Implementation of just-in-time to enhance the productivity of restaurants and its drawbacks

1. JUST-IN-TIME
IN
RESTAURANTS
BY
SAI NIKESH
MBA05100

2. What is
JIT ?
• Just-in-time (JIT) inventory
system is a management
strategy which minimizes
inventory and maximizes
efficiency
• It involves often using Kanban
technique to measure lead,
cycle time and upper limits for
work in progress inventory to
avoid overcapacity.
Success of JIT depends on
• Reliable suppliers
• No equipment breakdowns
• Integrated supply chain
• High quality workmen
• Total quality management

3. • Minimize inventory levels
• No material purchase until customer orders
• Increase productivity
• Eliminate waste
• More customization opportunities
• Zero idle inventory
• Reduce lead time
• Enhance quality
• Cost reduction
Objectives

4. • Forecasting the capabilities and estimating the number of
customers
• Process re-engineering to identify areas of waste
• Implement data collection systems, automated ordering
and inventory systems
• Create a JIT supply chain with suppliers
• Total Quality Management (Standardized training of
employees)
Implementation
In
Restaurants

5. Benefits
• Less Space needed for inventory
• Smaller investments on raw
materials
• Waste reduction
• Reduced price
• Short cycle time
• Increased employee involvement
• Reduced lead time
Drawbacks
• High implementation cost
• Risk of running out of stock
• Relying on supplier timelines
• Effect on supply chain because of
natural disasters
• Unexpected orders

6. Thank You