT logistics concept is characterized by the following main features:

minimum (zero) guarantee/insurance stocks of MR, NP, GP;

short production (logistics) cycles;

small volumes of GP production and replenishment of stocks (supplies);

relationships (for MR procurement) with a small number of reliable suppliers and carriers;

effective information support.

“just in time”, “just-in-time” (JIT), pull system, pull system– complete synchronization of supplies with the production and sales processes: inventories are supplied in small batches directly to the required points of the production process, bypassing the warehouse, and finished products are immediately shipped to customers. The order of product production management is reverse: from the i-th stage to the (i – 1)-th.

Currently, there is a clear trend toward increasing inventory storage costs, which has become the reason for the development of “instant” inventory management systems, which include the “just-in-time” system under consideration.

According to the just-in-time system, the order for finished goods is submitted to the last stage of the production process, where the required volume of work in progress is calculated, which should come from the penultimate stage. Similarly, from the penultimate stage there is a request for the previous stage of production for a certain number of semi-finished products. Thus, between each two adjacent stages of the production process there is a double connection:

• from the i-th stage to the (i – 1)-th stage, the required amount of work in progress is requested (“pulled”);
• From the (i – 1) stage, material resources in the required quantity are sent to the i-th stage.

In addition, material resources from the external environment are supplied in small batches directly to the required points in the production process, and finished products are immediately shipped to customers. Thus, in a just-in-time system, there are no inventories as such at all, which makes it possible to abandon the creation of a warehouse system. There are also no insurance or seasonal stocks.

In order to avoid delays in the supply of inventory and sales of own-produced products, purchasing/sales relationships are established with a small number of reliable, trusted suppliers, carriers, and buyers.

The main advantages of the just-in-time system:

• short production cycle, high asset turnover, including inventories;
• there are no or extremely low storage costs for production and inventory.

The main disadvantages of the just-in-time system are:

• the difficulty of ensuring high consistency between product production stages;
• significant risk of disruption to production and sales of products.

Publications

Functional management. Fragment from the book “Theory of System Management”
The operational production management system “just-in-time” and its variant CANBAN are considered as the main directions for the efficiency of production activities of an enterprise in general and inventory management in particular. The concept and basic principles of inventory management, the structure and functions of the enterprise's logistics service are also discussed. Methods for calculating the need for material resources are provided.

Komaha A. Inventory management
The inventory management experience of Toyota and Kmart companies is reviewed: just-in-time system, statistical process control, total quality management, business process reengineering, total money management, optimal order size model, inventory valuation and accounting.

Just-in-time inventory replenishment (JIT) system
The philosophy of the concept, key elements, advantages of the “just-in-time” system and the main errors in its application are considered.

1. General principles of building a “just in time” system.

2. “Push” and “pull” production management systems.

3. Factors of efficiency of a just-in-time system.

4. Kanban information system.

5. Concept comparisonMRP IIand just-in-time management systems.

1. General principles of building a “just-in-time” system

The theory of inventory management cannot be considered only in a narrow sense, as a set of methods that allow optimizing the level of inventory in warehouses. In a broad interpretation, these are methods of operational management of the production process through inventory management in in-plant warehouses. The "pull" procedure is the basis of one of the world's leading concepts of operational management of "just in time" production. JIT (JustinTime) . Some elements of this approach were also used by G. Ford during modernization at the beginning of the 20th century. Your own conveyor lines. They were then used in the early 1930s. in Japanese industry. This approach was fully applied in the 1970s. during the development and implementation of the production management system of the Japanese automobile concern Toyota.

SystemJITdefined as a system for producing required product components in required quantities exactly at the time they are needed, rather than in advance.

Typically, in operating systems, safety stocks are created to counteract frequently occurring disturbances (for example, unexpected increases in demand, equipment breakdowns, increased operational times, disruptions in the supply of materials and raw materials, etc.). This ensures the “safety” of the process, but at the same time the continuity of flows is disrupted and the duration of the production cycle increases. The developers of the JIT system argue that safety stocks serve to hide real problems, while the purpose of JIT is to identify and eliminate these problems. In a JIT system, inventory is minimized and work is not performed until it is needed. Product components are not manufactured until they are needed by a department downstream in the production process. In general, this system, like any externally oriented system, is driven by demand. When the aggregate consumer “commands” an enterprise by purchasing its products, this information flows backwards toward the flow of materials in the production system, driving every step of the production process, as well as the purchasing process. This management strategy is defined as “pull” as opposed to the commonly used “push”, in which work in a department begins when materials (workpieces) arrive there and there is free production capacity.

