Michael E. Porter is the world's most influential business thinker, according to an Accenture study conducted in 2002. His book, Competitive Strategy: Techniques for Analyzing Industries and Competitors (Free Press, 1980) has been required reading on numerous Business Strategy courses ever since it was published over two decades ago. His notion of strategy has been debated and criticized in academic circles but Porter's ideas have often been adopted uncritically (and, perhaps, misunderstood) by business leaders throughout the world (Hammond, 2001).
According to Harfield (1998): "The question, what is strategic management?, often leads to the work of Porter. Strategic management texts inevitably contain his models, theories and frameworks which imply that they are ‘fundamental’ to the field. An historical journey through six prominent management\organization journals, Strategic Management Journal, Academy of Management Journal, Academy of Management Review, Journal of Management Studies, Organization Studies, Advances in Strategic Management, shows that Michael E Porter was not a constant contributor, in fact he is almost absent from the journals, but his work is often the study of empirical testing or theoretical debate ..."
In fact, Harfield argues that 'strategic management' is a myth with Michael E. Porter as its principal myth-maker.
Porter spent most of the 1990's concentrating on the competitive advantage of nations. Recently he has returned to look at corporate strategy and comments:
"It's been a bad decade for strategy. Companies have bought into an extraordinary number of flawed or simplistic ideas about competition -- what I call "intellectual potholes." As a result, many have abandoned strategy almost completely. Executives won't say that, of course. They say, "We have a strategy." But typically, their "strategy" is to produce the highest-quality products at the lowest cost or to consolidate their industry. They're just trying to improve on best practices. That's not a strategy." (Hammond, 2001).
He argues that this course has been adopted for three main reasons:
1. That people simply found strategy too difficult in the 1970s and 1980s - they had problems with it and it seemed artificial.
2. They were distracted by the pre-eminence of Japanese production techniques. This seemed to be about implementation rather than strategy: produce higher quality products at lower prices than your rivals and keep refining the process of production continuously.
3. More recently it was believed by many that change was happening too quickly for strategies to be of any value. Strategy was seen as rigid and inflexible in a world of speed and dynamic reinvention.
Porter argues that strategy and operational effectiveness need to be distinguished from each other:
"There's a fundamental distinction between strategy and operational effectiveness. Strategy is about making choices, trade-offs; it's about deliberately choosing to be different. Operational effectiveness is about things that you really shouldn't have to make choices on; it's about what's good for everybody and about what every business should be doing." (Hammond, 2001).
He contends that business leaders have concentrated too much on operational effectiveness rather than strategy. He points to the popular managerial enthusiasms of the late-twentieth century - total quality, just-in-time, business process re-engineeering - as examples of this. In his view, they were driven by the incredible competitiveness of the Japanese upto the 1990s when some companies 'turned the nitty-gritty into an art form'.
Friday, August 19, 2005
thoughts...reflections
life is not always a cake walk.
not always easy
not always comfortable
and sometimes real hard.
things dont always happen as we like.
people dont always treat us as we would have liked(not that we treat people the way we would expected to be treated).
stuff does not happen as we wish.
we slog in and slog out and work real hard but get very few results.
grass seems greener on the other side.
it is at these times that we ought to pull ourselves togeather and put on our otherwise dormant thinking cap and get down to some serious reflecting time.
we need to succeed and for this we must try...........&try and try again.
we must believe in what we do and must not give up our conviction.
we must keep pushing, we must be patient.
problems ,difficulties ,catch 22 situations give us a chance to be stronger,better and tougher.
when we overcome our obstacles we we learn new things.we acquire new knowledge ,skills and new abilities .
we grow in experience.
we make the world around us a better place to live in.
so join me in making this world a better place to llive in.
work hard -party hard and leave a bit to luck and the rest to the supreme being.
not always easy
not always comfortable
and sometimes real hard.
things dont always happen as we like.
people dont always treat us as we would have liked(not that we treat people the way we would expected to be treated).
stuff does not happen as we wish.
we slog in and slog out and work real hard but get very few results.
grass seems greener on the other side.
it is at these times that we ought to pull ourselves togeather and put on our otherwise dormant thinking cap and get down to some serious reflecting time.
we need to succeed and for this we must try...........&try and try again.
we must believe in what we do and must not give up our conviction.
we must keep pushing, we must be patient.
problems ,difficulties ,catch 22 situations give us a chance to be stronger,better and tougher.
when we overcome our obstacles we we learn new things.we acquire new knowledge ,skills and new abilities .
we grow in experience.
we make the world around us a better place to live in.
so join me in making this world a better place to llive in.
work hard -party hard and leave a bit to luck and the rest to the supreme being.
