A PRESENTATION ON

JIT(JUST-IN-TIME)

By : Ankit saxena
JIT?
“A philosophy of manufacturing
based on planned elimination of
waste and continuous
improvement of productivity
……”
Bottlenecks in JIT improvement won`t do any good.
implementing Its sounds like a good thing but we still don’t want to do it
JIT in an
Industry Look good on paper but…..

Costs are already as low as that can possibly get

But we already been doing things that way

We can`t lower costs any more without lowering quality

Everything is going just fine now ,Why change it?

That`s a lousy idea! We already tried that 20 years ago

Look we understand this stuff better than anybody(so don’t tell us

what to do)
History
of JIT  Evolved in Japan after World War II, as
a result of their diminishing market
share in the auto industry.

 Toyota Motor Company- first to

implement fully functioning and
successful JIT system, in 1970’s.

 Japanese Manufacturers looked for a

way to gain the most efficient use of
limited resources. They worked on
"optimal cost/quality relationship.
The philosophy of JIT can be traced back to Henry Ford, but formalized JIT
originated in Japan as the Toyota Production System. W. Edwards Deming’s
lesson of variability reduction was a huge influence.

The focus of JIT is to improve the system of production

by eliminating all forms of waste.
 JIT • ZERO INVENTORY
• ZERO LEAD TIME
(JUST-IN-TIME) • ZERO FAILURE
Eliminates waste .
Achieves streamlined production .
Eliminate disruptions in production … caused by poor quality,
schedule changes, late deliveries.
 Makes the manufacturing delivery system flexible by allowing it to
handle a variety of products and changes in the level of output.
Reduces setup and delivery times .
Waste Definition
1. Overproduction Manufacturing an item before it is needed.
2. Inappropriate Processing Using expensive high precision equipment when
simpler machines would suffice.
3. Waiting Wasteful time incurred when product is not being
moved or processed.
4. Transportation Excessive movement and material handling of
product between processes.
5. Motion Unnecessary effort related to the ergonomics of
bending, stretching, reaching, lifting, and walking.

6. Inventory Excess inventory hides problems on the shop

floor, consumes space, increases lead times, and
inhibits communication.
7. Defects Quality defects result in rework and scrap, and add
wasteful costs to the system in the form of lost
capacity, rescheduling effort, increased
inspection, and loss of customer good will.

8. Underutilization of Employees Failure of the firm to learn from and capitalize on

its employees’ knowledge and creativity impedes
long term efforts to eliminate waste.
 Overproduction
 Waiting time
 Unnecessary transportation
 Processing waste
 Inefficient work methods
 Product defects
Strategies For Minimizing Waste By Using
JIT

Manufacturing in smaller lot sizes reduces excess inventory

Reducing inventory levels allows the problems to be uncovered …
thus creating opportunities for manufacturing process improvement
 Principles Of JIT Manufacturing
Total quality Management

Production Management

Supplier Management

Inventory Management

Human Resource
Management
JIT Manufacturing Building Blocks

Product design

Process design

Personnel/organizational
elements

Manufacturing
planning and control
1. Product Design

Standard parts

Design Simplification

Highly capable production systems

Concurrent engineering
2. Process Design

Small lot sizes

Setup time reduction

Limited work in process

Quality improvement

Production flexibility

Little inventory storage

Benefits of Small Lot Sizes

Reduced Inventory

Less Rework

Less Storage Space

Problems are more apparent

Increase Product Flexibility

Easier to balance operation

3. Personnel/Organizational Elements

Workers as assets

Cross-trained workers

Continuous improvement

Leadership
 4. Manufacturing Planning and Control

Pull systems

Visual systems (kanban)

Close vendor relationships

Reduced transaction processing (delays in

delivery)

Preventive maintenance
Evaluation and selection of vendor (suppliers) network
to develop a tiered supplier network – reducing the
number of primary suppliers

Traditional supplier Network Tiered Supplier Network

Buyer

Buyer
Supplier Supplier

supplier supplier supplier supplier

Supplier Supplier Supplier supplier
In McDonald’s
 In McDonald’s

High holding costs are the nature of the fast

food industries.
 Wastage.
 Time.
 In McDonald’s

JIT system wherein McDonald's doesn't begin to cook

its orders until a customer has placed a specific order.
 Implementation of JIT

Sophisticated burger-making technology (including a

record-breaking bun toaster)
McDonald's is able to make food fast enough to wait until
it's been ordered.
Reduction in wastage.
Implementing in JIT
Production Systems