2. “Push” and “pull” production management systems

When organizing the movement of material flow, two approaches can be distinguished:

Systems in which the movement of material flow is based on the principle of “pushing” material resources from the previous production link to the next one along the entire path of their advancement in the supply chain;

Systems in which the movement of material flow is based on the principle of “pulling” material resources.

Both types of systems are widely used in various enterprises.

The difference between the systems concerns the methods of managing the movement of flows and, first of all, the degree of centralization of supply planning for inter-unit transmissions.

"Push" system with central planning assumes that each department receives specific tasks for the planning period and reports on their implementation to the central authorities of the enterprise. With such planning, both the division and the central planning authorities are interested only in the timing and volume of the planned task. Each individual division with this type of planning exists, as it were, in isolation. When changes occur, such as demand or supply, plans must be quickly revised, which dramatically increases the labor intensity of planned work. In domestic practice, this type of planning was the only one; in a market economy, it is used at procurement enterprises and enterprises producing standardized products for general purposes.

Pull system with decentralized planning involves only enlarged centralized planning in the medium term (from one to three months) and the allocation of resources (working reserves) on its basis to all stages and processes of production. In real time, the central planning authority controls only the process of releasing finished products in accordance with demand, forming a schedule for the assembly of finished products. The main assembly line, in accordance with the assembly schedule, selects the necessary semi-finished products from the nearest intermediate warehouses. Semi-finished products withdrawn from the warehouse are replenished by workshops ─ suppliers of semi-finished products. The process is carried out in the direction opposite to the movement of the material flow. (the progress of the technological process).

The “push” system is focused primarily on relatively constant demand over a fairly long period of time. Therefore, it can use constant values ​​of the production rhythm as the basis for all planned calculations.

The “pull” type system considers periods from one to three months as a planning period for determining average working reserves. Operational control in these systems is carried out over a significantly shorter planning horizon (up to several hours). Therefore, the rhythm values ​​in this system are variable and are of a nature subordinate to the standard level of reserves (reserves).

During the research, the main goals and objectives of the system, principles and advantages, as well as features of organizing work under the Just-in-Time system were considered. The experience of implementing the JIT concept in Russia is presented. The main directions for improving the Just-in-Time concept at domestic enterprises are considered.

logistics

costs

competitiveness

logistics concept

manufacturing process

1. Burakov V.I. Prospects for the development of logistics technologies in production, commercial and foreign economic activities // Electronic scientific journal “Izvestia” of the Irkutsk State Economic Academy. No. 3. 2012.

2. Logistics: textbook / Ed. B.A. Anikina. – M.: INFRA-M, 1999. – 327 p.

3. Rogozhina N.V. The use of logistics systems in industrial enterprises // Problems of modern economics: Eurasian International Scientific and Analytical Journal [Electronic resource]. – Access mode: http://www.m-economy.ru/art.php?nArtId=2040.

4. Sergeev V.I. Corporate logistics. 300 answers to questions from professionals - M.: INFRA-M, 2005. - 976 p.

5. Encyclopedia of Production Management [Electronic resource]. – access mode: http://www.up-pro.ru/encyclopedia/just-in-time.html.

The purpose of the work is to study the JIT production system, as well as to assess its possibility of application at Russian enterprises.

Today in Russia there is a fairly high level of logistics costs for placing orders, supplying products, warehousing, and external transportation. These indicators significantly reduce the efficiency of trade and production, and they also negatively affect the competitiveness of companies and the country as a whole.

The main task for a manager when such problems arise is to determine exactly the logistics concept that would help to competently get out of such situations.

One of these concepts used all over the world, as well as in Russia, is Just-in-time technology.

The relevance of the application of the just-in-time concept in Russia is the reduction of large inventories and costs in the production sector.

The concept of "just in time" is the concept of "pull" systems. JIT is a technology for building an organization of the logistics process, providing a sufficient supply of material resources for work in progress, as well as finished products in the required quantity, exactly at the appointed time and place.

The application of the just-in-time concept allows the organization to improve relationships with customers, increase the volume of product sales, stabilize the market position, improve financial condition, and also increase competitiveness.

