Operation Management

1. Career Point University
Kota (Raj.)
Operation Management
Project on “JIT” Analysis
Submitted to:
CMA Jai Bansal Sir
Astt. Lecturer (MGMT
DEPT.)
Submitted By:
Ashim Roy (K-13226)
Shalu Bharadwaj (K-13995)
Manoj Verma (K-14041)
Nitesh Agrawal (K-13364)
Sonam Sharma (K-13645)
Swati Sahu (K-14075)

2. INDEX
• Abstract
• Introduction
• Theory of JIT
• How to use just-in-time inventory management
• Advantages/disadvantages
• Case study
• Benefits
• Limitations
• Conclusion

3. ABSTRACT
 It identifies the hidden problems in the value chain and reduces the
production waste of the system.
 It requires lot of coordination with supply chain to avoid delays in the
production schedule.
 Beginning in early 1980’s, a number of US firms followed the pioneering
efforts of Shigeo Shingo and Taichi Ohno and adopted JIT manufacturing
in an attempt to reshape their manufacturing environments.
 Quality improvement and costs control are vital to organizations for work
performance enhancement and fulfilling customers’ requirement.
 One effective solution is using JIT concept as a method to reduce costs,
improve quality and meet the ever-changing customer needs.

4. INTRODUCTION
 JIT manufacturing is a Japanese management philosophy applied in
manufacturing which involves having the right item of the right quality and
quantity in the right place and the right time.
 It will increased in quality, productivity and efficiency, improved
communication and decreases in costs and wastes.
 JIT in time concept was initiated in Japan making the Toyota as its mater piece.
 JIT environment material are purchased and produced as and when it is
needed.
 It is based on the phrase provide the goods JIT as promised when the order is
placed by the customer.

5. THEORY OF JIT
 This method requires producers to forecast demand accurately.
 They are trained along with managers in preparation and
interpretation of process control charge.
 Managers motivate the workers to think quality first and production
rate second.
 JIT production system demands to by parts in small lots.
 The parts those are purchased steadily in small lot sizes with
frequent deliveries contribute to higher quality and productivity
through lower levels of inventory and scrap, lower inspection cost
for incoming parts, early detection of defects.

6.  A challenging economy often forces small business owners to
look for new and innovative business.
 In JIT, inventory is ordered and received just as it is needed,
rather than days (or weeks) in advance.
 it was first used by the Ford Motor Company in the early 20th
century.
How to Use Just-In-Time Inventory
Management

7. ADVANTAGES
 It spend less money on raw material because they buy just enough to
make the products.
 This systems creates saving of space.
 It does not required maintaining large inventory storage facilities.
 It minimizes wastage.
 It helps to improve the labour efficiency.

8. It involve disruptions in the supply chain.
If cannot deliver the goods on time, one supplier can
shut down the entire production process.
DISADVANTAGES

9. CASE STUDY
Harley Davidson:
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
provide short lead times.

10. Results of Harley Davidson’s JIT Implementation:
• 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.

11. Benefits
 JIT practice reduces inventory levels, which means lower investments in
inventories.
 It substantially reduces the overall inventory level.
 Reduced lead time and increased reliability also contribute to a significant
reduction in the safety-stock requirements.
 The smaller lot-size production made possible by reduced setup time also adds
flexibility.
 Reduction in scarp and rework.
 Decline in paperwork.
 Reduction in direct material costs through quantity purchases.

12. LIMITATIONS
 The magnitude of their impact may be difficult to measure because
of their nature.
 Safety stocks can act as a buffer for companies to fall back on to
offset inaccurate demand forecasts.
 Loss of individual autonomy has been suggested as another possible
short-coming of JIT. Loss of autonomy has largely been attributed to
limited cycle times or the ‘time between recurring activities’.
 Loss of autonomy over methods involves the idea that, under JIT,
employees must adhere to strict methods of production in order to
maintain the system.

13. Conclusions
 Just-In-Time is a manufacturing philosophy which leads to producing the
required items.
 It is an approach to achieving excellence in elimination of waste.
 Managers have the choice between putting a huge effort in finding and
solving causes of production problems.
 Quality within JIT manufacturing is necessary, because without a quality
program in JIT, the JIT will fail.
 JIT integration can be found in four points of the manufacturing firm. The
Accounting side, Engineering side, Customer side and Supplier side.
 Just-In-Time has its influence in ordering, scheduling and producing sides of
a manufacturing firm.

14. Thank You