The document discusses Just-in-Time (JIT) manufacturing. It defines JIT as a system that delivers materials or components immediately before they are needed to minimize storage costs. The key elements of JIT are flexible resources, cellular layouts, pull production, kanban control, small lot sizes, quick setups, uniform production, quality at the source, and total preventative maintenance. JIT emerged in Japan after World War II to make more efficient use of limited resources and achieve optimal cost and quality. Companies implementing JIT seek to lower inventory levels, have fewer long-term supplier partnerships, and employ a pull system through the plant. Success factors for JIT include stable environments, commitment to quality and waste reduction,

1. Just in Time
BY :
Gautam Roy
Operation Study Analysis on JIT

2. Session Plan
 Definition
 Comparison of JIT and Traditional
 Emergence and Functioning of JIT
 Objective of JIT
 JIT Cost Curves
 Companies adopted JIT
 Toyota Production System- JIT
 JIT and KAIZEN process work
 Success Factors

3. JIT:
Definition: denoting a manufacturing system in which materials or
components are delivered immediately before they are required in order
to minimize storage costs
Basic Elements of JIT:
1. Flexible resources
2. Cellular layouts
3. Pull Production system
4. Kanban Production control
5. Small-lot production
6. Quick setups.
7. Uniform production
8. Quality at the source
9. Total productive maintenance
10.Supplier Networks

4. What is JIT ?
 Elimination of all wastes
 Pull System through plant
 It is a management Philosophy
What Does JIT do ?
 Attacks Wastes (Time, Inventory, Scrap,
etc)
 Expose Problems and bottlenecks.
 Achieves Streamlined Production
Main Mantras of JIT
 Optimize usage of resources
 Pull-type system
 Lot size reduction
 Zero Defects.
What is Required in JIT ?
 Employee Participation
 Small Lot Size
 Total Quality Control
 Basics of Industrial Engineering.
What is Assumed in JIT ?
 Stable Environment
 Commitment to quality and reduction of
waste
 Involvement at all levels of Organisation.

5. Comparison of JIT and Traditional
Factor Traditional JIT
Inventory Much to offset forecast errors, late
deliveries
Minimal necessary to
operate
Deliveries Few, Large Many, Small
Lot sizes Large Small
Setup & Runs Few, Long runs Many, Short runs
Vendors Long-term relationships are unusual Partners
Workers Necessary to do the work Assets

6. Emergence of JIT
 Evolved in Japan after world war II, as a result of
their diminishing market share in the auto industry.
 Toyota Motor Company- First to implement fully
functioning and successful JIT system, in 1970’s.
 Japanese Manufacturers looked for a way to gain the
most efficient use of limited resources. They worked
on “optimal cost/quality relationship.
Functioning of JIT
 Involves keeping stock levels to a minimum.
 Stock arrives just in time to be used in
production
 Works best where there is a close relationship
between manufacturer and suppliers
 Goods not produced unless firm has an order
from a customer
 Aims to get highest volume of output at the
lowest unit cost.

7. Objective of JIT
BA C D E
Lower inventory
Levels/small lot
sizes
Fewer suppliers
(Keiretsu) with
long-term
guaranteed
contract
Works well in
high-volume
production with
minimal
inventory
Employee
empowerment
A “Pull” system
thru the plant
The Objective is to manage costs so that the savings associated
with jit exceed the cost of implementing JIT
Cost Savings, Inventory
warehouse rent, less warranty
cost
Implementation costs, employee
retraining, technology improvement,
exposure to work stoppage risk.

8. JIT Cost Curves
Traditional Ordering Cost
Carrying Cost
JIT Cost
Annual Cost
Optimal JIT
Order
Optimal Order
Order Quantity

9. Companies adopted JIT

10. How Toyota Production System adopted JIT
TPS is one of the well know successful manufacturing system all over the world. TPS is
developed by Japanese and being adapted in either manufacturing or in management world
since it brings enormous benefits to Toyota. The basic goal and objective of TPS is to reduce
their lead time.
Lean Production System
Standardized Work
JUST-IN TIME
• Level Production
• Pull System
• Continuous flow
processing
• Flexible Work
Force
Jidoka
• Andon-Fixed
position stop
system
• Pokayoke-Fail
Proofing
System
Kaizen (Continuous
improvement)
Fig: TPS House

11. JIT and KAIZEN process work
Forecast
quantity for the
next 3 months
Order
Forecast
Semi-
finished
product
OQ OQ
Finished
Product
Sending
Communication Order Forecast Planning Production Deposit Production Shipping
Customer
Budget/Forecast
5 Weeks
5 Work daysKAIZEN
JIT
Budget/Forecast
monitored quartely
OQ
Semi-
finished
product
OQ
Finished
Product
Sending
5 Work days1 Week 5 Weeks
Customer
Year-Budget/Forecast for
the next 12 months
checked every 3 months
Communication Planning Production Deposit Production Shipping

12. Just-in Time Success Factors
JIT
Suppliers
Layout
Inventory
Quality
Preventive
Maintenance
Scheduling
Employee
Empowerment
Reduced
deterioration

13. Thank You