1. JIT(JUST-IN-TIME) VARUN BABU
Unit 5 Module 5.8
JIT(JUST-IN-TIME)
VARUN BABU

2. JIT?
“A philosophy of manufacturing based on planned elimination of waste and continuous improvement of productivity ……”
What is just-in-time manufacturing
Jit is 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 the states of conversion from raw material onward.

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)
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4. Histor y of JIT
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.

5. JUST-IN-TIME PHILOSOPHY
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.
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6. JIT FUNCTIONS JIT (JUST-IN-TIME) ZERO INVENTORY ZERO LEAD TIME
ZERO FAILURE
JIT
(JUST-IN-TIME)
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7. Achieves streamlined production .
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 .
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8. THE EIGHT TYPES OF WASTE
Definition
Overproduction
Manufacturing an item before it is needed.
Inappropriate Processing
Using expensive high precision equipment when simpler machines would suffice.
Waiting
Wasteful time incurred when product is not being moved or processed.
Transportation
Excessive movement and material handling of product between processes.
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.
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9. Sources of Waste Overproduction Waiting time
Unnecessary transportation
Processing waste
Inefficient work methods
Product defects
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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
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12. Principles Of JIT Manufacturing
Total quality Management
Production Management
Supplier Management
Inventory Management
Human Resource Management
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13. JIT Manufacturing Building Blocks
Product design
Process design
Personnel/organizational elements
Manufacturing planning and control
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14. 1. Product Design Standard parts Design Simplification
Highly capable production systems
Concurrent engineering
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15. 2. Process Design Small lot sizes Setup time reduction
Limited work in process
Quality improvement
Production flexibility
Little inventory storage
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16. Benefits of Small Lot Sizes
Reduced Inventory
Less Rework
Less Storage Space
Problems are more apparent
Increase Product Flexibility
Easier to balance operation
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17. 3. Personnel/Organizational Elements
Workers as assets
Cross-trained workers
Continuous improvement
Leadership
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18. 4. Manufacturing Planning and Control
Pull systems
Visual systems (kanban)
Close vendor relationships
Reduced transaction processing (delays in delivery)
Preventive maintenance
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19. Evaluation and selection of vendor (suppliers) network to develop a tiered supplier network – reducing the number of primary suppliers
Traditional supplier Network
Buyer
Supplier
supplier
Tiered Supplier Network
Buyer
supplier
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21. APPLICATIONS OF JIT
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22. In McDonald’s
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23. In McDonald’s
High holding costs are the nature of the fast food industries.
Wastage.
Time.
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24. In McDonald’s
JIT system wherein McDonald's doesn't begin to cook its orders until a customer has placed a specific order.
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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.
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26. Implementing in JIT Production Systems
Criteria for success
Service
Quality
People
Food preparation
Profitability .
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27. Supply Chain Integration
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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.
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29. Companies adopted JIT
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30. TOYOTA PRODUCTION SYSTEM
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31. Minimizing Waste: Focused Factory Networks
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
Coordination
System Integration
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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
Saw
Grinder
Grinder
Heat Treat
Lathe
Lathe
Lathe
Press
Press
Press
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33. Minimizing Waste: Group Technology (Part 2)
Revising by using Group Technology Cells can reduce movement and improve product flow .
Grinder 1 2
Lathe
Press
Saw
Lathe
Heat Treat
Grinder A B
Lathe
Press
Saw
Lathe
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34. Minimizing Waste: Just-In-Time Production
Management philosophy
“Pull” system though the plant
Hydraulic Push Systems
WHAT IT IS
Attacks waste
Exposes problems and bottlenecks
Achieves streamlined production
WHAT IT DOES
Employee participation
Industrial engineering/basics
Continuing improvement
Total quality control
Small lot sizes
WHAT IT REQUIRES
Stable environment
WHAT IT ASSUMES
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35. Minimizing Waste: Inventory Hides Problems
Example: By identifying defective items from a vendor early in the production process the downstream work is saved
Work in
process
queues
(banks)
Change
orders
Engineering design
redundancies
Vendor
delinquencies
Scrap
Design
backlogs
Machine
downtime
Decision
Inspection
Paperwork
backlog
Example: By identifying defective work by employees upstream, the downstream work is saved
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36. Minimizing Waste: Kanban Production Control Systems
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
Withdrawal
kanban
This puts the system back were it was before the item was pulled
Storage Part A
Storage Part A
Machine Center
Assembly Line
Production kanban
Material Flow
Card (signal) Flow
The process begins by the Assembly Line people pulling Part A from Storage
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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.
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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.
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39. Example of Kanban Card Determination: Calculations
Always round up!
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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.
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42. Requirement for the implementation of JIT in Indian industry
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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.
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44. JIT Benefits Reduced Inventory Improved quality Lower costs
Reduced space requirements
Shorter lead-time
Increased productivity
Greater flexibility
Improved vendor relations
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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
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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.
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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.)
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