This document discusses Just-in-Time (JIT) production systems. JIT aims to receive supplies and manufacture components just in time for the next operation, reducing inventory levels. Key aspects of JIT include selling products before manufacturing them based on customer orders, and planning production starting from the final operation backwards. The document also discusses implementing JIT through a sequence of projects to improve cost, quality, delivery time, flexibility and innovation.

1. Just in time

2. Just in time
Just In Time is an optimal material requirement planning system for a
manufacturing process in which there is little or no manufacturing
material inventory on hand at the manufacturing site and little or no
incoming inspection.

3. Just in time
Leading Japanese companies attribute their success in reducing
waste and speeding production to the implementation of so called
Just In Time ( JIT ) methods of working. It is also known as stockless
production because the aim is to receive supplies and manufacture
components Just in time for next operation. In JIT, the ideal inventory
is one.

4. Just in time
First sell it, then make it : JIT reverses the conventional approach of
first making and then selling. Ideally nothing is produced unless a
customer is identified. In some Japanese factories the cars are
shipped with the customer’s name already attached.
This helps in reducing inventories , warehousing and other
holding costs.

5. Just in time
From finish to start: JIT reverses the conventional approach of planning
production from start to finish. Employees responsible for final operation
receive the production plan first. The organization is forced to get the
production process right before commencing production.

6. FICCI CE
Just-In-Time Production
Systems
Just-in-Time (JIT) is a philosophy of continuous improvement in
which non-value-adding activities (or wastes) are identified and
removed for the purposes of reducing cost, improving quality,
performance, delivery and flexibility and increasing innovativeness.
JIT is not about automation. Typically, JIT eliminates waste by
providing the environment to perfect and simplify the process(es).
After this is done to the furthest extent possible, the opportunities for
applying technology effectively are more obvious.

7. FICCI CE
Implementing JIT
Production Systems
JIT can mean either of two things:
A collection of techniques that is used to improve operations (TQM,
set-up time reduction, multi-skilled employees, team approaches,
simultaneous engineering, etc.);
or,
A new production system that is used to produce goods or services
(evolving from the Toyota Production System developed in the early
1950's, and is know by other terms, such as: stockless production,
zero inventories, lean production, etc.).

8. FICCI CE
Implementing JIT
Production Systems
The American Production and Inventory Control Society's definition of JIT
reflects these two views. They define JIT as:
A philosophy of manufacturing based on planned elimination of all waste
and continuous improvement of productivity. It encompasses the
successful execution of all manufacturing activities required to produce a
final product, from design engineering to delivery and including all stages
of conversion from raw material onward.
The primary elements include having only the required inventory when
needed; to improve quality to zero defects; to reduce lead time by reducing
setup time, queue lengths and lot sizes; to incrementally revise the
operations themselves; and to accomplish these things at minimum cost.

9. FICCI CE
Implementing JIT
Production Systems
Almost all companies in repetitive manufacturing industries are
implementing JIT principles.
Many companies in non-repetitive manufacturing industries and
service industries are also implementing JIT principles. When the
implementation is successful, significant competitive advantages are
realized.
JIT principles can be applied to all parts of an organization - from
order taking, purchasing, operations, distribution to sales, accounting
design, etc. This guideline focuses on the operations part of the
organization, where JIT is traditionally implemented first.

10. FICCI CE
Implementing JIT
Production Systems
Defining Production Systems
Good or services are produced by a production system. A
production system can be divided into six subsystems or areas,
including: human resources policies; organization structure and
controls; sourcing; production planning and control; process
technology; and facilities. These six subsystems or areas interact to
form a production system, whose outputs are goods or services with
certain levels of cost, quality, performance, delivery, flexibility and
innovativeness. There are only three different production systems:

11. FICCI CE
Implementing JIT
Production Systems
• The craft production system - designed to produce a wide variety of
low volume/high value products. The facility and equipment are general
purpose and very flexible. The craft production system includes job
shop and small batch production.
• The mass production system - designed to produce a very small
number of high volume/low unit value products. The facility and
equipment are specialized and highly automated.
• The Just-In-Time production system - designed to produce many
products in low to medium volumes on a line flow.

