Manufacturing Philosophies

Just In Time Manufacturing (JIT)

Ajita Jain – 112010052

Aditya Rahalkar - 112010105
Tanvi Lad - 112013030

1
Table of Contents

1. History and Philosophy

2. Basic Concept
3. Basic Directive Principles of JIT
3.1 Levelled Production
3.2 Pull System
3.3 Continuous Flow Processing
3.4 Takt Time
3.5 Flexible Workforce
3.6 3 Ms (Muda, Mura, Muri)
4. Kanban Concept and JIT
4.1 Kanban
4.2 Kanban Strategies: Push vs Pull Kanban
4.3 Kanban Rules
4.4 A Demand Driven Model
4.5 Kanban Cards
4.6 Kanban Bins
4.7 Three bin system
5. Production and Withdrawal Kanbans
5.1 Production Kanban
5.2 Withdrawal Kanban
6. Kanban and Repetitive Manufacturing
6.1 Kanban System
6.2 Repetitive Manufacturing System
6.3 Integration of Kanban and Repetitive Manufacturing
7. JIT Purchasing
8. Criteria for selection of suppliers in JIT
9. Implementation Phases of JIT
9.1 The preparatory phase
9.2 The production process improvement phase
9.3 The Production Control Restructuring phase
9.4 The Expansion Phase
9.5 The External Links Phase
10. Implementation Problems of JIT
11. Comparison of JIT with MRP systems
12. Principle of Housekeeping from JIT perception
13. Why JIT should be included in Industries
14. References

2
 JUST-IN-TIME (JIT Production)

Just-in-time (JIT) is defined as a “manufacturing philosophy centered on the planned

elimination of all waste and the continuous improvement of productivity.”
The focus of the just-in-time inventory system is to ensure the availability of 'the right material,
at the right time, at the right place, and in the exact amount,' without relying on the safety net
of inventory. Implementing the JIT system has broad implications for organizations.

1. History and Philosophy

Before the introduction of the JIT system, companies faced challenges in accurately calculating
their material flows. Warehouse management was also problematic, with instances of
warehouses being either fully stocked or nearly empty at different times. These issues made
logistics a considerable challenge for engineers and managers.
JIT, however, is not a recent concept. The technique was initially employed by the Ford Motor
Company in the 1920s. It was later refined and perfected by Taiichi Ohno of Toyota, often
referred to as the father of JIT. Ohno developed this philosophy to meet customer demands
with minimal delays.
Initially used to fulfill customer orders promptly, JIT was subsequently adopted and publicized
by the Toyota Motor Corporation of Japan as part of its Toyota Production System (TPS). In
1954, Toyota implemented this concept to reduce wasteful overstocking in car production.
Just-in-time (JIT) inventory systems entail more than just a method; they embody a
comprehensive philosophy that a company must adhere to. The principles within this
philosophy draw from various disciplines, including statistics, industrial engineering,
production management, and behavioral science. In the JIT inventory philosophy, inventory is
perceived as incurring costs rather than adding value, contrary to traditional thinking.
Businesses are encouraged to eliminate excess inventory, aligning with the main principle
behind JIT.

2. Basic Concept

Just-In-Time (JIT) production is a manufacturing philosophy that eliminates waste associated

with time, labor, and storage space. The basic concept entails producing only what is needed,
when it is needed, and in the quantity required. The company responds directly to customer
requests, fulfilling actual orders rather than relying on forecasts. JIT can also be defined as
producing necessary units with required quality in necessary quantities at the last safe moment.
This approach allows companies to efficiently manage their resources and allocate them as
needed. JIT is also referred to as lean production or stockless production, as its successful
implementation hinges on minimizing inventory levels throughout the production line. This

3
requires precise coordination between stations to ensure each produces only the exact volume
needed by the next station. Conversely, each station pulls in only the exact volume required
from the preceding station.

The JIT system involves defining the production flow and setting up the production floor to
facilitate smooth, uninterrupted material flow, thus reducing waiting times. This necessitates
evenly matched and balanced capacities at various workstations to eliminate bottlenecks. Such
a setup ensures materials undergo manufacturing without queuing or stoppages. Another
crucial aspect of JIT is the use of a 'pull' system, where the requirements of the next station
regulate the production of the current station. Hence, defining a process to facilitate the pulling
of lots from one station to the next is essential under JIT.

JIT is most suitable for operations or production flows that remain constant and repetitive. An
example is an automobile assembly line, where each car undergoes the same production process
as its predecessor.

3. Basic Directive Principles of JIT

The seven core directive principles that define the fundamental nature of JIT are as follows:
3.1. Heijunka (Levelled Production):
Leveled production within JIT involves concurrently manufacturing various models on a single
production line to meet customer demand.
In this scenario, envision different models in the accompanying diagram, all being produced
on the same line.

