What is the difference between overproduction and just-in-time production?

It is the worst form of waste. 1. This gives a clear indication of processes not in place. 2. The excess of capacity , labor , etc… in current environment of market. 3. Cash gets blocked leads to obsolescence to bankruptcy How to counter A. Process in place to understand demand and market environment B. Work on OAE and OEE to overcome excess capacity and reduce the capacity C . Make process as much as flex option to ramp up the capacity in case of demand increase for short term. D. Regular review process of inventory particularly for excess and obsolescence. E. Look for new business to book capacity to an extent of diversification if required based on business model

Over the years I have seen overproduction has always been as a result of improper planning and often it results in fatal consequences. Manufacturing units may overproduce at certain periods to manage line overhauls/ maintenance works, however if planned properly and with proper preventative maintenance plan such incidences can be easily avoided. Organisations having a proper S&OP processes with reasonable forecast accuracy can take more pragmatic approach. Planning for an upcoming peak season where the sales volumes dramatically spikes should start straight after the last season. Overproduction has always hidden costs associated with it like aging and expiry, quality issues, inventory and working capital hold up!

Produzir quando necessário e na quantidade necessária esse é o desafio. Os ciclos de produ??o, as diferentes capacidades da cadeia produtiva, os ajustes de demanda do mercado s?o algumas das variáveis que devem ser observadas para determinar quando e quanto produzir. Produzir mais ou menos ou fora do momento adequado levará invariavelmente a desperdícios! Ferramentas como o VSM e softwares para gerenciamento inteligente do fluxo de produ??o podem ajudar bastante a entender as necessidades de cada etapa da cadeia e a minimizar estes desperdícios.

Contrary to its conventional portrayal as the arch-nemesis of efficiency, overproduction, when strategically harnessed, can become a potent tool. Trick is to understand where the fine line gets crossed! It offers a buffer against unexpected surges in demand, acting as a safety net in volatile markets. This contrarian perspective challenges the absolute vilification of overproduction, prompting a nuanced consideration of its potential strategic merits within a carefully calibrated operational strategy. Balancing this delicate equation requires not its outright dismissal but a thoughtful integration, acknowledging its potential benefits while guarding against its inherent pitfalls.

Motivation to overproduce comes from measuring productivity at sub process levels in absence of pull from customer demand. Batch production behaviours aren't given up for the same reason. When productivity performance is rewarded, these behaviours are further motivated. These behaviours to overproduce and be rewarded are due to push production systems driven by ERP/MRP architecture, based on minimizing setup changes by clubbing customer orders without regard to customer due date. This "batching" phenomenon has been deeply embedded in ERP/MRP systems since their very inception. Pull systems have to work around an ERP/MRP architecture by developing LEAN DAILY MANAGEMENT systems that incorpate Heijunka as the capacity planner based on demand

In my experience it’s always good to have just in time production since it’s fulfill the supply and demand chain. If it’s over production then you are building more inventory if not sold in time that wastage of your resource. In just in time production hold the key for your operation planning and execution to achieve your target in time

Just-in-time production is ideal state of flow for ideal conditions, i.e. where no disruptions (a.k.a Murphy) exist. But in real life most of production environments are not so ideal, therefore just-in-time production can become the reason for flow disruption. Anyone implementing JIT should understand all the logic behind flow management and not just blindly force JIT onto system.

For JIT manufacturing companies must have steady production, high-quality workmanship, glitch-free plant machinery, and reliable suppliers. The JIT inventory system contrasts with just-in-case strategies, where producers hold sufficient inventories to have enough products to absorb maximum market demand. Complete plant efficiency, best quality control system, effective traceability, excellent supply chain system aligned to organizations minute to minute need is at the core of JIT manufacturing. Just in time requires careful planning to produce what customer wants in quantities required at the right time with right quality. The process is geared up for meeting customer demand with the usage of superior software till delivery.

je ne reviens pas sur les apports du Lean Manufacturing qui sont bien réels, par contre les "slogans" ou les "projets Power Point " sans réelles études détaillés conduisent souvent à des résultats mitigées voire à des ruptures industrielles. J'ai du effectuer 11 missions en gestion de crise industrielle ces 5 dernières, 9 furent générées par le bin?me Lean Manufacturing / Juste à temps. La supply chain n'est pas un terme marketing, c'est une réalité.

JIT is an ideal state that requires precise strategies of control for internal processes and for the exogenous variables, which are the most difficult to control.

