2. Introduction
• An inventory strategy companies employ to increase efficiency and decrease
waste by receiving goods only as they are needed in the production process,
thereby reducing inventory costs
• JIT is an approach which seeks to eliminate all sources of waste, anything
which doesn’t add value in production activities, by providing the right part
at the right place at the right time .
3. History of JIT
• Evolved in japan after world war II, as a result of diminishing market share in
auto industries.
• Toyota Motor Company birthplace of the JIT philosophy under taiichi ohno.
• JIT is now on rise all over.
4. Principles of JIT
• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management
5. Just-in-time inventor system
• Inventor system design to produce efficient output with lead time at lowest
possible cost, minimizing with great consistency.
• Objectives:
Create only want the customer wants at the rates the customers needs them.
Produces at products of consistent high quality.
With minimal waste of labor, material, and equipment
6. Overview of inventor system
Pull inventory
prepare order
Manage
inventory
Take order
Order
completed
Served to the
customer
Sales
forecasting
8. Advantage of JIT
• High quality
• Flexibility
• Reduce setup time
• Reduce need for indirect labor
• Less waste
• Low warehouse cost
9. Disadvantage of JIT
• Time consuming
• No spare product to meet un expected order
• Supply Shock : If products do not reach on time
• High risk factor
10. Type of waste on JIT
• Overproduction
• Waiting
• Transportation
• Inefficient processing
• Inventory
• Unnecessary motion
• Product defects
11. Summary of JIT
• A philosophy of continuous improvement that puts emphasis on prevention
rather than correction, and demands a company wide focus on quality.
• Just-In-Time Method is a philosophy, which believes that waste can be
eliminated by cutting unnecessary inventory and removing non value-added
activities in operations.
• The goals are to produce goods and services as specifications and continuous
improvement through value additions.