KRISHNA SHARMA

ROLL NO 32
MGM COLLEGE KAMOTE NAVIMUMBAI
8976277298

CHAPTER 1
 1.1 INTRODUCTION

Just-in-time is easy to grasp conceptually, everything happens just-in-

time. For example consider my journey to work this morning, I could have left my
house, just-in-time to catch a bus to the train station, just-in-time to catch the
train, just-in-time to arrive at my office, just-in-time to pick up my lecture notes,
just-in-time to walk into this lecture theatre to start the lecture. Conceptually there is
no problem about this; however achieving it in practice is likely to be difficult. So too
in a manufacturing operation component parts could conceptually arrive just-in-
time to be picked up by a worker and used. So we would at a stroke eliminate
any inventory of parts, they would simply arrive just-in-time! Similarly we could
produce finished goods just-in-time to be handed to a customer who wants them.
So, at a conceptual extreme, JIT has no need for inventory or stock, either of raw
materials or work in progress or finished goods.Obviously any sensible person
will appreciate that achieving the conceptual extreme outlined above might
well be difficult, or impossible, or extremely expensive, in real-life. However
that extreme does illustrate that, perhaps, we could move an existing system
towards a system with more of a JIT element than it currently contains. For
example, consider a manufacturing process - whilst we might not be able to have a
JIT process in terms of handing finished goods to customers, so we would still
need some inventory of finished goods, perhaps it might be possible to arrange
raw material deliveriesso that, for example, materials needed for one day's
production arrive at the start of the day and are consumed during the day -
effectively reducing/eliminating raw material inventory.

Adopting aJIT system is also sometimes referred to as adopting a lean

production system.
JIT (also known as lean production or stockiness production) should improve
profits and return on investment by reducing inventory levels (increasing the
inventory turnover rate), reducing variability, improving product quality, reducing
production and delivery lead times, and reducing other costs (such as those
associated with machine setup and equipment breakdown). In a JIT system,
underutilized (excess) capacity is used instead of buffer inventories to hedge
against problems that may arise.

JIT- BACKGROUND AND HISTORY

JIT is a Japanese management philosophy which has been applied in practice

since the early 1970s in many Japanese manufacturing organisations. It was first
developed and perfected within the Toyota manufacturing plants by TaiichiOhnoas
a means of meeting consumer demands with minimum delays. TaiichiOhnois
frequently referred to as the father of JIT.

Toyota was able to meet the increasing challenges for survival through an
approach that focused on people, plants and systems. Toyota realised that JIT
would only be successful if every individual within the organisation was involved
and committed to it, if the plant and processes were arranged for maximum
output and efficiency, and if quality and production programs were scheduled to
meet demands exactly.

JIT manufacturing has the capacity, when properly adapted to the organisation,
to strengthen the organisation's competitiveness in the marketplace substantially
by reducing wastes and improving product quality and efficiency of
production.There are strong cultural aspects associated with the emergence of JIT in
Japan. The Japanese work ethic involves the following concepts.

• Workers are highly motivated to seek constant improvement upon that

which already exists. Although high standards are currently being met,
there exist even higher standards to achieve. Companies focus on group effort
which involves the combining of talents and sharing knowledge, problem-solving
skills, ideas and the achievement of a common goal.
• Work itself takes precedence over leisure. It is not unusual for a Japanese
employee to work 14-hour days.
• Employees tend to remain with one company throughout the course oftheir
career span. This allows the opportunity for them to hone their skills and abilities
at a constant rate while offering numerous benefits to the company.

1.2 OBJECTIVES OF THE STUDY:

 To be more responsive to customers to have better

communication.
 To be more flexible for achieving better Quality.

IMPORTANCE OF DOING THE PROJECTS

 Acquiring detailed knowledge in a particular topic.

 Dealing with the practical environment.
 Enhancing the creative and innovative skills.
 1.3 RESEARCH METHOLOGY

Method of collection

Secondary Data

Secondary research or desk research is a research method that involves using already
existing data. Existing data is summarized and collated to increase the overall
effectiveness of research.

Secondary research includes research material published in research reports and similar
documents. These documents can be made available by public libraries, websites, data
obtained from already filled in surveys etc. Some government and non-government
agencies also store data that can be used for research purposes and can be retrieved from
them.

