JUST-IN-TIME

By:
Abhishek B.
Wahid Rokadiya
 Introduction
Just-in-time (JIT) is an inventory strategy that strives
to improve a business's return on investment by
reducing in-process inventory and associated carrying
costs.
Just In Time production method is also called
the Toyota Production System.
JIT can improve a manufacturing organization's return
on investment, quality, and efficiency.
 History of just-in-time
JIT is a Japanese management philosophy which has
been applied in practice since the early 1970s in many
Japanese manufacturing organisations.
It was first developed and perfected within the Toyota
manufacturing plants by Taiichi Ohno as a means of
meeting consumer demands with minimum delays .
Taiichi Ohno is frequently referred to as the father of
JIT.
 Goals of just-in-time
Ultimate Goal of Just-in-Time:

To achieve a balanced system – a smooth, rapid flow of

materials through the system.

The idea is to make the process time short as possible by

using resources in the best possible way.
Supporting Goals:
 Eliminate disruptions

 Make the system flexible

 Reduce setup times and lead times

 Eliminate waste

 Minimize inventory
Eliminate Disruptions

Equipment
Poor Quality
Breakdown

DISRUPTIONS

Changes in
Late Deliveries
Schedule
Make the system flexible

Product X

Raw Materials Assembly / Product Y

Processing

Maintain balance of
Product Z
materials and
throughput speed
Eliminate waste
Reduce setup times and lead times
 Elements of just-in-time
Continuous improvement
o .Attacking fundamental problems - anything that does not add value to the
product.
o Devising systems to identify problems.
o Striving for simplicity - simpler systems may be easier to understand, easier to
manage and less likely to go wrong.
o A product oriented layout - produces less time spent moving of materials and
parts.
o Quality control at source - each worker is responsible for the quality of their
own output.
o Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes
o Preventative maintenance, Total productive maintenance - ensuring
machinery and equipment functions perfectly when it is required, and
continually improving it.
Eliminating waste. There are seven
types of waste:
o waste from overproduction.
o waste of waiting time.
o transportation waste.
o processing waste.
o inventory waste.
o waste of motion.
o waste from product defects.
 Good housekeeping - workplace cleanliness and organisation.
 Set-up time reduction - increases flexibility and allows smaller
batches. Ideal batch size is 1 item. Multi-process handling - a
multi-skilled workforce has greater productivity, flexibility and
job satisfaction.
 Levelled / mixed production - to smooth the flow of products
through the factory.
 Kanbans - simple tools to `pull' products and components
through the process.
 Jidoka (Autonomation) - providing machines with the
autonomous capability to use judgement, so workers can do
more useful things than standing watching them work.
 Andon (trouble lights) - to signal problems to initiate corrective
action.
 Advantages of just-in-time
Price flexibility by managing inventory.
Reduction in product variation.
Zero waste.
High quality product.
Low cost for consumer.
Customer satisfaction.
Shortened lead time.
 Disadvantages of just-in-time
Based on the key assumption that the source and the
channel of supply are dependable all the time.
Did not take the possibility of labor strike at
automotive plant.
Cost indulged in set up and training of employees is
high.
Risk of inventory shortage is high.
Production planning is entirely dependant on
forecasting of demand.
Equipment failure and employee absenteeism.
POLYHYDRON PVT. LTD.
  COMPANY PROFILE of Polyhydron Pvt. Ltd.

Chairman & Managing Director Mr. S. B. Hundre

Type of Industry Private Limited Company  

Year of Establishment 1981-1982  

Major Products Manufactured      Industrial & Mobile Hydraulic Valves ,

Pumps & Accessories.  

Total Employees 160

About Polyhydron Group of Companies.

•Mr. S. B. Hundre, Mr. D. S. Chitnis & Mr. V. K. Samant, the

founders of the “POLYHYDRON GROUP ’’.

• Started their first venture for manufacturing of Hydraulic Tube

Fittings & accessories in the year 1974.

•Products like Pumps, Valves & Manifolds  were  added to

manufacturing range in 1981-82  and Power Packs in 1986-87.

•Only Hydraulic Valve & Pump Manufacturing Company in

India, which does not have any foreign collaboration.  
• Polyhydron has maintained a compound growth rate of > 30%.

•Just-In-Time Production System implementation has born

unimaginable benefits inspite of the non-conducive environment in
the country.

•One of the very few companies in India to Practice “ Ethical

Management ” and has developed the concept of “Business
Ashrama”.
Various departments of Polyhydron pvt Ltd.
Research & Development  
• Well equipped R&D  Centre with CAD facility & necessary TEST RIGS.
• Sophisticated Measuring & Calibrating Instruments.
• Qualified Personnel.

 Manufacturing
•JIT Production System.  
•Indigenously developed, well established ERP system.

 Office Administration
•Fully Computerized Information and Administrative Systems.  
•Multi Functional People.  
•Almost paper less working.

 Marketing
•Highly effective Stockiest  network throughout India.
•Quick Deliveries.  
•Most economically priced products.  
•Fast responses to Customer queries & complaints.  
•Technical Advises for troubleshooting.  
 
 Major Machinery.
1 CNC Machine (Turning Centre) 26 Nos.