Thursday, August 18, 2005
awakening to a new day-my thoughts
i awoke with a start this morn at 5.10am as there was a big commotion due to a fight between two packs of dogs.nothing could motivate me to get out of bed and drag myself to another day of rituals at the office.i somehow got up and went to my pc and switched on the suround sound so that i could wake up the neighbour hood too. "what a devilish ploy " ithought to myself to get even with neighbours who occupy my parking spot each time and everytime.i choose to play "lady in red " and backed that up with " smoke on the waters" followed bygreatest hits of eagles.refreshed i sat at my study table to complete the article i was penning " delegation -an art".well i would not mind awaking up every morning with a start if it will help me complete 23 articles that i am penning and yearing to find an end.well i thought to myself as was sipping some hot coffee from the mug (my wife had sort of emphatically thuded on the table some moments back),what is it that has driven me to complete the article?was it the early morning awakening ? was it the music? was it ?..........well as i swung my chair it occured to me ...to start a day on a no note basis is rather plain.as i had two choices either to go get it or laze.i chose the prior and am happy about it.
moral: failures happen because we dont try to do things.success occurs because we have an urge not to do things but we overcome this feeling and just do it.so positive attitude backed with postive actions will yeild positive results.
moral: failures happen because we dont try to do things.success occurs because we have an urge not to do things but we overcome this feeling and just do it.so positive attitude backed with postive actions will yeild positive results.
DELEGATION-AN ART
Can we delegate effectively to others? Do we like to delegate? Should we delegate?
Can we delegate when we are at the receiving end or when we consider our function a thankless job yet a glamorous way to be in limelight?
The strategy behind being able to delegate or being an able delegator is that there is an increased chance of moving up in an organization.
What really is delegation?
Where does the buck stop?
Many executives really confuse delegation with abdication of responsibility. It makes sense to be clear about certain fundamentals of delegation. I firmly believe any executive in the middle management (with reportees) having “fire in the belly” about climbing the corporate ladder must allocate time to correspond to relative importance of issues facing them. He must set a value added time/importance of the activity, function, job ratio and do justice to it. He must possess the ability to manage his time, so as to focus & channalise his energy on high value activity, job or tasks. This will finally determine his level of achievements.
This can be done only by delegating functions down the line. To relinquish your power to a reportee is not delegation. It is evasion of responsibility. Delegation in the true sense is entrusting another person a job together with authority to do it. Thus the delegate now acts on behalf of you like the emissaries of the days of yore or the diplomats of today.
If you happen to be the delegate then the function, task or job entrusted to you by someone in authority comes with the necessary power to complete it successfully.
Delegation saves your time and develops people while failure to delegate eats your time.
Delegation is necessary in organizations. What matters in organizations is doing such things well, but of course in organizations it is difficult to do simple things well. Delegation is one such glaring example. It either does not happen too well or it does not just enough. That is very regrettable as both sins of omission & commission consume rather than save a valuable commodity called “time”. Where you could reap double the crop per acre you end up with a bad crop and then blame it on…………………………… .
Some comments made to me over a period of the last twenty years in various functions I have worked like: manufacturing, ancillary development, projects, planning, exports, costing, customer support, marketing and materials management are as illustrated.
v “I strongly believe that information is power. I would rather keep really important information secret. If I hand that over then perhaps one will be able to displace me.”
v “When I was away with influenza for a week the entire place came to a halt, so you see I am indispensable to the firm”
v “I really and strongly believe in delegation but just seethe monkeys & clowns I have working for me”
v “Unless they are trained I will have to continue to carry two bulging briefcases”
v “Most of them have psychologically retired even though they are not drawing their pensions”
v “Even though I delegate they will not perform as I would have done so myself”
v “My boss will not keep coming to me and will he bypass me to my reportees if I delegate.”
Research has revealed 9 top reasons why delegation does not take place irrespective of tier of the management.
Delegating is a high risk activity which need risk assessment.
We enjoying doing these things so why do we delegate?
It is a very slow process
we don’t want to sit and think
we would like to be “on top of everything”
Will our subordinate displace us from our positions?
No one can do it better than or as good as I can?
No one will come to me for solutions in that area
Why do I bring him into limelight for no rhyme or reason? After all I’m the mentor.
