SYNOPSIS OF PROJECT ON

STUDY OF IMPLIMENTATION OF JUST IN TIME AT MOSERBAER

Submitted in Partial Fulfillment for the award Of Master of Business Administration ( 2007-2010)

Submitted To: Amity University To:

Submitted By: SANDEEP KUMAR ROLL. NO. A1920209161

Amity School of Distance Learning (ASoDL)

PRAPOSED TABLE OF CONTENTS:The Chapter Scheme in the project is planned to be under : Content Page No

CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7 CHAPTER 8

Title Introduction Objectives & Scope of Project Research Methodology Data Collection Data Analysis Findings Recommendation Conclusion

APPENDICES AND ANNEXURES BIBLIOGRAPHY

EXECUTIVE SUMMARY
In this Project, I am going to examining the implementation of Just-In-Time methodology in Moser Bear for its CD Making plant. Although this system was initially developed for automobile industry but now the scene have changed this system is equally usefully for other production houses also. This is possibly one of the most interesting manufacturing revolution where companies involved in the production are integrated not only in their business processes moreover in their physical plants. The concept has been is due to be adopt. The case study clearly shows how companies can work together in a harmonic and synchronised system meeting probably the most idealistic manufacturing principles (JIT) to produce the best quality product within the shortest time frame with minimum/no wastage and cost-effective to all parties. Careful production planning, cost-benefit analysis, adequate outsourcing plans and customer orientation are being praises as the key success factors of this amazing Just-In-Time concept.

INTRODUCTION

What is JIT and Introduction

Just-in-time (JIT) is a management philosophy that strives to eliminate sources of manufacturing waste by producing the right part in the right place at the right time. Waste results from any activity that adds cost without adding value, such as moving and storing.JIT (also known as lean production or stockless production) should improve profits and return on investment by reducing inventory levels (increasing the inventory turnover rate), reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs (such as those associated with machine setup and equipment breakdown). In a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge against problems that may arise. JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes (even when the facility uses a jobbing or batch process layout) by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that found in an assembly line. To accomplish this, an attempt is made to reach the goals of driving all queues toward zero and achieving the ideal lot size of one unit. The goal of JIT, therefore, is to minimize the presence of non-value-adding

operations and non-moving inventories in the production line. This will result in shorter
throughput times, better on-time delivery performance, higher equipment utilization, lesser space requirement, lower costs, and greater profits. JIT was developed as a means of meeting customer demands with minimum delays. Thus, in the olden days, JIT is used not to reduce manufacturing wastage, but primarily to produce goods so that customer orders are met exactly when they need the products. JIT is also known as lean production or stockless production, since the key behind a successful implementation of JIT is the reduction of inventory levels at the various stations of the production line to the absolute minimum. This necessitates good coordination between stations such that every station produces only the exact volume that 5

the next station needs. On the other hand, a station pulls in only the exact volume that it needs from the preceding station. The JIT system consists of defining the production flow and setting up the production floor such that the flow of materials as they get manufactured through the line is smooth and unimpeded, thereby reducing material waiting time. This requires that the capacities of the various workstations that the materials pass through are very evenly matched and balanced, such that bottlenecks in the production line are eliminated. This set-up ensures that the materials will undergo manufacturing without queuing or stoppage.

Another important aspect of JIT is the use of a 'pull' system to move inventories through the production line. Under such a system, the requirements of the next station are what modulate the production of a particular station. It is therefore necessary under JIT to define a process by which the pulling of lots from one station to the next is facilitated. JIT is most applicable to operations or production flows that do not change, i.e., those that are simply repeated over and over again. An example of this would be an automobile assembly line, wherein every car undergoes the same production process as the one before it. Some semiconductor companies have likewise practiced JIT successfully. Still, there are some semiconductor companies that don't practice JIT for the simple reason that their operations are too complex for JIT application. On the other hand, that's precisely the challenge of JIT - creation of a production set-up that is simple enough to allow JIT. (find a semi conductor factory) Inventory stocks allow production process to continue even when some problem occurs. In a way, inventory stocks act like a buffers to hide any problem that may occur. But, with JIT, there are no buffers to hide problems and thus, occurrence of problem can shut down the entire production process. Thus, JIT philosophy helps organization to prominently 6