The JIT system's main goal is to rid the enterprise of any unnecessary costs, effectively use the enterprise's production potential, and ensure a high level of product quality and reliability.

The essence of the JIT concept is that the enterprise creates continuous-flow object production.

Currently, many domestic enterprises are trying to introduce and put this concept into practice in order to avoid rapid growth of costs.

One of such companies that is already using the “Just in time” system is the KAMAZ corporation. The company’s first step in this direction was: “Optimization of warehouse and transport transportation through the use of interchangeable bodies.” The use of this approach made it possible to speed up domestic transportation by 5-6 times.

Another important major project for the implementation of the “just-in-time” system in our country is the organization of delivery of rolled products from Magnitogorsk using traction arms - the “Kamateiner” transportation system. This technology made transportation ten times faster, while it managed to reduce costs several times.

For managers, when applying this concept, the goal is to obtain an economic effect, but for this, the enterprise should adhere to such principles as:

1. Produce products only when there is demand for it.

2. When carrying out each operation in the production process, you should produce only what is required in the subsequent stage of production.

3. During the production process, materials are delivered exclusively at the time of their use.

So, many companies use the above principles in domestic production, for example, Master-SNAB - a leading supplier of industrial equipment, EURO-SIB-Logistics - supply of automotive complexes and large-diameter pipes, as well as OJSC Severstal, which since May 2003 began to supply material flow to Caterpillar Tosno LLC based on JIT principles.

Some Just-in-time principles are applied when hiring staff. This method is effective for businesses that hire temporary workers exactly when they are needed, rather than maintaining a large staff of permanent workers. An example of such a situation is a seasonal increase in the volume of work. The use of the just-in-time concept in such situations significantly saves enterprise resources.

It can also be said that the JIT concept provides advantages for its implementation in production. These advantages include: cost reduction, reduction in order processing time, faster provision of materials, long-term planning.

Examples of Russian companies that experienced a positive effect during the initial implementation of the JIT system:

1. The chain of self-service stores in Moscow “ABK” supplied goods using the JIT system. In turn, this made it possible to significantly increase the volume of retail space and avoid an oversupply of goods.

2. The Ulyanovsk plant, when introducing the JIT system into production, increased time savings to 20%.

3. Ural Machine-Building Plant, which modernized production using the “JIT” system. Labor productivity has increased and the quality of machines has improved significantly.

4. Pavlovsk bus plant, with the implementation of this system, increased sales volumes by 40% during the year

5. JSC "Zavolzhsky Motor Plant" improved the quality of its products and increased productivity.

It should also be said that with the help of the just-in-time concept, the elimination of work in progress and the fulfillment of production orders by days or hours are completely achieved.

Just-in-time is being implemented and applied in Russia in the construction, transport, and market sectors. Thus, the Russian-Czech construction company U-Group, using the JIT system, offers its services in the construction and design of facilities using prefabricated steel structures. Also, the use of JIT in our country was stimulated by the introduction of modern information technologies in the field of road transport, since it is more suitable for delivering goods “directly from wheels from door to door” in accordance with the “just in time” concept. For example, one of such companies is the TransLogistic-Moscow company. Its hardware and software complex is built according to JIT technology and provisions and is a set of circuits that are responsible for the activities of a motor transport enterprise. These circuits include:

The “TL-Route” circuit allows you to implement all the standard capabilities of the Miler/Europe RS complex for calculating routes and a number of its own functions (for example, for indicating your warehouses, which can be included in the calculated routes).

The TL-Map contour allows you to view the calculated route on the map, as well as view the calculated parameters for each stopping point specified by the user.

The “TL-Planning” circuit allows you to build an optimal route, as well as construct a temporary schedule for the movement of a road train, and conduct an economic assessment of the upcoming transportation.

The “TL-Way List” circuit allows you to quickly prepare a standardized route.

“TL-Normative route” processing of standardized route calculations.

Thus, the JIT concept aims to synchronize work and ensure strict discipline in contractual relationships. The introduction of the JIT concept to domestic enterprises helps them reduce order fulfillment time; reduce capital costs for maintaining warehouse space for inventories, this leads to a reduction in the risk of inventory obsolescence; reduce the volume of documentation, as well as reduce losses from defects and reduce the costs of sending products to the workshop for processing.

