The document discusses the Just-In-Time (JIT) philosophy and its implementation. It begins by defining JIT as a philosophy of continuous improvement focused on prevention over correction through company-wide quality focus. It then provides details on: the origins and key aspects of JIT; how it differs from traditional production methods through reduced inventory and improved visibility; its implementation across total quality management, production, suppliers, inventory, and human resources; communication techniques used; types of waste addressed; and challenges to implementing JIT. Examples of companies successfully using JIT principles, like Toyota, Dell, and Harley Davidson, are also provided.

2. ROHAN AHIR
PRANITA ANCHAN
AVINASH JANARDANAN
HEMANGI DHONDE
SUMEET LAMBA
FORUM GATHANI

3. • JIT- A philosophy of c o ntinuo us
im p ro v e m e nt that puts emphasis on
prevention rather than correction, and
demands a company wide focus on quality.
• JIT- operational management approach to
achieve world class manufacturing.
• JIT- production is based on demand

4. • JIT philosophy means getting the right quantity of
goods at the right place and the right time
• JIT exceeds the concept of inventory reduction; it
is an all-encompassing philosophy geared to
eliminate waste, anything that does not add value
• A broad JIT view – or le a n p ro d uc tio n/le a n
s y s te m s - is one that encompasses the entire
organization
4

5. • Evolved in Japan after World War II, as a
result of their diminishing market share in the
auto industry.
• Toyota Motor Company- Birthplace of the JIT
Philosophy Under Taiichi Ohno.
• JIT is now on the rise in American Industries.

6. • JIT originated in Japan at Toyota Motor Co, fueled
by a need to survive the devastation post WWII
• JIT gained worldwide prominence in the 1970s
• Often termed “Lean Production” or “Lean
Systems”
• Broad view that entire organization has the same
goal - to serve customers
6

7. • JIT is built on simplicity - simpler is better.
• Continuous improvement
• Visibility – all waste must be visible to be identified
and eliminated
• Flexibility - to adapt to changes in environment
7

9. • Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management

10. Traditional Flow
Production Process
(stream of water)
Suppliers
Flow with JIT
Suppliers
Customers
Inventory (stagnant
ponds)
Material
(water in
stream)
Customers

11. • Total Quality Management
• Pro d uc tio n M na g e m e nt
a
• Supplier Management
• Inventory Management
• Human Resource Management

12. • Communication Techniques
• Completion of task-Kanban
• Problem- Andon or siren/light
• Stopping the process if something goes wrong =Jidoka
• Preventive Maintenance

14. Wa s te (“muda” in Japanese) is
‘anything other than the m inim um
amount of equipment, materials,
parts, space, and worker’s time,
which are absolutely essential to
a d d va lue to the product.’
— Shoichiro Toyoda
Founder, Toyota
© 1995 Corel Corp.

15. • Single card
• Move only containers
with C (Conveyance)kanban)
• e.g.: Kawasaki
• Dual card
• Move only container
with C- kanban
• Produce only when
authorized by P
(Production)- kanban
• e.g.: Toyota

16. • Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management

17. Toyota communicates their
demand for parts 20 days in
advance to their suppliers, with
the right to change the forecast up
to the 10th day.

18. • Total Quality Management
• Production Management
• Supplier Management
• Inventory Management
• Human Resource Management

19. • Inventory = Lead Time (less is better)
• Inventory hides problems
19

20. •W
hen inventory levels are low,
quality problems become very
visible.

21. • Self-Inspection of work
• Diversified Employees
• Absenteeism
• To eliminate boredom in process
• Management Support and Empowerment of
workforce

22.  In 1986 from a labor force of 60,000 Toyota received
2.6 million improvement proposals, 96% of which
were implemented by either management or the
employees themselves.

23. • Worker resistance
• Lack of top management support
• Lack of communication
• Lack of formal training

24. • What phrase best describes the Just-In-Time
philosophy?
Continuous Improvement

25. There are so many companies that are using JIT
planning. Any car, motorbike or aircraft
manufacture uses JIT. This means that the
examples are countless. For example,
• Toyota
• Dell
• Harley Davidson
•W
almart
• McDonalds
• Xerox

26. • Dell has also leveraged
JIT principles to make its
manufacturing process a
success.
• Dell’s approach to JIT is
different in that they
leverage their suppliers to
achieve the JIT goal.

27. • Dependable suppliers with the ability
to meet Dell’s demanding lead time
requirements.
• A seamless system that allows Dell to
transmit its component requirements
so that they will arrive at Dell in time to
fulfill its lead times.
• A willingness of suppliers to keep
inventory on hand allowing Dell to be
free of this responsibility.

28. • Harley Davidson’s use
of JIT is mostly
characterized by its
transformation in the
late World War 2 era
from an inefficient
manufacturer that
solved all of its
problems with extra
inventory to a nimble
manufacturer able to
meet demand and

29. • Inventory levels decreased 75 percent.
• Increased productivity.
Harley Davidson’s success with the
implementation of JIT had a lot to do with
the fact that when JIT was put into practice,
process problems could no longer be
hidden by costly inventory that helped to
meet ship dates. The inefficiencies in the
processes were quickly identified and
solved.

31. The main BENEFITS of JIT are the following:
Funds that were tied up in inventories can be used
elsewhere.
Areas previously used to store inventories can be
used for other more productive uses.
Throughput time is reduced, resulting in greater
potential output and quicker response to customers.
Defect rates are reduced, resulting in less waste
and greater customer satisfaction.
 A real business example: Dell Computer Corporation

32. DISADVANTAGES of JIT:
Implementing thorough JIT procedures can
involve a major overhaul of business systems -it
may be difficult and expensive to introduce.
JIT manufacturing also opens businesses to a
number of risks, notably those associated with the
supply chain. With no stocks to fall back on, a
minor disruption in supplies to the business from
just one supplier could force production to cease at
very short notice.
A real business example: Toyota

33. W have been the experiences of
hat
JIT implementers so far?
22 companies had underrtaken JIT efforts at the time
of the study. W
hile 13 of them reported some efforts
such as experimental and ad hoc modification of
systems, 9 reported major JIT efforts in place.
 Most of the firms with some JIT efforts reported
starting their efforts only recently. Those with major
JIT pro-grammes had started their efforts as early as in
1986.
Firms with major JIT programmes indicated an
implementation lead time of more than three years.
Supplier development, Employee involvement, and Top
Management commitment were prominently listed as
critical success factors.

34. Training, task force formation, re-layout, and pilot study
were indicated as among the first five steps taken in JIT
implementation.
Three most important reasons for embarking upon a
JIT implementation programme were gaining
competitive advantage in the market place, simplifying
production planning & control, and curbing rising
inventory levels.
Proximity of suppliers, stable production plan, or high
volume repetitive manufacturing were never mentioned
among the main reasons for JIT implementation.
 Firms reporting major JIT efforts have done so after
carefully evaluating this strategic nature. On the
contrary, firms reporting some ad hoc modification and
experimental efforts did not do any strategic planning
exercise. JIT efforts were initiated by middle
management because the top management asked them
to do so.

35. JIT- A philosophy of c o ntinuo us
im p ro ve m e nt that puts emphasis
on prevention rather than
correction, and demands a
company wide focus on quality.