What IT capacity planning can learn from manufacturing’s just-in-time models

Just in Time Logistics • What can we learn from a Just In Time (JIT) Model in the world

of IT?

• What comparisons can we make?

• What do we need to be wary of?

• Where is this going to take us?

Matthew Morris

Head of Cloud EMEA

Just in time

Just in time (JIT) is a production strategy that strives to improve a business' return on investment by reducing in-process inventory and associated carrying costs.

How many variations! • BMW have 36 different cars • 463 Model Variants • 3 Series Estate has 45 models • Plus Manual or Automatic option • 10 colours • 3 types of Wheels • 8 Upholstery options • 8 trim options • 3 trim finishes • 8 different packages • Almost a hundred additional options • Left hand or right hand drive • Millions of different types of cars produced

None of them have indicators

This is a big problem

Stock

Before Just in Time

We have been doing that

Buying great big servers

Buying to much

Needed for growth

Because we don’t know what we need

Increase in future sales

reduced sales

So we buy more

Backup

All of the overheads of IT

Staff

Virtualisation

Virtualisation overhead

Slow deployment times

Ability to react to needs

This is what manufacturing was doing before 1948

Then it was time for a change

Taiichi Ohno

• He is considered to be the father of the Toyota Production System,

How do they do this?

Eliminate Waste

Don’t make more than you need

Reduce waiting

Waste of Transportation

Waste of Processing

Stock

Wasted Movement

Defective Products

Delivered when it is needed

Where it is needed

Hey we want that!

Is Cloud the answer?

Cloud gives us what we want when we want it

No more buying more than we need for growth

Down to near real time capacity needs

Access to new resources

Per Person

Per CPU

Per GB of RAM

Per GB of Storage

Use Cloud technology to deploy servers in seconds

Scale up and down as the business needs

Pick the best fit for you

What do you need?

Just in time, suppliers are critical

1997 Aisin fire • 99% of Toyota's P-valves were made at this plant

• 4 hours of stock

• Multiple types of P-valves

• Weeks worth of delays in production

• 0.1% decrease in Japan's industrial output

Crisis room

Bring in more people

Working overtime

Different suppliers

There supplier did not ask about the price

Lessons we can learn

Just in time had worked

Right balance

• Risk

• Efficiency

Understand your Cloud risks

What is your cloud provider uptime SLA?

Can they deliver?

Tide going out

Next Obstacle

Are you getting the most from your technology?

Have you evaluated your risk to efficiency balance?

Open to Questions