Practice shows that for the effective implementation of the Just-in-Time strategy, it is necessary to change the way of thinking of the entire team involved in production and sales issues. The traditional “bigger is better” mentality must be replaced by “less is better” thinking when it comes to inventory levels, capacity utilization, production cycle expectations, or product lot sizes. Let's hope that such a system of organizing production will be more widely used at Russian enterprises and will give a new impetus to increasing the competitiveness of domestic enterprises.

Bibliographic link

The just-in-time (or Kanban) approach was developed by the Japanese automobile company Toyota. Its author was Taiishi Ohno (who eventually became the company's vice president of production) and several of his colleagues.

Just-in-time (just-in-time) is a system of supplying goods that allows a company to get rid of large inventories. When using a just-in-time delivery system, a special schedule is created that indicates when and how many goods will be delivered. Moreover, deliveries are often made daily. Obviously, the main advantage of such a system is its flexibility and the ability to reduce warehouse costs. The ultimate goal is to have a balanced system with a smooth and fast flow of materials through the system. An interesting example illustrating the essence of just-in-time work is the operation of a gas stove using bottled gas and gas supplied through a pipeline. In the first case, sometimes there is a discrepancy between the availability of fuel in the cylinder and the need for it. To eliminate interruptions, you need to purchase gas cylinders in advance, i.e. create a stock. In the second case, gas supply exactly matches demand, and the consumer does not have any fuel reserves.

In Fig. 1 shows a diagram of the traditional organization of production, and Fig. 2 -- diagram of production organization using the "just in time" method. The traditional planning system operates on the principle of “pushing” a predetermined batch of parts or assemblies into subsequent operations, without taking into account whether they are actually needed there in such quantities and at a given time. The just-in-time system is built on the exact opposite principle.

Product order

components

materials

Fig.1 Scheme of traditional production organization

order for materials order for components order for products

Fig.2 Organizational scheme using the “just-in-time” method

The rhythm of work, the volume and range of parts and assemblies in production are determined not by the procurement link (the first link of the production chain), but by the general assembly line (the last link of the production chain). “Input” and “output” in the system seem to change places. If in the traditional scheme the “output” is only what was included in the “input”, then in Kanban only what is required at the “output” is “included” in production. Requests for “input” are received from the general assembly lines throughout the entire technological chain.

In practice, this means that products are manufactured just in time for sale: finished cars - by the time of sale, components and assemblies - by the time of assembling the finished product, individual parts - by the time of assembly of units, materials - by the time of manufacturing parts .

If the just-in-time system operates throughout the company, then inventory of materials becomes unnecessary. They may be completely liquidated, resulting in the liquidation of inventory and storage facilities. From an economic point of view, inventories of materials play the role of carriers of costs, “frozen money”. The costs of maintaining inventories are reduced, and consequently, the volume of production costs is reduced. As a result, capital turnover increases.

A certain problem immediately arises. It is quite difficult to organize a supply system that will work without failures. After all, it turns out that when using just-in-time deliveries, the company begins to depend on its supplier. In case of any unexpected problems on his side, the company will also suffer. It may even be necessary to temporarily suspend production or sales of products. Finally, rising transportation costs may result in Just-in-time being an ineffective system for a particular application.

It is quite possible that it will be more profitable to store goods in a warehouse than to constantly deliver them. For example, the Euro Trade Rus company does not use a just-in-time system. The company is engaged in the wholesale sale of bathroom accessories, which in turn are produced in China. But to place an order for production, it must meet a minimum volume. That is, in order to order soap dishes, the order volume must be equal to a minimum of 29 cubes and at least 432 pieces of each soap dish color must be ordered. Only then will the production of the order be economically justified, and its delivery economically profitable, otherwise logistics costs will turn this business into an unprofitable one.

The Euro Trade Rus company works with retail chains and is their supplier. And retail chains, in order to reduce inventory storage costs, place orders every week as the product leaves the shelf, with a strictly fixed delivery date and time. As a result, the minimum order in monetary terms can be 20,000 rubles. In addition, there is a very large time gap between the order to the manufacturer and its actual delivery to the warehouse - 3.5 months, and there are frequent cases of delays in delivery times of up to 4.5 months. It is obvious that in this case, under all given conditions, it is not possible to work according to the JIT system. To do this, it is necessary to rebuild the entire organizational system. Therefore, for the Euro Trade Rus company, it is more profitable to store goods in a warehouse than to regularly deliver them in small quantities.