Criteria for success

Service
Quality
People
Food preparation
Profitability

.
Supply Chain Integration
 Benefits

 Improved Quality – The burgers are prepared freshly and

hence the quality has improved.
 Customer service – As the burger is made only after the
order is placed, making special orders is not an issue.
 Cost Reduction – Due to significant reduction in wastage
as uncooked material has a higher shelf life.
 Reduction in waiting – Customer’s waiting time reduce 11
min. to just 1 and half min.
Companies adopted JIT
TOYOTA PRODUCTION SYSTEM
Minimizing Waste: These are small specialized plants that
Focused Factory limit the range of products produced
Networks (sometimes only one type of product
for an entire facility)

Some plants in
Japan have as few
as 30 and as many
Coordination as 1000 employees
System Integration
Minimizing Waste: Group Technology (Part 1)
Note how the flow lines are going back and forth

Using Departmental Specialization for plant layout can cause a lot of

unnecessary material movement

Saw Saw Saw Grinder Grinder

Heat Treat

Lathe Lathe Lathe Press Press Press

 Minimizing Waste:
Group Technology (Part 2)
Revising by using Group Technology Cells can reduce movement and
improve product flow .

Grinder 1 2
Saw Lathe Lathe Press

Heat Treat

Grinder
Saw Lathe A B Lathe Press
Minimizing Waste: Just-In-Time Production
WHAT IT IS WHAT IT DOES

 Management philosophy  Attacks waste

 “Pull” system though the plant  Exposes problems and bottlenecks
 Hydraulic Push Systems  Achieves streamlined production

WHAT IT REQUIRES WHAT IT ASSUMES

 Employee participation
 Industrial engineering/basics  Stable environment
 Continuing improvement
 Total quality control
 Small lot sizes
Minimizing Waste: Inventory
Hides Problems
Example: By identifying
defective items from a
Machine vendor early in the
downtime production process the
Scrap Vendor downstream work is saved
Work in delinquencies Change
orders
process
queues Engineering design Design
(banks) redundancies backlogs
Example: By identifying
Paperwork Inspection Decision defective work by employees
backlog backlogs backlogs upstream, the downstream
work is saved
Minimizing Waste: Kanban Production Control
Systems

Once the Production kanban is This puts the system

Withdrawal
received, the Machine Center back were it was
produces a unit to replace the kanban before the item was
one taken by the Assembly Line pulled
people in the first place

Storage Storage
Machine Part A Part A Assembly
Center
Line

Production kanban
Material Flow
The process begins by the Assembly Line Card (signal) Flow
people pulling Part A from Storage
Determining the Number of Kanban Needed

Setting up a kanban system requires determining the number of kanban

cards (or containers) needed.

Each container represents the minimum production lot size.

An accurate estimate of the lead time required to produce a container is

key to determining how many kanban are required.

Side Bar – In Japan space is a very important consideration since there is so

little of it. This process saves on space requirements.
Example of Kanban Card Determination:
Problem Data
A switch assembly is assembled in batches of 4 units from an “upstream”
assembly area and delivered in a special container to a “downstream”
control-panel assembly operation.

The control-panel assembly area requires 5 switch assemblies per hour.

The switch assembly area can produce a container of switch assemblies in

2 hours.

Safety stock has been set at 10% of needed inventory.

Example of Kanban Card Determination:
Calculations

Always round up!

A.gunasekaran and J.lyu in their research implementation of just-in-
time in a small company has depicted its advantage in SMEs. he depicted
that implementation of JIT in SMEs should start with layout revision,
schedule stability and the development of long-term supplier-customer
relationships.
A new purchasing policy supporting frequent purchases of small lot
sizes may help SMEs in implementing a JIT system.
Education and training of workers in SMEs about JIT concept and their
high leverage opportunity would tremendously support the
implementation of JIT system in SMEs.
Requirement for the implementation of JIT in
Indian industry
Management Support And Understanding Of the System.

Management And Labour Responsibilities.

Training.

Supplier Management.

Production Layout And Work Flow.

Long‐term Planning.

Government Support.
JIT Benefits
Reduced Inventory
Improved quality
Lower costs
Reduced space requirements
Shorter lead-time
Increased productivity
Greater flexibility
Improved vendor relations
JIT Benefits (contd.)
Simplified scheduling & control
Increased capacity
Better utilization of personnel
More product variety
Increased equipment utilization
Reduced paperwork
Valid production priorities
Work force participation
Disadvantages of JIT

 Danger of disrupted production due to non-arrival of supplies.

 Danger of lost sales.

 High dependence on suppliers.

 Less time for quality control on arrival of materials.

 Increased ordering and admin costs.

 May lose bulk-buying discounts.

 JIT … Not For Everyone
JIT concepts work best when goods can be produced in response to
consumer demand (e.g. automobiles, etc.)

JIT is less effective for the production of standardized consumer

goods (e.g. basic clothing, food, soft drinks, toasters, etc.)

There are cases where JIT concepts apply to sub-processes of a

make to stock environment. (e.g. computers etc.)