Fig 1- Levelled Production

Production leveling is executed by determining the demand ratio for each model.

4
JIT recommends producing mixed models on the same production line, aligning with their
respective market demand ratios, instead of generating batches of the same model.
This strategic approach ensures minimal customer waiting times, guaranteeing fair service for
all customers throughout the month.

3.2. Pull System:

Push and Pull system are two types of production systems, which operate equally in opposite
sense.
Push system: It is a conventional system of production. When a job completes its process in a
workstation, then it is pushed to the next workstation where it requires further processing or
storing. In this system, the job has a job card, and the job card is transferred stage by stage
according to its sequence. In this method, due to unpredictable changes in demand or
production hinder-ness, the job happens to deviate from its schedule, and it causes
accumulation of work-in-process inventory. Hence, inventory planners pessimistically fix the
safety stock level on the higher side. A schematic representation of the push system is shown
in below figure where WSj is the jth workstation and the product line consists of n workstations.

Fig 2- Push System

Pull system: A pull type production system consists of a sequence of workstations involving
value addition in each workstation (WS). In the pull system, from the current workstation (i),
each job is withdrawn by its succeeding workstation (j+1). In other words, the job is pulled by
the successive workstation instead of being pushed by its preceding workstation. The flow of
parts throughout the product line is controlled by Kanban Cards.

Fig 3- Pull System

5
3.3. Continuous (Smooth) Flow Processing
Producing just-in-time is not possible until the organization ensures smooth flow processing.
Continuous or smooth flow processing means arranging work inside each process to flow
smoothly from one step to another. Why is it necessary? The answer is simple. You cannot
maintain buffer or safety stocks in JIT system if it is to run efficiently. Keeping buffer or safety
stock in between production processes is part of the Just-in-Case system. The term JIC itself
indicates fear of parts shortages that can ultimately affect production. In continuous flow
production, you cannot maintain inventory. You pass through all your work in a continuous
manner so that there is no chance of inventory management. If any defect occurs and remains
undetected, it will remain limited to the same or very few components. If a defect occurs in the
system based on JIC having huge safety stocks, the losses will be much higher and difficult to
manage.
Here is a diagram that illustrates the difference between the two systems:

Fig 4- Batch Production vs One-Piece Production

3.4. Takt Time

Takt, a German term translating to "meter," represents the time required to complete a specific
amount of work, be it performing a single operation, manufacturing a component, or
assembling an entire car.
It represents the rate at which a product or service must be completed to meet customer demand
precisely. By synchronizing production rate with customer demand, organizations can mitigate
overproduction, underproduction, lower inventory expenses, and enhance overall productivity.
It acts as the pulse of the work process, enabling optimization of capacity.
This concept is quantified through a formula that establishes the pace of work in alignment
with market demand.

6
 • Available Production Time: the total amount of time available for production during a
specific period.
• Customer Demand: the number of products or services that customers require during the
same period. This is usually expressed as a rate or quantity, such as units per day, hours
per week, or calls per hour.
For example, if you receive a new product order every 4 hours, your team needs to finish a
product in 4 hours or less to meet demand.
Takt Time = 480 minutes / 2 orders = 240 minutes per order
This means that the company must complete one order every 240 minutes (about 4 hours) to
meet customer demand without overproducing or underproducing. If they can produce orders
faster than 4 hours, it may indicate that they are overproducing and creating unnecessary
inventory. If they cannot produce the order within 240 minutes, they may not be meeting
customer demand and may need to adjust their production processes or increase resources.
Takt time thus acts as a crucial metric for synchronizing production with customer demand,
optimizing efficiency, and ensuring that resources are utilized effectively to meet market
requirements.

3.5. Flexible Work Force (Shojinka)

A flexible workforce, also known as Shojinka, involves adjusting the number of operators
within a shop or production department to align with variations in production demand.
Achieving a flexible workforce is facilitated through continuous training and development
initiatives. The training methodology should focus on transforming employees into multi-
process handlers rather than restricting them to being multi-machine handlers.

7
 Fig 5- Multi-units operations vs multi-process operations

3.6. 3 Ms (Muda, Mura, Muri)

The 3 Ms—Muda, Mura, and Muri—act as impediments to the smooth operation of JIT and
are incessantly identified and eradicated from the system.
These terms originate from the Japanese language, each commencing with the English letter
'M.' They are defined as follows:
1) Muda, which translates to "unnecessary effort," represents the most fundamental form of
waste in Lean methodology. It encompasses activities that do not contribute value to the
final product.
Lean identifies eight primary types of Muda:
• Over-production: Producing more than what is needed or before it is needed.
Impact: Increases inventory, ties up resources, hides process issues, and increases the
risk of obsolescence.
Example: Producing beyond customer demand, excessive batch sizes.