We can delegate authority to do the job and hold the person accountable for the performance. If the activity is done in the right way and spirit it will generate a sense of responsibility in the delegate. As you are ultimately responsible for what happens or does not happen as an outcome. A corollary to the above is that sufficient control must be maintained in order to protect your ultimate accountability.
Leadership is the second responsibility that cannot be delegated.
In reality any great leader will not delegate his leadership to others as in doing so all he will be left is an empty title while the ethos of his job lies elsewhere.
Another important thing to remember is that as a delegator you cannot divest yourself of the accountability and leadership. Last but not the least you should never allow any one to decide what you should delegate and what you should not.
There are certain key factors that a delegator may consider and constantly review for delegating or not doing so.
v Complexity: the complexity or delicacy of function, activity or job determines whether to delegate or not. A&M, policy decisions on pricing or budgets are examples of areas where you may feel that you need to handle yourself. The more the challenge in uncharted waters the more you should attack yourself. Similarly where there is a chance of major repurcations for good or bad on profitability, do not delegate to any other person.
v Confidence: one is more comfortable to delegate if he can trust his subordinate. The trust encompasses the professional competence and personal qualities. One must make sure that he is not either optimistic or pessimistic in varying degrees about his subordinate in order to delegate. We need to work with them, talk to them, advice them, guide them, spend time with them, observe them support them and then reflect about them before forming our judgments. Some will need hand holding and walking through initially in the introductory phase, some would do an appropriate job with a little risk of any negative impact. The best are capable to understand the business model, company’s philosophy and work towards execution of the function without consequences or mistakes. Be forewarned that many leaders believe in intuition, but rest assured intuition could be misleading and decisions taken based on a haunch could be disastrous in the real sense of the word.’
v Availability of time: crisis situation where time is short must not be delegated. The time taken to explain, cross check if the matter is understood as required by you, and action initiated by the delegate may not be there to give.
v Future development: delegation is centered on the routine and administrative chunks of a function. One must be however careful not to delegate all administrative work and work only on leadership. As for me I make it point to delegate everything that can be defined. This gives me the time to keep the scores on the delegated jobs and freedom to spend time in exploring new avenues or chase opportunities that lie ahead. My work style encourages me to select jobs I know best and could supervise them and delegate these once first. As a practice I work on my present activities and keep reviewing those to see if the time is ripe enough to delegate them .If the time is just ripe them I go ahead and delegate the job and am in a position to take decisions and follow up.
The correct approach is to assign tasks & functions to others though you remain ultimately accountable. One needs to keep in mind to strike a balance between needs of the company and development needs of an individual. We often come across organizations where there are senior managers who do not want to delegate because they want to do it with out delegation. These people have risen from the ranks through sheer hard work. The problem commences when these people are promoted beyond their level of competence. Such organizations or departments loose their momentum as even a minor decision has to be taken at the helm.
Skills of a delegator
SKILL
REMARKS
1) Select the right people.
If the people are incompetent or unwilling to do the job even with training you should get rid of them. Having the right people to do the job is the basic need of delegation. Remember there never are bad soldiers but only bad officers.
2)training
How ever high profile performers you have in your rank and file all the delegates need to be trained.
Demonstrate the job
Get feedback
Get delegate to do it
Delegate does it on his/her own
Delegate reports back on completion.
3)Knowledge and reason
Training and delegation is 2- way traffic. The function, activity or job must be clearly communicated and authority specifically defined. The delegate needs to know policies and goal so that he knows what he is doing and why he is doing it.
4)Support service
Resist the temptation to plunge in.
When the delegate approaches you for a solution never give him the answer but lead him to it. The aim is to develop the delegate so that he can cope up and do well as you have in the past.
5)control
Check the progress in your own defined way. It is important to know that it is not abdication but control that is the name of the game.
To sum up
· Delegation begins with a sense of value. From there stems a strong desire to focus on priorities and delegate the rest as it will leave free time to think plan and act very effectively.
· Delegation is not abdication.
· Delegators often complain that they have two bulging briefcases to work with when their subordinates are running out of worthwhile work.
· To be giving people power to make decisions and act in your place requires courage, judgement and faith in others because at the end “the buck stops with you”.
· Delegation is a great motivator as it enriches the job and raises morale.
· Delegation does not save the organization’s time but it saves yours.
Can we delegate when we are at the receiving end or when we consider our function a thankless job yet a glamorous way to be in limelight?
The strategy behind being able to delegate or being an able delegator is that there is an increased chance of moving up in an organization.
What really is delegation?
Where does the buck stop?
