The document discusses the spread of Just-in-Time (JIT) manufacturing. It began at Toyota in Japan and spread among Japanese companies in the 1970s as a response to an economic recession. By the mid-1970s, many Japanese companies had adopted JIT principles which helped Japanese manufacturers become highly successful. In the early 1980s, Western companies began taking notice of the Japanese manufacturing excellence enabled by JIT. The New Production System Research Association (NPSRA) in Japan was formed with an initial goal of surpassing Toyota's profits and sales through long-term commitment to new production systems based on JIT principles. Over 300 Japanese companies now comprise NPSRA to further advance JIT manufacturing.

1. Rashmi Srinivas
Assistant Professor
Dept of Industrial Engineering & Management
JSS Academy of Technical Education
UNIT: 1
SPREAD OF JIT MOVEMENT

2. SPREAD OF JIT MOVEMENT
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 The basic idea of JIT was originally developed and
brought to a high level of sophistication by the
Toyota Motor Company in Japan.
 Toyota Production System(TPS) is the JIT system
originally pioneered by Toyota.
 The system has played a vital role in the
development of JIT all over the world, both in as well
as outside Japan.
 Toyota system is probably the most idealized form
of JIT

3. SPREAD OF JIT MOVEMENT
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 In the early seventies the approach began to
attract wide attention in Japan ,as a possible
means of coming out of the deep recession
caused by the world oil crisis.
 By mid seventies, many Japanese companies had
adopted the approach, JIT philosophy coupled
with other measures which included flexible
autonomation, company wide quality control,
massive investments in Research and
developments enabled Japanese companies to
become highly successful.
 The automobile manufacturers were amongst
the first to implement JIT.

4. SPREAD OF JIT MOVEMENT
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 The early eighties saw the JIT movement attract
significant attention in the West-specially in the
United states.
 American scholars identified ‘Japanese
Manufacturing Excellence’ as an important
reason for the superiority of Japanese products.

5. Summary results of JIT applications in
Japan
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Company : Cannon
Product category(PC) : Cameras, office equipment,
etc.
Productivity improvement(PI) : (indexed) 100 to 250
Waste elimination : $15
million in 1976
: $98
million in 1982
Set up time reduction(STR) : Accessory parts operations 4
min to 15 sec
Inventory reduction(IR) : (indexed)100 in 1976 to 50 in
1982
Quality improvement(QI) : 45% reduction of defects in 3

6. Summary results of JIT applications in
Japan
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Company : Hitachi
Product category(PC) : Home appliances,
integrated circuits,
computers etc
Productivity improvement(PI) : (indexed) 100 to 178
Set up time reduction(STR) : Sheet metal line : 160
to 5 min
Machining Centre : 245
to 9 min
250 Ton die cast : 75
to 3 min
Inventory reduction(IR) : (indexed)100 in 1977 to
60 in 1981

7. Summary results of JIT applications in United
States
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Company : Apple computers
Product category(PC) : Microcomputers
Productivity improvement(PI) : i) Inspection labour from 25
to 9
ii)Assembly labour from
22 to 4
Set up time reduction(STR) : Estimate of 30%
Inventory reduction(IR) : Estimate of 90% in WIP
and raw material
compared to other factories
Quality improvement(QI) : scrap and rework reduced
by 10%
incoming material quality
up by 20%
Space savings (SS) : No need for warehouse,
material delivered to point of

8.  NPSRA stands for New Production System Research
Association.
 Firms that comprise of NPSRA have a long term
commitment to new type of production system.
 The ultimate goal of NPSRA is to surpass the
manufacturing giants of Japn such as TOYOTA by the
turn of century both in profits and sales.
Spread of JIT by
NPSRA

9.  NPSRA drives its philosophy from TPS.
 The initial 5 companies at NPSRA were Oieresu,Kibun,Ogura
Hoseki Seiki Kogyo, Ikiyo, Yoga Seiki sha.
 Currently over 300 companies are a part of NPSRA and also
they follow the policy of having one company per sector.
 Membership fee are of 3 slots from $2000,$3200,$4800.

10.  Many companies have gained dramatic improvement in a
short period of time
 The initial instructors of the NPSRA in1985 were 11 people
from TOYOTA.
 NPSRA is certainly providing the energy required to further
boost JIT movement in Japan.
 A few companies in NPSRA are Yokugawa Electric,
Nippon,etc.