The document discusses Just-in-Time (JIT) production. It defines JIT as a system that produces or acquires materials only as needed to minimize waste and costs. JIT was developed by Toyota and aims to eliminate overproduction and waste. The document outlines the purposes, objectives, advantages, disadvantages and characteristics of JIT manufacturing and services.
2. .Just-in-time (JIT) is defined in the Australasian Production & Inventory Control
Society(APICS) dictionary as “a philosophy of manufacturing based on
planned elimination of all waste (Waiting, Overproduction , Defects etc ) and
on continuous improvement of productivity”.
Just in time (JIT) inventory is a management system in which materials or products
are produced or acquired only as demand requires.
Just-In-Time (JIT) production system was founded by Taiichi Ohno (a Vice
President at Toyota) and first successfully implemented at the Toyota Motor
Company’s plants in Japan.
Some companies, IBM for example, refer to JIT as ‘continuous flow
manufacture, Hewlett-Packard, for example refer to JIT as stockless
production and repetitive manufacturing system.
DEFINITION
3. MEANING OF JUST IN TIME
JUST IN TIME is a manufacturing system in which
materials or components are delivered immediately
before they are required in order to minimize
storage costs.
JUST IN TIME is an integrated set of activities
designed to achieve high volume production using
minimal inventories of raw materials, work in
progress and finished goods.
JIT is an approach that seeks to eliminate all
sources of waste in production activities by
providing the right product at the right place and
at the right time
4. types of waste
JIT usually indentifies seven
prominent types of waste
to be eliminated:
Reducing
Cost
Improvin
g Quality
Improving
Performance
Improving
Delivery
Adding
Flexibility
Increase
innovativene
ss
PURPOSE OF JIT
5. PURPOSE OF JUST IN TIME
This approach to managing inventory has become increasingly popular in
the early 21st century as suppliers and retailers collaborate to try to
control inventory costs while still meeting customer demands.
The Just In Time system increases efficiency and decrease waste by
receiving goods only as they are needed in the production process, thereby
reducing inventory costs.
This method requires that producers are able to accurately forecast demand.
Businesses only produce inventory
when there is a customer order in place.
The system does not allow the
business to produce or
store excess inventory.
6. OBJECTIVES OF JIT MANUFACTURING
1. Produce only the products services that customer wants.
2. Produce products only as quickly as possible as customers want to
use them.
3. Produce products with perfect quality.
(give customers their money’s worth)
4. Produce in minimum possible time
.
5. Produce products with features only
what customer want.
6. Produce with no waste of
labour materials equipments.
7. ADVANTAGES OF JIT
1. Inventory levels are drastically reduced
2. Product quality is improved and cost of scrap is reduced.
3. The causes of production problems ,manufacturing operations are
streamlined and problem free.
4. With less WIP, less space is occupied.
5. Multi skilled, flexible work force bring benefits such as less
worker idle time, reduced overheads and increased
responsiveness.
6. Elimination of unnecessary suppliers(late deliveries, poor quality)
7. Reduction in customer related problems.
8. Improvements in communication quality
8. DISADVANTAGES OF JIT
1.A company may not be able to immediately meet the
requirements of a massive and unexpected order, since it has few
or no stocks of finished goods.
2.A supplier that does not deliver goods to the company exactly on
time and in the correct amounts could seriously impact the
production process.
3.A natural disaster could interfere with the flow of goods to the
company from suppliers, which could halt production almost at
once .
9. Characteristics of JIT system
Pull method of material Flow-
The customer demand activates production of item and produced in small lots just as
needed. This allows closer control of inventory.
Constant high quality-
Efficient JIT system operations require conformance to product service specifications and
controls quality at source and workers acting as their own quality inspector.
Small lot sizes-
Rather than building up a cushion of inventory ,users of JIT maintain inventory of lot
sizes that are small. JIT system maintains inventory with small lot sizes,which reduces
lead time, (A lead time is the latency (delay) between the initiation and execution of a
process) and create uniform operating system workload.
Uniform work station loads-
JIT system works best if the daily load on individual work station is uniform. this can be
achieved by assembling the same type and number of products each day, thus creating
a uniform daily demand at all work stations.
Standardized components and work methods-
Standardized components and work methods is called part commonality modularity.
Standardization of components and work methods aid in achieving the high productivity,
low inventory etc
10. Characteristics of JIT system
Flexible work force-
Workers in flexible work force can be trained to perform more than one
job. High degree of flexibility in the work force can be achieved with little
training.
Line Flow strategy-
A line flow strategy can reduce frequency of set ups. Group technology can be
used design small production lines that manufacture in volume, families
of components with common attributes.
Preventive maintenance-
Preventive maintenance can reduce the frequency and duration of
machine down time (Period during which an equipment or machine is not
functional or cannot work.)
11. JIT in Services
Mainly JIT services are applied to improve services and make closeness
with the customers.
Consistently high quality- Service employees can be taught the value of providing
defect free services. Ex:- Mc Donald is famous for building quality in its service delivery
process.
Standardize work methods- In highly repetitive services operations, high
efficiencies can be achieved by analyzing work methods and standardizing improvements
for all employees to use.
Close supplier ties- Volume services, (fast food restaurants, mass merchandisers)
require close supplier contacts to ensure frequent short lead time(A lead time is the
latency (delay) between the initiation and execution of a process) and high quality
shipments.
Flexible workforce –The more customized the service, the greater is the need for a
multi-skilled workforce eliminate employees waste time.
12. JIT in Services
Automation –
Automation can play a big role in providing JIT services e.g. ATM and
Vending machines and service stations.
Preventive maintenance-
Services that are dependent on machines can ensure regularly
preventive maintenance.
Line flow strategy
Managers can recognize their employees equipments to provide uniform
flows through the system and eliminate employees waste time.