1

Design the JIT system/system improvements

1.1

Identify value chain members

1.2

Consult with internal and external value chain members

1.3

Identify current storage/inventory in value chain

1.4

Determine flow authorisation indicators

1.5

Determine minimum and maximum operations rate

1.6

Determine lead time for product or service

1.7

Determine number of units per kanban

1.8

Draft workable procedures to implement JIT

2

Implement the JIT system/improvements

2.1

Consult with key internal stakeholders to develop solutions to JIT issues

2.2

Ensure all stakeholders have required JIT-related skills and related issues have been resolved

2.3

Liaise with key external members of the value chain to develop solutions to JIT issues

2.4

Develop implementation plan for JIT

2.5

Determine key measures of JIT

3

Monitor the JIT system

3.1

Monitor key measures of JIT

3.2

Regularly liaise with key stakeholders seeking areas for improvement

3.3

Identify areas in need of improvement

Required skills

Required skills include:

communicating at all levels in the organisation and value stream and to audiences of different levels of literacy and numeracy

undertaking self-directed problem solving and decision-making on issues of a broad and/or highly specialised nature and in a wide variety of contexts

analysing equipment, operations and value stream and determining best flow authorisation strategy, including:

form of kanban or flow authorisation indicator

integration with operations and other competitive systems and practices tools and techniques

key measures and monitoring strategy for JIT system

procedures to be adopted in the event of a non-conformance

problem solving JIT issues and non-conformances to root cause

Required knowledge

Required knowledge includes:

needs of internal and external value chain members

principles of JIT, including:

demand pull

flow authorisation

kanban

capability rate

monitoring

non-conformance procedures

reasons for delays/storages/inventories in the value stream and methods of reducing/eliminating them

methods of identifying skill gaps and methods of filling skill gaps

key business objectives associated with implementing JIT

principles of the operational processes relevant to the JIT implementation

production data generated by the process and its application to JIT

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

A person who demonstrates competency in this unit must be able to provide evidence of their ability to:

develop a complete JIT system, including:

implementation strategy

key measures

training and support strategy for employees and value chain members

procedures in the event of a non-conformance

communicate and negotiate complex issues to a wide variety of individuals

supervise JIT implementation and suggest improvements.

Context of and specific resources for assessment

Assessment of performance must be undertaken in a workplace using or implementing one or more competitive systems and practices.

Access may be required to:

workplace procedures and plans relevant to work area

specifications and documentation relating to planned, currently being implemented, or implemented changes to work processes and procedures relevant to the assessee

documentation and information in relation to production, waste, overheads and hazard control/management

reports from supervisors/managers

case studies and scenarios to assess responses to contingencies.

Method of assessment

A holistic approach should be taken to the assessment.

Competence in this unit may be assessed by using a combination of the following to generate evidence:

demonstration in the workplace

workplace projects

suitable simulation

case studies/scenarios (particularly for assessment of contingencies, improvement scenarios, and so on)

targeted questioning

reports from supervisors, peers and colleagues (third-party reports)

portfolio of evidence.

In all cases it is expected that practical assessment will be combined with targeted questioning to assess underpinning knowledge.

Where applicable, reasonable adjustment must be made to work environments and training situations to accommodate ethnicity, age, gender, demographics and disability.

Guidance information for assessment

This unit may be assessed concurrently with:

MSS405002A Analyse and map a value stream, and/or

MSS405050A Determine and improve process capability.

This unit is related to:

MSS402021A Apply Just in Time procedures

MSS403021A Facilitate a Just in Time system

which cover the lowest and intermediate skill levels in competitive systems and practices respectively.

Assessment processes and techniques must be culturally appropriate and appropriate to the oracy, language and literacy capacity of the candidate and the work being performed.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Competitive systems and practices

Competitive systems and practices may include, but are not limited to:

lean operations

agile operations

preventative and predictive maintenance approaches

monitoring and data gathering systems, such as Systems Control and Data Acquisition (SCADA) software, Enterprise Resource Planning (ERP) systems, Materials Resource Planning (MRP) and proprietary systems

statistical process control systems, including six sigma and three sigma

JIT, kanban and other pull-related operations control systems

supply, value, and demand chain monitoring and analysis

5S

continuous improvement (kaizen)

breakthrough improvement (kaizen blitz)

cause/effect diagrams

overall equipment effectiveness (OEE)

takt time

process mapping

problem solving

run charts

standard procedures

current reality tree

Competitive systems and practices should be interpreted so as to take into account:

the stage of implementation of competitive systems and practices

the size of the enterprise

the work organisation, culture, regulatory environment and the industry sector

JIT

JIT is a production scheduling concept that calls for any item or service needed at a production operation, whether raw material, components, fuel, power, finished item, or anything else in between raw material and delivery to the final customer, to be produced and available precisely when needed, neither a moment earlier nor a moment later. JIT principles may also be applied to non-product based manufacturing operations (e.g. where services must be delivered on demand, such as transport)

Kanban

Kanban is a signal to authorise production or movement of an item to the next stage of production or operations. It is often a physical item for example a card, bin or sheet. When fully implemented, kanban operates according to the following rules:

all production and movement of parts, material or other necessary items takes place only as required by a downstream operation

the specific tool which authorises production or movement is called a kanban

Kanban is typically applied to batch type operations and the production is measured in units produced. In continuous operations organisations, production is measured in terms of production rate (e.g. kg/h, tonne/day) and rate is increased/decreased according to the flow authorisation which may be a kanban (e.g. ticket or order from a supplier) or may be a SCADA signal from a remote facility (e.g. customer tank) saying that resupply is required or similar.

In service operations a physical kanban may not be used – see flow authorisation indicator

SCADA

SCADA refers to:

a number of systems which automatically collect critical process data, perform required mathematical manipulations on it and then make control decisions and/or give required information personnel for action

Value stream

The value stream begins with the customer and includes all actions (both value-adding and non-value added) by both internal sections/departments and external organisations to meet a customer requirement.

Depending on the operations and the customer requirement stages where value stream actions may occur include:

sales outlet/representative

information gathering, data analysis and research

product design

raw material sourcing

intermediate processing

final assembler/ collation/preparation

support services (e.g. accounting, finance and legal)

storage and delivery to customer

after market support

Flow authorisation indicator

Flow authorisation indicator may include:

kanban bin, ticket or similar

other indicator of demand pull

Pull system

Pull system includes:

an operations planning system which makes to demand, rather than for stock or to a forecast

Cards/bins

Cards/bins include:

the indicators used for production authorisation and may be physical cards or bins or some other suitable indicator

Procedures

Procedures may include:

work instructions

standard operating procedures

formulas/recipes

batch sheets

temporary instructions and similar instructions provided for the smooth running of the plant

good operating practice as may be defined by industry codes of practice (e.g. good manufacturing practice (GMP) and responsible care)

government regulations

Procedures may be:

written, verbal, computer-based or in some other format

Key measures

Key measures may include:

inventory levels

lead time

in full, on time and in specification (IFOTIS) delivery

productivity/production rate

other measures of pull through the value chain

quality

Unit sector

Competitive systems and practices