Unit 5: Jit (Just-In-Time)

Unit 5
Module 5.8
JIT(JUST-IN-TIME)
VARUN BABU
JIT?
“A philosophy of manufacturing based on

planned elimination of waste and continuous
improvement of productivity ……”
Bottlenecks in JIT improvement won`t do any good.
implementing Its sounds like a good thing but we still don’t want to do it
JIT in an
Industry Look good on paper but…..
Costs are already as low as that can possibly get
But we already been doing things that way
We can`t lower costs any more without lowering quality
Everything is going just fine now ,Why change it?
That`s a lousy idea! We already tried that 20 years ago
Look we understand this stuff better than anybody(so don’t tell us

what to do)
3 bvarun.weebly.com 02/07/2023
 Evolved in Japan after World War II, as a result
Histor of their diminishing market share in the auto
industry.
y of JIT
 Toyota Motor Company- first to implement
fully functioning and successful JIT system, in
1970’s.
 Japanese Manufacturers looked for a way to

gain the most efficient use of limited
resources. They worked on "optimal
cost/quality relationship.
JUST-IN-TIME PHILOSOPHY
The philosophy of JIT can be traced back to Henry Ford, but formalized JIT
originated in Japan as the Toyota Production System. W. Edwards Deming’s
lesson of variability reduction was a huge influence.
The focus of JIT is to improve the system of production

by eliminating all forms of waste.
JIT FUNCTIONS
JIT • ZERO INVENTORY

• ZERO LEAD TIME
(JUST-IN-TIME) • ZERO FAILURE
 Eliminates waste .
 Achieves streamlined production .
 Eliminate disruptions in production … caused by poor quality,
schedule changes, late deliveries.
 Makes the manufacturing delivery system flexible by allowing it to
handle a variety of products and changes in the level of output.
 Reduces setup and delivery times .
THE EIGHT TYPES OF WASTE
Waste Definition
1. Overproduction Manufacturing an item before it is needed.
2. Inappropriate Processing Using expensive high precision equipment when
simpler machines would suffice.
3. Waiting Wasteful time incurred when product is not being
moved or processed.
4. Transportation Excessive movement and material handling of
product between processes.
5. Motion Unnecessary effort related to the ergonomics of
bending, stretching, reaching, lifting, and walking.
6. Inventory Excess inventory hides problems on the shop

floor, consumes space, increases lead times, and
inhibits communication.
7. Defects Quality defects result in rework and scrap, and

add wasteful costs to the system in the form of
lost capacity, rescheduling effort, increased
inspection, and loss of customer good will.
8. Underutilization of Employees Failure of the firm to learn from and capitalize on

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its employees’ knowledge and creativity impedes
8 02/07/2023
long term efforts to eliminate waste.
Sources of Waste
 Overproduction
 Waiting time
 Unnecessary transportation
 Processing waste
 Inefficient work methods
 Product defects
Strategies For Minimizing Waste
By Using JIT
 Manufacturing in smaller lot sizes reduces excess inventory

 Reducing inventory levels allows the problems to be uncovered … thus
creating opportunities for manufacturing process improvement
Principles Of JIT Manufacturing
 Total quality Management
 Production Management
 Supplier Management
 Inventory Management
 Human Resource
Management
JIT Manufacturing Building Blocks
 Product design
 Process design
 Personnel/organizational
elements
 Manufacturing
planning and control
1. Product Design
 Standard parts
 Design Simplification
 Highly capable production systems
 Concurrent engineering
2. Process Design
 Small lot sizes
 Setup time reduction
 Limited work in process
 Quality improvement
 Production flexibility
 Little inventory storage

Benefits of Small Lot Sizes
Reduced Inventory
Less Rework
Less Storage Space
Problems are more apparent
Increase Product Flexibility
Easier to balance operation
3. Personnel/Organizational Elements
 Workers as assets
 Cross-trained workers
 Continuous improvement
 Leadership
4. Manufacturing Planning and Control
 Pull systems
 Visual systems (kanban)
 Close vendor relationships
 Reduced transaction processing (delays in

delivery)
 Preventive maintenance
Evaluation and selection of vendor (suppliers)
network to develop a tiered supplier network –
reducing the number of primary suppliers
Traditional supplier Network Tiered Supplier Network
Buyer
Buyer Supplier
Supplier
supplier supplier supplier supplier

