1. Teamwork Presentation on JUST IN TIME” METHOD World Wide Science, Online MBA Program 25 June 2011 Head of Group: Head of Group: Ahmad Shikeb Farazi Ahmad Shikeb Farazi Members: Members: Sibghatullah Arianfar Sibghatullah Arianfar Ramin Qavedil Ramin Qavedil Akbar Mahdizadah Akbar Mahdizadah

2. What is Just-in-time (JIT) Method? Just-In-Time is a Japanese manufacturing management method that was developed in the 1970’s. Just-In-Time is a Japanese manufacturing management method that was developed in the 1970’s. It was first adopted by Toyota manufacturing plants by Taiichi Ohno. The main concern at that time was to meet consumer demands along with providing good quality. It was first adopted by Toyota manufacturing plants by Taiichi Ohno. The main concern at that time was to meet consumer demands along with providing good quality.

3. Philosophy of JIT Philosophy of JIT is simple: Philosophy of JIT is simple: inventory is waste. inventory is waste. JIT inventory systems expose hidden causes of inventory keeping, and are therefore not a simple solution for a company to adopt. JIT inventory systems expose hidden causes of inventory keeping, and are therefore not a simple solution for a company to adopt. ….. …..

4. Objectives of JIT Produce only the products the customer wants. Produce only the products the customer wants. Produce products only at the rate that the customer wants them. Produce products only at the rate that the customer wants them. Produce with perfect quality Produce with perfect quality Produce with minimum lead time. Produce with minimum lead time. Produce products with only those features the customer wants. Produce products with only those features the customer wants. Produce with no waste of labor, material or equipment -- every movement must have a purpose so that there is zero idle inventory. Produce with no waste of labor, material or equipment -- every movement must have a purpose so that there is zero idle inventory. Produce with methods that allow for the development of people Produce with methods that allow for the development of people

5. JIT Principles Create flow production Create flow production Establish “TAKT” time Establish “TAKT” time Build Pull Product Build Pull Product

6. Just-In-Time Techniques Inventory Reduction as a Tool for Improvement Inventory Reduction as a Tool for Improvement Supplier Relationships Supplier Relationships Inventory “Pull” Inventory “Pull” Uniform Plant Loading Uniform Plant Loading Reduced Setup Times Reduced Setup Times Shop-Floor Layout and Production Cells Shop-Floor Layout and Production Cells Total Quality Assurance Total Quality Assurance Preventive Maintenance Preventive Maintenance

7. Main Benefits Reduced setup time. Reduced setup time. The flow of goods from warehouse to shelves improves The flow of goods from warehouse to shelves improves Employees with multiple skills are used more efficiently Employees with multiple skills are used more efficiently Production scheduling and work hour consistency synchronized with demand Production scheduling and work hour consistency synchronized with demand Increased emphasis on supplier relationships Increased emphasis on supplier relationships Supplies come in at regular intervals throughout the production day Supplies come in at regular intervals throughout the production day

8. Advantages to JIT  Reduces the need for central warehousing and storage  More personal relationship with suppliers  Long-term relationships that help to certify suppliers  Receiving inspection is reduced and in some cases eliminated  Lowered variety in suppliers  Reliable delivery schedules  Reduced waste  High quality materials used

9. Disadvantages to JIT Lost sales and missed opportunities Lost sales and missed opportunities If you have to rely on the supplier being able to supply you with your inventory needs at the time you need them. It can happen that the supplier is out of stock If you have to rely on the supplier being able to supply you with your inventory needs at the time you need them. It can happen that the supplier is out of stock

10. Pictures of JIT progresses

11. Thanks for your kind attention