Just In Time

Academic Group 3
SY-B
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Just in Time

The Just in Time inventory system is a management strategy whereby material,

goods, and labor are scheduled to arrive or to be replenished exactly when needed
in the production process. It is also at times used synonymously with lean
manufacturing. Organizations use this strategy to increase efficiency and decrease
waste by receiving goods only as they need them for the production process, which
reduces inventory costs.

The Just in (JIT) inventory supply system is a shift away from other Just-In-
Case strategies; in which producers hold large inventories to have enough products
to absorb maximum market demand.

Features

‘Just-in-time' is administration reasoning and not a system. It initially alluded to

the creation of merchandise to fulfill client need precisely, in time, quality and
amount, regardless of whether the 'client' is the last buyer of the item or another
procedure further along the generation line. Idea of JIT framework is to create with
least waste.

Important features of JIT include:

1. Continuous improvement – Quality, Quantity & Cost

This involves:

• Fundamental problems as well as anything that does not add value to the
final product
• Devising systems that will identify production as well as allied problems
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• Simplicity: a simple system is easy and simple to understand, it is easily

manageable and the possibility of something going wrong is low if not
nullified
• Product: an oriented lay out that will account for less time spent on
materials and movements of parts
• Quality control at the source which will ensure every worker is solely
responsible for the quality of the output produced by them

2. Elimination of waste

Types of waste dealt with under this are

• Waste from product defects.

• Waste of time.
• Transportation waste.
• Inventory waste.
• Waste from overproduction.
• Processing waste.

Waste minimization is one of the essential goals of Just In Time framework. This
needs viable stock the board all through the entire production network. At first, an
assembling substance will try to decrease stock and upgrade tasks inside its very
own association.

3. Reduction in Inventory levels – WIP, FTRM, FG, CACH etc.

Inventory refers to items that you keep in stock to resell or process. Keeping the
inventory level high allows one to easily meet demands of the customers.
However, it may cost ones business a hefty sum of money. Keeping the inventory
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levels low reduces ones costs and minimizes the losses from the deteriorating
items.

4. Set-up time reduction - increases flexibility and allows smaller batches

Setup Reduction is a technique that is useful for level load balancing, that is a key
strategy for lean deployment. Setup Time is defined as the time required to change
from the last item of the preceding order to the first good item of the new, next
order.

Advantages

The strategy can prove to be advantageous in many ways-

1. Lesser space requirement- With faster turnaround of stock, the storage or

warehousing requirements reduce. It also reduces the managerial efforts and
frees up the funds for the other parts of the business.
2. Waste Reduction- Just in time prevents the goods from becoming damaged
or obsolete while sitting in storage. This leads to waste reduction and saves
resources.
3. Meeting Consumer Demands-Since production runs are very short, it is
easier to halt production of one product type and switch to a different
product to meet changes in customer demand.
4. Detection of Error- Production mistakes can be spotted more quickly and
corrected, which results in fewer products being produced that contain
defects.
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Need

JIT offers preferences, for example, enabling makers to keep creation runs low and
proceed onward to new items rapidly and effectively if necessary. Organizations
utilizing JIT never again need to keep up a gigantic spread of distribution center
space to store stock. A firm additionally no longer needs to spend a lot of cash on
crude materials for generation, since it just arranges precisely what it needs, which
opens up income for different employments.

A long-term fixation on generation development and supply necessities, and

synchronizing changes in crude materials details with providers, give some long

Case Studies

The Just in time concepts were originally developed in the manufacturing domain.
It can be identified, analyzed and altered to fit and benefit service organizations. If
the service organizations apply the technique to reduce non-value added activities,
they will have more time to focus on value added activities.

Pilgrims in Pandharpur

The problem

Waiting and queuing problems are very common features in daily-life situations.
This case study is about using Just in Time strategy to reduce waiting time of
pilgrims at Pandharpur, an important pilgrimage center in India. This center is
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located at the bank of holy river Bhima and attracts a large number of visitors (16
million a year) from all over the country.

Darshan is the prime motive for which a pilgrim visits the Pandharpur in the
pilgrimage period. The current processing rate of 40 pilgrims per minute makes it
2,400 pilgrims an hour. At pilgrimage period, darshan may be kept open for 14.5
hours. This would provide a processing capacity of 34,800 per day. When the
number of arrivals per hour is more than 2400, wait would occur. The waiting
duration in hours would be the number of pilgrims in the queue divided by hourly
output of 2400.

On regular days, the average waiting time of darshan can vary from 1 hour to 5
hours and it may be increased up to 24 hours in the pilgrimage period. There is also
high uncertainty as when one would reach in front of deity. The actual darshan
time is about 1.5 -2 seconds.

The darshan time of a pilgrim in front of deity and the number of queues cannot be
increased. Therefore, it is only possible to apply selected management tools to
reduce the waiting period of pilgrim as well as to make waiting time enjoyable.

Using the strategy

A software based program is uploaded on the official site of the temple and slots
are provided day wise and at a frequency of two hours. The darshan rate is 2400
pilgrims per hour. With the slot system into place, just like JIT reduces waste and
works on ‘as and when required’ principle, here also, the people are given separate
slots as per availability.
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The pilgrims chose their date and time according to their availability through the
website. After successful registration, individual get a ticket, which they have to
produce the tickets half hour before the darshan time. These pilgrims are allowed
to enter the queue of darshan only after verification of photograph on the ticket and
date & time. Hereafter, within 15 minutes he or she gets darshan, thus reducing
waiting time. Thus waiting time for the pilgrims, who utilize the JIT facility, is
maximum 30 minutes.

In the pilgrim period, the average waiting period of the pilgrims, who have taken
darshan in physical queue, was recorded as 8 hours whereas it is about 30 minutes
for those who use Just in Time facility. It clearly indicates that waiting period is
reduced by ‘Just in Time’.
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Toyota

To keep up with the western companies Toyota started to manufacture products

using Just in Time inventory controls as part of its business model. It sends off
orders for parts only when it receives new orders from customers. The company
started implementing this method in the 1950s, and it took over 15 years to perfect.

This philosophy of Just in Time has allowed Toyota to keep a minimum amount of
inventory, which means lower costs. Therefore, the company can quickly adapt to
changes in demand without having to worry about disposing of expensive
inventory. Toyota will also be able to recover sooner than expected from any
natural disaster occurrence in future as compared to past.

The first and the foremost important part of just-in-time production, to gather
accurate knowledge related to timing and quantity required. Normally, every
production system, but in case of Toyota Production System, follows the
production schedule of a particular product in automotive plant which is based on
the various parts schedules and instructions given to all the processes. The
production of these parts as per their schedule, leads to the implementation of
preceding process of supplying the parts to its subsequent process. But this process
could only make it worse and difficult to adapt the constant changes to meet the
production targets. On the other hand, Toyota adopted the opposite of preceding
process of supplying the parts to its subsequent process.

In just-in-time production, parts are being produced as per various processes in the
exact required numbers and exact timeline for completing the assembly of a
vehicle, which is regarded as the final product of Toyota. In such a scenario, it
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won’t be wrong to say that the final assembly line will be able to judge the number
of parts it requires and how much time it will take to finish the vehicle. After
connecting the above discussed processes and put into the chain fashion process, it
would be right to say that whole production process of the company is engaged in
just-in-time production without making unnecessary bulky production orders.

Toyota’s Just-in-Time system is very well known across the globe because Toyota
showed huge success in most of its production department. Since 1950’s, Toyota
has been using Toyota Production System and it has made it better and better over
the time.