OPERATIONS MANAGEMENT

JIT SYSTEM
UNIT 3
By-:
Er. Vaibhav Agarwal
Asst. Prof.
SOM, BBDU
Lucknow
Taichii Ohno’s 7 kinds of Wastes
1. OVERPRODUCTION

2. QUEUES

3. TRANSPORTATION

4. INVENTORY

5. MOTION

6. OVERPROCESSING

7. DEFECTIVE PRODUCT
 JUST IN TIME
• JIT is an approach focusing on continuous and forced problem
solving by a focus on throughput and reduced inventory.
• The JIT results in much less inventory, lower costs and better
quality than the traditional approach.
• JIT is a philosophy of planned elimination of wastes and
continuous improvement of productivity.
• Having required inventory when needed, to improve quality to
level of zero defects, reduced lead times by reducing set-up times,
queue lengths and lot sizes and accomplishing these things at
reduced costs.
 JUST –IN-TIME Concepts

• ELIMINATION OF WASTES AND VARIABILITY

• “PULL” VS “PUSH” SYSTEM,

• MANUFACTURING CYCLE TIME (OR THROUGHPUT TIME)

Just-in-Time
• JIT philosophy means getting the right quantity of goods at the
right place and the right time

• JIT exceeds the concept of inventory reduction; it is an all-

encompassing philosophy geared to eliminate waste, anything that
does not add value

• A broad JIT view – or lean production/lean systems - is one that

encompasses the entire organization.

• As there is no excess inventory or excess time in JIT system, costs

associated are also eliminated and final output is improved. 5
Philosophy of Just-in-Time
• Philosophy of continuous and forced problem solving.

• Supplies and components are ‘Pulled” through the system to

arrive where they are needed and when they are needed.

• Problem is when goods do not arrive in time.

• JIT makes and excellent tool of operations management adding

value by eliminating wastes and unwanted variability.

• Mr. Taichii Ohno, former Vice-President of Toyota created the

basic framework of JIT and Toyota Production System.

6
Characteristics of Lean Systems: Just-in-Time
 Pull method of materials flow
 Consistently high quality
 Small lot sizes
 Uniform workstation loads
 Standardized components and work methods
 Close supplier ties
 Flexible workforce
 Line flows
 Automated production
 Preventive maintenance
JIT Manufacturing:
The Pull System

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 Role of Inventory Reduction
• Inventory = Lead Time (less is better)
• Inventory hides problems

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Inventory Hides Problems

Scrap Unreliable Capacity

suppliers imbalance
Lowering Inventory Investment to
Expose Problems
Just-In-Time Production

WHAT IT IS WHAT IT DOES

• Management philosophy • Attacks waste

• Exposes problems and bottlenecks
• “Pull” system though the plant
• Achieves streamlined production

WHAT IT REQUIRES WHAT IT ASSUMES

• Employee participation
• Industrial engineering/basics • Stable environment
• Continuing improvement
• Total quality control
• Small lot sizes
Benefits of JIT
• Reduction in inventories
• Improved quality
• Reduced space requirements
• Shorter lead times
• Lower production costs
• Increased productivity
• Increased machine utilization
• Greater flexibility

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• Cost savings: inventory reductions, reduced scrap, fewer
defects, fewer changes due to both customers and
engineering, less space, decreased labor hours, les rework.
• Revenue increases: better service and quality to the customer.
• Investment savings: less space, reduced inventory, increased
the volume of work produced in the same facility.
• Workforce improvements: more satisfied, better trained
employees.
• Uncovering problems: greater visibility to problems that JIT
allows, if management is willing to capitalize on the
opportunity to fix these problems.
Potential Problems Implementing
JIT
• Applicable primarily to repetitive operations
• Requires discipline
• Based on cooperation and trust
• Requires change of philosophy