Just

In Time

Presented by
Gsba students
 Just-In-Time is a Japanese manufacturing
management method developed in 1970s. It
was first adopted by Toyota manufacturing
plants by Taiichi Ohno. The main concern at
that time was to meet consumer demands.
Because of the success of JIT management,
Taiichi Ohno was named the Father of JIT
 Just-In-Time

 JUST IN TIME (JIT) philosophy. JIT is both a

philosophy and collection of management
methods and techniques used to eliminate
waste (particularly inventory) Waste results

JIT is a long-term approach to process improvement. It uses

timeliness as a lever to lower costs, improve quality and improve
responsiveness. However, JIT requires enormous commitment.

The focus of JIT is to improve the

system of production by eliminating
all forms of WASTE. just in time by ravindra 2/22/2009 3
Goals of JIT
Inc. Reduce 0 Defect
productivity costs process

Waste elimination Efficiency Optimal cost/quality

relationship

Respond to Competi Reliable relationship

customer needs tiveness with suppliers
 GOALS
 Increasing the organization’s ability to compete with others
and remain competitive over the long run is very important.
 Customers’ needs and wants should be the most important
focus for business today. This objective will help the firm on
what is demanded from customers, and what is required of
production.
 Moreover, the optimal quality and cost relationship is also
important. The organization should focus on zero-defect
production process. Although it seems to be unrealistic in
the long run, it will eliminate a huge amount of resources
and effort in inspecting, and reworking defected goods.
 Contd….

 A good and long-term relationship between an organization

and its suppliers helps to manage a more efficient process in
inventory management, material management, and delivery
system. It will also assure that the supply is stable and
available when needed.
 Moreover, adopt the idea of continuous improvement. If
committed to a long-term continuous improvement idea, it
will help the organization to remain competitive in the future.
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.
 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.
 Just-in-Time Principles
Traditional Manufacturing Just-in-Time Manufacturing

Increases inventory to Reduces inventory

protect against process
problems
Reduces lead time
Increases lead time to
protect against uncertainty
Reduces setup time
Disregards setup time
as an improvement priority
Emphasizes product-
Emphasizes process- oriented layout
oriented layout

8
Traditional Manufacturing Just-in-Time Manufacturing

Emphasizes work of Emphasizes team-

individuals, following oriented employee
manager instructions involvement

Emphasizes push Emphasizes pull

manufacturing manufacturing

Tolerates defects Emphasizes zero defects

Emphasizes supplier
Treats suppliers as
partnering
“arms-length,”
independent entities

9
Elements of JIT

People Systems
JIT

Plant
People

Stockholders

Labor

Management

Govt support
System

Material Manufacturing
Requirement Planning Resource Planning

computer based
bottom-up
manufacturing approach
production plan
master production
schedule
 Demand
Pull

Plant Layout Kanban

Plant

Continuous Self
improvement inspection

Reduce
inventory
Kanban
 Kanban: Kan  visual, Ban
card/board
 It is a signaling system to trigger
action Push system
Demand forecast

Pull system
Customer demand
Kanban cards

Information about item

Its specification
Preceding process
Succeeding process
Quantities of such items
Benefits

 Set up times are significantly reduced in the factory.

 The flows of goods from warehouse to shelves are
improved.
 Employees who possess multiple skills are utilized
more efficiently.
 Better consistency of scheduling and consistency of
employee work hours.
 Increased emphasis on supplier relationships.
 Supplies continue around the clock keeping workers
productive and businesses focused on turnover.
 Drawbacks of JIT
Drawbacks

Cultural differences Other problems Loss of autonomy

Production level/employee skills

Implem- Traditional Benefits may

Individual Team Method
entation approach vary
Companies That
Have Implemented
JIT
JIT in 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.
Contd….

