JUST IN TIME PROCESSING

1.INTRODUCTION
The Just-In-Time (JIT) concept is a manufacturing workflow methodology aimed at
reducing flow times and costs within production systems and the distribution of materials. The
just-in-time (JIT) system is a management strategy that aligns raw-material orders from
suppliers directly with production schedules. Companies employ this inventory strategy to
increase efficiency and decrease waste by receiving goods only as they need them for the
production process, which reduces inventory costs. This method requires producers to forecast
demand accurately.

The JIT production strategy means that businesses do not produce items for sale until
they have been ordered by customers, meaning inventory is low or nonexistent. While low
inventory can be beneficial to a company's bottom line in a number of ways, running a business
this way requires a great deal of coordination. From obtaining the raw materials needed for
manufacturing to ensuring timely delivery, every aspect of JIT production must be
synchronized. This often means businesses must invest in the implementation of information
technology to enable automatic notification to suppliers when orders are received

The JIT system is popular with small businesses and major corporations alike because it
enhances cash flow and reduces the amount of capital needed to run the business. Retailers,
restaurants, on-demand publishing, garment, tech manufacturing, and automobile manufacturing
are some examples of industries that have benefited from just-in-time processing. Apple INC,
Burger king, Nike are some of the examples.

The concept was popularized by the productivity of Japanese industry in the early 1970s
within the Toyota manufacturing plants that would meet consumer demands with minimum
delays using an approach focused on people, plants and systems.

The prime goal of JIT is for zero inventories across the organization and its supply chain.
This completely utilizes the organizational capabilities and maximizes return on investment. The
system was so successful in Japan it was copied by many US companies, notably Hewlett-
Packard.

Successfully implementation is dependent on creating a business wide initiative,

encouraging staff engagement and formulating a policy and strategy that can be mobilized.

The Just in Time process is not a solution for all organizations it may be that this process
can only be applied to certain areas of category management.
 ADVANTAGE OF JIT

 JIT can be applied to a wider variety of business processes including HR, accounting,
supply chain, operations management and relationship management.
 JIT can achieve better product quality through elimination of waste in production.
 The JIT approach can reduce the cost of inventories and inventory requirements.

DISADVANTAGES OF JIT
 The JIT system does not cope well with sudden changes to demand and supply.
For example, the COVID-19 pandemic has revealed the method's weaknesses. As trade was
disrupted by lockdowns and travel bans, companies have found managing its supply chain to be
incredibly difficult

1.2 BACKGROUND OF THE COMPANY

Arvind lifestyle apparel manufacturing PLC is one of the biggest garment and apparel
manufacturing company in Ethiopia owned by Indian multinational companies called Arvind
lifestyle limited. It is located at Bole Lemi Industrial Zone Bole Sub City Addis Ababa
Ethiopia and have another production units in Hawassa.

The company established in Ethiopia in 2013. It has currently several departments and 2360
Number of employees in its Addis and Hawassa units. The principal business of Arvind is
production and marketing of high-quality cotton fabrics and apparel.

A part of their fabric output is converted into ready to wear apparel which includes a wide
range of Denim jeans, shirts, leggings for Kids, under wear for both men’s and kids, and is
sold around the world by leading fashion brands such as Gap, Banana Republic, H&M,
Levi’s, Zara, Uniqlo, Lee, Calvin Klein and several others on international exports to USA
and other European countries.
Photos of Arvind Lifestyle:
 1.3 Problems in Just in Time Processing

The benefits of the just-in-time (JIT) production strategy are well-documented, but it can also
have some serious disadvantages. The chief issue with this production process is evidenced in
its name. "Just in time" means that the success of this business strategy depends largely on
precise coordination between businesses and their suppliers to ensure prompt delivery. Because
there is no inventory buffer, business can suffer greatly if any one element of production is
delayed.
Supply Shocks
 With no back stock of inventory or materials, any supply chain issue can lead to delivery delays
and angry customers. In Arvind PLC case a sudden increase in the price of raw goods due to
issues with Currency rate change, material sourcing, shortages, natural disaster, or political
upheaval can also pose a serious threat to the ability of a company to service its customers
effectively.
Demand Shocks
A company that uses this strategy may be ill-equipped to handle a sudden surge in demand for a
product. The lack of backup inventory means customers must wait for the company to receive
supplies and manufacture the product. This can mean extended delays, dissatisfied customers,
and potential forfeit of part or all of an order if any supply chain issues arise.
Large Orders
There are other hidden expenses inherent in the JIT that are just as important. The additional
shipping and delivery charges that accompany more frequent ordering can also have an
important impact on the bottom line, as well as on the environment
Lack of Management
The first and major problem involved in Just in Time (JIT) is to change the mentality of people.
For Example.  Laboure and supervisor will not ready to work with less inventory, as they think
there will not be continuity in production and they will end up with less production.
Challenge in Implementation

Implementing the system can be challenging and time-consuming. Famous for its JIT inventory
system, Toyota Motor Corporation orders parts only when it receives new car orders. Although
the company installed this method in the 1970s, it took 20 years to perfect it.
 2. Objective

The purpose of this study is to investigate the impact of JIT practices on operational
performance quality, cost, and delivery on Arvind Lifestyle Manufacturing PLC.

In addition, will show the implementation of JIT practices and the operational performance on
overall Manufacturing PLCs, and show how the services sector will implement JIT.

Moreover, it can provide a set of recommendations to the studied industries and how to improve
performance through implement JIT practices.

This study will lead the mangers to know which practices of JIT will improve the productivity
and to give the better performance.