JUST - IN - TIME

Just-In-Time

“it is a manufacturing philosophy that attempts to produce with the shortest possible lead time, the lowest possible level of inventory, and lowest possible waste.”

JUST-IN-TIME ( JIT )

JIT refers to zero inventory* operation. It is continuous process it seeks eliminating raw material stock and finished goods stock.

*zero inventory means not zero days but two days inventory.

Key element of JIT :

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Respect for the contribution that employees can make. Good relationship with suppliers. A demand pull system in which material only flows when needed. Kanban :- A Japanese method of controlling the movement of materials through a JIT system. Reduction of set up times.

BAJAJ AUTO ABC and JIT
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This is a 3500 crore company. It uses 3000 and odd components in manufacturing its products. It classifies these components in A, B, and C category. The company applies different purchasing strategies to each category.

Classification of components :
“A” category “B” category “C” category

High value Medium value Low value Rs.1000 Between Below And plus Rs.500-1000 Rs.500

Company applies different purchasing strategies to each category.
“A” category JIT is used to make deliveries . These items have never an inventory exceeding one week. “B” category These items are ordered once a fortnight. The inventory is maintained for one week. “C” category These items are ordered monthly.

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