just in time (jit)

JUST IN TIME..

SAMAY TIWARI 122873VINAYAK AGAWNE 122882ABHISHEK ANKUSH 122883RAVI BHIVRA 122886

Introduction

▪ JIT philosophy means getting the right quantity of goods at the right place and the right time

▪ JIT exceeds the concept of inventory reduction; it is an all-encompassing philosophy geared to eliminate waste, anything that does not add value

▪ 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.

History Of JIT

▪ Just in time is a type of operations management approach which originated in Japan in the 1950s.

▪ JIT is a Japanese management philosophy which has been applied in practice since the early 1970s in many Japanese manufacturing organisations.

▪ It was first developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays .

Basic Idea Of JIT

Objectives of JIT

▪ To reduce all non-value added activities.

▪ Elimination of in-plant inventory.

▪ Elimination of in-transit inventory.

▪ Quality and reliability improvement.

Three Elements of JIT

1. Just-in time manufacturing.

2. Total Quality Management.

3. Respect For People.

Three Elements of JIT cont.

▪ JIT manufacturing focuses on production system to achieve value-added manufacturing

Three Elements of JIT cont.

▪ TQM is an integrated effort designed to improve quality performance at every level

Three Elements of JIT cont.

▪ Respect for people rests on the philosophy that human resources are an essential part of JIT philosophy

Elements of JIT in Manufacturing

Continuous improvement.

o Attacking fundamental problems - anything that does not add value to the product.

o Devising systems to identify problems.

o Striving for simplicity - simpler systems may be easier to understand, easier to manage and less likely to go wrong.

o A product oriented layout - produces less time spent moving of materials and parts.

Elements of JIT in Manufacturing cont.

o Quality control at source - each worker is responsible for the quality of their own output.

o Poka-yoke - `foolproof' tools, methods, jigs etc. prevent mistakes.

o Preventative maintenance, Total productive maintenance - ensuring machinery and equipment functions perfectly when it is required, and continually improving it.

Elements of JIT in Manufacturing cont.

Eliminating waste. There are seven types of waste:

▪ waste from overproduction.

▪ waste of waiting time.

▪ transportation waste.

▪ processing waste.

▪ inventory waste.

▪ waste of motion.

▪ waste from product defects.

Functioning Of JIT.

▪ Involves keeping stock levels to a minimum.

▪ Stock arrives just in time to be used in production.

▪ Works best where there is close relationship between manufacturer and supplier.

▪ Goods not produced unless firm has an order from a customer.

▪ Aims to get highest volume of output at lowest unit cost.

Functioning Of JIT.

Term “Kanban”

▪ In Japanese, the "word “kan” means “visual” and “ban” means “card”, so Kanban refers to visual cards.

▪ A Kanban system is a means to achieve Just-in-time (JIT) production.

▪ It works on the basis that each process on a production line pulls just the number and type of components the process requires , at just the right time.

Term “Kanban” cont.

▪ Two kinds of Kanban cards are mainly used:

▪ 1. A withdrawal Kanban.

▪ 2. A production-ordering Kanban.

Advantages of JIT

▪ Reduction in inventories.

▪ Improved quality.

▪ Reduced space requirements.

▪ Shorter lead times.

▪ Lower production costs.

▪ Increased productivity.

▪ Increased machine utilization.

▪ Greater flexibility.

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.

Some Examples Of Various Companies Who Uses JIT.

Case study done on “TOYOTA” in 1990’s

▪ In the mid-1990s, more than fifty executives and engineers from major automobile companies worldwide visited Toyota Motor Company's .

▪ Even though the visitors were from competing automakers, including Ford and Chrysler.

▪ Analysts remarked that despite installing Toyota's JIT for many years, no other automaker in the world had been able to make their production systems and processes as efficient as Toyota had done

Case Study Cont.

▪ Analysts thoughts regarding famous companies like MERCEDES BENZ , HONDA and DIAMLER CHRYSLER.

▪ A top executive at Ford said, "Toyota is far ahead in developing markets that the real race is for the second place."

▪ Some executives at BMW also considered Toyota the best car company in the world.

THIS IS HOW “TOYOTA” DOES.

THANK YOU