Supplier Supplier Supplier supplier
APPLICATIONS OF JIT
In McDonald’s
In McDonald’s
 High holding costs are the nature of the fast food

industries.
 Wastage.
 Time.
In McDonald’s
 JIT system wherein McDonald's doesn't begin to cook

its orders until a customer has placed a specific order.
Implementation of JIT
 Sophisticated burger-making technology (including a

record-breaking bun toaster)
 McDonald's is able to make food fast enough to wait until
it's been ordered.
 Reduction in wastage.
Implementing in JIT
Production Systems
 Criteria for success

 Service
 Quality
 People
 Food preparation
 Profitability
 .
Supply Chain Integration
Benefits
 Improved 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 – Due to significant reduction in wastage
as uncooked material has a higher shelf life.
 Reduction in waiting – Customer’s waiting time reduce
11 min. to just 1 and half min.
Companies adopted JIT
TOYOTA PRODUCTION SYSTEM
Minimizing Waste: These are small specialized plants
Focused Factory that limit the range of products
Networks produced (sometimes only one
type of product for an entire facility)
Some plants in
Japan have as
few as 30 and as
Coordination many as 1000
System Integration
employees
Minimizing Waste: Group Technology (Part 1)
Note how the flow lines are going back and forth
 Using Departmental Specialization for plant layout can cause a lot of

unnecessary material movement
Saw Saw Saw Grinder Grinder
Heat Treat
Lathe Lathe Lathe Press Press Press
Minimizing Waste:
Group Technology (Part 2)
 Revising by using Group Technology Cells can reduce movement and
improve product flow .
Grinder 1 2
Saw Lathe Lathe Press
Heat Treat
Grinder
Saw Lathe A B Lathe Press
Minimizing Waste: Just-In-Time Production
WHAT IT IS WHAT IT DOES
 Management philosophy  Attacks waste

 “Pull” system though the plant  Exposes problems and bottlenecks
 Hydraulic Push Systems  Achieves streamlined production
WHAT IT REQUIRES WHAT IT ASSUMES
 Employee participation
 Industrial engineering/basics  Stable environment
 Continuing improvement
 Total quality control
 Small lot sizes
Minimizing Waste: Inventory
Hides Problems
Example: By identifying
defective items from a
Machine vendor early in the
downtime
production process the
Scrap Vendor downstream work is saved
Work in delinquencies Change
orders
process
queues Engineering design Design
(banks) redundancies backlogs
Example: By identifying
Paperwork Inspection Decision defective work by employees
backlog backlogs backlogs upstream, the downstream
work is saved
Minimizing Waste: Kanban Production
Control Systems
Once the Production kanban This puts the

Withdrawal
is received, the Machine system back were it
Center produces a unit to kanban was before the item
replace the one taken by the was pulled
Assembly Line people in the
first place
Storage Storage
Machine Part A Part A Assembly
Center
Line
Production kanban
Material Flow
The process begins by the Assembly Card (signal) Flow
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36Line people pulling Part A from Storage 02/07/2023
Determining the Number of Kanban Needed
 Setting up a kanban system requires determining the number of kanban

cards (or containers) needed.
 Each container represents the minimum production lot size.
 An accurate estimate of the lead time required to produce a container is

key to determining how many kanban are required.
 Side Bar – In Japan space is a very important consideration since there is so
little of it. This process saves on space requirements.
Example of Kanban Card Determination:
Problem Data
 A switch assembly is assembled in batches of 4 units from an “upstream”
assembly area and delivered in a special container to a “downstream”
control-panel assembly operation.
 The control-panel assembly area requires 5 switch assemblies per hour.
 The switch assembly area can produce a container of switch assemblies in