The secondary data is collected based on:

 Website
 Books
  Magazines
 Research papers

COMPANY PROFILE

Toyota Motor Corp. engages in the manufacture and sale of motor vehicles and parts. It operates
through the following segments: Automotive, Financial Services, and All Other. The Automotive
segment designs, manufactures, assembles and sells passenger cars, minivans, trucks, and related
vehicle parts and accessories. It is also involved in the development of intelligent transport
systems. The Financial Services segment offers purchase or lease financing to Toyota vehicle
dealers and customers. It also provides retail leasing through lease contracts purchase by dealers.
The All Others segment deals with the design and manufacture and sale of housing,
telecommunications and other businesses. The company was founded by Kiichiro Toyoda on
August 28, 1937, as a spinoff from his father's company Toyota Industries to create automobiles.
Three years earlier, in 1934, while still a department of Toyota Industries, it created its first
product, the Type A engine, and its first passenger car in 1936, the Toyota AA. Toyota Motor
Corporation produces vehicles under five brands, including the Toyota brand, Hino,
Lexus, Ranz, and Daihatsu. It also holds a 16.66% stake in Subaru Corporation, a 5.9% stake
in Isuzu until 2018, a 5.5% stake in Mazda, as well as joint-ventures with two in China (GAC
Toyota and Sichuan FAW Toyota Motor), one in India (Toyota Kirloskar), one in the Czech
Republic (TPCA), along with several "nonautomotive" companies.[11] TMC is part of the Toyota
Group, one of the largest conglomerates in Japan.
Toyota is listed on the London Stock Exchange, New York Stock Exchange and Tokyo Stock
Exchange.

Roots of the Toyota Production System

The Toyota Production System (TPS), which is based on the philosophy of the complete
elimination of all waste in pursuit of the most efficient methods, has roots tracing back to Sakichi
Toyoda's automatic loom. TPS has evolved through many years of trial and error to improve
efficiency based on the Just-in-Time concept developed by Kiichiro Toyoda, the founder (and
second president) of Toyota Motor Corporation.

Waste can manifest as excess inventory, extraneous processing steps, and defective products,
among other instances. All these "waste" elements intertwine with each other to create more
waste, eventually impacting the management of the corporation itself.

The automatic loom invented by Sakichi Toyoda not only automated work that used to be
performed manually, but also built the capability to make judgments into the machine itself. By
eliminating both defective products and the associated wasteful practices, Sakichi succeeded in
rapidly improving both productivity and work efficiency.

Kiichiro Toyoda, who inherited this philosophy, set out to realize his belief that "the ideal
conditions for making things are created when machines, facilities, and people work together to
add value without generating any waste." He conceived methodologies and techniques for
eliminating waste between operations, between both lines and processes. The result was the Just-
in-Time method.

Via the philosophies of "Daily Improvements" and "Good Thinking, Good Products, TPS has
evolved into a world-renowned production system. Even today, all Toyota production divisions
are making improvements to TPS day-and-night to ensure its continued evolution.

The Toyota spirit of monozukuri (making things) is today referred to as the "Toyota Way." It has
been adopted not only by companies in Japan and within the automotive industry, but in
production activities worldwide, and continues to evolve globally.
The TPS concept
For Toyota, jidoka means that a machine must come to a safe stop whenever an abnormality
occurs. Achieving jidoka, therefore, requires building and improving systems by hand until they
are reliable and safe. First, human engineers meticulously build each new line component by
hand to exacting standards, then, through incremental kaizen (continuous improvement), steadily
simplify its operations.

Eventually, the value added by the line's human operators disappears, meaning any operator can
use the line to produce the same result. Only then is the jidoka mechanism incorporated into
actual production lines. Through the repetition of this process, machinery becomes simpler and
less expensive, while maintenance becomes less time consuming and less costly, enabling the
creation of simple, slim, flexible lines that are adaptable to fluctuations in production volume.

The work done by hand in this process is the bedrock of engineering skill. Machines and robots
do not think for themselves or evolve on their own. Rather, they evolve as we transfer our skills
and craftsmanship to them. In other words, craftsmanship is achieved by learning the basic
principles of manufacturing through manual work, then applying them on the factory floor to
steadily make improvements. This cycle of improvement in both human skills and technologies
is the essence of Toyota's jidoka. Advancing jidoka in this way helps to reinforce both our
manufacturing competitiveness and human resource development.

Human wisdom and ingenuity are indispensable to delivering ever-better cars to customers.
Going forward, we will maintain our steadfast dedication to constantly developing human
resources who can think independently and implement kaizen.