• Unnecessary transportation: Unnecessary movement of materials or products between

locations.
Impact: Increases lead time, risk of damage, and transportation costs.
Example: Excessive material handling, long travel distances between workstations.

• Extra motion: Unnecessary movement of people within a workspace.

Impact: Wastes time and energy, increases the risk of injuries, and reduces efficiency.

8
 Example: Searching for tools or information, unnecessary walking or bending.

• Waiting: Idle time spent waiting for materials, equipment, or information.

Impact: Delays in production, increased lead times, and reduced throughput.
Example: Equipment downtime, waiting for approvals, or waiting for supplies.

• Over-processing: Performing unnecessary or excessive work beyond what adds value.

Impact: Increases costs, consumes resources, and lengthens lead times.
Example: Redundant inspections, unnecessary paperwork, excessive approvals.

• Inventory: Excess inventory beyond what is needed for immediate use.

Impact: Ties up capital, occupies space, increases holding costs, and hides underlying
problems.
Example: Overstocking raw materials, work-in-progress, or finished goods.

• Defects: Producing products or delivering services that do not meet quality standards.
Impact: Increases rework, scrap, warranty costs, damages reputation, and undermines
customer satisfaction.
Example: Errors in production, incorrect assembly, defects in components.

2) Mura, translating to "unevenness," refers to irregularities within the production process.

This arises when resources, including team members and materials, are not appropriately
allocated. Mura often leads to fluctuations in production levels and frequent interruptions.
3) Muri, which translates to "overburden," signifies the consistent strain placed on resources.
While Mura may periodically overburden people and equipment, Muri represents a
sustained overload. This excess strain can result in injuries, defects, equipment
breakdowns, and ultimately proves to be unsustainable in the long term.

Fig 6- 3Ms- Muda, Mura, Muri

4. Kanban concept and JIT

4.1. Kanban:

9
Kanban (which means "signboard" or "billboard" in Japanese) is a visual scheduling system
associated with just-in-time (JIT) inventory/production. It provides a "visual signal" or "card"
that communicates "what– when– how much" to procure/produce. Kanban, widely known in
the automotive industry as the Toyota Nameplate System, derives its name from the cards used
to track production. It facilitates the proper movement of parts within a manufacturing plant or
between plants, functioning as a system of inventory and production control (pull inventory
system). Essentially, it serves as an "information transmission device."
The Kanban system visualizes both the planned workflow and the actual work passing through
the flow, thereby preventing supply disruptions and overstocking of raw materials or in-process
materials at any stage in the value chain. Incoming stock is not allowed unless there is space
for it. Kanban gradually improves existing processes, whether in software development,
recruitment, sales, procurement, etc., rather than requiring core changes. It is an effective tool
for supporting production systems, especially where inventory is involved, and it promotes
improvement by pinpointing and highlighting problem areas through lead time and cycle time
analysis.
One of the main objectives of the Kanban system is to limit the build-up of excess inventory at
any point in production. This is achieved by instituting limits on the quantities of items waiting
at supply points, allowing inefficiencies to be identified, reduced, and/or eliminated. When a
limit is exceeded, the point of inefficiency can be addressed.
The Empty Box Concept—Two-bin System: The system originates from the concept of "an
empty box," the simplest visual stock replenishment signalling system. Its early development
can be traced back to UK factories producing Spitfires during WW-II, known as the "two-bin
system."
The Supermarket Shelf-Stock Concept: Like in a supermarket, where customers retrieve what
they need at the required time, the production process and its various stages are viewed as
customers while the inventory stores serve as the supermarket. Kanban aligns inventory levels
with actual consumption, signaling a supplier to produce and deliver a new shipment when a
material is consumed. This ensures future supply and visibility throughout the replenishment
cycle, controlling the rate of production based on demand.

4.2. Kanban Strategies: Push vs Pull Kanban

Manufacturers consistently aim to align their production with customer demands. The crucial
challenge lies in accurately understanding customer preferences and timing. Within
manufacturing supply chain management, two predominant strategies emerge: the push system
and the pull system. The question arises as to which strategy best suits the company's
objectives. When deliberating on the most appropriate strategy, two strategic approaches are
typically considered:
1) Push Kanban: Characterized by Unlimited Work in Progress (WIP) and Dependency
Demand.
2) Pull Kanban: Distinguished by Limited Work in Progress (WIP) and Focus on Demand.