Many executives really confuse delegation with abdication of responsibility. It makes sense to be clear about certain fundamentals of delegation. I firmly believe any executive in the middle management (with reportees) having “fire in the belly” about climbing the corporate ladder must allocate time to correspond to relative importance of issues facing them. He must set a value added time/importance of the activity, function, job ratio and do justice to it. He must possess the ability to manage his time, so as to focus & channalise his energy on high value activity, job or tasks. This will finally determine his level of achievements.
This can be done only by delegating functions down the line. To relinquish your power to a reportee is not delegation. It is evasion of responsibility. Delegation in the true sense is entrusting another person a job together with authority to do it. Thus the delegate now acts on behalf of you like the emissaries of the days of yore or the diplomats of today.
If you happen to be the delegate then the function, task or job entrusted to you by someone in authority comes with the necessary power to complete it successfully.
Delegation saves your time and develops people while failure to delegate eats your time.
Delegation is necessary in organizations. What matters in organizations is doing such things well, but of course in organizations it is difficult to do simple things well. Delegation is one such glaring example. It either does not happen too well or it does not just enough. That is very regrettable as both sins of omission & commission consume rather than save a valuable commodity called “time”. Where you could reap double the crop per acre you end up with a bad crop and then blame it on…………………………… .
Some comments made to me over a period of the last twenty years in various functions I have worked like: manufacturing, ancillary development, projects, planning, exports, costing, customer support, marketing and materials management are as illustrated.
v “I strongly believe that information is power. I would rather keep really important information secret. If I hand that over then perhaps one will be able to displace me.”
v “When I was away with influenza for a week the entire place came to a halt, so you see I am indispensable to the firm”
v “I really and strongly believe in delegation but just seethe monkeys & clowns I have working for me”
v “Unless they are trained I will have to continue to carry two bulging briefcases”
v “Most of them have psychologically retired even though they are not drawing their pensions”
v “Even though I delegate they will not perform as I would have done so myself”
v “My boss will not keep coming to me and will he bypass me to my reportees if I delegate.”
Research has revealed 9 top reasons why delegation does not take place irrespective of tier of the management.
Delegating is a high risk activity which need risk assessment.
We enjoying doing these things so why do we delegate?
It is a very slow process
we don’t want to sit and think
we would like to be “on top of everything”
Will our subordinate displace us from our positions?
No one can do it better than or as good as I can?
No one will come to me for solutions in that area
Why do I bring him into limelight for no rhyme or reason? After all I’m the mentor.
We can delegate authority to do the job and hold the person accountable for the performance. If the activity is done in the right way and spirit it will generate a sense of responsibility in the delegate. As you are ultimately responsible for what happens or does not happen as an outcome. A corollary to the above is that sufficient control must be maintained in order to protect your ultimate accountability.
Leadership is the second responsibility that cannot be delegated.
In reality any great leader will not delegate his leadership to others as in doing so all he will be left is an empty title while the ethos of his job lies elsewhere.
Another important thing to remember is that as a delegator you cannot divest yourself of the accountability and leadership. Last but not the least you should never allow any one to decide what you should delegate and what you should not.
There are certain key factors that a delegator may consider and constantly review for delegating or not doing so.
v Complexity: the complexity or delicacy of function, activity or job determines whether to delegate or not. A&M, policy decisions on pricing or budgets are examples of areas where you may feel that you need to handle yourself. The more the challenge in uncharted waters the more you should attack yourself. Similarly where there is a chance of major repurcations for good or bad on profitability, do not delegate to any other person.
v Confidence: one is more comfortable to delegate if he can trust his subordinate. The trust encompasses the professional competence and personal qualities. One must make sure that he is not either optimistic or pessimistic in varying degrees about his subordinate in order to delegate. We need to work with them, talk to them, advice them, guide them, spend time with them, observe them support them and then reflect about them before forming our judgments. Some will need hand holding and walking through initially in the introductory phase, some would do an appropriate job with a little risk of any negative impact. The best are capable to understand the business model, company’s philosophy and work towards execution of the function without consequences or mistakes. Be forewarned that many leaders believe in intuition, but rest assured intuition could be misleading and decisions taken based on a haunch could be disastrous in the real sense of the word.’
v Availability of time: crisis situation where time is short must not be delegated. The time taken to explain, cross check if the matter is understood as required by you, and action initiated by the delegate may not be there to give.
v Future development: delegation is centered on the routine and administrative chunks of a function. One must be however careful not to delegate all administrative work and work only on leadership. As for me I make it point to delegate everything that can be defined. This gives me the time to keep the scores on the delegated jobs and freedom to spend time in exploring new avenues or chase opportunities that lie ahead. My work style encourages me to select jobs I know best and could supervise them and delegate these once first. As a practice I work on my present activities and keep reviewing those to see if the time is ripe enough to delegate them .If the time is just ripe them I go ahead and delegate the job and am in a position to take decisions and follow up.
