Introduction to JIT

In simple words JIT states “Nothing is produced until it is required”

Just in time system is an integrated system ingrates all the activities
design to achieve high volume production using minimum inventory
of Raw material, Work in progress and Finished Goods.
In other word, In a JIT environment - material are purchased and
produced as and when it needed.
The whole idea is based on phrase provide goods Just In Time as
promised when the order is placed by the customer.
The opposite of the JIT production is know as Just in Case system
where it produces goods for inventory with the intention of having
just in case a customer places an immediate order
JUST IN TIME
S U P P LY C H A I N M A N A G E M E N T
History to JIT
• A corporate system designed to produce output within the minimum lead
time and at the lowest total cost by continuously identifying and
eliminating all forms of corporate waste and variance.
• JIT originated in Japan after world war 2
• Toyota Motor Co. developed JIT
• In plain word, JIT is basically an inventory strategy deployed by the
companies to decrease its waste, allowing it to increase its efficiency in
the production process. By doing so, it allows the company to receive
goods only in hour of actual requirement. This further lower downs the
cost of maintaining the inventory and requires accurate forecast of
demand from the top management. The main advantage of this strategy
is to allow manufacturer easily move from one type of product to another
by keeping the production run span short. This allows complete removal
of warehouse storage requirements and lowering the spending on raw
materials resulting in lower cost of production.
 JIT Objective:
• Flexible Manufacture
• Zero Inventory – No inventories are stored
• Eliminate waste
• Flow process
• Zero lead time
• Zero failures
Potential Risks
• It become necessary to find supplier that are closed by or can supply
material quickly with limited advanced notice.
• Natural and Manmade disasters could disrupt the flow of energy,
goods and services.
• A customer order for goods that surpasses the company's forecasted
expectations may cause parts shortages that delay the delivery of
finished products to all customers
Elements of Just –In-Time

Flexible
Resources

Small-Lot
Cellular Production
Layouts

Kanban
The Pull Production
System Control
System
Examples of Implementation of JIT
• Dell has also leveraged JIT principles to make its manufacturing
process a success. Dell’s approach to JIT is different in that they
leverage their suppliers to achieve the JIT goal. They are also
unique in that Dell is able to provide exceptionally short lead
times to their customers, by forcing their suppliers to carry
inventory instead of carrying it themselves and then demanding
(and receiving) short lead times on components so that products
can be simply assembled by Dell quickly and then shipped to the
customer.
Important Factors to Dell’s Success:

• Dependable suppliers with the ability to meet Dell’s demanding lead

time requirements
• A seamless system that allows Dell to transmit its component
requirements so that they will arrive at Dell in time to fulfill its lead
times.
• A willingness of suppliers to keep inventory on hand allowing Dell to be
free of this responsibility.
Thank You!
-Sachin Saple
-Tejal Shringarpure
-Abhishek Neman
-Ameya Patil
-Shreyas Godse
-Mangeshkumar Pandey