The operational functionalities of Kanbans are outlined as follows:

10
 • Used as a means for process improvement to help reduce the level of in-process inventories.
• To integrate different manufacturing processes, ensuring interchangeability between a
preceding workstation supplying partially processed items or components to a succeeding
workstation.
• To ensure the appropriate number of materials and parts reach the right place at the right
time.

4.3. Kanban Rules

• The later process collects product from the earlier process.

• The later process informs the earlier process what to produce.
• The earlier process only produces what the later process needs.
• No products are moved or produced without Kanban authority.
• No defects are passed to the later process.

4.4. A Demand Driven System

Kanban cards serve as a pivotal component, signaling the need to move materials:
• From an outside supplier into the production facility.
• Within a production facility.
The kanban card serves as a message indicating depletion of product, parts, or inventory. Upon
receipt, it triggers replenishment of the respective product, part, or inventory, with consumption
driving demand for more production. This demand-driven system is widely recognized by
proponents of lean production and manufacturing for its ability to expedite production
turnaround and reduce inventory levels, thereby enhancing competitiveness.

Fig 7 - Kanban Cards

11
4.5. Kanban Cards
In adherence to the principles of kanban, kanban cards simply convey the need for more
materials. Typically, these are straightforward cards or sheets of paper attached to a batch of
material. Each product in the system typically has only two or three cards, though more may
be used for larger batches or products. These cards detail the product, its usage location, and
the required quantities. For multiple card systems, they may also specify their sequence within
the set. Upon completion of material usage, the kanban card is returned to the previous process,
serving as authorization for manufacturing replacement parts. In multiple card systems, the
process typically awaits the return of a set number of cards before starting the next batch. A red
card placed in an empty parts cart signals the need for more parts.

4.6. Kanban Bins

Bins function similarly to Kanban cards, with the container housing the materials serving as
the actual Kanban. These bins are typically labeled with similar information to the cards and
are returned to the previous process as authorization for production upon emptying. Similar to
cards, systems may utilize 2-bin Kanban systems, 3-bin systems, and beyond, depending on
the required stock levels within the system.

4.7. Three-bin system

A straightforward kanban system, known as the "three-bin system," is employed for supplied
parts, particularly where there is no in-house manufacturing. The three bins include a
removable card containing product details and other relevant information:
• First Bin: On the factory floor (the initial demand point).
• Second Bin: In the factory store (the inventory control point).
• Third Bin: At the supplier (the supply point).
When the bin on the factory floor becomes empty due to parts usage, the empty bin and its
kanban card are returned to the factory store, i.e., the inventory control point. The factory store
replaces the empty bin on the factory floor with the full bin from the factory store, containing
a kanban card. Subsequently, the empty bin with its kanban card is sent to the supplier, while
the supplier delivers the full product bin with its kanban card to the factory store, retaining the
empty bin. This finalizes the process.

12
 Fig 8- Three bin system

5. Production and Withdrawal Kanbans

Fig 9- Types of Kanban

5.1 Production Kanban

Production kanban instructs an upstream process on the type and quantity of products to
manufacture for a downstream process. It operates within a pull system where production is
triggered by the consumption of parts downstream. There are various types of production
kanban systems:
1) Triangle Kanban: This is a standard method used in lean manufacturing. It signals the
need to produce a batch of parts when a minimum quantity of containers is reached.
2) Pattern Production: Involves creating a fixed sequence or pattern of production that is
repeatedly followed. The amount produced may vary according to customer needs. It
helps in maintaining inventory levels based on the replenishment cycle.
3) Lot-Making Board: Involves creating a physical kanban for every container of parts.
As parts are consumed, kanban cards are detached and returned to the producing
process, indicating the need for replenishment. This method provides more frequent
feedback on inventory consumption and highlights emerging issues but requires
discipline in managing the cards.
Production Kanban contains the following information:

• Name and identification number of the item

• Quantity in each box or container and its type
• Preceding and succeeding workstations or processes
• Store shelf location
• Need for production
• Production lot size
• Re-order level (ROL)
• Machine/equipment used

13
 • Delivery due dates

5.2 Withdrawal Kanban

Withdrawal kanban authorize the movement of parts to downstream processes. They come in
two forms:
1) Internal/Interprocess Kanban: Used for withdrawal from an internal process. It
involves removing a withdrawal kanban when the first item in a container is used,
which signals the need for replenishment to the upstream process.
2) Supplier Kanban: Used for withdrawal from an external supplier. It's often in
electronic form, especially for distant suppliers.
Withdrawal Kanban contains the following information:

• Name and identification number of the item

• Quantity in each box or container and its type
• Preceding and succeeding workstations or processes
• Store shelf location
• Name or identification number of the final product where the item is used
• Sequence number of the kanban
• Move cards or conveyance kanbans for signaling the transfer of parts between
processes
By effectively coordinating production and withdrawal kanban systems, a pull system is
established where production is driven by downstream demand, minimizing inventory and
improving efficiency.