The correct approach is to assign tasks & functions to others though you remain ultimately accountable. One needs to keep in mind to strike a balance between needs of the company and development needs of an individual. We often come across organizations where there are senior managers who do not want to delegate because they want to do it with out delegation. These people have risen from the ranks through sheer hard work. The problem commences when these people are promoted beyond their level of competence. Such organizations or departments loose their momentum as even a minor decision has to be taken at the helm.
Skills of a delegator
SKILL
REMARKS
1) Select the right people.
If the people are incompetent or unwilling to do the job even with training you should get rid of them. Having the right people to do the job is the basic need of delegation. Remember there never are bad soldiers but only bad officers.
2)training
How ever high profile performers you have in your rank and file all the delegates need to be trained.
Demonstrate the job
Get feedback
Get delegate to do it
Delegate does it on his/her own
Delegate reports back on completion.
3)Knowledge and reason
Training and delegation is 2- way traffic. The function, activity or job must be clearly communicated and authority specifically defined. The delegate needs to know policies and goal so that he knows what he is doing and why he is doing it.
4)Support service
Resist the temptation to plunge in.
When the delegate approaches you for a solution never give him the answer but lead him to it. The aim is to develop the delegate so that he can cope up and do well as you have in the past.
5)control
Check the progress in your own defined way. It is important to know that it is not abdication but control that is the name of the game.
To sum up
· Delegation begins with a sense of value. From there stems a strong desire to focus on priorities and delegate the rest as it will leave free time to think plan and act very effectively.
· Delegation is not abdication.
· Delegators often complain that they have two bulging briefcases to work with when their subordinates are running out of worthwhile work.
· To be giving people power to make decisions and act in your place requires courage, judgement and faith in others because at the end “the buck stops with you”.
· Delegation is a great motivator as it enriches the job and raises morale.
· Delegation does not save the organization’s time but it saves yours.
Planning for just-in-time (JIT)
Basically JIT is a programme directed towards ensuring that the right quantities are purchased or produced at the right time, and that there is no waste in terms of material or money anywhere in our supply chain. JIT fits well under the TQM umbrella, for many of the ideas and techniques are very similar and, moreover, JIT will not work without TQM in operation. It is essentially:
· A series of operating concepts that allows systematic identification of operational problems.
· A series of technology –based tools for correcting problems following their identification.
An important outcome of JIT is a disciplined programme for improving productivity and reducing waste. This programme leads to cost-effective production or operation and delivery of only the required goods or services, in the correct quantity, at the right time and place. This is achieved with the minimum amount of resources – facilities, equipment, materials, and people. The successful operation of JIT is dependent upon a balance between the suppliers’ flexibility and the users’ stability, and of course requires total management and employee commitment and teamwork.
1
AIMS OF JIT
The fundamental aims of JIT are to produce or operate to meet the requirements of the customer exactly, without waste, immediately on demand. In some manufacturing companies JIT has been introduced as ‘continuous flow production,’ which describes very well the objective of achieving conversion of purchased material or service receipt to delivery, i.e. from supplier to customer. If this extends into the supplier and customer chains, all operating with JIT, a perfectly continuous flow of material, information or service will be achieved. JIT may be used in non-manufacturing in administration areas, for example, by using external standards as reference points.
The JIT concepts identify operational problems by tracking the following:
1. Material Movements – when material stops, diverts or turns backwards, these always correlate with an aberration in the ‘process.’
2. Material accumulations – these are there as a buffer for problem, excessive variability, etc., like water covering up ‘rocks’.
3. Process flexibility –an absolute necessity for flexible operation and design.
4. Value-added efforts – much of what is done does not add value and the customer will not pay for it.
2
THE OPERATION OF JIT
The tools to carry out the monitoring required are familiar quality and operations management methods, such as:
· Flowcharting
· Method study and analysis.
· Preventive maintenance.
· Plant layout methods.
· Standardized design.
· Statistical process control.
· Value analysis and value engineering.