expose problems and thus, bring a clear focus on removal of it at source, by eliminating
the cause, rather than effects, of problem. With JIT, it is believed that the root causes of most problems are due to faulty production process design. Hence, with JIT, nothing

is taken for granted, everything is subject to analysis. Each activity is identified

as either Value-Added' or 'Non-Value-Added'. The reduction of 'Non-Value-

Added' activities is achieved mainly through increasing manufacturing flexibility and

improved quality. JIT is an extremely powerful tool to identify where improvements should be made. It helps you to identify cause (not the effect) of problem and its elimination. Failures and exceptions are treated as opportunities to improve

the system. In fact, JIT initiates failures due to problems to expose them. It is a system of
trouble-shooting, within a culture of constant analysis and improvement. It is clear, as an attitude and approach, JIT and TQM are perfectly complimentary to each other, to expose and correct problems at source, so as to avoid wasting resources on production of defective products. Just-in-time manufacturing is a process where suppliers deliver inventory to the factory only when it's needed for assembly. Companies are beginning to turn to Internetbased technologies to communicate with their suppliers, making the just-in-time ordering and delivery process speedier and more flexible.

History of Just in Time:

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. After the first introduction of JIT by Toyota, many companies followed up and around mid 1970s', it gained extended support and widely used by many companies. One motivated reason for developing JIT and some other better production techniques was that after World War II, Japanese people had a very strong incentive to develop a good manufacturing technique to help them rebuilding the economy. They also had a strong working ethnic which was concentrated on work rather than leisure, seeked continuous improvement, life commitment to work, group conscious rather than individualism and achieved common goal. This kind of motivation had driven Japanese economy to succeed. Because of the natural constraints and the economy constraints after World War II, Japanese Manufacturers looked for a way to gain the most efficient use of limited resources. They worked on "optimal cost/quality relationship". Before the introduction of JIT, there were a lot of manufacturing defects for the existing system at that time. According to Hirano, this included inventory problem, product defects, risen cost, large lot production and delivery delays. The inventory problems included the unused accumulated inventory that was not only unproductive, but also required a lot of effort in storing and managing them. Other implied problems such as parts storage, equipment breakdowns, and uneven production levels. For the product defects, manufacturers knew that only one single product defects can destroy the producer's credibility. They must create a "defect-free" process. Instead of large lot production - producing one type of products, they awaked that they should produce more diversified goods. There was also a problem of rising cost, the existing system could not reduce cost any further but remember improvement always leads to cost reduction. 8

Lastly, the existing system did not manage well for fast delivery request, so, there was a need to have a faster and reliable delivery system in order to handle customers' needs. Thus, JIT manufacturing management was developed based on these problems.

COMPANY PROFILE

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HISTORY
Moser Baer India was founded in New Delhi in 1983 as a Time Recorder unit in technical collaboration with Maruzen Corporation, Japan and Moser Baer Sumiswald, Switzerland.

In 1988, Moser Baer India moved into the data storage industry by commencing manufacturing of 5.25-inch Floppy Diskettes. By 1993, it graduated to manufacturing 3.5inch Micro Floppy Diskettes (MFD).

In 1999, Moser Baer India set up a 150-million unit capacity plant to manufacture Recordable Compact Disks (CD-Rs) and Recordable Digital Versatile Disks (DVD-Rs). The strategy for the optical media project was identical to what had successfully been implemented in the diskette business - creating a facility that matched global standards in terms of size, technology, quality, product flexibility and process integration. The company is today the only large Indian manufacturer of magnetic and optical media data storage products, exporting approximately 85 percent of its production.

Since inception, Moser Baer has always endeavored to create its space in the international market. Aiding the company in its efforts has been a carefully-planned and sustainable business model - low costs, high margins, high profits, reinvestment and capacity growth. Along the way, deep relationships have been forged with leading OEMs, with the result that today there are hardly any global technology brands in the optical media segment that Moser Baer is not associated with.

In 2006, the company announced its foray into the Photovoltaic and Home Entertainment businesses. In 2007, the IT Peripherals and Consumer Electronics division was formed.

