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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 :-
 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
 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” “B” “C”


category category 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” “B” “C”
category category category

JIT is used These items These


to make are ordered items are
deliveries . once a ordered
These items fortnight. The monthly.
have never inventory is
an inventory maintained
exceeding for one
one week. week.