Fig 10- Example of Production and withdrawal Kanban

6. Kanban and Repetitive Manufacturing

In a manufacturing system, there are two inventory systems running in parallel:

14
 1) Actual Physical Inventory: This refers to the tangible items such as parts, sub-
assemblies, and finished products that are physically stored in warehouses or along the
manufacturing process. These items are physically counted and managed by inventory
personnel.

2) Perpetual Inventory Records: This is a computerized database that tracks the

movement of inventory items throughout the manufacturing process. It records
transactions such as receipts, issues, and transfers of inventory items in real-time. This
system provides a digital record of inventory levels and movements.

6.1.Kanban System: Kanban is a lean manufacturing system that uses visual cues, such as cards
or signals, to trigger the movement and production of materials based on demand. In a
Kanban system, when inventory levels at a workstation reach a certain point, a signal is sent
to the previous workstation to produce more items. This ensures that production is driven
by actual demand and helps prevent overproduction and excess inventory.

6.2.Repetitive Manufacturing System: Repetitive manufacturing involves the production of

the same or similar products in high volumes with a consistent production process. This
system is often used for products with stable demand and predictable production
requirements. In a repetitive manufacturing system, processes are standardized, and
production is often automated to achieve high efficiency and consistency.

6.3.Integration of Kanban and Repetitive Manufacturing:

• In this scenario, the repetitive manufacturing system maintains the perpetual inventory
records on the computer database, tracking all material transfers and stock values in real-
time.
• The Kanban system complements the repetitive manufacturing system by managing the
movement of materials between work centers based on demand signals. Kanban cards or
signals trigger the transfer of materials from one workstation to another as needed, ensuring
that each workstation has the necessary materials to maintain production flow.
• While the Kanban system focuses on material flow and production synchronization, the
repetitive manufacturing system provides the digital infrastructure for tracking inventory
levels and movements.
• Together, these systems provide a comprehensive solution for managing inventory and
production in a manufacturing environment, combining the efficiency of repetitive
manufacturing with the responsiveness of Kanban to customer demand and production
requirements.

7. JIT Purchasing

Just-in-Time (JIT) purchasing revolutionizes supply chain management by synchronizing

material procurement precisely with production needs. Rather than relying on large inventories,

15
JIT purchasing ensures that materials are acquired and delivered only when needed, minimizing
the costs associated with holding excess stock. At the heart of JIT purchasing is a demand-
driven approach, where orders are triggered by actual customer demands or production
schedules. This necessitates close partnerships with reliable suppliers capable of delivering
materials quickly and in the exact quantities required. JIT purchasing operates on small batch
orders, eschewing bulk purchasing in favor of frequent, smaller orders. This strategy reduces
inventory levels, mitigating the risk of excess or obsolete stock. Additionally, JIT purchasing
emphasizes the importance of reducing lead times, fostering agility and responsiveness in the
face of changing market demands. Quality control is paramount in JIT purchasing, as any
defects or errors in materials can disrupt production schedules. Therefore, rigorous quality
assurance measures are implemented to ensure that materials meet specified standards.
Moreover, JIT purchasing aligns with the principles of continuous improvement, encouraging
organizations to continuously refine and optimize their purchasing processes to eliminate waste
and enhance efficiency. In essence, JIT purchasing represents a lean and efficient approach to
inventory management, driving cost savings and operational excellence through the precise
alignment of material flows with production requirements.

Just-in-Time (JIT) purchasing is a strategy in supply chain management where materials and
goods are acquired and delivered precisely when they are needed for production, thereby
minimizing inventory holding costs and streamlining the production process. Here's how it
works:

• Demand-Driven: JIT purchasing is demand-driven, meaning materials are ordered and

delivered in response to actual customer orders or production requirements. This
approach ensures that inventory levels are kept to a minimum while still meeting
customer demand.
• Supplier Partnerships: JIT purchasing relies on close relationships with suppliers.
Suppliers must be reliable and capable of delivering materials quickly and in the precise
quantities required. Long-term partnerships with suppliers help build trust and enable
smoother coordination of deliveries.
• Small Batch Orders: Instead of ordering materials in large batches or bulk quantities,
JIT purchasing involves ordering smaller quantities more frequently. This reduces the
amount of inventory held in stock and minimizes the risk of excess or obsolete
inventory.
• Reduced Lead Times: JIT purchasing aims to minimize lead times—the time it takes
from placing an order to receiving the goods. Shorter lead times allow for greater
flexibility and responsiveness to changes in customer demand or production schedules.
• Quality Control: Since JIT purchasing relies on just-in-time delivery of materials,
there is little room for error. Therefore, strict quality control measures are essential to
ensure that materials meet specifications and are free from defects.
• Continuous Improvement: JIT purchasing is closely linked to the principles of
continuous improvement and waste reduction. By continuously monitoring and
optimizing the purchasing process, organizations can identify inefficiencies and areas
for improvement to further streamline operations.

