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▪ JIT philosophy means getting the right quantity of goods at the right
place and the right time
▪ Respect for people rests on the philosophy that human resources are
an essential part of JIT philosophy
Elements of JIT in Manufacturing
Continuous improvement.
o Attacking fundamental problems - anything that does not add value to the
product.
o A product oriented layout - produces less time spent moving of materials and
parts.
Elements of JIT in Manufacturing cont.
▪ In Japanese, the "word “kan” means “visual” and “ban” means “card”,
so Kanban refers to visual cards.
▪ It works on the basis that each process on a production line pulls just
the number and type of components the process requires , at just the
right time.
Term “Kanban” cont.
▪ 1. A withdrawal Kanban.
▪ 2. A production-ordering Kanban.
Advantages of JIT
▪ Reduction in inventories.
▪ Improved quality.
▪ Reduced space requirements.
▪ Shorter lead times.
▪ Lower production costs.
▪ Increased productivity.
▪ Increased machine utilization.
▪ Greater flexibility.
Disadvantages of JIT
▪ In the mid-1990s, more than fifty executives and engineers from major
automobile companies worldwide visited Toyota Motor Company's .
▪ Analysts remarked that despite installing Toyota's JIT for many years, no
other automaker in the world had been able to make their production
systems and processes as efficient as Toyota had done
Case Study Cont.