Just in time (JIT) is a production strategy that strives to improve a business' return on investment by reducing in-process inventory and associated carrying costs. Just in time is a type of operations management approach which originated in Japan in the 1950s. It was adopted by Toyota and other Japanese manufacturing firms, with excellent results: Toyota and other companies that adopted the approach ended up raising productivity (through the elimination of waste) significantly.

1. A PRESENTATION ON
JIT(JUST-IN-TIME)
By: Ankit saxena

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

3. Bottlenecks in
implementing
JIT in an
Industry
JIT improvement won`t do any good.
Its sounds like a good thing but we still don’t want to do it
Look good on paper but…..
Costs are already as low as that can possibly get
But we already been doing things that way
We can`t lower costs any more without lowering quality
Everything is going just fine now ,Why change it?
That`s a lousy idea! We already tried that 20 years ago
Look we understand this stuff better than anybody(so don’t tell us
what to do)

4.  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.
History
of JIT

5. 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.
The focus of JIT is to improve the system of production
by eliminating all forms of waste.

6. • ZERO INVENTORY
• ZERO LEAD TIME
• ZERO FAILURE
JIT
(JUST-IN-TIME)

7. Eliminates waste .
Achieves streamlined production .
Eliminate disruptions in production … caused by poor quality,
schedule changes, late deliveries.
 Makes the manufacturing delivery system flexible by allowing it to
handle a variety of products and changes in the level of output.
Reduces setup and delivery times .

8. 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.
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.

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

10. Strategies For Minimizing Waste By Using
JIT
Manufacturing in smaller lot sizes reduces excess inventory
Reducing inventory levels allows the problems to be uncovered …
thus creating opportunities for manufacturing process improvement

12. Principles Of JIT Manufacturing
Total quality Management
Production Management
Supplier Management
Inventory Management
Human Resource
Management

13. JIT Manufacturing Building Blocks
Product design
Process design
Personnel/organizational
elements
Manufacturing
planning and control

14. 1. Product Design
Standard parts
Design Simplification
Highly capable production systems
Concurrent engineering

15. 2. Process Design
Small lot sizes
Setup time reduction
Limited work in process
Quality improvement
Production flexibility
Little inventory storage

16. Benefits of Small Lot Sizes
Reduced Inventory
Less Rework
Less Storage Space
Problems are more apparent
Increase Product Flexibility
Easier to balance operation

17. 3. Personnel/Organizational Elements
Workers as assets
Cross-trained workers
Continuous improvement
Leadership

18. 4. Manufacturing Planning and Control
Pull systems
Visual systems (kanban)
Close vendor relationships
Reduced transaction processing (delays in
delivery)
Preventive maintenance

19. Evaluation and selection of vendor (suppliers) network
to develop a tiered supplier network – reducing the
number of primary suppliers
Traditional supplier Network
Tiered Supplier Network
Buyer
Supplier
Supplier Supplier
Supplier
Supplier supplier
Buyer
supplier supplier supplier supplier

22. In McDonald’s

23. In McDonald’s
High holding costs are the nature of the fast
food industries.
 Wastage.
 Time.

24. In McDonald’s
JIT system wherein McDonald's doesn't begin to cook
its orders until a customer has placed a specific order.

25. Implementation of JIT
Sophisticated burger-making technology (including a
record-breaking bun toaster)
McDonald's is able to make food fast enough to wait until
it's been ordered.
Reduction in wastage.

26. Implementing in JIT
Production Systems
Criteria for success
Service
Quality
People
Food preparation
Profitability
.

27. Supply Chain Integration

28. Benefits
 Improved Quality – The burgers are prepared freshly and
hence the quality has improved.
 Customer service – As the burger is made only after the
order is placed, making special orders is not an issue.
 Cost Reduction – Due to significant reduction in wastage
as uncooked material has a higher shelf life.
 Reduction in waiting – Customer’s waiting time reduce 11
min. to just 1 and half min.