16
 Fig 11- JIT Purchasing vs Conventional Purchasing

8. Criteria for selection of suppliers in JIT

• Few in Number: Limiting the number of suppliers helps streamline the procurement
process and facilitates closer relationships with key suppliers. In a JIT system, close
collaboration and trust between manufacturers and suppliers are essential for ensuring
timely deliveries and maintaining production schedules. Working with a smaller
number of suppliers allows for more focused communication and coordination.

• Cooperative and Economically Advantageous: Suppliers who are cooperative and

transparent about costs and competitive advantages are better suited for JIT
partnerships. Open discussions about costs, including factors such as wages, processes,
technology scale, and overhead, enable manufacturers to make informed decisions
about supplier selection and negotiate favorable terms. Cooperative suppliers are also

17
 more likely to collaborate closely with manufacturers to identify cost-saving
opportunities and process improvements.

• Quality-Oriented: Quality is paramount in a JIT system, as even minor defects can

disrupt production and lead to waste. Suppliers who employ Statistical Quality Control
(SQC) or Statistical Process Control (SPC) methodologies demonstrate a commitment
to quality assurance and continuous improvement. These techniques help suppliers
monitor and maintain the quality of their products, reducing the risk of defects and
ensuring consistency in manufacturing processes.

• Communication Oriented: Effective communication is essential for successful JIT

partnerships. Suppliers who understand the value of constant communication and are
responsive to manufacturers' needs are better equipped to support JIT production
schedules. Clear and open communication allows for quick resolution of issues, timely
adjustments to production schedules, and proactive planning to address changes in
demand or requirements.

• Information Systems Support: Suppliers who utilize information systems that support
logistics and supply chain management are better equipped to meet the demands of a
JIT system. These systems help streamline order processing, track inventory levels, and
facilitate real-time communication between manufacturers and suppliers. By leveraging
technology and information systems, suppliers can enhance visibility, traceability, and
efficiency throughout the supply chain, ultimately supporting the goals of JIT
manufacturing.

• Long-Term Relationship Potential: Establishing long-term relationships with

suppliers is beneficial for both parties in a JIT system. Suppliers who demonstrate a
commitment to continuous improvement, innovation, and collaboration are preferred
partners for JIT implementation. Building strong relationships based on trust and
mutual respect fosters closer communication and enables better coordination of
activities between manufacturers and suppliers.

18
 Fig 12- Supplier Evaluation Criteria in JIT

9. Implementation phases of JIT

Implementation of JIT in industrial enterprise may be seen to consist of the following five
broad phases:
9.1.The preparatory phase:
This phase is primarily considered with the preliminary aspects of a JIT project
implementation. Before a JIT system can operate in the enterprise certain preparatory
steps have to be taken.
a) Basic understanding of the JIT approach by the top management.
b) Cost-benefit analysis of the JIT program.
c) Top management decision to introduce the program and commitment toward its
implementation.
d) Select JIT project-implementation team.
e) Education and training of the company personnel in JIT approach and methods.
f) Identification of a pilot plant or launching pad for JIT implementation.

9.2.The production process improvement phase:

In this phase, the focus shifts to optimizing production processes to facilitate JIT:
a) Redesigning manufacturing processes to eliminate waste, reduce setup times,
and improve quality.
b) Implementing quality management practices to ensure defects are minimized.
c) Training and empowering the workforce to identify problems and make
improvements.
d) Reducing product variety or range via standardization.
The overall goal of this phase is the rationalization and simplification of the production
process for achieving zero defect production.

19
 9.3.The Production Control Restructuring phase:
In this phase, the focus of JIT is clear, consistent material control procedures to respond
closely to final product demand. Kanban system with circulating cards, to drive the
flow of material and product throughout the plant, is used in this context. The material
control procedure involves the sequencing and layout of equipment so as to shorten
lines of supply and reduce material handling. The latter is also facilitated by the use of
storage containers of various standard sizes, colors, and shapes. They serve as simple
visual control mechanisms for the workers.
In this phase, production scheduling shifts to a "pull" system, in which the
production of parts /components and sub-assemblies is triggered by the final assembly.
This as well as the earlier phase also involves the setting up of a system for problem
finding. Each mistake, trivial or not, needs to be reported. This facilitates an
understanding of what is happening and hence leads to identification, solution and
minimize occurrence of the problems besides learning from experience.

