Transforming a traditional manufacturing system into a JUST-INJIME system with KANBAN

Traditional Manufacturing systems, characterized by many U.S. fi rms, are known for maintaining relatively high levels of raw material, work-in-process, and finished goods inventories as a hedge against uncertainty in supplier delivery and quality, production rates and quality, and customer demand. Just-in-Time (JIT) manufacturing Systems, characterized by many Japanese firms, are outperforming their U.S. counterparts by using kanban production control in concert with many other more commonplace operations management techniques. Many U.S. firms have attempted to imitate Japanese methods in piecemeal fashion with limited success perhaps due to a failure to understand JIT as a comprehensive system and philosophy. An excellent means of developing a better understanding of JIT manufacturing and to begin implementing JIT within an existing traditional system is through the use of computer simulation. This paper presents a rationale of JIT and an example of using GPSS/PCtm Simulation to study the effects of adopting JIT with kanban production control in an actual U.S. manufacturing environment. This methodology should be applicable to other traditional manufacturing systems desiring to better understand and implement JIT.