2 hours.
 Safety stock has been set at 10% of needed inventory.
Example of Kanban Card Determination:
Calculations
Expected demand during lead timeSafety stock

k 
Size of the container
DL (1 S ) 5(2)(1.1)
   2.75, or 3
C 4
Always round up!
 A.gunasekaran and J.lyu in their research implementation of just-in-
time in a small company has depicted its advantage in SMEs. he depicted
that implementation of JIT in SMEs should start with layout revision,
schedule stability and the development of long-term supplier-customer
relationships.
 A new purchasing policy supporting frequent purchases of small lot sizes
may help SMEs in implementing a JIT system.
 Education and training of workers in SMEs about JIT concept and their
high leverage opportunity would tremendously support the
implementation of JIT system in SMEs.
Requirement for the implementation of JIT
in Indian industry
 Management Support And Understanding Of the System.
 Management And Labour Responsibilities.
 Training.
 Supplier Management.
 Production Layout And Work Flow.
 Long‐term Planning.
 Government Support.
JIT Benefits
 Reduced Inventory
 Improved quality
 Lower costs
 Reduced space requirements
 Shorter lead-time
 Increased productivity
 Greater flexibility
 Improved vendor relations
JIT Benefits (contd.)
 Simplified scheduling & control
 Increased capacity
 Better utilization of personnel
 More product variety
 Increased equipment utilization
 Reduced paperwork
 Valid production priorities
 Work force participation
Disadvantages of JIT
 Danger of disrupted production due to non-arrival of supplies.
 Danger of lost sales.
 High dependence on suppliers.
 Less time for quality control on arrival of materials.
 Increased ordering and admin costs.
 May lose bulk-buying discounts.
JIT … Not For Everyone
 JIT concepts work best when goods can be produced in response to
consumer demand (e.g. automobiles, etc.)
 JIT is less effective for the production of standardized consumer

goods (e.g. basic clothing, food, soft drinks, toasters, etc.)
 There are cases where JIT concepts apply to sub-processes of a make

to stock environment. (e.g. computers etc.)

Unit 5: Jit (Just-In-Time)

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Unit 5

“A philosophy of manufacturing based on

Costs are already as low as that can possibly get

But we already been doing things that way

We can`t lower costs any more without lowering quality

Everything is going just fine now ,Why change it?

That`s a lousy idea! We already tried that 20 years ago

Look we understand this stuff better than anybody(so don’t tell us

 Japanese Manufacturers looked for a way to

The focus of JIT is to improve the system of production

JIT • ZERO INVENTORY

6. Inventory Excess inventory hides problems on the shop

7. Defects Quality defects result in rework and scrap, and

8. Underutilization of Employees Failure of the firm to learn from and capitalize on

 Manufacturing in smaller lot sizes reduces excess inventory

 Highly capable production systems

 Small lot sizes

 Setup time reduction

 Limited work in process

 Little inventory storage

Less Storage Space

Problems are more apparent

Increase Product Flexibility

Easier to balance operation

 Visual systems (kanban)

 Close vendor relationships

 Reduced transaction processing (delays in

Traditional supplier Network Tiered Supplier Network

supplier supplier supplier supplier

 High holding costs are the nature of the fast food

 JIT system wherein McDonald's doesn't begin to cook

 Sophisticated burger-making technology (including a

 Criteria for success

 Improved Quality – The burgers are prepared freshly

 Using Departmental Specialization for plant layout can cause a lot of

Saw Saw Saw Grinder Grinder

Lathe Lathe Lathe Press Press Press

 Management philosophy  Attacks waste

WHAT IT REQUIRES WHAT IT ASSUMES

Once the Production kanban This puts the

 Setting up a kanban system requires determining the number of kanban

 An accurate estimate of the lead time required to produce a container is

 The switch assembly area can produce a container of switch assemblies in

Expected demand during lead timeSafety stock

Always round up!

 Management And Labour Responsibilities.

 Production Layout And Work Flow.

 Danger of disrupted production due to non-arrival of supplies.

 Danger of lost sales.

 High dependence on suppliers.

 Less time for quality control on arrival of materials.

 Increased ordering and admin costs.

 May lose bulk-buying discounts.

 JIT is less effective for the production of standardized consumer

 There are cases where JIT concepts apply to sub-processes of a make

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