JIT(JUST-IN-TIME)

JIT?
“A philosophy of manufacturing
based on planned elimination of
waste and continuous
improvement of productivity
……”
History
of JIT  Evolved in Japan after World War II, as
a result of their diminishing market
share in the auto industry.

 Toyota M otor Company- first to

implement fully functioning and
successful JIT system, in 1970’s.

 Japanese Manufacturers looked for a

way to gain the most efficient use of
limited resources. They worked on
"optimal cost/quality relationship.
The philosophy of JIT can be traced back to Henry Ford, but formalized JIT
originated in Japan as the Toyota Production System. W. Edwards Deming’s
lesson of variability reduction was a hugeinfluence.

The focus of JIT is to improve the system of production

by eliminating all forms of waste.
 JIT • ZERO INVENTORY
• ZERO LEADTIME
(JUST-IN-TIME) • ZERO FAILURE
Eliminates waste .
 Achieves streamlined production.
Eliminate disruptions in production caused by poor quality,
schedule changes, latedeliveries.
 Makes the manufacturing delivery system flexible by allowing it to
handle a variety of products and changes in the level of output.
Reduces setup and delivery times .
Waste Definition
1. Overproduction Manufacturing an item before it is needed.
2. Inappropriate Processing Using expensive high precision equipment when
simpler machines would suffice.
3. Waiting Wasteful time incurred when product is not being
moved or processed.
4. Transportation Excessive movement and material handlingof
product between processes.
5. Motion Unnecessary effort related to the ergonomics of
bending, stretching, reaching, lifting, and walking.

6. Inventory Excess inventory hides problems on the shop

floor, consumes space, increases lead times, and
inhibits communication.

7. Defects Quality defects result in rework and scrap, and add

wasteful costs to the system in the form of lost
capacity, rescheduling effort, increased
inspection, and loss of customer good will.

8. Underutilization of Employees Failure of the firm to learn from and capitalize on

its employees’ knowledge and creativity impedes
long term efforts to eliminate waste.
 Overproduction
 Waiting time
 Unnecessary transportation
 Processing waste
 Inefficient work methods
 Product defects
Strategies For Minimizing Waste By Using
JIT

Manufacturing in smaller lot sizes reduces excess inventory

Reducing inventory levels allows the problems to be uncovered …
thus creating opportunities for manufacturing process improvement
Benefits of Small Lot Sizes

Reduced Inventory

Less Rework
Less Storage Space

Problems are more apparent

Increase Product Flexibility

Easier to balanceoperation
 Principles Of JITManufacturing
Total quality Management

Production Management

Supplier Management

Inventory Management

Human Resource
Management
In McDonald’s
 In McDonald’s

 High holding costs are the nature of the fast

food industries.
 Wastage.
 Time.
 In McDonald’s

JIT system wherein McDonald's doesn't begin to cook

its orders until a customer has placed a specific order.
 Implementation of JIT

Sophisticated burger-making technology (including a

record-breaking bun toaster)
McDonald's is able to make food fast enough to wait until
it's been ordered.
Reduction in wastage.
 Benefits

Improved Quality – The burgers are prepared freshly and

hence the quality has improved.
Customer service – As the burger is made only after the
order is placed, making special orders is not an issue.
 Cost Reduction – Due to significant reduction inwastage
as uncooked material has a higher shelf life.
Reduction in waiting – Customer’s waiting time reduce 11
min. to just 1and halfmin.
Companies adopted JIT
TOYOTA PRODUCTION SYSTEM
JIT Benefits
 Reduced Inventory
 Improved quality
 Lower costs
 Reduced space requirements
 Shorter lead-time
 Increased productivity
 Greater flexibility
 Improved vendor relations
JIT Benefits (contd.)
 Simplified scheduling &control
 Increased capacity
 Better utilization of personnel
 More product variety
 Increased equipment utilization
 Reduced paperwork
 Valid production priorities
 Work force participation
Disadvantages of JIT

 Danger of disrupted production due to non-arrival of supplies.

 Danger oflost sales.

 High dependence onsuppliers.

 Less time for quality control on arrival of materials.

 Increased ordering and admin costs.

 May lose bulk-buying discounts.

 JIT … Not For Everyone
JIT concepts work best when goods can be produced in response to
consumer demand(e.g. automobiles, etc.)

 JIT is less effective for the production of standardized consumer

goods (e.g. basic clothing, food, soft drinks, toasters, etc.)

There are cases where JIT concepts apply to sub-processes of a

make to stock environment. (e.g. computers etc.)