Just-In-Time

TOPIC 1 FINALS
Overview

• JIT is basically a procuring and

inventory management scheme
in which resources are acquired
just-in-time for production to
offer completed/finished goods
just-in-time for trade. Just in
time is a demand-pull
approach.
Brief History of Just in Time

Evolved in Japan Basically

after World War II, Founded by implemented in
as a result of Taiichi Ohno, Toyota plant in
diminishing market 1950, and well
Vice President
share in the auto established after
industry. of Toyota. 1970.
What is Just-In-Time ?

• In general term JIT is a system that supplies goods as close

as possible to when they are actually needed.
• When it comes in retail, goods arrive just before hitting the
shelves for the customers and;
• In manufacturing company , parts & materials arrive just
before they are added to final product/when they are needed
in production
JIT simply means;

“ Getting the RIGHT

QUANTITY OF GOODS at
RIGHT PLACE and RIGHT
TIME.”
 Purpose of Just-In-Time
Eradicating excess from business processes to establish a favorably
efficient systematic procedure that bestows low cost/high quality
products to sustain customer requirements.
 Key Components of JIT System
• Elimination of Wastes
• A Broadview of Operations
• Simplicity
• Continuous Improvement
• Visibility
• Flexibility
 7 Common Types of Wastes Identified by JIT
• Processing waste
• Waste due to idling time of machinery
• Waste due to product defects
• Waste of motion or faulty working techniques
• Waste related to transportation
• Waste from production
• Inventory Waste
 JIT & Inventory Management

• Eliminate Safety Stock = Zero Inventory.

• JIT view inventory as waste and work lower inventory levels to
expose and correct the problems that cause disruption.
• Lowering the level of inventory is relatively easy to do. However, the
problems that arise must be corrected quickly . Otherwise, the process
will flounder.
 Elements of JIT

JIT
Manufacturing

Respect For Total

People Quality
Managemen
t
 Tools of JIT
• Pull System (KANBAN)
• Levelling Production
• Flexible Resources
• Cell Manufacturing
• Total Quality Management System
Kanban System
Kanban is an inventory control system used in just-in-time (JIT) manufacturing. It was
developed by Taiichi Ohno, an industrial engineer at Toyota, and takes its name from the colored
cards that track production and order new shipments of parts or materials as they run out.
Kanban is a Japanese word that directly translates to "visual card", so the kanban system simply
means to use visual cues to prompt the action needed to keep a process flowing.
 Kanban Pull System
A Pull System is a lean technique used to control the flow of work
by only replacing what has been consumed. This means that the
trigger for work to be done is when a customer demands for it.
To better visualize a Pull System, take for example, a vending
machine. Products will only be replenished when the stocks have
run out. The suppliers won’t overstock the vending machine
because each lane has a set capacity. If there is no product demand,
they won’t replenish it.
 Kanban Pull System
In the vending machine example, the customer pulls products
from the vending machine. Having an empty rack is a signal for
the vending company to tap their brand partners to replenish
their stocks. Therefore, the vending company also pulls
products from the brand partners. All these happen because
they act according to customer demand.
This is precisely how a Pull System should work.
 Push vs Pull System
Traditional companies often use a Push System, choosing to
have products ready “just in case” there is a demand for it.
In most manufacturing companies, products are created based
on forecasts. Batches of products are created in the hopes that
they will be entirely consumed by buyers. The problem with
this strategy is that forecasts do not necessarily reflect actual
demand. Quite often, they will be higher than actual demand.
 Push vs Pull System
When demand is higher than the forecast, businesses would then be
left to speed up or overload the production line to meet the
requirements. This leads to overburdening and unevenness in terms of
the workload.
While implementing a Push strategy may be based on good intentions,
it is not always cost-effective. It requires people to work based on
anticipated demand, which can lead to overproducing. The business
allocates resources to create products, but the return on investment is
not guaranteed, leading to unnecessary costs and waste.
 Benefits of a Kanban Pull System
Using a Kanban Pull System has its share of benefits. Let’s explore each one of them.
• Eliminating wastes in the form of excess inventory, storage costs, and excessive handling, to
name a few.
• Shorter lead times.
• Ability to be flexible and respond faster to changes in customer requirements.
• Ability to scale the capacity of the team.
• Establish predictability in terms of work completion.
• Increase productivity due to focused work.
Implementing a Kanban Pull System can be a strategic and effective approach to optimize your
team’s resources. Meet customer demand at the right time, with the right effort, and in the right
quantity with a Kanban Pull System.
 Total Quality Management System