But some techniques are more directly associated with the operation of JIT systems:
1. Batch or lot size reduction.
2. Flexible Workforce.
3. Kanban or cards with material visibility.
4. Mistake- proofing.
5. Pull-scheduling.
6. Set-up time reduction
7. Standardized containers.
In addition, joint development programmes with suppliers and customers will be required to establish long-term relationships and develop single sourcing arrangement that provide frequent deliveries in small quantities. These
can only be achieved through close communications and meaningful certified quality.
3
THE OPERATION OF JIT
There is clear evidence that JIT has been an important component of business success in the Far East and that it is used by Japanese companies operating in the West. Many European and American companies that have adopted JIT have made spectacular improvement in performance. These include:
· Increased flexibility (particularly of the workforce).
· Reduction in stock and work-in-progress, and the space it occupies.
· Simplification of products and processes.
These programmes are always characterized by a real commitment to continuous improvement. Organizations have been rewarded, however, by the low cost, low risk aspects of implementation, provided a sensible attitude prevails. The golden rule is to never remove resources – such as stock –before the organization is ready and able to correct the problems that will be exposed by doing so. Reduction of the water level to reveal the rocks, so that they may be demolished, is fine, provided that we can quickly get our hands back on the stock while the problem is being corrected.
Successive phases of JIT may well become self-financing by rapid simplification of systems and work flows, JIT must never be regarded at the intermediate stage as the ‘quick-fix’. Management must contemplate:
4
THE OPERATION OF JIT
1. Long implementation times – typically 5-7 years.
2. A total or company- wide quality and just-in-time management programme.
3. Never ending improvement and reduction of waste.
The primary objective of JIT is the improvement of quality through elimination of waste. It demands that inventory is kept minimum, for inventory costs (insurance, interest, obsolescence, etc.) can be as high as 26 per cent of stock value, and significant improvements in costs and quality can be achieved by the reduction of inventory. Defective parts, materials, and workmanship are detected promptly and quickly fed back to the producing process. Where the problems are identified and corrected on the spot. In addition to quality improvement, there is no requirement for a profusion of warehouses, fleets of forklift trucks, rows of racks, scores of employees, and piles of cash to purchase, handle, and move the inventory.
5
THE OPERATION OF JIT
In some engineering and process industry applications the major obstacle in producing small lots is the set-up times of equipment and machines. Long set-up time make the small lot size uneconomical so, clearly, cutting set-up times is one of the first tasks. This will also reduce equipment downtime; work-in-progress costs associated with obsolescence, materials handling and control, and quality control. Shorter set-up times also result in shorter lead times, which provides greater flexibility for processes to adapt to changes in the market demand and requirements.
6
THE KANBAN SYSTEM
Kanban is a Japanese word meaning visible record, but in the West it is generally taken to mean a card that signals the need to deliver or produce more parts or components. In manufacturing, various types of record cards, e.g. job orders or tickets and route cards, are used for ordering more parts in a push type, schedule-based system. In a push system a multi-period master production schedule of future demands is prepared, and a computer explodes this into detailed schedules for producing or purchasing the appropriate parts or materials. The schedules then push the production of the parts or components, out and onward. These systems, when computer-based, are usually called Material Requirements Planning (MRP) or the more recent Manufacturing Resource Planning (MRPII).
7
THE KANBAN SYSTEM
The main feature of the Kanban system is that it pulls parts and components through the production processes when they are needed. Each material, component, or part has its own special container designed to hold a precise, preferably small, quantity. The number of containers for each part is a carefully considered management decision. Only standard containers are used, and they are always filled with the prescribed quantity. There are two cards of Kanbans for each container. The production or P-Kanban serves the work centre producing the part, whereas the conveyance or C-Kanban serves the work centre using it. Each container travels between the two work centres and one Kandan is exchanged for another along the way. No parts may be made at any work centre may come to a halt rather than produce materials or parts not yet requested. The operators will engage in other activities, such as cleaning, maintenance, improvement or quality-circle project work when no P-Kanbans have been submitted. These hold-ups often help to identify and improve bottleneck situations.
8
PLANNING JUST-IN-TIME (JIT) MANAGEMENT
· JIT fits well under the TQM umbrella and is essentially a series of operating concepts that allow the systematic identification of problems, and tools for correcting them.
· JIT aims to produce or operate, in accordance with customer requirements, without waste, immediately on demand. Some of the direct techniques associated with JIT are batch or lot size reduction, flexible, standardized containers.
· JIT implementation requires the foundations of quality, low cost, minimum lead times, high flexibility, through the core techniques of pull scheduling, JIT purchasing, buffer stock removal, multifunction workforce and enforced improvement.
· As with TQM, a steering committee, a project manager and project teams are enforced improvement.