9.4.The Expansion Phase:

This stage involves the spread of JIT to other parts of the plant. Its effectiveness depends
on the learning and experience gained in the preceding two stages. This phase also
involves the extension of JIT principles from manufacturing to all functions of plant
management (i.e. accounting, purchasing, personnel, research & development etc.)

9.5.The External Links Phase:

In this phase, JIT practices are extended to suppliers as well as distributors (or
customers) or a plant or division based on solid in-house JIT experience.
An appropriate management of the supply chain is a major aspect of this phase.
Management of the supply chain requires focus on vendor selection, minimizing their
numbers, local sourcing, vendor person control, and vendor audit. Regular
communication between vendor and the company is required on key supply issues
relating to parts, materials, and services expected. The overall goal of establishing JIT
links with vendors is to ensure that the right part and material are delivered at the right
place, at the right time and at the right amount and the firm does not have to store
inventory or buffer stock.
This phase is often the most time consuming. It must be implemented slowly, and
surely, and may not be expedited if serious problems are to be avoided.

10. Implementation Problems of JIT

Implementation of the JIT system within companies may often encounter major and/or minor
problems. These problems may be related to one or more of the following categories or their
differential combinations:

20
1. Weak commitment of the top management towards the JIT program may be based on their
inadequate understanding of large potential benefits resulting from the adoption of the JIT
system. This situation may be rectified if the management is presented with empirical evidence
regarding the result of successful JIT implementation in other Firm of a comparable nature.
2. Everyone associated with JIT implementation should be educated and trained effectively
with the help of outside experts if necessary. The education and training program should be
continued regularly even after the initial phase, for deliberating on the problems, their
solutions, and ways of continuing improvement.
3. Inadequate understanding of the nature of improvements/ changes referred to by the workers
and supervisor. This may be due to inadequate education and training and/or lack of experience.
The help and use of outside consultants may be necessary for dealing with this problem.
4. Understanding the task of implementation. JIT is not a soft or easy technique. Its 'simplicity'
is hard' to achieve, sustained work and commitment are needed for its effective implementation.
5. Long/short period of implementation. This problem requires a balanced approach. If the
implementation period is long, loss of motivation and enthusiasm among the workers may be
engendered. A short period on the other hand, may overload certain basic problems, and create
a misplaced sense of confidence.
6. For dealing with customer schedule changes, JIT links with customers should be established
and fostered.
7. JIT links with vendors should be fostered along the lines of the ‘partner-in-profit' concept.
8. Shortage of critical parts. This may require recourse to contingency plans or measures.
9. Workers' fears and anxieties concerning their job security and status need to be alleged.
10. Inability to reduce set up time, this may require engineering research to be undertaken.
11. The operation of a JIT flow line relies on both process improvement and control
improvements. They need to be integrated. The problem may be investigated by a study team
of industrial engineering and experienced workers/operators.
12. This can have serious implication for the success of JIT program soon. The primary
requirement here is the regular contributions of the JIT education program. This needs to be
critically supplemented by establishing the Quality circle or productivity teams of workers.
13. Likely persons may be sponsored for participation in JIT course/ seminars along with use
of external resource persons for education and training.

11. Comparison of JIT with MRP Systems

21
 MRP (Material Requirements
Factor JIT (Just-in-Time) Planning)

Minimize inventory levels and reduce Ensure materials and products are
waste by producing goods only as available for production and delivery at
Objective needed. the right time.

Detailed inventory records, maintains

Minimal inventory levels, relying on buffer stock to manage supply and
Inventory Management timely delivery of materials. demand uncertainties.

Demand-driven production schedules to Detailed production schedules based

produce goods just in time for the next on master production schedule,
Production Planning step or customer delivery. demand forecasts, and BOMs.

Requires good supplier relationships,

Requires strong and reliable supplier with emphasis on forecasting and
relationships for timely material planning for timely material
Supplier Relationships delivery. procurement.

Highly responsive to demand changes Less vulnerable to disruptions due to

Flexibility and but vulnerable to supply chain buffer stocks but might be slower to
Responsiveness disruptions. adapt to demand changes.

Challenging to implement, requiring Complex due to the need for detailed

Implementation changes to production processes and planning, accurate demand forecasts,
Complexity strong quality controls. and comprehensive BOMs.

Focuses on optimizing production and

Aims to reduce costs by minimizing inventory costs, though the system
inventory holding costs and itself can be costly to implement and
Cost Implications inefficiencies. maintain.