 Third and most important, each provides different

levels of output viz:
 Cost
 Quality
 Performance
 Delivery
 Flexibility
 Innovativeness Output.
 The JIT production system can make improvements
in all the 6 outputs mentioned above.
Seven prominent types of
waste to be eliminated:
 Waste from Overproduction
 Transportation Waste
 Processing Waste
 Waste from Product Defects
 Waste of waiting/idle time
 Inventory Waste
 Waste of Motion
 Implementation of JIT
 JIT is to eliminate waste in all its forms.
 The assumption of JIT is that we cannot sell everything we
make. Thus, we must produce salable goods (low cost, high
quality, etc...) quickly.
 Operation = Motion (Waste) + Work (Added Value)
 Motion alone is a waste that adds cost (counting things,
moving boxes, transporting goods, preparation time, waiting,
producing defects, over production, handling materials,
switching things on)
 Inventory decouples individual operations and thereby creates
waste (non-value-added motion) to buffer the operations
against the effect of a different form of waste (long setups,
poor material handling procedures, production of defects, etc.)
 For real improvement, we must ask "why" when we encounter
any form of waste.
Implementation of JIT

Proper arrangement (sort through and sort

out, identify what you need, discard what you
do not need )
Orderliness (assign a separate location for all
essential items)
Cleanliness (keep the workplace spotless at all
times)
Cleanup (maintain equipment and tools)
Discipline (stick to the rules scrupulously)
Implementation of JIT

 Place the machines in process sequence

 Design a cellular (U-shaped) layout
 Make one piece at a time in the cell
 Crosstrain workers to handle multiple processes
 Produce according to the cycle time
 Have the operators work standing up and
walking
 Use slower, dedicated machines that are
smaller and less expensive
.
Awareness revolution
 1. Abolish old tradition concepts.
 2. Assume that new method will work.
 3. No excuses are accepted.
 4. It is not seeking for perfection, absolutely zero-defect process,
few defects
 is acceptable.
 5. Correct mistakes immediately.
 6. Do not spend money on improvement.
 7. Use you brain to solve problem.
 8. Repeat to ask yourself 5 times before any decision.
 9. Gather information from several people, more is better!
 10. Remember that improvement has no limits.
.
5S’s For Workplace Improvement

 Seiri - Proper Arrangement

 Seiton - Orderliness
 Seiso - Cleanliness
 Seiketsu - Cleanup
 Shitsuke – Discipline
Flow manufacturing

 Arrange machines in sequence.

 U-shaped production line (Cellular
Manufacturing).
 Produce one-piece at a time.
 Train workers to be multi-skilled.
 Follow the cycle time.
 Let the workers standing and walking around
while working.
 Use small and dedicated machines.
Standard Operation

 Cycle time
 Work sequence
 Standard stock-on-hand
 Use operation charts
Multi-process handling

 Multi-process handling - a worker should

handle several different processes at once,
this is also called "vertical handling" and this
is the basis for JIT production.
Requirements for a proper JIT
management
 STANDARDIZATION: Where the supplies are
standardized and the suppliers are trustable and close
to the plant. As there is little buffer inventory between
the workstations, so the quality must be high and efforts
are made to prevent machine breakdowns.
 SOFTWARE:For JIT to work efficiently Supply Chain
Planning software, companies have in the mean time
extended Just-in-time manufacturing externally, by
demanding from their suppliers to deliver inventory to
the factory only when it's needed
 MULTI-FUNCTIONALITY In JIT workers are
multifunctional and are required to perform different
tasks. Machines are also multifunction and are arranged
in small U-shaped work cells
Contd… .
 CLEANLINESS Environment is kept clean and free of
waste so that any unusual occurrence are visible
 SCHEDULES: Schedules are prepared only for the final
assembly line, in which several different models are
assembled at the same line. Requirements for the
component parts and subassemblies are then pulled
through the system..
 QUALITY: Quality within JIT manufacturing is
necessary, because without a quality program in JIT,
the JIT will fail. Here we think about quality at the source
and the Plan, Do, Check, Action with its statistical
process control. Furthermore, techniques are also very
important.