· Purchasing is an important feature of JIT. Long-term relationships with a few suppliers, or ‘co-producers’, are developed in networks of trust to provide quality goods and services.
· A series of operating concepts that allows systematic identification of operational problems.
· A series of technology –based tools for correcting problems following their identification.
An important outcome of JIT is a disciplined programme for improving productivity and reducing waste. This programme leads to cost-effective production or operation and delivery of only the required goods or services, in the correct quantity, at the right time and place. This is achieved with the minimum amount of resources – facilities, equipment, materials, and people. The successful operation of JIT is dependent upon a balance between the suppliers’ flexibility and the users’ stability, and of course requires total management and employee commitment and teamwork.
1
AIMS OF JIT
The fundamental aims of JIT are to produce or operate to meet the requirements of the customer exactly, without waste, immediately on demand. In some manufacturing companies JIT has been introduced as ‘continuous flow production,’ which describes very well the objective of achieving conversion of purchased material or service receipt to delivery, i.e. from supplier to customer. If this extends into the supplier and customer chains, all operating with JIT, a perfectly continuous flow of material, information or service will be achieved. JIT may be used in non-manufacturing in administration areas, for example, by using external standards as reference points.
The JIT concepts identify operational problems by tracking the following:
1. Material Movements – when material stops, diverts or turns backwards, these always correlate with an aberration in the ‘process.’
2. Material accumulations – these are there as a buffer for problem, excessive variability, etc., like water covering up ‘rocks’.
3. Process flexibility –an absolute necessity for flexible operation and design.
4. Value-added efforts – much of what is done does not add value and the customer will not pay for it.
2
THE OPERATION OF JIT
The tools to carry out the monitoring required are familiar quality and operations management methods, such as:
· Flowcharting
· Method study and analysis.
· Preventive maintenance.
· Plant layout methods.
· Standardized design.
· Statistical process control.
· Value analysis and value engineering.
But some techniques are more directly associated with the operation of JIT systems:
1. Batch or lot size reduction.
2. Flexible Workforce.
3. Kanban or cards with material visibility.
4. Mistake- proofing.
5. Pull-scheduling.
6. Set-up time reduction
7. Standardized containers.
In addition, joint development programmes with suppliers and customers will be required to establish long-term relationships and develop single sourcing arrangement that provide frequent deliveries in small quantities. These
can only be achieved through close communications and meaningful certified quality.
3
THE OPERATION OF JIT
There is clear evidence that JIT has been an important component of business success in the Far East and that it is used by Japanese companies operating in the West. Many European and American companies that have adopted JIT have made spectacular improvement in performance. These include:
· Increased flexibility (particularly of the workforce).
· Reduction in stock and work-in-progress, and the space it occupies.
· Simplification of products and processes.
These programmes are always characterized by a real commitment to continuous improvement. Organizations have been rewarded, however, by the low cost, low risk aspects of implementation, provided a sensible attitude prevails. The golden rule is to never remove resources – such as stock –before the organization is ready and able to correct the problems that will be exposed by doing so. Reduction of the water level to reveal the rocks, so that they may be demolished, is fine, provided that we can quickly get our hands back on the stock while the problem is being corrected.
Successive phases of JIT may well become self-financing by rapid simplification of systems and work flows, JIT must never be regarded at the intermediate stage as the ‘quick-fix’. Management must contemplate:
4
THE OPERATION OF JIT
1. Long implementation times – typically 5-7 years.
2. A total or company- wide quality and just-in-time management programme.
3. Never ending improvement and reduction of waste.
The primary objective of JIT is the improvement of quality through elimination of waste. It demands that inventory is kept minimum, for inventory costs (insurance, interest, obsolescence, etc.) can be as high as 26 per cent of stock value, and significant improvements in costs and quality can be achieved by the reduction of inventory. Defective parts, materials, and workmanship are detected promptly and quickly fed back to the producing process. Where the problems are identified and corrected on the spot. In addition to quality improvement, there is no requirement for a profusion of warehouses, fleets of forklift trucks, rows of racks, scores of employees, and piles of cash to purchase, handle, and move the inventory.
5
THE OPERATION OF JIT
In some engineering and process industry applications the major obstacle in producing small lots is the set-up times of equipment and machines. Long set-up time make the small lot size uneconomical so, clearly, cutting set-up times is one of the first tasks. This will also reduce equipment downtime; work-in-progress costs associated with obsolescence, materials handling and control, and quality control. Shorter set-up times also result in shorter lead times, which provides greater flexibility for processes to adapt to changes in the market demand and requirements.
