Just-in-time (JIT) manufacturing originated in post-WWII Japan to minimize waste. Toyota pioneered JIT techniques like kanban pull systems and continuous improvement. JIT aims to produce the right item in the right quantity at the right time by eliminating waste like overproduction and inventory. It reduces lead times and costs by using small lot sizes, level schedules, and addressing sources of variability. JIT has expanded beyond manufacturing to services by applying techniques like tight supplier partnerships, optimized layouts, and flexible scheduling to customer demand.

2. Presented By:-
Muhammad Shahroze Ilyas
Daniyal Mujahid
Mubeen Abdul Shakoor
Shahid Mushtaq
Aneeqa Ashraf

3.  A corporate system designed to produce output
within the minimum lead time and at the lowest total
cost by continuously identifying and eliminating all
forms of corporate waste and variance.

4.  JIT originated in Japan, post WWII
 Driven by a need survive after the devastation
caused by the war
 JIT gained worldwide prominence in the 1970s
 Toyota Motor Co. developed JIT

5.  Largest vehicle manufacturer
 Techniques of JIT, TPS and Lean Operation
 Introduced by Taiichi Ohno

6.  JIT - continuous and forced problem solving via a
focus on throughput and reduced inventory
 TPS -continuous improvement, respect for people,
and standard work practices
 Lean operations - supplies the customer with exact
wants when the customer wants it without waste

7. • Waste is anything that does not add
value from the customer point of view
• Storage, inspection, delay, waiting in
queues, and defective products do
not add value and are 100% waste

8. The most dangerous
kind of waste is the
waste we do not
recognize

9. • Overproduction
• Queues
• Transportation
• Inventory
• Motion
• Over processing
• Defective products

10.  Layout (distance)
 Long setup time
 Incapable processes
 Poor maintenance
 Poor work methods
 Lack of training
• Inconsistent
performance measures
• Ineffective production
planning
• Lack of workplace
organization
• Poor supply
quality/reliability

11. • Efficient, sustainable production
minimizes inputs, reduces waste
• Traditional “housekeeping” has been
expanded to the 5 Ss

12.  Sort/segregate – when in doubt, throw it out
 Simplify/straighten – methods analysis tools
 Shine/sweep – clean daily
 Standardize – remove variations from processes
 Sustain/self-discipline – review work and recognize
progress

13.  Safety- build in good practices
 Support Maintenance- reduce variability and
unplanned downtime

16. • JIT partnerships exist when a supplier
and purchaser work together to
remove waste and drive down costs
• Four goals of JIT partnerships are:
• Removal of unnecessary activities
• Removal of in-plant inventory
• Removal of in-transit inventory
• Improved quality and reliability

18. • Diversification – ties to only one customer
increases risk
• Scheduling – don’t believe customers can
create a smooth schedule
• Changes – short lead times mean engineering
or specification changes can create problems
• Quality – limited by capital budgets,
processes, or technology
• Lot sizes – small lot sizes may transfer costs
to suppliers

19. Just in time inventory is the minimum
inventory necessary to keep a perfect system
running.
Exact time of goods arrives at the moment it
is needed.

21. •JIT Inventory Tactics
•Four tactics
• Reduce
Inventor
y
• Reduce
Lot Size
•Reduce
Variability
• Reduce
Setup
Costs
4 1
23

22.  variability is any deviation from the optimum process
that delivers perfect product on time, every time.
 JIT systems require managers to reduce variability
caused by both internal and external factors.
 Inventory hides variability.
 Less variability results in less waste.

23. 1. Incomplete or inaccurate drawings or
specifications
2. Poor production processes resulting in
incorrect quantities, late, or non-
conforming units
3. Unknown customer demands

24. •Inventory hides variability &
problems
•Analogy with the lake full of
rocks
Inventory level
Process
downtim
e
Scrap
Setup
time
Late deliveries
Quality
problem
s
Water:
Inventory
Flow
Rocks:
Problems

25. •Uncovering of the “rocks”
•Reveals problems,
variability
•Management clears the
lake
Inventory
level
Process
downtimeScrap
Setup
time
Late deliveries
Quality
problems Problems
revealed

26. No
problems
No
inventory
Inventory
level
Process
downtime
removed
No scrap
Setup
time
reduced
Late
deliveries
Quality
problems
removed

27. •Key to JIT:
“Good product in small lot
sizes”
•Reduces Inventory Costs
Lowering the order size Increases the Order size Decreases
Inventory

28. •Improve Material Handling
•Reduce Setup time

29. D = Annual demand = 400,000 units
d = Daily demand = 400,000/250 = 1,600 per day
p = Daily production rate = 4,000 units
Q = EOQ desired = 400
H = Holding cost = $20 per unit
S = Setup cost (to be determined)
Q =
2DS
H(1 - d/p)
Q2 =
2DS
H(1 - d/p)
S = = = $2.40
(Q2)(H)(1 - d/p)
2D
(3,200,000)(0.6)
800,000
Setup time = $2.40/($30/hour) = 0.08 hr = 4.8 minutes

