A Presentation onSubmitted to :-K.K. Parekh Institute of Management Studies(Amreli)JUST IN TIME (JIT)Prepared by :-Mehul Rasadiya
CONTENTS What is JIT? Objective Concept Benefits Implementation in McDonald’s
WHAT IS JIT ????? A corporate system designed to produce outputwithin the minimum lead time and at the lowesttotal cost by continuously identifying andeliminating all forms of corporate waste andvariance. A corporate strategy Focus of JIT:• variance & waste
OBJECTIVE OF JIT Produce only the products the customer wants. Produce products only at the rate that the customerwants them. Produce with perfect quality Produce with minimum lead time. Produce products with only those features the customerwants. Produce with no waste of labor, material or equipment --every movement must have a purpose so that there iszero idle inventory.
CONCEPT Inventory Reduction Quality Improvement Lead time Reduction Continuous Improvement Strategic Gain
IN MCDONALD’S High holding costs arethe nature of the fast foodindustries Wastage Time
IN MCDONALD’S JIT system whereinMcDonalds doesnt begin tocook its orders until a customerhas placed a specific order.
IMPLEMENTATION OF JIT sophisticated burger-making technology(including a record-breaking bun toaster) McDonalds is able to make food fastenough to wait until its been ordered. Reduction in wastage
IMPLEMENTING IN JITPRODUCTION SYSTEMSCriteria for success1. Service2. Quality3. People4. Food preparation5. Profitability.
BENEFITSImproved Quality – The burgers are prepared freshlyand hence the quality has improved.Customer service – As the burger is made only afterthe order is placed, making special orders is not anissue.Cost Reduction – Due to significant reduction inwastage as uncooked material has a higher shelf life.Reduction in waiting – Customer’s waiting time reduce11 min. to just 1 and half min.
JIT DEMAND-PULL LOGICCustomersSubSubFabFabFabFabVendorVendorVendorVendorFinalAssemblyHere the customer startsthe process, pulling aninventory item fromFinal Assembly…Then sub-assembly work ispulled forward bythat demand…The process continuesthroughout the entireproduction process andsupply chain