Meaning of JIT, JIT concept, Characteristics of JIT, Elements of JIT, Advantages of JIT, Drawbacks of JIT,

1. JIT-- JUST IN TIME
 A production system that produces the kind of units
needed, at the time needed and in the quantities
needed.
 A Philosophy of manufacturing based on planned
elimination of all waste and continuous improvement of
productivity.
 JIT was originally developed by Toyota Motor JIT was originally developed by Toyota Motor
company in Japan.
 Producing quantity of units that is needed, no more,
no less.
 Producing them on the date and time required, not
before not after.
J Hemwani, GPC, Betul (M.P.) 460001

2. CONCEPT OF JIT
 Three fundamental concept of JIT
1.Elimination of waste and variability.
2.Pull system adoption is better than Push system.
3. Reducing Manufacturing cycle time.3. Reducing Manufacturing cycle time.
J Hemwani, GPC, Betul (M.P.) 460001

3. CONCEPT of JIT
1. Elimination of waste and variability.
 Anything that does not add “value” is described as
waste in production of Goods & Services.
 Products being stored, inspected or delayed, products
waiting in queue and defective product do not add value
hence they are 100% waste.hence they are 100% waste.
 JIT Speeds throughout allowing faster delivery and
reducing work in process (from converting raw
materials to finished goods) .
J Hemwani, GPC, Betul (M.P.) 460001

4. CONCEPT of JIT
2. Pull system adoption is better than Push system :
 The pull inventory control system begins with a customer's
order, with this strategy, companies manufacture the products
only to fulfill customer's orders.
 One advantage of the pull system is that there will be no
excess of inventory that needs to be stored, thus carrying cost
and storing cost is at reduced levels. Thus reaching to JIT goal,
which is keep inventory levels minimum by only havingwhich is keep inventory levels minimum by only having
inventory, not more or less than to meet customer’s demand.
 The push system of inventory control involves forecasting the
needs of the customers and meet that demand. Companies have
to predict the products and their quantities that customers will
purchase in near future.
 The company in turn will manufacture sufficient quantity of
product to meet the forecast demand and sell, or push, the
goods to the consumer.
J Hemwani, GPC, Betul (M.P.) 460001

5. CONCEPT of JIT
3. Reducing Manufacturing cycle time:
 It is time between the arrival of raw material and
shipping of finished products.
 JIT helps to reduce the manufacturing cycle time by
reducing wastage of time and providing availability ofreducing wastage of time and providing availability of
raw material in due time .
J Hemwani, GPC, Betul (M.P.) 460001

6. OVERVIEW OF JIT MANUFACTURING
 Inventory reduction : JIT is system for reducing
inventory levels at all stages of production.
 Quality Management: JIT provides procedure for
improving quality within the company.
 Lead time reduction: With JIT, lead time is Lead time reduction: With JIT, lead time is
significantly reduced because the material is available
when it is required. There is no delay.
 Continuous Improvement: In JIT system, existing
problems are solved and new problem is defined for
solution so that continuous improvement is done.
J Hemwani, GPC, Betul (M.P.) 460001

7. Characteristics of JIT
 JIT system focuses on reducing in-efficiency and un-
productive time in production processes to improve
continuously the process and quality. It has following
characteristics:
1. Pull method of material flow
2. Constantly High Quality
J Hemwani, GPC, Betul (M.P.) 460001
2. Constantly High Quality
3. Uniform Workstation Loads
4. Standardized components and work methods
5. Close Customer-Supplier Ties
6. Flexible workforce
7. Automated Production

8. Elements of JIT
 Following are the elements of JIT.
1. Eliminating waste
2. Enforced Problem Solving
3. Continuous Improvement / Kaizen
J Hemwani, GPC, Betul (M.P.) 460001
3. Continuous Improvement / Kaizen
4. Involvement of People
5. Total Quality Management

9. Advantages of JIT
 Lower Warehouse Costs because of NO (less)
inventory.
 JIT model allows companies to serve their customers
faster and more efficiently hence Better Customer
Satisfaction is achieved.
J Hemwani, GPC, Betul (M.P.) 460001
 Reduced Waste because of JIT.
 Improved Customer-Supplier Relationships because
of fast payments.

10. DRAWBACKS of JIT
 An investment should be made in information
technology to link the computer systems of the
company and its suppliers.
 A company may not be able to immediately meet
the requirements of a massive and unexpected
J Hemwani, GPC, Betul (M.P.) 460001
order.
 Risk of running out of stock is high because of no
inventory maintained.
 More Planning is required to meet the varying
demands.

11. EMPLOYEE INVOLVEMENT
 Employee involvement is a system in which
employees are encouraged to use their expertise and
knowledge to suggest methods for improvement.
 These suggestions may be related to improvement in
the job, the product, the work atmosphere or the
company as a whole.
 A Participative process that uses the input of
employees to increase their commitment to the
organization’s success.
 Regular Participation of employee in deciding how
work is done, making suggestions for improvement,
goal setting, planning and monitoring of their
performance.
J Hemwani, GPC, Betul (M.P.) 460001

12. EMPLOYEE INVOLVEMENT
 Virtually all successful quality enhancement programs
involve making the person responsible for doing the
job responsible for making sure it is done right.
All employees must participate in working toward
common goals or mission set by the management
team. Total employee involvement can be achievedteam. Total employee involvement can be achieved
when fear has been driven from the workplace.
 For Employee involvement management has to
provide proper environment after empowerment of the
employee.
 Self-managed work teams are one form of employee
empowerment thus assuring involvement.
J Hemwani, GPC, Betul (M.P.) 460001

13. CUSTOMER SATISFACTION
 It is important to identify the organization’s
customers.
 External customers consume the organization’s
product or service.
 Internal customers are employees who receive the
output of other employees.output of other employees.
The customer ultimately determines the level of
quality. No matter what an organization does to foster
quality improvement—training employees, integrating
quality into the design process, upgrading computers
or software, or buying new measuring tools—the
customer determines whether the efforts were
worthwhile.
J Hemwani, GPC, Betul (M.P.) 460001

14. Customer satisfaction dimensions:
1. Customer Information.
2. Support and service to customer.
3. Speed of service.
4. Reliability and safe workability of the product.4. Reliability and safe workability of the product.
5. Image of the company.
6. Value of money spent by customer.
J Hemwani, GPC, Betul (M.P.) 460001

15. J Hemwani, GPC, Betul (M.P.) 460001

16. References:
1. Internet websites sources.
2. Slideshare.net
J Hemwani, GPC, Betul (M.P.) 460001

17. J Hemwani, GPC, Betul (M.P.) 460001