JUST IN TIME

SASWATI BANERJEE
PGDM EBIZ
ROLL NO - 7
Uses a systems approach to develop and
operate a manufacturing system
Pull' (demand) driven inventory system.
Its objective is to eliminate product 
inventories from the supply chain
A method for optimizing processes that
involves continual reduction of waste.

Definition......
 Just-In-Time is a Japanese manufacturing management
method developed in 1970s after the World War 2

 It was first adopted by Toyota manufacturing plants under

Taiichi Ohno. (the Father of JIT.)

 After the first introduction of JIT by Toyota, many

companies followed up and around mid 1970s’, it gained
extended support and widely used by many companies.

History….
 Quick Setups
 Cellular Layout
  Reduce lead times
  Flexible work force
  Quality at source
 Small Lot Production
 Pull production System

Elements of JIT
 Possible increase in profits
 Quality products
 Quicker setup
 Eliminates costs of storage facilities
 Quality relationships with suppliers
 Elimination of waste
 No down time
 Simplified scheduling and control activities

Advantages of JIT
Inventory hides  Water Level = Inventory
problems in a  Rocks = Problems in the
system
process  Boat = Company
Operations

JIT provides preventive

Maintenance
Stock Level in case of JIT
mistakes avoided as minimal stock is kept
for re-working faulty product .
Company at the mercy of Suppliers
Possible large initial cost with no short
term returns.
Natural disaster can shut down a
manufacturing operation.

Diasadvantages of JIT
 Initial Cost
Heavyis very High
Competition

Easy
Communication

SME
High Risk

Cross Trained
workers
Less approvals
required

JIT in an SME
 specializes in printing publications, such as manuals, book, and
manuscripts.
 Originally printed in Large Batches
 Switching from one publication to the next took long.

JIT
Implemented
 shorter setup times, smaller cycle times, and
fewer defects.
 Pull system implemented
  Implementing JIT gave Strategy a huge
advantage over its competitors, and quadrupled
its annual revenue since it fully implemented the
system in 1999

JIT in a non Automotive companies…. Strategy

Manufacturing Inc.
Thank You…..