12. FICCI CE
Implementing JIT
Production Systems
There are major differences between the production systems.
First, each production system is designed to produce different
numbers of products in different volumes.
Second, each system arranges its equipment in a different
layout. The material flow is different because of that layout.

13. FICCI CE
Implementing JIT Production Systems
Third and most important, each provides different levels of
output viz:
1.cost
2.quality
3.performance
4.delivery
5.flexibility
6.innovativeness output.
The JIT production system can make improvements in all the 6
outputs mentioned above.

14. FICCI CE
Implementing JIT
Production Systems
Implementing a JIT production system consists of completing a
sequence of projects, each of which makes changes to one or more
of the six subsystems that comprise the production system.
The sequence of projects is divided into two parts, those being the
preliminary and main projects.
The preliminary projects have two goals, to achieve early, visible
successes, and to prepare a foundation for the more difficult projects
to follow. The main projects are further divided into three phases.

15. FICCI CE
Implementing JIT
Production Systems
It is important to track the progress of each project, and so at the
start of each project, performance measures, such as quality
attributes, repair costs, inventory levels, lot sizes, cycle time,
setup time, etc., are selected.
The measures are then tracked on display boards, so that
everyone can follow each project's progress.
Tracking ensures that the improvement made during a project do
no go unnoticed. It also helps to build enthusiasm and
momentum, and helps to keep each project on course.

16. FICCI CE
Becoming a Time-Based
Competitor
Broadly speaking, an organization competes on the basis of quality,
cost, flexibility and time. These factors are complementary, even
symbiotic. Today's discriminating customer demands world-class
quality at a competitive price. When all the leading companies in an
industry have achieved a high level of quality, a focus on quality
alone cannot keep a company competitive.

17. FICCI CE
Becoming a Time-
Based Competitor
Quality then becomes a common expected factor, which must be
complemented by a faster response time and flexibility.
Increasingly, cost and quality are viewed as residuals or outcomes
of competing on the basis of time and flexibility.

18. FICCI CE
JIT and Time-
Based Competition
In business, time is not infinite and limitless. Competing on the
basis of time is defined to include the following:
 using time as a strategic weapon
 identifying market opportunities
 responding to those opportunities before competitors do and
 eliminating non-value-added activities.

19. FICCI CE
JIT and Time-Based
Competition
Time-compressed competitors measure the cycle time and lead
time of all-important activities. Cycle time is their staple
measurement. Cycle time in this guideline is defined as the
duration from the initial expression of a customer's need to the
point when that need is satisfied. This cycle encompasses the
entire value-added chain of a company's product or service
delivery process.

20. FICCI CE
JIT and Time-Based
Competition
The overall delivery chain is composed of several key work
processes, which in this context are not functional departments,
but are the logical outputs performed by groups of people from
different functions. Some work processes and costs add value
for customers, while others do not. For example, adding cost in
the form of better raw materials or hand finishing a portion of the
product adds value. But many overhead items, such as factory
rework or the cost of idle assets, add cost but no value.

21. FICCI CE
JIT and Time-Based
Competition
Fast-cycle capability contributes to better performance across the
board.
Costs drop because production materials and overhead do not
accumulate as work-in-process inventory.
Customer service improves because the lead-time from receipt of
order to shipment diminishes.
Quality is higher because the production cycle overall cannot
speed up unless everything is done right the first time.

22. FICCI CE
JIT and Time-Based
Competition
Time advantage is also an organizational capability - a level of
performance that management shapes and builds into the company.
The basic idea is to build on organizational operating systems that
perform without the bottlenecks, delays, errors and inventories most
companies live with.
The faster that information, decisions and materials can flow through
a large organization, the faster the conditions.

23. FICCI CE
JIT and Time-Based
Competition
In summary, time-advantaged companies enjoy one or more of the
following benefits, relative to their peers: increased productivity;
pricing flexibility; reduced risks; reduced costs and increased
response capability.

24. FICCI CE