2. TOYOTA'S JIT REVOLUTION: A LEGENDARY
PRODUCTION SYSTEM
BRAVO GROUP
Humaira Mehboob 07
Naila Farooq 14
Aneela Yousaf 25
Sidra Mumtaz 02

3. JUST IN TIME:
 The JIT production was defined as 'producing only necessary units in a
necessary quantity at a necessary time resulting in decreased excess
inventories and excess workforce, thereby increasing productivity. JIT was
based on the principle of producing only what is needed and nothing more than
needed.JIT focuses on continuous improvement.
TOYOTA MOTOR CORPORATION
 TOYOTA MOTORS is a Japanese automobile manufacturer headquartered
in Toyota, Aichi, Japan.
 November 2014, is the twelfth-largest company in the world by revenue.
 Toyota was the largest automobile manufacturer in 2012 (by production)
 Toyota is the world's first automobile manufacturer to produce more than 10
million vehicles per year
 . As of July 2014, Toyota was the largest listed company in Japan by market
capitalization and by revenue.

4. BACKGROUND OF TOYOTA
 Sakichi Toyoda(1867-1930)
Toyota Automatic Loom Work
 Kiichiro Toyoda (1894- 1952)
Used chain conveyor into the Assembly line
 Taiichi Ohno (1970)
Implemented JIT in Toyota’s manufacturing plants to
avoiding waste, reducing inventories & increasing
production efficiency to compete .

5. A LEGENDARY PRODUCTION SYSTEM
 Toyota production system also known as “TOYOTA WAY” was developed &
promoted by Toyota Motor Corporation.
 The main purpose of TPS is to eliminate waste through continuous
improvement activities.
 Profit through cost reduction
 Elimination of over production
 Quality control , Quality assurance.

6. TOYOTA PRODUCTION SYSTEM
Cost Reduction Increase of capital
turnover ratio
Elimination of Waste
Production
methods
Information
system
Control by
teamwork
Automatic
stop device
Kanban
Continuous flow of Production
Just-in time production Jidoka(automation)
Heijunka

7. FEATURES OF JUST-IN-TIME PRODUCTION SYSTEM
 What it is:
• Management philosophy
• 'Pull' System through the plant
 What it does:
• Attacks waste (time, inventory, scrap)
• Exposes problems and bottlenecks
• Achieves streamlined production
 What it requires:
• Employee participation
• Industrial engineering/basics
• Continuing improvement
• Total quality control
• Small lot sizes
 What it assumes:
• Stable environment

8. PRINCIPLES OR COMPONENTS OF JIT:
 Kanban:
A simple parts-movement system that depended on cards and boxes/containers to take
parts from one workstation to another on a production line.
o Conveyance Kanban card/ withdrawal card:
The kanban card used to move parts from one place to another, known as the
Conveyance Kanban card.
o Production Kanban card:
The second card to authorize the production of parts, known as the production
kanban card. A standard size container was used to store parts and each card
was
treated like a coupon.

9.  HEIJUNKA:
 Another important component of JIT was Heijunka (finding and keeping
average production volumes).
 JIT's principle of building only the required number of items helped keep
the production costs low.
 Heijunka helped in the accomplishment of this principle by creating a
consistent production volume.
 Heijunka averaged the highest and lowest variations of the orders. The
variations were then removed from the production schedule. This
ensured that the right quantity of parts was produced with minimum
workforce.

10. STRATEGIES FOR THE IMPLEMENTATION OF JIT
Customer satisfaction
Employee involvement
Continues improvement
Pull system
CHECK PLAN
ACT DO
Supply chain management
Adward deming wheel

11. PROBLEMS AND THE ACTIONS TAKEN
WHY TOYOTA INTRODUCED JUST IN TIME PRODUCTION
PHILOSOPHY?
 In the early 1930s, the technology used by American automobile
companies was superior to that used by Japanese companies.
 After thorough study and research Kiichiro sort out the root causes to the
failure of not competing in the global market. He then reorganized the
production system in Toyota in a unique way.
 This reorganization eventually led to the development of JIT concept

12. GHRAPHICAL REPRESENTATION OF CAUSES OF PRODUCTION FAILURE
Production
failure
Production processSupplier
Workers Inventory Management
Delayed delivery
Delivery of wrong items
Improper delivery of material
Weak business relations with supplier
inelastic production system
Difficult to identify defects during production
Increased dead stock
large production
lots Equipment Breakdown
Risen cost
Lack of coordination among workers
No employee empowerment
Lack of training
Absenteeism
Increased boredom during work
Increased inventory storage cost
Increased work in process
Increased unused accumulated inventory

13. ADVANTAGES OF JIT
 Production flexibility
 Quick response to customers Demand
 High quality products at low prices for customers
 Customer satisfaction
 Low inventory investment
 Early detection of quality problems
 Small lot sizes
 Low cost of production
 Shortened lead times
 Employee empowerment
 Increased supplier relations.

14. DISADVANTAGES OF JIT:
 JIT involved high set up costs
 Special training and reorganization of policies and procedures in the
company were necessary to implement JIT
 The supplier relations of the company also needed to be improved to
ensure timely delivery. In the absence of good supplier relations, JIT
increased the risk of inventory shortage.
 Change in Organizational culture.

15. CONCLUSION
 The JIT system was aimed at avoiding waste, reducing inventories and
increasing production efficiency.
 JIT principles is respect for people or maintaining relationship at all
levels, be it employees, customers, suppliers or management.
 Success of JIT depends on identification of what the customer needs
and fulfilling the request in the best possible manner.