Just In

Time(JIT)
Subhashri & Vasundhara
Background
◎ Following the war, Japan lacked the cash to finance big-batch, large inventory
production methods used by other developed countries.

◎ They also had high unemployment and a lack of abundant natural resources. In
order to survive, they had to “lean out” their processes.

◎ They built smaller factories, which focused on quickly turning small amounts of raw
materials into small amounts of physical products.

◎ Processing smaller batches allowed the manufacturers to reduce financial risk, while
slowing generating sustainable levels of working capital.

◎ Toyota are the pioneers in the implementation of JIT.

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 “
“Just in time means that in a flow process,
the right parts needed in assembly reach the
assembly line at the time they are needed
and only in the amount needed. A company
establishing this flow can approach zero
inventory”

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Basic Concept
Cost Cutting Through Removal of Waste
(1) The automotive industry is a typical mass production assembly type where each vehicle is assembled from several
thousand parts that have undergone numerous processes.
(2) There are very many different models with numerous variations and with large fluctuation in the demand of each
variation.
(3) Every few years, the vehicles are completely remodelled and there are also often changes at a part level.

Approach –
a) Withdrawal by subsequent processes: Movement from " the preceding process supplying the parts to its following
process” to " the following process withdrawing the parts from the preceding process"
b) One piece production and conveyance: The second requirement of just- in-time production is that all processes
approach the condition where each process can produce only one piece, can convey it one at a time, and in addition,
have only one piece in stock both between the equipment and the processes.
c) Levelling of production: They will make changes among the different specification vehicles on the basis of daily orders,
and even when it comes to the total number, if there is necessity to meet the changes in market conditions.
d) Elimination of waste from over-producing :The reason why we consider inventory resulting from over-producing is the
worst waste is that it hides the causes of waste that should be remedied such as unbalance between the workers and
between the processes, troubles in various processes, workers' idle time, surplus workers, excessive equipment
capacity and insufficient preventive maintenance.

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Basic Concept
Full utilization of Worker’s Capabilities
It has built up a system of respect for human.
Approach –
a) Elimination of 'Waste movement by workers: Workers may realize their work worthy only if the
labour of diligent workers is exclusively used to raise added value of products. Questions they ask are
- what are the waste movements that lower added value and which we must eliminate!
b) Considerations to workers' safety: : The second requirement of just- in-time production is that all processes
approach the condition where each process can produce only one piece, can convey it one at a time, and in addition,
have only one piece in stock both between the equipment and the processes.
c) Self-display of workers' ability: As the first step in this method, all workers at Toyota have a right to
stop the line on which they are working. As the second step, at all shops in Toyota, the workers are
informed of the priority order of the parts to be processed and the state of production advancement.
As the third step, Toyota has a system whereby workers. can take part in making improvements.

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Implementation
The key to JIT implementation is the attitude of the manager who is considering
the changeover. The basic attitudes to JIT can be mapped in a framework whose
dimensions consist of (a) the drive to replicate or emu- late it, and (b) the drive to
innovate or improve on it.
Focus on the pro-JIT strategy which can be characterized as the Eightfold Way. It
consists of
(1)effecting attitudinal change (2) Estabishing the JIT launchpad
(3) plantwide JIT rollout (4) comprehensive JIT (5) JIT extension
(6) JIT dispersion (7) joint JIT, (8) moving towards New JIT

Issues in Implementation:
-Sequential vs. Simultaneous ?
Toyota and Hewlett-Packard are the prime examples of this approach. Mazda is a good example of the all-out effort
-New Plants vs. Turnaround of Old Plants ?
Maruti-Suzuki &Harley Davidson were implemented on new plants. JIT is a Japanese company which is simply
extending or dispersing its accumulated JIT knowhow
-Implementation In-house vs. in Suppliers' Facilities ?
Toyota, HP and Harley Davidson, we find examples of JIT being initiated in upstream units. Doing JIT in-house
gradually leads to spin- ning-off certain operations to outside suppliers to achieve the desired business focus
-Emphasis on Human vs. Technical Aspects ?
-Matsushita (US), even after eight years, formation of Quality Circles had not taken place
Technology?
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Thanks!
Any questions?