Just-In-Time (JIT)

(waiting is waste)-

Group…
Imran Bazia-04
Anjali Rohra-37
Priya Menghrajani-20
Anjali Kamble-14
Sheetal Zore-52
Shushil Shukla-59
Just-In-Time (JIT)
( A system for producing and delivering the right items at the
right time in the right amounts.)

JIT TECHNIQUES
Just-in-time is a company wide philosophy oriented toward
eliminating waste throughout all operational functions and
improving materials throughput. The goal of JIT is to eliminate any
function in the manufacturing system that causes overhead, slows
productivity, or adds unnecessary expense. It is mostly characterized
by a pull production system, which supplies a component only on
demand without the intervention of inventory. Thus JIT is
characterized by "zero" inventory philosophies.
Defined:
• JIT can be defined as an integrated set of
activities designed to achieve high-volume
production using minimal inventories (raw
materials, work in process, and finished goods)
• JIT also involves the elimination of waste in
production effort
• JIT also involves the timing of production
resources (i.e., parts arrive at the next
workstation “just in time”)
 What is waste…?
A corporate
system designed to
produce output
within the minimum
lead time and at the
lowest total cost by
continuously
identifying and
eliminating all forms
of corporate waste
and variance.
 Objectives of JIT system
• Produce only the products the customer wants.
• Produce products only at the rate that the customer wants them.
• Produce with perfect quality
• Produce with minimum lead time.
• Produce products with only those features the customer wants.
• Produce with no waste of labor, material or equipment -- every
movement must have a purpose so that there is zero idle
inventory.
• Produce with methods that allow for the development of people
Pre JIT-
B ig lo t s iz e s
L o ts o f in v e n to r y
” P U S H ” m a te r ia l to n e x t
s ta g e
B ig p u r c h a s e s h ip m e n ts

???

Low er
p e r u n it
cost

B ig “ p u s h e s ” o f fin is h e d g o o d s
to w a re h o u s e s o r c u s to m e rs

Post JIT
S m a lle r lo ts
F a s te r s e tu p s
S m a lle r s h ip m e n t s L e s s in v e n to r y , s to r a g e s p a c e
” P U L L ” m a t e r ia l t o n e x t s t a g e

M in im a l
or no
in v e n to r y G o o d s a r e p u lle d o u t o f
h o ld in g p la n t b y c u s to m e r d e m a n d
cost
ADVANTAGES OF JIT…

• LOWER INVENTORY LEVELS

• LESS PRODUCTION CYCLE TIME

• QUALITY OUTPUT
• LESS MATERIAL HANDLING
• LESS WORKER IDLE TIME

• IMPROVED EMPLOYEE MORALE

LIMITATIONS OF JIT…
• Higher amount of machine/worker idle time.
• More efficient when demand pattern is stable.
• When there is a sudden change in the demand pattern it will take
time for JIT system to react since there is no central information
unit.
• It may be difficult and expensive to introduce.
• There is little room for mistakes as minimal stock is kept for re-
working faulty product.
• Production is very reliant on suppliers and if stock is not
delivered on time, the whole production schedule can be delayed.
• It requires more training, more consciousness, more employee
commitment.
• More difficult goals to be attained.
• Coordination between customer and suppliers need to be much
better and disciplined.
 JIT a Philosophy …

• Although the term Just-in-time (JIT) can be defined narrowly

as a production or inventory scheduling technique,JIT is
more appropriately thought of as a philosophy because, even
though it includes a variety of techniques, it is much more
than a collection of management practices.
• For example, inventory buffers are viewed as an evil in that
they hide problems such as defective parts, production
bottlenecks, long machine set-ups and competitive behavior
within the company.
 Quality at the Source (Jidoka)
(Jidoka) (JER) (Kaizen) (SMED) (Kanban) BENEFITS

• Quality at the source means to identify and

correct problems when and where they occur.
The Japanese refer to this concept as jidoka.

• Jidoka also incaludes automated inspection

frequently referred to as autonomation.
 Simplification or Just Enough Resources
(Jidoka) (JER) (Kaizen) (SMED) (Kanban) BENEFITS
 Continuous Improvement (Kaizen)
(Jidoka) (JER) (Kaizen) (SMED) (Kanban) BENEFITS
 SMED
(Jidoka) (JER) (Kaizen) (SMED) (Kanban) BENEFITS

Setup reduction Elements

• Internal Setup
• setup while machine idle
• External Setup
• setup while machine busy
• Adjustment
Convert internal to external setup
Eliminate the need for Adjustment
• setup time < 10 minutes
 Kanban
(Jidoka) (JER) (Kaizen) (SMED) (Kanban) BENEFITS

