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Just in Time

Just in Time (JIT) is a management strategy that aims to reduce waste by receiving goods only as needed in the production process. It originated in Japan in the 1960s-1970s at Toyota and involves frequent supplier deliveries, close relationships, set-up time reduction, quality focus, and a pull system. The goals of JIT are to reduce inventories, increase productivity, and reduce space and defects through total quality management, production management, inventory management and other principles.

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162 views21 pages

Just in Time

Just in Time (JIT) is a management strategy that aims to reduce waste by receiving goods only as needed in the production process. It originated in Japan in the 1960s-1970s at Toyota and involves frequent supplier deliveries, close relationships, set-up time reduction, quality focus, and a pull system. The goals of JIT are to reduce inventories, increase productivity, and reduce space and defects through total quality management, production management, inventory management and other principles.

Uploaded by

Alessandra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Just In Time

What Is Just in Time?


Management strategy that aligns raw-material orders
from suppliers directly with production schedules.

Increase efficiency and decrease waste by receiving


goods only as they need them for the production
process reduces inventory
costs.
Origins

It started in Japan largely in the 1060s and 1070s

Invented and developed by the company Toyota

AKA: Toyota Production System (TPS)

How does it work? Japanese firms, who place an order for the
material, the same day the product is to be produced.
Taiichi Ohno said:
“All we are doing is looking at the time line, from
the moment the customer gives us an order to
the point when we collect the cash. And we are
reducing the time line by reducing the non-value
adding wastes.”

Shigeo Shingo said:


“The most dangerous kind of waste is the
waste we do not recognize.”
Elements of JIT
1. Frequents deliveries

To make JIT function, parts and resources should be acquired as close as


conceivable to the time they are needed.

2. Close Relationship with Suppliers

If an organization has confidence that suppliers will deliver material of 100%


quality, usage of materials can be matched with delivery of materials and
inventories can be kept at near zero levels.

3. Set-up Time Reduction:

Machinery set-ups are non-value-added activities which should be reduced or


eliminated.
4. Machine Cells

• Machines or workers should be grouped by product or component.

• Production can flow from machine to machine without having to


wait for the next stage or returning to the stores.

5. Quality

• Production management should seek to eliminate scrap and


defective units during production.

• Product quality and production quality are important “drivers”.


6. Pull system (Kanban):

Products/components are only produced when needed by the next


process.

7. Employee Involvement :

Workers should be trained to operate each machine within the cell.


Goals of JIT
The crucial goal is a balanced system. To produce the required items, at the
required quality and in the required quantities, at the precise time they are required.
JIT aims to achieve:

(i) Reduction in inventories

(ii) Increase in labor productivity

(iii) Reduction of necessary plant space

(iv) Reduction in quality rejection rate


Principles of JIT

1. Total quality management


2. Production management
3. Supplier management
4. Inventory management
5. Human resource management
Advantages of JIT

● Keeps stock holding costs to a bare minimum.


● Eliminates waste.
● Only essential stocks are obtained, less working capital is required to finance
procurement.
● As JIT production works on demand-pull, all goods made would be sold.
● JIT encourages the right first time.
● High quality products and greater efficiency can be derived from following JIT.
● Overproduction is eliminated.
Disadvantages of JIT

● JIT provides zero tolerance for mistakes.


● High reliance on suppliers.
● The organization would not be able to meet an unexpected increase in orders
due to the fact that there are no excess finish goods.
● JIT production will not be able to adapt well to sudden increase in volume of
demand from the market, since the inventory levels are maintained at much lower
level.
River Analogy

Characteristics
● The River Level

● The Ship

● Rocks
TRADITIONAL APPROACH TO SOLVE A MACHINERY
PROBLEM

Operation 1 Material flow Operation 2 Material flow Operation 3

In this operation a In this phase there are Subsequent operations


machine with defects large stocks on other machines
intervenes
JIT FOCUS TO SOLVE A MACHINERY PROBLEM

Operation 1 Material Flow Operation 2

Machine in good condition Subsequent operations on other


machines
Methodology

● Housekeeping – physical organization and discipline.


● Make it right the first time – elimination of defects.
● Setup reduction – flexible changeover approaches.
● Lot sizes of one – the ultimate lot size and flexibility.
● Uniform plant load – leveling as a control mechanism.
Methodology

● Balanced flow – organizing flow scheduling throughput.


● Skill diversification – multi-functional workers.
● Control by visibility – communication media for activity.
● Preventive maintenance – flawless running, no defects.
● Fitness for use – producibility, design for process.
● Compact plant layout – product-oriented design.
● Streamlining movements – smoothing materials handling.
Methodology

● Supplier networks – extensions of the factory.


● Worker involvement – small group improvement activities.
● Cellular manufacturing – production methods for flow.
● Pull system – signal [kanban] replenishment/resupply systems
Potential risks
- Suppliers’ minimum order policies
- Precarious work
- Natural and man-made disasters
- No inventory to work with
- Economic system
Total Productive Maintenance

- Personnel must be involved in maintenance actions.


- Environment of responsibility.
- Prevent breakdowns.
- Keep a statistical system.
Continuous improvement

Eliminate waste and simplify production


Trial and error
Optimize inventory levels
Adaptation times
Quality levels
JIT is a philosophy which proposes to achieve the maximum with minimum
inputs. This can be achieved only if all the parties involved in the entire
ecosystem of supply chain will be committed to achieve this and work cohesively
with great amount of coordination. JIT will need very careful planning and timely
communication in the chain. The whole organization must be committed to this
philosophy.

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