2 CNC Machine (VMC) 20 Nos.

3 Centerless Grinding M/c 4 Nos.

4 Cylindrical Grinding  M/c.  5 Nos.

5 Internal Grinding M/c.  4 Nos,

6 Honing M/c. 12 Nos.

7 AC Generator 200 KVA 2 No.

Manufactures of: 
•
Hydraulic Radial Piston ,

•
Mobile Hydraulic Valves, 

•
Directional Control Valves, 

•
Solenoid Valves, 

•
Pressure Controls, 

•Manifolds, Covers, Logic

Cartridges, 

•
Pressure Switches, Check Valves
Polyhydron Mission
We will nurture an Ethically Managed Organisation. We will not exploit
our Customer, Employees, Suppliers, Government, Society and Nature.

Polyhydron Vision
We will create an island of Excellence through focus on Customer,
Employee Empowerment and continuous improvement.

Polyhydron is known for its Ethical Management. People from all over
India visit the company to interact and understand the systems. It has
become a kind of "Pilgrimage Center" for the corporate world of India.
10 Beliefs of Polyhydron
1. Purpose of BUSINESS is CREATION OF WEALTH (FOR THE
NATION)

2. Business & Ethics are A Perfect Match

3. Excellence & Spirituality are RELATED

4. Every Customer is a “GOOD PAYMASTER’’

5. Every Government Officer is HONEST

6. Profit includes INCOME TAX

7. Employees should earn wages Not be paid

8. Management system makes money Products don’t

9. Corruption adds Cost & reduces Quality

10. Suppliers, Society & Nature are not Cows to be Milked

Implementation of Just In Time production System in
Polyhydron.

•In addition to there efforts to set high ethical standards, management

was restless in constantly improving the management systems within
PPL, making the company a better organization to work for and
delivering high quality at low prices to its customers.

•In 1987-1988, Japanese management techniques started to catch

there attention.

•A first step was to make processes simple and transparent. Then they
started experimenting with the just-in-time (JIT) concept.
•And finally in 1992-93 they implemented there version of just in
time (JIT) concept in PPL without the help of any consultant.

•Hundre also implemented Japanese management techniques like

Kaizen , the quality circle and independent and self managed
working groups.

•They started the changes the very next morning, despite the fact that
the company layout was not conducive for JIT at that point in time.
Problems PPL management faced during implementation of Just in
Time(JIT) concept .

•They were not 100% successful, nor did they practice JIT 100%,
Given the capabilities and restrictions of their suppliers.

•Since the subcontractors were given the task of manufacturing

certain components and delivering them according to a certain
schedule or timetable for that supply product.

•Depending on the capacities of the supplier, it was meant that

they were the ones who needed to have the storage.

•Supplier described it as following: "It will be just-in-time as long

as Polyhydron is concerned but not just in time for the
manufacturer down the line. Polyhydron may not be holding the
inventory, but the manufacture down the line must be holding
the inventory."
Sol: PPL applied the "Two-Bin-System" with its suppliers i.e.

1. There were two bins - one at PPL and the other at the supplier.

2. When the quantity in the PPL-bin reached half a pre-determined

quantity, an order was generated and sent to the supplier, who had to
replenish it.
(The supplier holds half the stock, PPL hold full stock, when PPL
finish its stock to half it send’s a purchase order to supplier.)

3) Then supplier is supposed to give PPL half immediately, as soon as

they receives the order.

4) The supplier used to get immediate money.( If supplier gives a bill

today, PPL will give him the money tomorrow. Similarly, if PPL
give a purchase order today, supplier has to give PPL the material
tomorrow. That was the understanding.)
ABC-System
Connected with the Two-Bin-System these three categories
determined the storage time within PPL .

•"A" graded products had seven days stock, which represented 70%
of the value.
•"B" graded products had fifteen days stock which was 25% of the
value.

•And "C" graded items had thirty days or sometimes two months or
three months, and accounted for the final 5%.

•The planned order for the next year (re-order level) was based on
the consumption of last year plus a growth factor.

•With this system PPL could plan the weekly, bi-weekly, and
monthly stocks.
•Important Production Planning Controlled-items (PPC-items, high
value-low quantity) were identified. This information was posted to
suppliers every week on Mondays - it was based on incoming
orders from customers.

•The price for a component was fixed for one year, and prices were
reviewed only when raw material prices fluctuated sharply.

•Established vendors were not penalized if at any time a new

vendor proposed to supply at a lower rate.
With the implementation of its own version of JIT, PPL reduced the
number of suppliers and created an atmosphere of trust and the basis
for a long-term relationship with a few of them.

• PPL had around 6,000 components, which were categorized

according to their value and quantity.

•80% of the components were sub-contracted, out of which around

60% were direct-use, which meant that they went directly into the
assembly as finished goods and did not go through any inspection.

•The remaining 20% were semi-finished products, which went

through some other operations like grinding, milling or drilling
before being used.
•(For example items which had a high value and low quantity were
ordered JIT and went directly into the production flow, so that no
money was blocked in inventories.)
Kanban Card System
•PPL also introduced the Kanban Card System so that each PPC-
item to be processed had a 'Kanban' card .

•Tha card was like a process flowchart and clearly indicated all
operations and actions to be taken by the operator.

Kaizen
•The management never stopped implementing new ideas at every
level of the company .

•PPL educate each member of the workforce to learn the new

philosophy and adapt rapidly to the new systems.

•In order to promote reading habits, the company held two hour
classes in English, after working hours for which the employees
were paid overtime.
Polyhydron products are priced unbeatably low and PPL has
changed the prices very marginally in last 25 years This strong
marketing strategy is maintained through careful implementation
of Just In Time production System.

As Hundre pointed out - "all these changes

require big hearts, big minds, the creation of
big links, and big sacrifices on either side."
THANK YOU