• Kanban Kan=card Ban= signal

• Kan-card, Ban-Signal
• Small signboard, visual card etc that is a key control tool for JIT
production
• Communication signal from a downstream process to an upstream process.
• Kanban Pull System
 BENEFITS OF KANBAN
(Jidoka) (JER) (Kaizen) (SMED) (Kanban) Benifits

• Reduce Inventory
• Improve work flow
• Prevent Overproduction
• Improves responsiveness to changes in
demand
• Minimize risk of obsolete inventory, because
inventory is only created as it is needed.
 Just-in-Time Purchasing
When the concepts of JIT are applied to the purchasing function, all of the elements
before must be included. In addition, the adoption of JIT purchasing includes the
following characteristics:

1. Establishing long term agreements with vendors on

delivery and price.
2. Purchasing from a smaller number of vendors than
in traditional systems.
3. Certifying vendors on quality, price and schedule
attainment.
4. Increasing the frequency and reducing the size of
deliveries from vendors.
5. Reducing inspection of incoming materials.
6. Emphasizing zero raw materials inventory.
7. Eliminating the warehouse space for raw materials.
JIT Measurements for Purchasing.
1. Vendor quality, e.g., percentage of defects.
2. Number of vendors. After implementing JIT
concepts, IBM's Lexington Kentucky
typewriter facility reduced the number of
vendors by 95% from 640 to 32. Xerox
Corporation cut its' suppliers by 94% from
5,000 to 300.
3. Vendor percentage of on time deliveries.
4. Days of materials inventory on hand.
5. Vendor cost savings ideas implemented.
6. Cost of quality and non quality
 Cellular Manufacturing…

• Cellular manufacturing refers to the practice of organizing a

factory into manufacturing cells that are dedicated to the
production of a single product, or a few similar products.
The advantages of arranging the factory into cells also
include obtaining more accurate product costs…
Just-in-Time in Manufacturing.
• Traditionally manufacturers have forecasted demand for their
products into the future and then have attempted to smooth out
production to meet that forecasted demand. At the same time,
they have also attempted to keep everyone as busy as possible
producing output so as to maximize "efficiency" and
(hopefully) reduce costs. Unfortunately, this approach has a
number of major drawbacks including large inventories, long
production times, high defect rates, production obsolescence,
inability to meet delivery schedules, and (ironically) high
costs. Non of this is obvious-if it were, companies would long
ago have abandoned this approach.
Benefits | Advantages of Just in Time Manufacturing System…

• Funds that were tied up in inventories

can be used elsewhere.
• Areas previously used, to store
inventories can be used for other
more productive uses.
• Defect rates are reduced, resulting in
less waste and greater customer
satisfaction.
• Materials Cost Savings
• Manufacturing Cost Savings
• Sales Cost Savings
Disadvantages of Just in Time
Manufacturing System:

• Implementing thorough JIT procedures can

involve a major overhaul of your business
systems - it may be difficult and expensive to
introduce.

• JIT manufacturing also opens businesses to a

number of risks, notably those associated with
your supply chain
 Just-in-Time Distribution
JIT distribution systems have many of the same elements as JIT
purchasing systems, except the company becomes the seller (vendor) rather
than the purchaser. Some of these elements include:

1. Establishing long term agreements with

customers on delivery and price.
2. Selling to a smaller number of customers than in
traditional systems.
3. Becoming certified on quality, price and
schedule attainment.
4. Increasing the frequency and reducing the size of
deliveries to customers.
5. Making deliveries to the customer's factory floor
in shop ready containers.
Just in time Inventory:
• The aggregate of raw materials; work-in-process; finished goods
and stores and spares.
• Components are:
– Raw Materials.
– WIP
– Finished Products.
– Stores & Spares.
 
• What is inventory control ?
• Inventory control is planning , ordering and scheduling of
material used in manufacturing.
• It means right quantity of material is available in right time.
• It means systematic control over the purchasing, storing and
using of material.so as to minimize possible cost.
Just in time inventory:
• Because of larger carrying cost of inventory in the stores
& godowns, manufacturers now interested in Just in time
purchasing.
• JIT purchasing is the purchase of material or goods in
such a way that delivery of purchased items is assured
before their use or demand.
• Advantages of JIT
• 1. Investment in inventory is reduced.
• 2.Carrying cost is reduced.
• 4. Minimum possible wastage
Just-In-Time Techniques

• Inventory Reduction as a Tool for Improvement

• Supplier Relationships
• Inventory “Pull”
• Uniform Plant Loading
• Reduced Setup Times
• Total Quality Assurance
• Preventive Maintenance
Conclusion

Companies Currently using JIT:-

• Harley Davidson
• Toyota Motor Company
• General Motors
• Ford Motor Company.
• Thank You…