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INTRODUCTION TO JIT

A corporate system designed to produce output within the


minimum time and at the lowest cost by continuously identifying
and eliminating all forms of corporate waste and variance.
No demand no production.
It was first developed and perfected within
the Toyota manufacturing plants by Taiichi Ohno as a means of
meeting consumer demands with minimum delays .Taiichi Ohno is
frequently referred to as the father of JIT.
JUST IN TIME - A BASIC UNDERSTANDING
OBJECTIVE OF JIT

To reduce All non-value added activities.


Produce only the products customer wants.
Produce with perfect quality
Produce with minimum lead time.
Produce with no waste of labour ,material or equipment,ecery
moment must must have a purpose so that there is zero idle
inventory.
ADVANTAGES OF JIT
Better quality products
Reduced scrap and rework
Reduced cycle times
Lower setup times
Smoother production flow
Less inventory, of raw materials, work-in-progress and finished goods
Cost savings
Higher productivity
More skilled workforce, able and wiling to switch roles
Reduced space requirements
Improved relationships with suppliers
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
COMPANIES ADOPTED JIT
High holding costs are the nature of fast food industries.
Previously at Mc Donald's Fast Food Restaurant the strategy was to pre
cook all the burgers and place them under the lamps to keep them hot.
As long as possible they were kept and the unsold went as waste. Special
orders were expensive and time taking.
Later on it transitioned itself totally to Just in Time approach. For this,
extensive staff had to be hired to quickly prepare the burgers and training
had to be given.
It looked expensive in the short term but it reduced the wastages
drastically and helped Mc Donald's excel at customer satisfaction in the
long terms.
McDonalds doesnt begin to cook its orders until the customer has placed
a specific order.
Modernised burger making technology including a record making bun
toaster.
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