Just-In-Time (JIT)

Manufacturing
 History of JIT
1. The technique was first used by the Ford Motor Company as
described explicitly by Henry Ford's My Life and Work (1923).
They have found that while buying the materials it is not
worthwhile to buy it other than immediate needs.

2. The concept needed an effective freight management system

(FMS); Ford's Today and Tomorrow (1926) describes one.

3. The technique was subsequently adopted and publicized by

Toyota Motor Corporation of Japan as part of its
Toyota Production System (TPS ) as a means of meeting
consumer demand with minimum delays
INTRODUCTION OF JIT

 Before we understand the logic of JIT it

is important to note the definition of
waste.

 Any process or a set of activities that do

not add value as perceived by the
customer is known as waste.
Cont….
 Just In Time is a Japanese method of team approach.
In this system the customer pull their requirement
from the shop floor, this is to make their product
internationally competitive by JIT cost with the total
quality control system.
 Each process in the assembly line of production
would produce only the number of parts needed at
the next step on the production line, which made
logistics management easier as material was
procured according to consumption. This system was
referred to as Just-in-Time (JIT) within the Toyota
Group.
 MEANING
 The JIT production was defined as 'producing
only necessary units in a necessary quantity at a
necessary time resulting in decreased excess
inventories and excess workforce, thereby
increasing productivity

 JIT was used not only in manufacturing but also

in product development, supplier relations and
distribution.
 JUST IN TIME
 It is a new philosophy of manufacturing
management that provides a set of tools &
techniques to:
 To compete the increasingly fierce market.
 To provide better value by constantly
improving the operations.
 Eliminating waste from the system.
 CORE LOGIC OF JIT

The main logic behind JIT is one of

elimination of waste in a manufacturing
system using a deliberate method.
IMPLEMENTATION

 Continuous improvements
 Buffer (inventory) stock removal: It make balance
between excess $ lower stock.
 Total production maintenance: Removes
uncertainty in production (e.g. break down)
 Elimination of waste: due to:
over production
transportation
processing.
 Quality at source: concept-------- “DO IT
RIGHT THE FIRST TIME”
 CONT……….
 JIT Purchasing:
Based on following philosophies….
 Purchasing from qualified source of supplies
 Single source $ long term contracts.
 Purchase in small lots
 Frequent deliveries
 Visiting suppliers regularly $ assisting suppliers in
problem solving.
 ADVANTAGES OF JIT
 Avoid Over Production
 Avoid Excess Inventories.
 Eliminates Transportation Bottlenecks.
 Lessens Increased Process Timing.
 Avoids Less Labour Utilization.
 Decrease Space Requirements.
 Fast response to engineering change.
 Greater administrative efficiency.
 Less cost $ better quality.
 LIMITATIONS OF JIT

 Time Consuming.
 Commitment Of Important Step At Every
Function Is Required.
 Suppliers may raise their prices to cover
for cost of delivery
 Requires Perfect Coordination & Mgmt.
Information System.
 Organization is highly vulnerable to
supply failures
 Buying in bulk may outweigh.
 ELEMENTS OF JIT

 Manufacturing Architectural
Changes.

 Lot Size Reduction.

 Kanban As Control Tool.

 MANUFACTURAL
ARCHITECTURAL CHANGES

 It defines the nature of the

relationship b/w the various
functional units in an org.&
addresses issues relating to structure,
systems, procedures & people.

 The most significant change required

to practice JIT is to create a new
manufacturing architecture.
 Principles Of Making Manufacturing
Architectural Changes Address Two
Type Of Issue

ISSUES

STRUCTURAL LOGISTICAL
ISSUES ISSUES
 Structural issues confined to the
physical aspects of carving out the
new architecture.

 It includes the layout of machines &

other resources on the shop floor.

 It also includes the org. structure &

reporting relationships b/w
employees in an org.
 Logistical issues :the issues related to
the systems, procedures & people.

 The changes in the structural issues

need to be complemented by
corresponding changes in logistical
issues.
 LOT SIZE REDUCTION

 IN JAPENES MANUFACTURING
SYSTEM
CAPACITY = ACTUAL PROD. + WASTE

 The major source of waste

elimination is set up time
reduction.
KANBAN AS CONTROL TOOL

 JIT MANUFACTURERS UTILISE

A CONCEPT KNOWN AS
KANBAN WHICH DENOTES A
CARD OR VISIBLE SIGNAL.
PRODUCTION PLANNING &
CONTROL IN JIT
 PUSH-SCHEDULING
 PULL-SCHEDULING
 PUSH SCHEDULING
 In push scheduling system forecasts
drives the entire production.

 Detailed forecast of demand are made,

then forecasts are further refined
based on recent information of input
to provide the detailed schedule.

 Planning drives production &

determines the availability of finished
goods.
PLANNING PROD. SHOP

ISSUE OF RAW
MATERIAL

FINAL
CUSTOMER ASSEMBLY
 PULL SCHEDULING

 It works with super market logic.

 Customer orders triggers the

production.
 Kanban
 Manual information system to control production.
Material transportation, and inventory
 Literally means “visible record” or card.(kan----
card,ban----signal.)
 It refers to a movement which depends upon card.
 In the the broad sense it is a communication signal
from a downstream process (customer) to a upstream
process (producer)
 Kinds of Kanban

 Two most common kanban

– production kanban (P- Kanban)
• authorizes a process to produce a fixed
amount of product
Cont….

 Transportation kanban (T-

Kanban)
– authorizes transporting a fixed
amount of product downstream
1 2 3

4 5 6
 Three operators in U- LINE arrangement
for 360 degree mobility as desired in a true
JIT LAYOUT.
 In U- shaped layout , the movement of
workmen is not limited to next operation up
or down the line.
Query if any