There are multiple benefits of Just in time production system. Produce what a customer want in right quantity and quality to make most cost-efficient production. JIT prevents over production. JIT helps continuous quality improvement, Waste Elimination, Improve productivity, Improve supplier relationships, improve storage space used. Reduce costs associated with storage. Reduce Manufacturing time, Minimises wastage of production time, material cost, inventory cost, and cost of all resources by streamlining production systems. JIT processes focus on producing exactly the amount you need at exactly the time your customers need it.

O grande benefício do just-in-time é conduzir a opera??o a processar aquilo que é necessário no momento certo para o cliente, ou seja, permitindo a entrega de valor na hora certa, sem desperdícios. Outras consequências decorrentes deste benefício podem ser atingidas, como a redu??o dos estoques, de problemas de qualidade ou da espera, porém a quest?o fundamental é adequar o fluxo de provis?o (produ??o de materiais ou informa??es) ao fluxo de consumo (necessidade do cliente).

Just in time is really good as you provide to the customer what they want, when they want and in the correct quantity. The most common pitfall is when your suppliers cannot keep up with the demands and you shorter your customer because of that. Or when you have only a very limited numbers of suppliers for the same product. This limits your ability to adapt fast enough to keep up with customer orders. Just-in-time is not the "best" solution and does not apply to all environments.

JIT emphasizes on minimizing inventory levels, reducing lead times, and synchronizing production with customer demand. It has lower holding costs, reduced waste, improved efficiency, and increased responsiveness to changes in customer demand.

1- Reduced Inventory Costs: JIT minimizes excess inventory, lowering holding costs and freeing up capital. 2- Improved Efficiency: Aligning production with actual demand reduces lead times, eliminates bottlenecks, and enhances overall efficiency. 3- Waste Reduction: JIT eliminates overproduction and excess inventory, contributing to cost savings and environmental sustainability. 4- Shorter Lead Times: JIT minimizes delays, enabling faster response to customer orders and reducing time-to-market. 6- Continuous Improvement Culture: JIT fosters a culture of continuous improvement, driving ongoing refinement of processes and elimination of inefficiencies.

?????? ???????? ???? ???????? ???? ????????? 5 minutes, 1 hour, 1 day? Just-in-time needs a standard related to the cyle times to be meaningful. ???????? ?????? ?????? ?????????? ???? '????????-??????-????????'? One just-too-late can wipe out the benefits of months of just-in-time. ???????? ?????? ?????? ?????????? ???? ??????????????????????????????? Extra deliveries, extra runs, additional costs to meet SLA. ???????? ???? ?????? ?????????? ?????????? ????????? How much can you save on production costs by optimizing batch sizes? ?????????? ?????? ??????????-????????. ????????????. ?? ???????? ???????????????????????? ?????????? ???? ?????????????? ???????? ???? ???????????????????? ?????? ??????????-???????? ?????? ????????????????????.

Just-in-time (JIT) is a production strategy in which a company only produces an item after a buyer has made an order, therefore keeping inventories low. While this streamlined approach can cut down on costs and increase efficiency during business-as-usual, it is susceptible to both supply and demand shocks. When global supply chains are disrupted for one reason or another, JIT production can leave factories unable to meet demand and worsen an economic downturn. Supply shocks, demand shocks, large orders, High Cost of Technology, Strict Delivery Schedules, High Level of Quality Control, very tight inventory control, machine breakdown, labour shortages are all critical challenges for JIT production.

One challenge of implementing Just in Time (JIT) in manufacturing is the increased vulnerability to supply chain disruptions. Since JIT relies on precise timing and minimal inventory, any delays or disruptions in the supply chain can quickly lead to production interruptions. This makes the system sensitive to factors like transportation delays, supplier issues, or unexpected demand fluctuations, requiring robust risk management strategies to mitigate potential disruptions.

JIT production and the objective to operate with virtually zero inventory should not be conflated with not having buffer. The most common interpretation was to get rid of inventory as a measure of effectiveness: this leads to weak and brittle chains overall; I advocate for having strong manufacturing capabilities, through application of JIT to (in some cases) replenish and keep buffer stable

It looks that so often the term of Just-In-Time is used without the clear definition and context. JIT might look quite different in a stable production environment compared to less stable one. If your plant is a part of some big and powefull suupply chain (like in automotive industry) most probably you will have a high level of stability and then you can go for really low inventory. If you are a small or mid sized plant compeeting in an open market you will not always know what’s behind the corner. And then very low inventory may turn to be a serious risk factor. Praying blindly to any concept (Lean included) is never a good idea.

