Chapter 8

JUST-IN-TIME

Outline:

 Definition of JIT
 Feature of JIT Manufacturing System
 Expected outcome from JIT
 Advantages and Disadvantages of JIT

JUST-IN-TIME

- also called as lean production

- is a demand - pull system that requires goods to be pulled through the system by present demand rather
than pushed through the system on a fixed schedule base d on anticipated demand.
- the demand is the one that triggers each step of production process

- is a managerial strategy applied in manufacturing which involves having 'the right materials at the right
quality and quantity in the right place and at the right time'
- also described as stockless production; being seen as wasted investment that could be released for other
profit earning activities.
- it strives to improve a business return on investment
- it can bring huge savings in costs and waste along with increase in quality and the elimination of non-
value added activities

OBJECTIVE OF JIT: is to eliminate all idle resources throughput the company

KANBAN SYSTEM

- is to eliminate all idle resources throughput the company

- KANBAN is a Japanese term means 'visible records' (i.e. tickets, cards pr markers)
- an information system that controls production through the use of markers or cards to ensure that
necessary materials or parts are produced or acquired in the necessary quantities at the necessary time.
 KANBAN SYTEM uses cards or markers which are: The KANBAN usually placed in a:
• plastic  vinyl sack
• cardboard  container holding the needed materials
• metal plates or parts
• measuring 4" x 8"

Basic Kanban System includes:

 Withdrawal Kanban
- it specifies the quantity that a succeeding process shall withdraw from the proceeding process
 Production Kanban
-specifies the output of the present process
 Vendor Kanban
-notify suppliers to deliver more parts when and where to deliver

- JIT requires to have a close and well- mannered relationship with supplier
- supplier linkages are vital
- in this system the supplier will be fewer in numbers (half or less) and will have longer term contracts in return
for delivering high quality components reliably, quickly, frequently and in smaller batches directly to production
site just-in-time to match the production schedule.

What are the features of JIT manufacturing system?

 Organizing production in manufacturing cells

 Hiring and retaining multi- skilled worker
 Emphasizing total quality management
 Reducing setup time and manufacturing lead time
 Building strong supplier relationship

Expected Outcome from JIT

 Setup time is expected to decrease

 Manufacturing lead time is expected to decrease
 Units produced per hour is expected to increase
 Inventory on hand is expected to decrease
 Defective units or scrap units are expected to decrease
 Purchasing, production, and sales to occur in quick succession with minimal inventories
 Job costing is simplified, though accounting may not always conform to generally accepted
accounting principles(GAAP)
 Auditing is complicated due to lack of sequential tracking

ADVANTAGES/ BENEFIT OF JUST IN TIME DISADVANTAGES OF JUST IN TIME MANUFACTURING

MANUFACTURING  Difficult Implementation
 Free- Capital  Retaliation of Supplier
 Freed-up Space  Stressed Workers
 Enough Production  Delays on supplies
 Reduced Defect Rates  Unavailable Parts

Prepared by Group 7