JUST IN TIME SYSTEM

PRESENTATION BY:
ANURADHA KUSHWAHA
HARSHPREET KAUR
VRINDA GUPTA
 JIT
`Just-in-time' is a management
philosophy and not a technique.

It originally referred to the production

of goods to meet customer demand
exactly, in time, quality and quantity,
whether the `customer' is the final
purchaser of the product or another
process further along the production
line.

It has now come to mean producing

with minimum waste. "Waste" is taken
in its most general sense and includes
time and resources as well as materials.
 HISTORY AND BACKGROUND
JIT is a Japanese management philosophy which has been
applied in practice since the early 1970s in many Japanese
manufacturing organizations.
It was first developed and perfected within the Toyota
manufacturing plants by Taiichi Ohno as a means of meeting
consumer demands with minimum delays .
Taiichi Ohno is frequently referred to as the father of JIT.
 Toyota was able to meet the increasing challenges for survival
through an approach that focused on people, plants and systems.
Toyota realized that JIT would only be successful if
every individual within the organization was involved and committed to it,
the plant and processes were arranged for maximum output and efficiency,
and
quality and production programs were scheduled to meet demands exactly.
 JIT IN JAPAN
The Japanese work ethic involves the following concepts.
Workers are highly motivated to seek constant improvement upon that
which already exists. Although high standards are currently being met,
there exist even higher standards to achieve.
Companies focus on group effort which involves the combining of
talents and sharing knowledge, problem-solving skills, ideas and the
achievement of a common goal.
Work itself takes precedence over leisure. It is not unusual for a
Japanese employee to work 14-hour days.
Employees tend to remain with one company throughout the course of
their career span. This allows the opportunity for them to hone their
skills and abilities at a constant rate while offering numerous benefits
to the company.
These benefits manifest themselves in employee loyalty, low turnover
costs and fulfillment of company goals.
ELEMENTS OF JIT
 CONTINUOUS IMPROVEMENT
Attacking fundamental problems - anything that does not add
value to the product.
Devising systems to identify problems.
Striving for simplicity - simpler systems may be easier to
understand, easier to manage and less likely to go wrong.
A product oriented layout - produces less time spent moving of
materials and parts.
Quality control at source - each worker is responsible for the
quality of their own output.
Poka-yoke - `foolproof' tools, methods, jigs etc. prevent
mistakes
Preventative maintenance, Total productive maintenance -
ensuring machinery and equipment functions perfectly when it
is required, and continually improving it.
 ELIMINATING WASTE
There are seven types of waste:
waste from overproduction
waste of waiting time
transportation waste
processing waste
inventory waste
waste of motion
waste from product defects
 GOOD HOUSEKEEPING
Workplace cleanliness and organization
Set-up time reduction - increases flexibility
and allows smaller batches. Ideal batch size
is 1 item. Multi-process handling - a multi-
skilled workforce has greater productivity,
flexibility and job satisfaction.
Leveled / mixed production - to smooth the
flow of products through the factory.
Jidoka (Autonomation) - providing machines
with the autonomous capability to use
judgment, so workers can do more useful
things than standing watching them work.
Andon (trouble lights) - to signal problems
to initiate corrective action.
JIT system wherein Mcdonalds doesnt begin to
cook until a customer has placed a specific
order.
COMPANIES ADOPTED JIT
 ADVANTAGES
Just-in-time inventory control has several advantages over
traditional models:
Production runs remain short, which means manufacturers can
move from one type of product to another very easily.
Method reduces costs by eliminating warehouse storage needs.
Companies also spend less money on raw materials because they
buy just enough to make the products and no more.
 DISADVANTAGES
The disadvantages of just-in-time inventories involve
Disruptions in the supply chain:
If a supplier of raw materials has a breakdown and cannot deliver the
goods on time, one supplier can shut down the entire production
process.
A sudden order for goods that surpasses expectations may delay
delivery of finished products to clients.
 CASE STUDY
Toyota uses just-in-time inventory controls as part of its business
model. Toyota sends off orders for parts only when it receives
new orders from customers. The company started this method in
the 1970s, and took more than 15 years to perfect. Several
elements of just-in-time manufacturing need to occur for Toyota
to succeed. The company must have
steady production,
high-quality workmanship,
no machine breakdowns at the plant,
reliable suppliers and
quick ways to assemble machines that put together vehicles
Toyota's just-in-time concept almost came to a crashing halt in
February 1997. A fire at a brake parts plant owned by Aisin
decimated its capacity to produce a P-valve for Toyota vehicles. The
company was the sole supplier of the part, and the fact that the plant
was shut down for weeks could have devastated Toyota's supply line.
The auto manufacturer ran out of P-valve parts after just one day.
Production lines shut down for just two days until a supplier of Aisin
was able to start manufacturing the necessary valves. Other suppliers
for Toyota also had to shut down because the auto manufacturer
didn't need other parts to complete any cars on the assembly line.
The fore cost Toyota nearly $ 15 billion in revenue and 70,000 cars
due to its two-day shutdown, but it could have been worse.
 REFERENCES
http://www.ifm.eng.cam.ac.uk/research/dstools/jit-just-in-time
-manufacturing/
http://www.investopedia.com/terms/j/jit.asp