Just a will to have Just in Time makes mentioned tool to get implemented. Have facility designed for Just In Time production with single piece flow. 5S, Visual factory, waste reduction / elimination and shop floor management will automatically be implemented.

O grande passo para implementar a produ??o just-in-time é entender o ritmo de demanda real do cliente (takt time) para ent?o adequar todo o fluxo de produ??o a este tempo. O takt time é Tempo disponível para a produ??o dividido pela demanda do cliente. Por exemplo, se uma fábrica opera 480 minutos por dia, e a demanda do cliente é de 240 unidades diárias, o tempo takt é de dois minutos. Do mesmo modo, se os clientes desejam dois novos produtos por mês, o tempo takt é de duas semanas. O objetivo do tempo takt é promover o just-in-time para alinhar a produ??o à demanda, com precis?o, fornecendo um ritmo ao sistema de produ??o. é a batida do cora??o de um sistema lean.

A just-in-time production system is simply a set of tools and techniques that allows managers to keep track of their production inventory as well as the tasks in their manufacturing process so they can understand exactly when raw materials are needed. Implement just-in-time manufacturing system by using kanban boards and other project management tools. Kanban boards let you map out tasks, limit work in progress, attach material requirement planning information and create workflows.? JIT implementation needs creating accurate Demand Forecasts, capacity planning to meet production demand, effective capacity utilisation. Eliminate all types of waste that does not add value to customers. Create robust supply chain, & transportation system.

Develop reliable relationships with suppliers to ensure timely deliveries. Invest in accurate demand forecasting to align production with actual needs. Implement a pull system, where production is initiated based on customer demand, reducing the risk of overproduction. Train and empower employees to identify and address issues promptly, fostering a culture of continuous improvement. Regularly assess and refine processes to adapt to changing market conditions. JIT requires a commitment to quality control, so implement stringent measures to detect and rectify defects swiftly. Overall, a well-coordinated effort, from supply chain to production, is essential for the successful implementation of JIT.

first of all , the fisrt subject is to secure and adjust the supply chain - may be the biggest chalange ! Second is organize the production line and produciton planning in the organizantion.

"Overproduction" involves manufacturing more goods than can be immediately sold or used, leading to excess inventory. "Just in time" production, on the other hand, focuses on producing goods only as they are needed, minimizing inventory and reducing waste. It aims to synchronize production with demand to optimize efficiency and resource utilization.

Mostly overproduction is the function of poor planning and supply chain. Based on the demand and market, operation leaders need to decide which product need JIT stratrgy or in stock products Invest in accurate demand forecasting to better understand customer needs and preferences. By analyzing historical data, market trends, and customer feedback, you can make more informed production decisions and avoid producing goods that exceed actual demand. WIP limits:Establish clear WIP limits for each stage of your production process. By setting limits on the amount of work that can be in progress at any given time, you can prevent overproduction and ensure that resources are allocated efficiently. Visual factory: Live linked dashboards helps a lot

In summary, overproduction results in excess inventory and associated costs, JIT production focuses on producing goods just in time to meet actual customer demand, minimizing waste and enhancing overall production efficiency. JIT requires a more responsive and flexible production system, often involving close collaboration with suppliers and a well-coordinated production process.

The thing missing in the JIT discussion is the word: 'BALANCE'. There is a misconception about JIT that everything arrives that day, it doesn't. For example, a truck load of raw material arrives 2-3 weeks early to the nearby warehouse. A fixed amount is shipped to the manufacturing facility for every shift. 95% of floor space is for manufacturing. The offices are upstairs and finished parts are loaded directly on a trailer. Once QC approves the parts, the truck is release to their customer's warehouse. Lastly, there is always a plan 'B', in case of a supply interruption. Everything is dual sourced so they are not at the mercy of any single supplier. It is 99% successful as it is well planned and they keep it in balance.

In the realm of Lean Manufacturing, TIMWOOD serves as a compass, guiding organizations towards efficiency and waste reduction. Let's navigate through the concepts of Overproduction and JIT production using the TIMWOOD. TIMWOOD reveals how overproduction contributes to the seven deadly wastes: Transportation: Unnecessary movement of excess goods. Inventory: Tying up resources in surplus stock. Motion: Additional handling and storage of overproduced items. Waiting: Idle time as products sit in excess inventory. Over-processing: Resources spent on goods not immediately needed. Over-engineering: Potentially unnecessary features in surplus items. Defects: Higher chances of product deterioration or obsolescence.