JIT Inventory

Just In XXXXXXXXXXXXXX
Time
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BUSM 4810
Submitted by:
Sahil Chandla 100327632
Inventory
Manvinder Singh 100324399
Kulsimran Singh 100324785
Sundram Kapoor 100325683
M F A Parveez Bhuiyan
100323969
Submitted to:
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TABLE OF CONTENT
• Overview
• About JIT
• How Do JIT Works?
• Just In Time Diagram
• Example How JIT Works
• History of JIT
• Toyota Production
System
• Kanban for JIT
• JIT Organization
• Major Things in JIT
• Supplier
• Transportation
• Workers
• Sources of Waste
• Benefits of JIT
• Disadvantage of JIT
• Organization Using JIT
• Overall
• References
Overview
 Is a Management Strategy
 Of increasing Production and efficiency
 Decreasing Waste
 Receiving Raw Material when needed and as much needed
 Almost no inventory or storage
 Processing material fast
 Starting the supply without storing it
How Do JIT Works?
 Company Receive Order From Market/Wholesalers/Distributors
 They order the required material (Raw Materials) to make
Product
 Supplier deliver the Raw Material to Plant ASAP
 Raw material is not stored and processed immediately
 After Product is made and Packaged it is ready to ship
 Company do not store the product and ship the product
 The Order get delivered to the designated place
Example How JIT Works
History of JIT
 Started in Japan
 Firstly used in Toyota Motor Company
 Initially known as “Toyota Production System”
 Taiichi Ohno is know as originator of this system
 System was placed after world war to catch up with economy
 Based on elimination of waste

Kanban for JIT
 Japanese Scheduling System
 Use to control flow of goods
 Consist of information regarding work
 Inform the worker about what they need to do
 Measure Production process cycle
 Keep demand and output in right order

JIT Organisation
 Flow Manufacturing
 A Continuous Stream of Goods
 Collaboration with Suppliers
 Involvement of Employee
 Regular Evaluation
 Quality Improvement
Major Things in JIT System
Suppliers
 They Provide Raw Material or Services
 Trusted Suppliers will provide best rate for Raw Material
 Loyal Relationship
 Lead time
Transportation
 As important as Suppliers
 JIT Depend on them after suppliers
 All Material should be on time to make sure Process is going
right
Workers
 They are the one who do major work
 Employee and Employer Relation is important
 Customer relationship is managed by the employee
 The commitment and talent of workers make product

Sources of Waste
 Overproduction
 Time Spent Waiting
 Transportation/Movement
 Processing time
 Inventory
 Defects
Benefit of JIT Inventory
 Better Quality Products
 Reduce Waste
 Reduce Recycle Time
 Smooth Flow of Production Line
 Less Inventory/Storage
 Reduce Space Requirement
 Better Relationship with Suppliers
Disadvantage of JIT Inventory
 Logistic system need to be managed all time
 Smallest Disturbance can effect complete process
 Implementation of JIT is difficult Process
 Lots of pressure on Suppliers
 Transportation cost more than Just In Case
 Skilled Workers Required
 Regular inspections
Organization using JIT
 Toyota
 Dell
 Harley Davidson
 McDonald's
 Apple (Drop Shipping, has only one warehouse in US)

Overall
 A game changing strategy
 Cost Effective than Traditional Process
 Good Communication between departments
 Quality Product because of Regular Inspection
 Less Waste
 Cuts Inventory Cost
 Production according to Market Demands
References
 Mulder, Patty. “Just In Time / JIT, a Powerful Logistical Process Concept.” Toolshero, 17 Nov. 2019,
https://www.toolshero.com/quality-management/just-in-time-jit/
 Sarkar, Prasanta. “Just in Time (JIT) – Concepts and Its Benefits in Manufacturing.” Just in Time (JIT) – Concepts and Its
Benefits in Manufacturing, 14 Dec. 2016,
https://www.onlineclothingstudy.com/2016/02/just-in-time-jit-concepts-and-its.html
 Calderone, Len. “The Benefits of Just-in-Time Inventory: ManufacturingTomorrow.” Manufacturing Tomorrow, 6 Jan. 2017,
https://www.manufacturingtomorrow.com/article/2017/05/the-benefits-of-just-in-time-inventory/9734/
 “Just-in-Time Production: The Path to Efficiency.” Kanbanize. Accessed November 18, 2019.
https://kanbanize.com/lean-management/pull/just-in-time-production/
 Banton, Caroline. “Understanding Just-in-Time (JIT) Inventory Systems.” Investopedia. Investopedia, August 23, 2019.
https://www.investopedia.com/terms/j/jit.asp
 Nordqvist, Christian. “What Is Just in Time? Definition and Meaning.” Market Business News. Market Business News, April 9,
2019.
https://marketbusinessnews.com/financial-glossary/just-time-definition-meaning/

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Just In XXXXXXXXXXXXXX

 Firstly used in Toyota Motor Company

 Initially known as “Toyota Production System”

 Taiichi Ohno is know as originator of this system

 System was placed after world war to catch up with economy

 Based on elimination of waste

 Japanese Scheduling System

 Use to control flow of goods

 Consist of information regarding work

 Inform the worker about what they need to do

 Measure Production process cycle

 Keep demand and output in right order

 A Continuous Stream of Goods

 Collaboration with Suppliers

 They Provide Raw Material or Services

 Trusted Suppliers will provide best rate for Raw Material

 JIT Depend on them after suppliers

 All Material should be on time to make sure Process is going

 They are the one who do major work

 Employee and Employer Relation is important

 Customer relationship is managed by the employee

 The commitment and talent of workers make product

 Time Spent Waiting

 Apple (Drop Shipping, has only one warehouse in US)

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