So, today Just-in-time (JIT) is used not only in production, where the technology was introduced, but also in retail. Moreover, even a small business can easily use this system. True, not always and not everywhere. Everything here is very individual. You always need to calculate whether it is profitable for the company to use such a supply system, or whether it is better to continue storing inventory. For example, in Russia, just-in-time deliveries have many problems, since, according to statistics, our suppliers are far from being so obligatory.

Dell's success story is probably the most famous and often cited when it comes to the concept of just-in-time delivery.

The Dell company at one time managed to rise largely due to the competent organization of the just-in-time system. At the beginning of his journey, Michael Dell decided to rely on direct sales, which allowed him to significantly reduce the company's costs. While thousands of components were gathering dust in the warehouses of other computer manufacturers, Dell organized a system that made it possible to have only the necessary goods in stock. Assembly of the computer began only after it was ordered. As a result, Dell sold the computer cheaper than its competitors and was able to update its line of components much faster. For comparison, Dell began installing the Pentium 4 processor in its computers 85 days before HP came to this. There just wasn't such an abundance of unsold P3s in the company's warehouses.

Another example can be given: the famous American motorcycle company Harley-Davidson, in the 1970s, faced increased competition with Japanese companies: Honda, Yamaha, Suzuki and Kawasaki. Most previously stable companies in this industry have gone bankrupt. The four Japanese companies could supply their motorcycles almost anywhere in the world with higher quality and lower prices than their competitors. In 1978, Harley-Davidson tried to prove in court that Japanese companies were selling motorcycles at dumping prices, i.e. below their cost. But during court hearings it turned out that the operating costs of Japanese companies are 30% lower than those of Harley-Davidson. One of the main reasons for this state of affairs was their use of the JIT operating mode. Therefore, in 1982, Harley-Davidson began developing and implementing a materials-as-needed program, similar to JIT. The company struggled at first, but over the course of 5 years, it had reduced setup time by 75%, reduced warranty and waste costs by 60%, and reduced work-in-process inventories by $22 million. During the same period, the company's productivity increased by 30% and the company is now doing well in the market.

Some organizations that have implemented JIT have seen inventory reductions of up to 90%; areas where work is performed - up to 40%; supply costs - up to 15%, etc. The benefits of JIT include:

Reducing inventories of materials and work in progress;

Reduced inventory lead time;

Reducing production time;

Productivity increase;

Use of equipment with higher load;

Reducing waste volume;

More responsible attitude of employees to work;

Improving relationships with suppliers;

Developing the habit of constructively solving problems that arise during work.

Table 1

Calculation of the effect of purchasing goods from a remote supplier (in city R)

purchase consumer goods distribution buyer

Shipping costs:

1. Tariff -400 RUR/cub.m.

2. The annual interest rate for a loan taken out to pay for goods is 10%, travel time is 15 days.

13000 * 0.10 * (15: 365) = 546 RUR/cub.m.

3. Additional costs for freight forwarding 200 RUR/cub.m.

4. Additional costs for cargo insurance 1.1%

1.1 * 13000: 100 = 143 rubles.

5. Costs for cargo delivery: 400+546+200+143=1289

6. 1000-1289=289

As a result of calculations, the purchase of goods can be recommended from a supplier in city N, because costs are less than in the city of R, by 289 RUB/cubic.

Find a location for the distribution warehouse of a retail chain that allows minimizing the transport work of delivering goods to the stores served.

table 2

Coordinates of stores (consumers of material flow)

The cost of delivering goods from warehouses to stores is one of the main factors influencing the choice of location for a distribution warehouse. These costs can be minimized by locating a warehouse in the vicinity of the center of gravity of cargo flows.

The coordinates of the center of gravity of cargo flows are determined by the formulas:

where Г i is the cargo turnover of the i-th consumer;

X i, Y i - coordinates of the i-th consumer.

Placing a distribution warehouse in the vicinity of the found center of gravity of cargo flows will minimize the costs of delivering goods from the warehouse to the stores served.

Coordinates of the center of gravity of cargo flows (X warehouse, Y warehouse), i.e. The point at which a distribution warehouse can be located is determined by the formulas:

In Figure 3, point C (7;9) is the location of the distribution warehouse.

Fig.3.

Answer: The center of gravity of cargo flows will be in the following coordinates: Y - 9, X - 7.