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Product
STORAGE MEDIA
The company manufactures the entire spectrum of optical storage media products including Recordable Compact Discs (CD-R), Rewritable Compact Discs (CD-RW), Prerecorded CD/DVD, Digital Versatile Disks (DVD-R) and Rewritable Digital Versatile Disks (DVD-RW) and Blue Laser Discs in the optical storage media segment. In the Magnetic Data Storage category Moser Baer manufactures Compact Cassettes, Micro Floppy Disks (MFD) and Digital Audio Tapes (DAT). Moser Baer started the production of CDRs in the year 1999. At that time it came out with only Pro CDRs. Currently Moser Baer is producing two kinds of CDRs viz. Moser Baer Pro CDRs and Moser Baer Mini CDRs. Moser Baer products can meet any recording requirement. Whether it is archiving important files, distributing corporate information or duplicating small volume production runs. CD-R demand has witnessed explosive growth over the last few years (1998-2002 CAGR 109 per cent). One of the principal drivers of this growth has been the increasing attach rate of CD-R drives in PCs and the widespread usage of CD-R media for information storage and data interchange. It would be important to note that the CD format is well entrenched in hundreds of millions of homes and offices and is the only medium virtually guaranteeing information interchange. Importantly, the latest DVD drives are also backward compatible to CD-R media.

CD-R Demand Drivers A high PC penetration: As more PCs are sold with Recordable CD and DVD drives, consumption of recordable media is expected to substantially increase and usage is expected to become broader based. Lengthened PC life: As there has been a perceptible extension in the life cycle of the PC during the global economic slowdown, the life cycle of CD-R should get elongated. Price of drives: As prices of recordable CD drives have reached levels almost that of Read only, drive popularity Backward compatibility: Virtually all DVD drives being currently sold, can playback CD disks, also most DVD recorders, can also record CD-R disks.

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Due to the differences in applications, and large storage capacity (700MB), Recordable CD disks should be in use well into this decade. Legacy installed bases: There are over 1.5 billion drives installed worldwide, which can read CD disks, including the installed base of DVD drives, the number increases to over 2.0 billion and growing. Varieties of CD-Rs

Moser Baer Super: Ideal for all general Data, Audio, Video recording applications. Moser Baer Premium: Ideal for critical archival applications and increased security. Moser Baer Extra: 700 MB/80 min, for enhanced storage capacity. Moser Baer Printable: 650 MB/75 min with unique printable layer. Moser Baer Thermal: For thermal printing surface applications. Moser Baer Audio: For optimum recording of music in real-time applications.

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OBJECTIVES

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Objectives
Following are the primary objective of my study 1. 2. 3. To understand how JIT is effective for effective production To study implementation of JIT at Moserbear To study impact on production on different machines

Secondary objective of my study is as follows 1. To Study business of Mosetbear 2. To SWOT Analyses Moserbear 3. To study the JIT and its History

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
Objectives of research The purpose of research is to discover answers to questions through the application of scientific procedure. The main aim of research is to find out the truth which is hidden and which has not been discovered yet. Though each research study has its own specific purposes but the research objectives can be listed into a number of broad activities, as following :1. To gain familiarity with a phenomenon or to achieve new insights into it. Studies this object in view are termed as exploratory or formulative research studies. 2. To portray accurately the characteristics of a particular individual, situation or group .studies with this object in view are known as descriptive research studies. 3.To determine the frequency with which something occurs or with which it is associated with something else. Studies with this object in view are known as diagnostic research studies. 4.To test hypothesis of a casual relationship between variables. Such studies are known as hypothesis-testing research studies. with

Significance of research All process is born of in enquiry . Doubt is often better than over confidence , for it leads to in enquiry and in enquiry leads to invention. Is a famous Hudson maxim in context of which the significance of research can well be understood. Increased amounts of research make progress possible. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization . The role of research in several fields of applied economics, whether related to as a business or to the economy as a whole, has a greatly increased in modern times. The increasing complex nature of business and government has focused attention on the use of research in solving operational problems. Research , as an aid to economic policy , has gained added importance , both for government and business.

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Research Methodology
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Data Source

The data will be collected from two sources, i.e. primary and secondary. I will collect entire data of this project from production department and from SECONDRY SOURCES like websites, books, newspapers .

Sample: production of three machines before and after JST

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BIBLIOGRAPHY
WEBSITES
www.moserbaer.in www.moserbaerpv.in www.moserbaerhomevideo.com www.chip.in

NEWSPAPERS
THE ECONOMIC TIMES THE TIMES OF INDIA THE MINT

BOOKS
MARKETING MANAGEMENT BY PHILIP KOTLER

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