2. JIT?
“A philosophy of manufacturing based on
planned elimination of waste and continuous
improvement of productivity ……”
3. Bottlenecks in
implementing
JIT in an
Industry
JIT improvement won`t do any good.
Its sounds like a good thing but we still don’t want to do it
Look good on paper but…..
Costs are already as low as that can possibly get
But we already been doing things that way
We can`t lower costs any more without lowering quality
Everything is going just fine now ,Why change it?
That`s a lousy idea! We already tried that 20 years ago
Look we understand this stuff better than anybody(so don’t tell us
what to do)
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4. Histor
y of JIT
Evolved in Japan after World War II, as a result
of their diminishing market share in the auto
industry.
Toyota Motor 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.
5. 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 huge influence.
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6. • ZERO INVENTORY
• ZERO LEAD TIME
• ZERO FAILURE
JIT
(JUST-IN-TIME)
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7. Eliminates waste .
Achieves streamlined production .
Eliminate disruptions in production … caused by poor quality,
schedule changes, late deliveries.
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 .
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8. 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 handling of
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.
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10. 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
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12. Principles Of JIT Manufacturing
Total quality Management
Production Management
Supplier Management
Inventory Management
Human Resource
Management
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13. JIT Manufacturing Building Blocks
Product design
Process design
Personnel/organizational
elements
Manufacturing
planning and control
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14. 1. Product Design
Standard parts
Design Simplification
Highly capable production systems
Concurrent engineering
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15. 2. Process Design
Small lot sizes
Setup time reduction
Limited work in process
Quality improvement
Production flexibility
Little inventory storage
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16. Benefits of Small Lot Sizes
Reduced Inventory
Less Rework
Less Storage Space
Problems are more apparent
Increase Product Flexibility
Easier to balance operation
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18. 4. Manufacturing Planning and Control
Pull systems
Visual systems (kanban)
Close vendor relationships
Reduced transaction processing (delays in
delivery)
Preventive maintenance
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19. Evaluation and selection of vendor (suppliers)
network to develop a tiered supplier network –
reducing the number of primary suppliers
Traditional supplier Network
Buyer
Supplier
Supplier Supplier
Supplier
Supplier supplier
Tiered Supplier Network
Buyer
supplier supplier supplier supplier
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23. In McDonald’s
High holding costs are the nature of the fast food
industries.
Wastage.
Time.
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24. In McDonald’s
JIT system wherein McDonald's doesn't begin to cook
its orders until a customer has placed a specific order.
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25. 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.
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26. Implementing in JIT
Production Systems
Criteria for success
Service
Quality
People
Food preparation
Profitability
.
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28. 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 in wastage
as uncooked material has a higher shelf life.
Reduction in waiting – Customer’s waiting time reduce
11 min. to just 1 and half min.
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31. Minimizing Waste:
Focused Factory
Networks
Coordination
System Integration
These are small specialized plants
that limit the range of products
produced (sometimes only one
type of product for an entire facility)
Some plants in
Japan have as
few as 30 and as
many as 1000
employees
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32. Minimizing Waste: Group Technology (Part 1)
Using Departmental Specialization for plant layout can cause a lot of
unnecessary material movement
Saw Saw
Lathe Press
Press
Grinder
Lathe
Lathe
Saw
Press
Heat Treat
Grinder
Note how the flow lines are going back and forth
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33. Minimizing Waste:
Group Technology (Part 2)
Revising by using Group Technology Cells can reduce movement and
improve product flow .
Press
Lathe
Grinder
Grinder
A
2
B
Saw
Heat Treat
Lathe
Saw Lathe
Press
Lathe
1
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34. Minimizing Waste: Just-In-Time Production
Management philosophy
“Pull” system though the plant
Hydraulic Push Systems
WHAT IT IS
Employee participation
Industrial engineering/basics
Continuing improvement
Total quality control
Small lot sizes
WHAT IT REQUIRES
Attacks waste
Exposes problems and bottlenecks
Achieves streamlined production
WHAT IT DOES
Stable environment
WHAT IT ASSUMES
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35. Minimizing Waste: Inventory
Hides Problems
Work in
process
queues
(banks)
Change
orders
Engineering design
redundancies
Vendor
delinquencies
Scrap
Design
backlogs
Machine
downtime
Decision
backlogs
Inspection
backlogs
Paperwork
backlog
Example: By identifying
defective items from a
vendor early in the
production process the
downstream work is saved
Example: By identifying
defective work by employees
upstream, the downstream
work is saved
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36. Minimizing Waste: Kanban Production Control
Systems
Storage
Part A
Storage
Part A
Machine
Center
Assembly
Line
Material Flow
Card (signal) Flow
Withdrawal
kanban
Once the Production kanban
is received, the Machine
Center produces a unit to
replace the one taken by the
Assembly Line people in the
first place
This puts the
system back were it
was before the item
was pulled
The process begins by the Assembly
Line people pulling Part A from Storage
Production kanban
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37. Determining the Number of Kanban Needed
Setting up a kanban system requires determining the number of kanban
cards (or containers) needed.
Each container represents the minimum production lot size.
An accurate estimate of the lead time required to produce a container is
key to determining how many kanban are required.
Side Bar – In Japan space is a very important consideration since there is so
little of it. This process saves on space requirements.
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38. Example of Kanban Card Determination:
Problem Data
A switch assembly is assembled in batches of 4 units from an “upstream”
assembly area and delivered in a special container to a “downstream”
control-panel assembly operation.
The control-panel assembly area requires 5 switch assemblies per hour.
The switch assembly area can produce a container of switch assemblies in
2 hours.
Safety stock has been set at 10% of needed inventory.
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39. Example of Kanban Card Determination:
Calculations
Always round up!
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41. A.gunasekaran and J.lyu in their research implementation of just-in-
time in a small company has depicted its advantage in SMEs. he depicted
that implementation of JIT in SMEs should start with layout revision,
schedule stability and the development of long-term supplier-customer
relationships.
A new purchasing policy supporting frequent purchases of small lot sizes
may help SMEs in implementing a JIT system.
Education and training of workers in SMEs about JIT concept and their
high leverage opportunity would tremendously support the
implementation of JIT system in SMEs.
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42. Requirement for the implementation
of JIT in Indian industry
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43. Management Support And Understanding Of the System.
Management And Labour Responsibilities.
Training.
Supplier Management.
Production Layout And Work Flow.
Long‐term Planning.
Government Support.
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45. 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
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46. Disadvantages of JIT
Danger of disrupted production due to non-arrival of supplies.
Danger of lost sales.
High dependence on suppliers.
Less time for quality control on arrival of materials.
Increased ordering and admin costs.
May lose bulk-buying discounts.
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47. 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.)
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What is just-in-time manufacturing
Jit is philosophy of manufacturing based on planned elimination of all waste and continuous improvement of productivity it encompasses the successful execution of all manufacturing activities required to produce a final product from design engineering to delivery and including all the states of conversion from raw material onward.
