Just in Time (or the JIT) is an inventory management system that aims to create production super-efficient.

1. Just-in-Time
and
Lean Operations

2. What Is Just-in-Time (JIT)?
• The just-in-time (JIT) inventory system is a management strategy that
aligns raw-material orders from suppliers directly with production
schedules.
• Companies employ this inventory strategy to increase efficiency and
decrease waste by receiving goods only as they need them for the
production process, which reduces inventory costs.
• This method requires producers to forecast demand accurately.
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3. How Does Just-in-Time Inventory Work?
• The just-in-time (JIT) inventory system minimizes inventory and
increases efficiency.
• JIT production systems cut inventory costs because manufacturers
receive materials and parts as needed for production and do not have to
pay storage costs.
• Manufacturers are also not left with unwanted inventory if an order is
canceled or not fulfilled.
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4. Developments of JIT and Lean Operations
• 1960’s: Developed as Toyota Production System by Taiichi Ohno and his
colleagues
• 1970’s: U.S. and European auto makers began to apply JIT to improve
quality and productivity
• 1990’s and beyond: Expanded the JIT concept to streamline all types of
operations
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5. Definition of JIT
• A set of techniques to increase productivity, improve quality, and reduce
cost of an operations
• A management philosophy to promote Elimination Of Waste and
Continuous Improvement of productivity
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6. Expected Benefits of JIT
Reduction in throughput times
Reduction in WIP
Improvement in quality
Improvement in productivity
Reduction in resource requirements
Improvement in customer satisfaction
Improvements in return on assets
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7. Main Elements of JIT
Elimination of waste
Quality at the source
Balanced and flexible work flow
Respect for people
Continuous improvement (Kaizen)
Simplification and visual control
Focus on customer needs
Partnerships with key suppliers
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8. Wastes
• Anything that exceeds the minimum resources needed for the
appropriate value
• Toyota’s seven deadly wastes:
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Overproduction Inventory Waiting
Transportation Processing Motion
Defective parts

9. Importance of Inventory Reduction
• Inventory costs money - carrying costs, obsolescence costs, and
opportunity costs
• Inventory covers up problems and bottlenecks.
• Inventory reduction forces organization and employees to eliminate
sources of problems and work as a team.
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10. Quality at the Source
• Jidoka – autonomation (automatic detection of defects, e.g., Poka-yoke)
• Employee empowerment
• Statistical process control
• Prevention orientation (elimination of root causes through PDSA cycle)
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11. Balanced and Flexible Work Flow
Yo-i-don
(ready, set,
go) system
Stable
production
schedule
Set-up time
reduction
Flow-shop
and cellular
layouts
Shojinka
(flexible &
multi-skilled
workforce)
Teamwork
Total
productive
maintenance
(TPM)
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12. Respect for People
Productivity improvement needs employee support
Demonstrate by
• Providing cross-training opportunities
• Creating a safe and equitable work environment
• Encouraging people to achieve their potential by giving them
greater responsibility and authority
• Promoting teamwork (formal and informal)
• Developing partnerships with unions
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13. Continuous Improvement (Kaizen)
• Employee suggestion system
• Process improvement
• 5S’s
• Seiri - organization
• Seiton - tidiness
• Seiso - purity
• Seiketsu - cleanliness
• Shitsuke - discipline
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14. Simplification and Visual Control
Standard and
simple product
designs
Andon boards
Kanban pull
system
Flag systems
Music as
signals
Performance
display systems
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15. Focus on Customer Needs
• Customer needs determine the “value” of a product or service
• Be responsive to customers needs (present and future)
• Strive to “delight,” not just “satisfy” customers
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16. Partnerships with Suppliers
Reduce number of suppliers
Use long-term contracts
Emphasize price, delivery, and
services
Improve communication
Share information
Develop local just-in-time delivery
Provide technical support to
suppliers
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17. 06-10-2021 Just-in-Time 17

18. JIT Implementation
Top
management
commitment
Steering
committee
Education
program
Pilot project
planning
Employee
training
Pilot
implementation
Pilot post
mortem
Feedback to
steering
committee
Expansion to
next project
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19. Are You Ready for JIT?
• If you are planning to implement JIT in your organization, you will have to
make thorough preparations.
• However, even before those preparations, you will have to make sure that if
your company is prepared to implement JIT.
• The products that you offer, can you produce them in a short period of time?
• Do you have suppliers who are reliable to deliver the raw materials as per the
schedule?
• Can you correctly forecast the demand and know about seasonal fluctuations that your
business faces?
• Is the current inventory management method inefficient?
• Will you be able to increase profits by using JIT?
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20. Advancements in JIT (JIT II)
• Backwards Integration of staff and line functions to suppliers (e.g.,
purchasing)
• Requires EDI or web access to materials and logistics systems
• On-site supplier representative(s) with transaction processing authority
• Goal: link suppliers’ cycle to firm’s cycle to mutually reduce wait and
move times
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21. JIT for Non-Manufacturing Operations (Lean Operations)
Implement demand-pull operations
Eliminate unnecessary activities
Standardize process flows
Increase process flexibility
Reorganize physical layouts
Upgrade housekeeping and workplace organization
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22. JIT for Non-Manufacturing Operations (Lean Operations)
• Develop supplier partnership networks
• Level work load
• Organize problem-solving groups
• Improve quality
• Develop effective suggestion systems
• Cross-train employees
• Promote teamwork
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23. Toyota’s Secrets of Success(Steve Spear, HBR,
May 2004)
• There is no substitute for direct observation
• Proposed changes should always be structured as experiments
• Workers and managers should experiment as frequently as possible
• Managers should coach, not fix
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24. Suggested Readings
• Monden, Yasuhiro (1993). Toyota Production System: An Integrated
Approach to Just-In-Time, 3rd edition, Institute of Industrial Engineers.
• Womack, James P. and Jones, Daniel T. (2003). Lean Thinking: Banish
Waste and Create Wealth in Your Corporation, The Free Press.
• Jeffrey K. Liker (2004). The Toyota Way: 14 Management Principles
from the World’s Greatest Manufacturer, McGraw-Hill.
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25. B.Varun
9787608011
bvarun.me@gmail.com
varun.me@srit.org
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