Making JIT in time is the most popular way to get

2022-08-26
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Manufacturing JIT in time allows enterprises to get rid of passivity

in China, JIT seems to have become a tool for some assembly plants to squeeze the profits of spare parts suppliers and reduce their inventory

"if you are late for 1 minute, you will be fined $500." This is not a system to restrict employees' attendance at work, which is equivalent to that in Thailand, but an automobile assembly plant is used to restrict the supply of its spare parts suppliers. At present, manufacturing enterprises almost have similar requirements for their spare parts suppliers, for the realization of JIT (just in time) supply and manufacturing when abnormal phenomena occur

the basic idea of JIT is to purchase and distribute the most punctual and economical means of production to meet manufacturing needs. "Some assembly plants, taking advantage of JIT, mercilessly transfer the inventory pressure to us." Privately, some parts manufacturers said angrily

the reason why spare parts manufacturers complain about JIT is that before the introduction of JIT mode, the warehousing settlement method was adopted between the assembly plant and spare parts enterprises; After the introduction of JIT mode, the assembly plant has introduced two new settlement methods of "on-line" and "off-line" - the settlement of spare parts is only when they are on the production line or when they are assembled as qualified finished products on the production line and warehoused. Obviously, for assembly plants, these three settlement methods can reduce their inventory funds, and "offline" settlement can even make their raw material inventory truly zero. It is reasonable to say that the prices of spare parts should be different in different settlement methods, but according to a considerable number of domestic spare parts manufacturers, even in the face of offline settlement methods, they can hardly have the ability to bargain, because "this is an era when the whole vehicle is king". When some assembly plants lack planning and control of their own internal production, they just require offline settlement with suppliers. The products sent by spare parts factories can even be shelved for several weeks in the assembly plant. "It's not their inventory anyway. They don't care at all." Some parts manufacturers said helplessly. The general assembly plant is quite relaxed because there is no inventory pressure. A logistics manager of the general assembly plant said, "now, we have no pressure on raw material inventory." In the domestic supply chain, JIT seems to have become a tool for some assembly plants to squeeze suppliers

distorted jit

"this is a dangerous move, which will not only harm people, but also ultimately harm yourself." An expert who has worked in Ford for many years said sadly. He believes that "when learning advanced experience, some domestic enterprises only learn the form, fail to grasp the essence, and even go to the opposite."

the expert's statement of "Harming oneself" is not alarmist

it is obvious from the "proud" cases of JIT in China that the inventory in those supply chains has not decreased, but increased, and transferred from the assembly plant to the spare parts enterprise. Such a transfer may also make the final assembly plant feel satisfied - "anyway, the inventory is not here, and my cost has been reduced." However, a product is the collective crystallization of the supply chain, and its value and price are determined by the overall value of the supply chain. If the overall inventory of the supply chain does not decrease but increases, the overall cost of the product cannot be reduced, but because of the cost transfer, the profit weight is tilted to the assembly plant, causing the illusion of cost reduction

the essence of the supply chain is mutual cooperation, symbiosis and win-win. If the assembly plant continues to squeeze profits from the upstream of the supply chain, then the spare parts manufacturers either choose to quit, or be crushed, or choose to cut corners. At that time, can the assembly plant rest easy

the long-term disaster brought by distorted JIT to the final assembly plant is more than this. Such a "warm pool" with "zero" raw material inventory will turn those assembly enterprises lying in it into "frogs". This seemingly reduced cost will make them forget because there is no inventory pressure. In the absence of cost constraints, it is difficult for them to spontaneously generate momentum to improve internal management. You can imagine the final outcome of an enterprise with a full sense of superiority, great inertia and stagnant water - to die with its suppliers. Such examples are not uncommon in China's and home appliance markets

fortunately, some domestic assembly plants have realized this danger and began to "reverse the current" and "take" the inventory pressure back from the suppliers. Anhui Jianghuai Automobile Group Co., Ltd. (JAC) has experienced such a transformation

in previous years, like other automobile manufacturers, they changed to the "online" settlement mode with suppliers, and tasted the sweetness of reducing inventory. In 2002, when Jiangqi Ruifeng commercial vehicle branch launched ERP, when designing the system scheme, someone proposed to further change the settlement method to "offline" settlement, and hoped to get the support of the information system. Tang Ming, the executive director of Tisheng information company, who was then the implementation consultant of Jiangqi EPR project, put forward different ideas for this proposal. He pointed out: "when enterprises do not practice their internal skills, offline settlement is not an advanced way to reduce inventory, but a chronic poison - while increasing the burden on the upstream of the supply chain, it will bring serious negative consequences to the management of JAC, and eventually lead to the decline of the competitiveness of the entire supply chain and products."