• Total Quality Management (TQM) is a management philosophy that

fosters a culture of excellence, emphasizing continual improvement,
customer satisfaction, and active employee involvement. TQM places
a strong emphasis on understanding and meeting the needs and
expectations of customers through effective communication and
feedback mechanisms. By integrating quality principles into the very
fabric of an organisation, TQM seeks to optimize processes, enhance
products and services, and drive overall customer satisfaction.
 Total Quality Management System

• A key component of TQM is the unwavering commitment to ongoing

improvement, where all employees are encouraged to identify areas
for enhancement, eliminate waste, and work collaboratively toward
achieving incremental gains. Moreover, TQM recognizes the
invaluable contribution of employees and empowers them to actively
participate, make decisions, and take ownership of quality initiatives.
 Principles of Total Quality Management (TQM)
• Customer Focus: TQM places a strong emphasis on understanding and
meeting customer needs and expectations. It involves gathering customer
feedback, conducting market research, and using that information to
improve products, services, and overall customer satisfaction.
• Continuous Improvement: TQM promotes a culture of continual
improvement throughout the organisation. It encourages all employees to
actively participate in identifying opportunities for enhancement,
eliminating waste, and implementing incremental improvements in
processes, products, and services.
 Principles of Total Quality Management (TQM)
• Data-Driven Decision-Making: TQM relies on the collection and analysis of relevant data
to support decision-making. It emphasizes the use of facts and figures to identify areas for
improvement, measure performance, and monitor progress toward quality objectives.
• Supplier Relationships: TQM recognizes the significance of strong relationships with
suppliers. It emphasizes collaboration, communication, and mutually beneficial partnerships
with suppliers to ensure the quality of inputs and optimize the overall value chain.
• Leadership Commitment: TQM requires committed leadership that actively supports and
promotes quality principles throughout the organization. Leaders serve as role models, set
clear quality goals, provide necessary resources, and foster a culture that prioritizes
continuous improvement and customer satisfaction.
 Principles of Total Quality Management (TQM)
• Employee Involvement: TQM recognizes the importance of
involving employees at all levels in quality improvement initiatives. It
fosters a collaborative and empowered work environment, where
employees are encouraged to contribute ideas, make decisions, and
take ownership of quality-related activities.
• Process-Oriented Approach: TQM focuses on managing and
improving processes rather than individual tasks or departments. It
involves mapping, analyzing, and optimizing workflows to enhance
efficiency, effectiveness, and consistency.
 Poor Quality
High Level of High Material Damaged
Returned Goods Cost Reputation

Decrease in Loss of
Sales Customers
 Cost of Poor Quality

• Decrease in Productivity
• Increased Overheads
• Increased Training Cost
• Confusion And Conflict
• Waste of Time
Traditional vs. JIT
FACTORS TRADITIONAL JIT

Inventory Much to offset forecast errors, late deliveries Minimal necessary

Deliveries Few, large Many, small

Lot sizes Large Small

Set up, runs Few, long runs Many, short runs

Vendors Long-term relationships are unusual Partners

Workers Necessary to do the work Assets

 Advantages & Disadvantages of JIT
ADVANTAGES DISADVANTAGES

 High Quality.  Time Consuming

 Flexibility.  No spare product
 Reduced set up times.  Supply Shock
 Reduced need indirect labor.  High Risk Factor
 Less Waste.
 Low warehouse cost.
 Synchronization between production
scheduling and work hour.
Thank You !