6
THE KANBAN SYSTEM
Kanban is a Japanese word meaning visible record, but in the West it is generally taken to mean a card that signals the need to deliver or produce more parts or components. In manufacturing, various types of record cards, e.g. job orders or tickets and route cards, are used for ordering more parts in a push type, schedule-based system. In a push system a multi-period master production schedule of future demands is prepared, and a computer explodes this into detailed schedules for producing or purchasing the appropriate parts or materials. The schedules then push the production of the parts or components, out and onward. These systems, when computer-based, are usually called Material Requirements Planning (MRP) or the more recent Manufacturing Resource Planning (MRPII).
7
THE KANBAN SYSTEM
The main feature of the Kanban system is that it pulls parts and components through the production processes when they are needed. Each material, component, or part has its own special container designed to hold a precise, preferably small, quantity. The number of containers for each part is a carefully considered management decision. Only standard containers are used, and they are always filled with the prescribed quantity. There are two cards of Kanbans for each container. The production or P-Kanban serves the work centre producing the part, whereas the conveyance or C-Kanban serves the work centre using it. Each container travels between the two work centres and one Kandan is exchanged for another along the way. No parts may be made at any work centre may come to a halt rather than produce materials or parts not yet requested. The operators will engage in other activities, such as cleaning, maintenance, improvement or quality-circle project work when no P-Kanbans have been submitted. These hold-ups often help to identify and improve bottleneck situations.
8
PLANNING JUST-IN-TIME (JIT) MANAGEMENT
· JIT fits well under the TQM umbrella and is essentially a series of operating concepts that allow the systematic identification of problems, and tools for correcting them.
· JIT aims to produce or operate, in accordance with customer requirements, without waste, immediately on demand. Some of the direct techniques associated with JIT are batch or lot size reduction, flexible, standardized containers.
· JIT implementation requires the foundations of quality, low cost, minimum lead times, high flexibility, through the core techniques of pull scheduling, JIT purchasing, buffer stock removal, multifunction workforce and enforced improvement.
· As with TQM, a steering committee, a project manager and project teams are enforced improvement.
· Purchasing is an important feature of JIT. Long-term relationships with a few suppliers, or ‘co-producers’, are developed in networks of trust to provide quality goods and services.
success
Success breeds success.
Nothing is as sweet as success.
It is the journey through pain, agony, hard work, planning, strategy and bits of luck that cultivates what is known as success.
The difference between success and failure is wafer thin.
The greatest success principle I have come across is “learn from the experts”. Don’t reinvent the wheel. If you want to succeed find out what other successful people are doing and do the same things until you commence to reap similar results. Most successful people have on comman trait i.e. they are “very well organized” and in order to be so they use their time very well. They are highly productive and get more work done than average people for a similar period of time. These successful people are high performers with qualities to be both capable and efficient. They do things right in the right way at the right time with the right approach having the right attitude and aptitude. As a result their contributions in the spheres of work are far more than an average individuals .
another trait in 75% of successful persons is that they possess some maverical traits. it is this trait that drives them to compete with themselves first and then others. they drive themselves to unimaginable limits and thus give a better prioductivity than average persons working in that sphere of work.
succesful people also have their share of badluck but when they are unsuccesful they dont lose sight of the moral and gear up to encounter the nadir with a strong determination to move up the performance curve and feel the zenith .
Nothing is as sweet as success.
It is the journey through pain, agony, hard work, planning, strategy and bits of luck that cultivates what is known as success.
The difference between success and failure is wafer thin.
The greatest success principle I have come across is “learn from the experts”. Don’t reinvent the wheel. If you want to succeed find out what other successful people are doing and do the same things until you commence to reap similar results. Most successful people have on comman trait i.e. they are “very well organized” and in order to be so they use their time very well. They are highly productive and get more work done than average people for a similar period of time. These successful people are high performers with qualities to be both capable and efficient. They do things right in the right way at the right time with the right approach having the right attitude and aptitude. As a result their contributions in the spheres of work are far more than an average individuals .
another trait in 75% of successful persons is that they possess some maverical traits. it is this trait that drives them to compete with themselves first and then others. they drive themselves to unimaginable limits and thus give a better prioductivity than average persons working in that sphere of work.
succesful people also have their share of badluck but when they are unsuccesful they dont lose sight of the moral and gear up to encounter the nadir with a strong determination to move up the performance curve and feel the zenith .
Subscribe to:
Posts (Atom)