inventory control just in time

1. Operations
Management
By,
Nipin Paulose
MCMAT

2. What is Just in time?
Management system in which materials
or products are produced or acquired
only as demand requires.

3. Emergence of JIT …..
 Evolved in japan after world war 2
 Toyota motor company first to
implement fully
 Japanese manufacturers looked for a
way to gain most efficient use of
limited resources

4. Functioning of JIT …..
 Involves keeping stock level to a
minimum
 Stock arrives just in time to be used in
production
 Works best where there is a good tie up
between the manufacturer and suppliers
 Aims to get highest volumes of output at
lowest unit cost
 No demand no production
 Finished goods assembled just in time to
be sold to customers

5. JIT Manufacturing
Activities….
 Inventory reduction
 Quality improvement
 Vendor control
 Lead time reduction
 Continuous improvement
 Total preventive maintenance
 Strategic gain

6. Elements….
 Eliminating waste
 Enforced problem solving
 Continuous improvement
 Employee empowerment
 Total quality management

8. Advantages …
 Reduction in Stock Holding Cost
 Closer Relationships with Suppliers
 Reduced Deterioration
 Less Space Required for Stock
 Quality and Reliability
 Reduce Lead Time

9. Disadvantages …
 Failure of suppliers to deliver the
materials on time
 Lack of time for checking the
defectives
 Company may not be able to
immediately meet the requirements of
a massive unexpected order
 May not be able to take an advantage
of cheaper sources of supply if they
become available

10. Reducing risk in JIT
principal…
 Have strong relation with several
customers
 Verify the suppliers ability to meet
firm’s requirements
 Forecasting the future aspect
 Training the employees accordingly

11. Thank you