30. • High setup costs encourage large lot
sizes
Ultimate Solution: Reducing setup costs
Reduces lot size &
average inventory
Reduces
Optimum order
size

31.  Better Scheduling
Organizatio
n
• Supports JIT1
• Improves ability to meet customer orders2
• Drives down inventory3
• Allows smaller lot sizes4
• Reduces work-in-process5

32. Ford communicates its
schedules to bumper
Polycon Industries
Schedule describes:
Style and color of
the bumper for
each vehicle
It transmits the
information to
Polycon Warehouse
personnel
PW Personnel load the
bumpers onto conveyors
leading to the loading
dock
Bumpers are then
trucked to ford plant

33. Level
Schedules
Kanban

34.  Technique processes frequent small batches
 Many “always changing” small lots
A B CA AAB B B B B C
JIT Level Material-Use Approach
A CA AA B B B B B C CB B B BA A
Large-Lot Approach
Time

35.  “Kanban”-Japanese word for “card”
 Technique that uses “pull” system
 Match or nearly match the processing time
 Card=an authorization for the next container of
material to be produced
• Empty containers
• Lights
• Flag or rag
• Colored golf balls
Signaling
devices to
control the
flow of
material

36. Work
cell
Raw
Material
Supplier
Kanban
Purchased
Parts
Supplier
Sub-
assembly
Ship
Kanban
Kanban
Kanban
Kanban
Finished
goods
Customer
order
Final
assembly
Kanban

37.  1st – Set the size of each container
 Need to know the lead time needed to produce a
container of parts
 Need to know the amount of Safety Stock needed
 2nd – Calculate no of Kanbans

38.  Daily Demand =500 cakes
 Production Lead Time =2 days
 Safety Stock =0.5 days
 Container size =250 cakes
 Now, Demand during lead time =2 days x 500 cakes =
1,000

39. JIT cuts the cost of
obtaining good
quality
JIT improves
quality
Better quality
means fewer
buffers=Easier-
to use JIT
system
•Strong Relationship between JIT
& Quality

40. Use statistical process control
Empower employees
Build fail-safe methods (poka-
yoke, checklists, etc.)
Expose poor quality with small
lot JIT
Provide immediate feedback
Table 16.4

41. The JIT techniques used in
manufacturing are used in services
• Suppliers
• Layouts
• Inventory
• Scheduling

42.  High holding costs are the nature of the fast food
industries
 Wastage
 Time

43.  JIT system wherein McDonald's doesn't begin to
cook its orders until a customer has placed a specific
order.

44.  sophisticated burger-making technology
(including a record-breaking bun toaster)
 McDonald's is able to make food fast enough to wait
until it's been ordered.
 Reduction in wastage

45. Improved Quality – The burgers are prepared freshly
and hence the quality has improved.
Customer service – As the burger is made only after
the order is placed, making special orders is not an
issue.
Cost Reduction – Due to significant reduction in
wastage as uncooked material has a higher shelf life.
Reduction in waiting – Customer’s waiting time
reduce 11 min. to just 1 and half min

46. • Continuous improvement
• Build an organizational culture and value system
that stresses improvement of all processes
• Part of everyone’s job
• Respect for people
• People are treated as
knowledge workers
• Engage mental and
physical capabilities
• Empower employees

47. • Standard work practice
• Work shall be completely specified as to
content, sequence, timing, and outcome
• Internal and external customer-supplier
connection are direct
• Product and service flows must be simple
and direct
• Any improvement must be made in
accordance with the scientific method at the
lowest possible level of the organization
Toyota Production System

48. • Different from JIT in that it is externally
focused on the customer
• Starts with understanding what the
customer wants
• Optimize the entire process from the
customer’s perspective

49. • Transitioning to a lean system can be
difficult
• Lean systems tend to have the
following attributes
• Use JIT techniques
• Build systems that help employees
produce perfect parts
• Reduce space requirements

50. • Develop partnerships with suppliers
• Educate suppliers
• Eliminate all but value-added
activities
• Develop employees
• Make jobs challenging
• Build worker flexibility

51.  Lean operations apply to other services just as they do
in other sectors.
 Suppliers:
every restaurant deals with its supplier on JIT basis.
Those do not are usually unsuccessful. The waste is too
evident– food spoils and customers complain or get sick.
 Layouts:
Lean layouts are required in restaurant kitchen, where
cold food must be serve cold and hot food hot.

52.  Scheduling:
At air-line ticket counters, the focus of the customers is
on adjusting to customer demand. Through elaborate
scheduling, ticket counter personnel show up just in
time to cover peaks in customer demand.
At McDonald’s , scheduling of personnel is down to 15
minute increments, based on precise forecasting
demand.

53.  To deliver goods and services to customers under
continuously changing demand, suppliers need to
reliable, inventories lean, cycle times short, and
schedules nimble. A lean focus engages and empowers
employees to create and deliver the customers
perception of value, eliminating whatever does not
contribute to this goal. Lean operations are currently
being developed with great success in many firms,
regardless of their products. Lean techniques are
widely used in both goods-producing and service
producing firms; they just look different.