29. Companies adopted JIT

30. TOYOTA PRODUCTION SYSTEM

31. Minimizing Waste:
Focused Factory
Networks
Coordination
System Integration
These are small specialized plants that
limit the range of products produced
(sometimes only one type of product
for an entire facility)
Some plants in
Japan have as few
as 30 and as many
as 1000 employees

32. Minimizing Waste: Group Technology (Part 1)
Note how the flow lines are going back and forth
Using Departmental Specialization for plant layout can cause a lot of
unnecessary material movement
Saw Saw
Grinder
Grinder
Lathe Press Press
Saw
Lathe Lathe
Press
Heat Treat

33. Minimizing Waste:
Group Technology (Part 2)
Revising by using Group Technology Cells can reduce movement and
improve product flow .
Press
Grinder
Saw Lathe Lathe
Grinder
Lathe
Heat Treat
A
2
Saw B
Lathe Press
1

34. Minimizing Waste: Just-In-Time Production
WHAT IT IS
 Management philosophy
 “Pull” system though the plant
 Hydraulic Push Systems
WHAT IT REQUIRES
 Employee participation
 Industrial engineering/basics
 Continuing improvement
 Total quality control
 Small lot sizes
WHAT IT DOES
 Attacks waste
 Exposes problems and bottlenecks
 Achieves streamlined production
WHAT IT ASSUMES
 Stable environment

35. Minimizing Waste: Inventory
Hides Problems
Work in
process
queues
(banks)
Change
orders
Vendor
delinquencies
Scrap
Engineering design
redundancies
Design
backlogs
Machine
downtime
Decision
backlogs
Inspection
backlogs
Paperwork
backlog
Example: By identifying
defective items from a
vendor early in the
production process the
downstream work is saved
Example: By identifying
defective work by employees
upstream, the downstream
work is saved

36. Minimizing Waste: Kanban Production Control
Systems
Storage
Part A
Storage
Machine Part A
Center
Assembly
Line
Material Flow
Card (signal) Flow
Withdrawal
kanban
Once the Production kanban is
received, the Machine Center
produces a unit to replace the
one taken by the Assembly Line
people in the first place
This puts the system
back were it was
before the item was
pulled
Production kanban
The process begins by the Assembly Line
people pulling Part A from Storage

37. Determining the Number of Kanban Needed
Setting up a kanban system requires determining the number of kanban
cards (or containers) needed.
Each container represents the minimum production lot size.
An accurate estimate of the lead time required to produce a container is
key to determining how many kanban are required.
Side Bar – In Japan space is a very important consideration since there is so
little of it. This process saves on space requirements.

38. Example of Kanban Card Determination:
Problem Data
A switch assembly is assembled in batches of 4 units from an “upstream”
assembly area and delivered in a special container to a “downstream”
control-panel assembly operation.
The control-panel assembly area requires 5 switch assemblies per hour.
The switch assembly area can produce a container of switch assemblies in
2 hours.
Safety stock has been set at 10% of needed inventory.

39. Example of Kanban Card Determination:
Calculations
Always round up!

41. A.gunasekaran and J.lyu in their research implementation of just-in-time
in a small company has depicted its advantage in SMEs. he depicted
that implementation of JIT in SMEs should start with layout revision,
schedule stability and the development of long-term supplier-customer
relationships.
A new purchasing policy supporting frequent purchases of small lot
sizes may help SMEs in implementing a JIT system.
Education and training of workers in SMEs about JIT concept and their
high leverage opportunity would tremendously support the
implementation of JIT system in SMEs.

42. Requirement for the implementation of JIT in
Indian industry

43. Management Support And Understanding Of the System.
Management And Labour Responsibilities.
Training.
Supplier Management.
Production Layout And Work Flow.
Long‐term Planning.
Government Support.

44. JIT Benefits
Reduced Inventory
Improved quality
Lower costs
Reduced space requirements
Shorter lead-time
Increased productivity
Greater flexibility
Improved vendor relations

45. JIT Benefits (contd.)
Simplified scheduling & control
Increased capacity
Better utilization of personnel
More product variety
Increased equipment utilization
Reduced paperwork
Valid production priorities
Work force participation

46. Disadvantages of JIT
 Danger of disrupted production due to non-arrival of supplies.
 Danger of lost sales.
 High dependence on suppliers.
 Less time for quality control on arrival of materials.
 Increased ordering and admin costs.
 May lose bulk-buying discounts.

47. JIT … Not For Everyone
JIT concepts work best when goods can be produced in response to
consumer demand (e.g. automobiles, etc.)
JIT is less effective for the production of standardized consumer
goods (e.g. basic clothing, food, soft drinks, toasters, etc.)
There are cases where JIT concepts apply to sub-processes of a
make to stock environment. (e.g. computers etc.)