Suitable for complex manufacturing

Best suited for high-volume, repetitive environments with variable demand
Suitability manufacturing with stable demand. and multiple products/components.

12. Principle of Housekeeping from JIT perception

This principle is closely related to the 5S methodology, which is a system for organizing
spaces so work can be performed efficiently, effectively, and safely. The 5S stands for Sort
(Seiri), Set in order (Seiton), Shine (Seiso), Standardize (Seiketsu), and Sustain (Shitsuke).
Here's how the principle of housekeeping fits within the JIT perception:

Sort (Seiri): This step involves going through all tools, materials, etc., in the work area and
keeping only what is necessary. Items that are not needed are removed. This reduces clutter

22
 and helps prevent the accumulation of unnecessary items, which can consume space and
resources without adding value.

Set in Order (Seiton): After sorting, the next step is to organize and arrange the necessary
items so that they are easily accessible and can be quickly retrieved and put back in place.
This organization minimizes the time spent searching for tools or materials, thereby
increasing operational efficiency.

Shine (Seiso): This involves cleaning the workspace and ensuring that it remains in a neat
and orderly condition. Regular cleaning prevents the buildup of dirt and grime, which can
cause equipment to deteriorate and potentially lead to defects or errors in the production
process.

Standardize (Seiketsu): Standardizing work practices and the organization of the

workspace ensures that the first three steps (sort, set in order, and shine) are maintained
over the long term. This involves creating guidelines and standards for how to maintain
cleanliness and organization.

Sustain (Shitsuke): This is the discipline to maintain the standards and practices put in
place by the first four steps. It involves training and encouraging employees to follow the
established procedures and to continuously look for improvements.

Fig 13- 5S Principle

In the JIT perception, housekeeping is fundamental because it helps in identifying and

eliminating waste (in Japanese, "Muda") and inefficiencies within the production process.
A well-organized, clean, and efficient workspace reduces the chances of errors, improves
safety, and increases productivity by ensuring that workers have what they need, where and
when they need it. This aligns with the JIT goal of producing the right quantity, at the right
time, and in the most efficient manner.

13. Why should JIT be implemented in Industries

23
• Cost Reduction: JIT reduces inventory holding costs, as it minimizes the need for large
warehouses and excess stockpiling of materials. This can result in significant savings
in storage, handling, and obsolescence costs.

• Waste Reduction: By producing goods only when needed, JIT helps to eliminate waste
associated with excess inventory, overproduction, defects, and unnecessary processing.
This leads to leaner operations and improved overall efficiency.

• Improved Quality: JIT emphasizes defect prevention rather than defect detection. With
reduced inventory levels, defects are quickly identified and addressed, leading to higher
quality products and fewer defects reaching customers.

• Flexibility and Responsiveness: JIT systems are more flexible and responsive to
changes in customer demand, market trends, and production requirements. This agility
enables companies to adapt quickly to fluctuations in demand and minimize lead times.

• Space Optimization: With JIT, there's less need for large storage spaces for excess
inventory. This allows companies to utilize their space more efficiently, potentially
reducing facility costs or creating space for other productive activities.

• Supplier Relationships: JIT encourages close partnerships with suppliers, as timely

delivery of materials becomes crucial for uninterrupted production. This fosters better
communication, collaboration, and reliability in the supply chain.

• Continuous Improvement: JIT fosters a culture of continuous improvement and waste

elimination. By constantly seeking to streamline processes and eliminate inefficiencies,
companies can achieve greater productivity and competitiveness over time.

• Employee Involvement: JIT encourages employee involvement in problem-solving

and process improvement activities. Employees are empowered to suggest and
implement changes that enhance efficiency and quality, leading to a more engaged
workforce.

• Environmental Benefits: By reducing waste and optimizing resource utilization, JIT

can have positive environmental impacts by minimizing the consumption of raw
materials, energy, and other resources.

24
14. References

https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.planview.com%2Fresour
ces%2Farticles%2Flkdc-jit-
kanban%2F&psig=AOvVaw1v2NU61bQoLiHXZIRosKtL&ust=1712236632841000&so
urce=images&cd=vfe&opi=89978449&ved=0CAcQrpoMahcKEwiQ69_WkKaFAxUAA
AAAHQAAAAAQBA

https://m.youtube.com/watch?v=Jhxy-t-
yXGs&pp=ygUVVHdvIGJpbiBrYW5iYW4gc3lzdGVt

https://www.lean.org/lexicon-terms/kanban/

https://www.beyondlean.com/kanban.html

https://www.epa.gov/sustainability/lean-thinking-and-methods-jitkanban

https://asq.org/quality-resources/lean/five-s-tutorial

25