The document discusses the philosophy and principles of Just-in-Time (JIT) manufacturing. It describes how JIT originated in Japan after WWII to maximize efficient use of limited resources. Toyota was an early adopter of JIT in the 1970s. The key aspects of JIT are eliminating waste and continuous process improvement by producing only what is needed when it is needed with perfect quality and minimal lead times. JIT aims to reduce setup times, inventory levels, and transportation. While reducing costs, it also increases responsiveness and quality but requires strong supplier relationships and commitment to be effective long-term.

2. “A philosophy of manufacturing based on planned
elimination of waste and continuous improvement
of productivity ……”

3. 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.

4. The philosophy of JIT can be traced back to Henry
Ford, but formalized JIT originated in Japan as the
Toyota Production System. W. Edwards Deming’s
lesson of variability reduction was a huge
influence.It is a long term approach to process improvement. It
uses timeliness as a lever to lower costs, improve
quality and responsiveness. However JIT requires
enormous commitment. It took Toyota more than
25years to get right.
The focus of JIT is to improve the system of
production by eliminating all forms of waste.

5. Produce only the products & services that customer
wants.
Produce products only as quickly as possible as
customers want to use them
Produce products with perfect quality
Produce in minimum possible time
Produce products with features only what customer want
Produce with no waste of labour materials equipments
Produce with methods that reinforce the occupational
development of workers

6. Like all other production strategies , Just In Time
systems have their own benefits and drawbacks.
Maintaining sub-normal inventories can be
beneficial or harmful to an organization , depending on how
efficiently it is applied.

7. Reduced Setup time , also known as ‘Changeover’ time.
Funds tied up in inventories can be used elsewhere.
Storage area used up can be utilized.
Throughput Time is reduced resulting in greater output
Production scheduling and work hour consistency is
synchronized with.
Supplies come in regular intervals throughout the
production day
The risk of inventory breaking/expiring is reduced largely

8. Inventory flow becomes simpler and easier to manage
due to smaller lot sizes
Cuts the risk of supply system problems.
JIT operation leaves suppliers and downstream
consumers open to Supply Shocks.
The organization will not be able to cater to large orders
on time.

9.  JIT operation leaves suppliers and downstream
consumers open to Supply Shocks.
 The organization will not be able to cater to large orders
on time.

11. Waste Definition
1. Overproduction Manufacturing an item before it is
needed.
2. Inappropriate Processing Using expensive high precision
equipment when simpler machines
would suffice.
3. Waiting Wasteful time incurred when product is
not being moved or processed.
4. Transportation Excessive movement and material
handling of product between
processes.
5. Motion Unnecessary effort related to the
ergonomics of bending, stretching,
reaching, lifting, and walking.
The Eight Types Of
Waste

12. Contd
6. Inventory Excess inventory hides problems on
the shop floor, consumes space,
increases lead times, and inhibits
communication.
7. Defects Quality defects result in rework and
scrap, and add wasteful costs to the
system in the form of lost capacity,
rescheduling effort, increased
inspection, and loss of customer good
will.
8. Underutilization of Employees Failure of the firm to learn from and
capitalize on its employees’ knowledge
and creativity impedes long term
efforts to eliminate waste.

13. Overproduction
Waiting time
Unnecessary transportation
Processing waste
Inefficient work methods
Product defects

14. Manufacturing in smaller lot sizes reduces excess
inventory.
Reducing inventory levels allows the problems to be
uncovered … thus creating opportunities for
manufacturing process improvement

15. Total quality Management
Production Management
Supplier Management
Inventory Management
Human Resource Management

16. Employee participation
Industrial engineering/basics
Continuing improvement
Total quality control
Small lot sizes

17. Product design
Process design
Personnel/organizational elements
Manufacturing planning and control

18. Toyota; One of the most famous examples of Just in Time
manufacturing simply because it was one of the first to
implement this strategy effectively.
Dell.
Harley Davidson.
McDonald's.
Drop-shippers.

19. Toyota is considered by many to be the poster child
for JIT success. The Toyota production strategy is highlighted by
the fact that raw materials are not brought to the production floor
until an order is received and this product is ready to be built. No
parts are allowed at a node unless they are required for the next
node, or they are part of an assembly for the next node. This
philosophy has allowed Toyota to keep a minimum amount of
inventory which means lower costs. This also means that Toyota
can adapt quickly to changes in demand without having to worry
about disposing of expensive inventory.
Important Factors to Toyota Success:
• Small amounts of raw material inventory must be kept at each
node in production, so that production can take place for any
product. These parts are then replenished when they are
used.
• Accuracy of forecasting is important so the correct amount of
raw materials can be stocked.

21. What used to be the case was McDonald's would
pre-cook a batch of hamburgers and let them sit under heat
lamps. They would keep them for as long as possible and
eventually discard what couldn't be sold. The only way to
get a fresh hamburger under the old system was to make a
special order.
McDonald's now doesn't begin to cook until a
customer has placed a specific order. The major benefits
are better food at a lower cost.
Wastage is reduced along with an improvised taste that
makes you want to scream out I’m Lovin’ It !

22. The JIT inventory system is popular with small
businesses and major corporations because it provides a
more efficient use of working capital and enhances cash
flow. The JIT system can be especially helpful to small
businesses that are just starting out, since it can reduce the
amount of capital required to get the business up and
running and also help to avoid the business tying up money
in unneeded inventory.
In short, the Just-in-Time inventory system focus
is having the right material, at the right time, at the right
place, and in the exact amount without the safety net of
inventory.