Tang Ming's view was obviously out of trend at that time, but the management of Jiangqi actually accepted his opinion. Zuo Yanan, chairman of Jiangqi group, has always attached great importance to the overall competitiveness of the supply chain. Results after the ERP system was launched in Jiangqi, Ruifeng commercial vehicle branch "went back" and re adopted the warehousing settlement mode with suppliers. "In this way, our inventory pressure is back. The real-time cost data of ERP system is beating us every day." Long Kaifeng, logistics manager of Jiangqi group, said with emotion, "we have to think about how to reduce costs every day. It was not like this in the past. At that time, the waste was amazing, because we always felt that what we wasted was not our own things."

in fact, long Kaifeng's daily thinking about how to reduce inventory is part of lean production. The essence of lean production is to reduce waste to reduce costs, reduce deviation to improve quality, and improve efficiency to ultimately meet customers. Through lean production, enterprises can achieve high product quality, low cost and timely delivery. Obviously, JIT is only one of the natural results of lean production, not a means to reduce inventory

from the outside to the inside

when it comes to JIT, people naturally think of Toyota. Toyota's JIT is the natural result of its promotion of lean production, and Toyota is not satisfied with its implementation of lean production. It has also set up a lean production promotion team to help its spare parts enterprises achieve lean production. Therefore, in Toyota's supply chain, JIT is formed naturally

domestic enterprises are not unaware of the benefits of lean production. However, how to implement and where to cut in are the key points that many enterprises have not mastered so far. Therefore, in order to meet the JIT requirements of the assembly plant and avoid economic punishment, most parts manufacturers have adopted the practice of hoarding sufficient inventory near the assembly plant to ensure "on call". Therefore, some parts manufacturers hope to have an enterprise similar to Toyota to promote them from the outside

Xu Guodong, director and executive director of Shanghai Delphi Automotive Door System Co., Ltd., does not agree with this passive state of domestic peers. In his view, lean production can cover two major areas: its own internal system and its value chain system. He said, "it is the most ideal state for a large value chain to be linked. If this state cannot be achieved, it does not mean that component manufacturers can only wait passively. If they master the essence of lean production and just in time manufacturing, spare parts enterprises can fully implement lean production within them, so that when cooperating with the assembly plant, they can change from passive to active." When he said this, Xu Guodong was very confident, because his company had already done so

the manufacturing management level of the assembly plants served by Delphi Automotive Door Company is uneven. Some assembly plants placed orders 1-3 months in advance, or even earlier, while the delivery quantity and delivery time are difficult to determine. At first, like its peers, it would prepare the goods early and wait for customers to ask for them. However, now it has begun to change from passive to active. According to the market trend of the customer's products, the historical data of the customer's previous orders, and more importantly, according to its own production response ability, it determines the minimum and maximum inventory of the products required by the customer in a period of time (no more than 1 week). "The minimum value is the signal that the product must be produced, and the maximum value is the signal to stop production." Xu Guodong called this method "build to inventory". He usually uses this method to deal with orders with more uncertainties in the delivery period or orders requiring long-distance transportation. At present, most domestic spare parts enterprises adopt the traditional "build to order" method for this order, that is, produce all or most of the products required by the order, store them in the warehouse and wait for customers to ask for them. Obviously, compared with the method of "producing for orders", the inventory generated by "producing for inventory" is much smaller

for those orders that can be scheduled to the day and delivered hourly every day, if Delphi is required to deliver door panels six times a day, Xu Guodong uses the method of "build to ship" to handle orders. In this processing method, the product is either delivered directly to the customer after it is offline, even if it is cached in the temporary storage area of the workshop, it will not take more than a few hours

"production for inventory" and "production for delivery" are the ways Delphi Automotive Door Company actively controls inventory. Xu Guodong believes that the inventory can be reduced indefinitely to cope with the maximum damage load of the material. "To achieve this goal, we need to constantly promote lean production, that is, from the perspective of customers, identify and eliminate waste inventory, so as to make our production capacity have the best response sensitivity."

cultivate internal skills

through years of practice, Delphi, the world's largest auto parts supplier, has built a set of lean production system DMS (plastic materials need to make progress in technology Delphi manufacturing system). In this system, the production waste of enterprises is divided into seven types: rework, overproduction, material movement, redundant operation action, work in process, inventory and unreasonable processing

as a joint venture of Delphi, Shanghai Delphi Automotive door system company also follows the system of the headquarters and implements lean production. This seemingly clear system is not easy to master. Xu Guodong, who joined Delphi in 1996, had 10 years of manufacturing management experience in state-owned enterprises and trained at Delphi headquarters in the United States for four months. However, he is still confused about this set of things. It was not until 2001, when he went to the United States and spent three months in the factories of Delphi, general motors and Ford to understand the truth on the ground that he finally

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