‘Just in Time Analysis of Any Two

Companies’
Guided By: Presented By:
Dr. Minal Uprety Isha Natu
Rudhi Mahadik
Sakshi Mishra
Srishti Baisya
 Just in Time
 The just-in-time (JIT) inventory system is a
management strategy that minimizes
inventory and increases efficiency.

 It is also known as the Toyota Production

System (TPS) as Toyota first adopted the
system in the 1970s.

 Kanban is a scheduling system often used in conjunction with JIT to avoid

overcapacity of work in process.

 The success of the JIT production process relies on steady production, high-
quality workmanship, no machine breakdowns, and reliable suppliers.
  Continuous Improvement:
Elements involved I. Attacking fundamental problems

in JIT II. Devising systems to identify

production and allied problems.
III. Simplicity
IV. The Product
V. Quality control

 Eliminating Waste:  Following are

the types of waste:
I. Waste from product defects.
II. Waste of time.
III. Transportation waste.
IV. Inventory waste.
V. Waste from overproduction.
VI. Processing waste.
 Toyota is a Japanese automobile manufacturer headquartered in Aichi, Japan.

 In November 2014, it became the 12th largest company in the world by revenue.

 Toyota was the world's first automobile manufacturer to produce more than 10
million vehicles per year.

 It became the largest listed company in Japan by market capitalisation and by

revenue.
 Working of Toyota J.I.T.
 Using JIT, Toyota produces its vehicles based on the orders it receives through its
dealers.

 In this production process, the company uses its supply chain in such a manner that
only the parts that are needed to manufacture vehicles are received on time.

 Thus, the manufacturing and transportation of parts take place simultaneously. This
allows Toyota to minimize its inventory of vehicle parts.

 JIT also emphasizes the importance of work efficiency. Individual cars are built to
order and that every component has to fit perfectly first time because there are no
alternatives available.

 TPS has become very popular globally. It is also used by companies such as Hewlett-
Packard, Motorola and General Electric.
Toyota Production System: Using Just in Time
 World's leading food service retailer.

 World's second largest private employer (BBC, 2012).

 Founded in 1940 by Richard and Maurice McDonald.

 Around 36,615 restaurants in over 119 countries.

 Serving 68 million customers daily.

 JIT is required because high holding costs, time and wastage problems.
Implementation of McDonald’s J.I.T.
 Improve 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: Significant reduction in wastage as uncooked material has the

highest shelf life.

 Reduction in Waiting: Customers waiting time reduced from 11 minutes to just one
and half minutes.
McDonald’s Supply Chain Integration: Using Just in Time
 Advantages of Just in Time

 Just-in-time approach keeps stock holding costs to a

minimum level.

 The just-in-time approach helps to eliminate waste.

 Only essential stocks which are required for to

manufacturing are obtained, thus less working capital
is required.

 As this approach works on a demand-pull basis, all

goods produced would be sold, and thus it includes
changes in demand.
 Continuation…
 JIT emphasizes the ‘right-first-time’ concept, so that
rework costs and the cost of inspection is minimized.

 By following JIT greater efficiency and high-quality

products can be derived.

 Better relationships are fostered along the production

chain under a JIT system.

 Higher customer satisfaction due to continuous

communication with the customer.

 Just In Time adoption result in the elimination of

overproduction.
 Disadvantages of Just in Time

 JIT approach states ZERO tolerance for mistakes,

making re-work difficult in practice.

 A successful application of JIT requires a high

reliance on suppliers.

 Due to no buffers in JIT, production line idling and

downtime can occur which would have an
unfavorable effect on the production process and
also on the finances.
 Continuation…

 Chances are quite high of not meeting an

unexpected increase in orders as there will be no
excess inventory of finished goods.

 Transaction costs would be comparatively high

depending upon the frequency of transactions.

 JIT may have certain negative effects on the

environment due to the frequent deliveries.
 Just-in-Time method is a philosophy, which believes that waste can be eliminated by
cutting unnecessary inventory and removing non value-added activities in operations.

 The goals are to produce goods and services as specifications and continuous
improvement through value additions.
 References
• https://hbr.org/1989/09/getting-control-of-just-in-time
• https://prezi.com/aoywimnnbfs_/jit-in-mcdonald
• https://cleartax.in/s/just-in-time-jit-inventory-management
• https://www.slideshare.net/mobile/rushin202003/jit-in-toyota-presentation
• https://www.brighthubpm.com/monitoring-projects/72086-toyota-and-jit-
manufacturing/
• http://opepiimraipur.blogspot.com/2011/06/mc-donalds-fast-food-restaura
nt-jit.html?m=1
 Continuation…

 Chances are quite high of not meeting an

unexpected increase in orders as there will be no
excess inventory of finished goods.

 Transaction costs would be comparatively high

depending upon the frequency of transactions.

 JIT may have certain negative effects on the

environment due to the frequent deliveries.