1. Latest Trends In Operations
Management
Just In Time
Sannik
Seemoli Ganatra
Shashank
Saptha
Anju Maria John
Mahale Akshay Uday

2. WHAT IS JUST IN TIME ????
• Producing the quantity if goods that is needed, no more, no less
• Producing them on the date and at the time required, not before,
not after.
• Suppliers deliver the exact quantity demanded, at scheduled time
and date
• Just in time is a ‘pull’ system of production.
• Demand-pull enables a firm to produce only what is required, in
the correct quantity and at the correct time.

3. • This requires a carefully planned scheduling and flow of
resources through the production process.
• Modern manufacturing firms use sophisticated production
scheduling software to plan production for each period of time,.
• Information is exchanged with suppliers and customers through
EDI (Electronic Data Interchange) to help ensure that every
detail is correct.
• For example, a car manufacturing plant might receive exactly
the right number and type of tyres for one day’s production

4. • A lean system works best if the daily load on individual
workstations is relatively uniform
Uniform loads can be achieved by assembling the same type
and number of units each day, thus creating a uniform daily
demand at all workstations
Workers should be trained to operate several machines,
to perform maintenance tasks, and to perform quality
inspections
Use effective machines but the key is to use machine and
worker idle time to maintain equipment and prevent break
downs

5. TRADITIONAL SYSTEMS COMPARED
WITH JIT

6. PRIORITIES
• Traditionally
• Accept all customer orders
• Provide a large number of options from which customers
may order
• JIT
• low cost/high quality within limited market

7. ENGINEERING
• Traditional
• design custom outputs
• JIT
• design standard outputs
• incremental improvements
• design for manufacturability (DFM)

8. CAPACITY
• Traditional
• excess capacity designed into system just-in-case problem
arises
• highly utilized
• inflexible
• JIT
• minimize waste of having extra capacity
• flexible capacity
• moderately utilized

9. TRANSFORMATION SYSTEM
• Traditional-
• long lead times are often thought to allow more time to
make decisions and get work performed .
• JIT
• short lead times mean easier, more accurate forecasting and
planning.
• If lead times are reduced, there is less time for things go awry, to
get lost, or to be changed
• “Don’t let the parts touch the floor” (the parts have to be kept
on the machines and thus be worked on until completed)
• Smaller batches result in shorter lead times and less inventory, at the
same time. With smaller batches, engineering changes get to the
customer sooner, problems with quality are corrected more quickly,
rework is reduced, there is less obsolete inventory, and new
products get to market more promptly .

10. LAYOUT
• Traditional
• job shop approach of using widely spread-out equipment
with space for stockrooms, tool cribs, and work-in-process
inventories between the equipment
• To handle and move all this inventory, automated or semi
automated materials handling equipment
(conveyors, forklifts) is required, which takes even more
space.
• JIT
• Equipment is moved as close together as possible so that
parts can be actually handed from one worker or machine
to the next.
• Use of cells, and flow lines dictates small lots of parts with
minimal work-in-process and material-moving equipment.

11. INVENTORIES
• Traditional
• used to buffer operations
• large WIP buffers
• JIT
• inventory is seen as an evil
• small WIP buffers

12. WORKFORCE
• Traditional
• competitive attitude between workers and managers
• status symbols and privileges
• much of the employees’ time is wasted looking for parts,
moving materials, setting up machines, getting instructions,
and so on. When actually working, they tend to work fast.
• JIT
• broadly skilled flexible workers who can uncover and solve
problems
• work teams
• cooperative attitudes

15. ADVANTAGES
• Just-in-time manufacturing keeps stock holding costs to a bare minimum.
• The release of storage space results in better utilization of space and thereby
bears a favorable impact on the rent paid
• Just-in-time manufacturing eliminates waste, as out-of-date or expired
products; do not enter into this equation at all.
• As under this technique, only essential stocks are obtained, less working
capital is required, to finance procurement.
• Here, a minimum re-order level is set, and only once that mark is reached
fresh stocks are ordered, making this a boon to inventory management too.
• Due to the afore-mentioned low level of stocks held, the organizations return
on investment (referred to as ROI, in management parlance) would
generally be high.

16. • As just-in-time production works on a demand-pull basis, all goods made
would be sold, and thus it incorporates changes in demand with surprising
ease.
• This makes it especially appealing today, where the market demand is
volatile and somewhat unpredictable.
• High quality products and greater efficiency can be derived from following
a just-in-time production system.
• Close relationships are fostered along the production chain under a just-in-
time manufacturing system.
• Constant communication with the customer results in high customer
satisfaction.
• Over production is eliminated, when just-in-time manufacturing is adopted.

17. DISADVANTAGES
• Just-in-time manufacturing provides zero tolerance for mistakes, as it makes
re-working very difficult in practice, as inventory is kept to a bare minimum.
• There is a high reliance on suppliers, whose performance is generally outside
the purview of the manufacturer.
• Due to there being no buffers for delays, production downtime and line
idling can occur, which would bear a detrimental effect on finances and on
the equilibrium of the production process.
• The organization would not be able to meet an unexpected increase in
orders, due to the fact that there are no excess finish goods.
• Transaction costs would be relatively high, as frequent transactions would be
made.
• Just-in-time manufacturing may have certain detrimental effects on the
environment, due to the frequent deliveries that would result in increased
use of transportation which in turn would consume more fossil fuels.

18. PRECAUTIONS
• Management buy-in and support at all levels of the organization
are required, if a just-in-time manufacturing system is to be
successfully adopted.
• Adequate resources should be allocated, so as to obtain
technologically advanced software.
• Building a close, trusting relationship with reputed and time-tested
suppliers will minimize unexpected delays in the receipt of inventory.
• Just-in-time manufacturing cannot be adopted overnight. It requires
commitment in terms of time and adjustments to corporate culture
would be required, as it is starkly different to traditional production
processes.

19. • Lot sizes need to be minimized.
• Work station capacity should be balanced whenever possible.
• Preventive maintenance should be carried out, so as to
minimize machine breakdowns.
• Set up times should be reduced wherever possible.
• Quality enhancement programs should be adopted, so that
total quality control practices can be adopted.

20. • Reduction in lead times and frequent deliveries should be
incorporated.
• Motion waste should be minimized, so the incorporation of
conveyor belts might prove to be a good idea when
implementing a just-in-time manufacturing system.
• The design flow process needs to be redesigned and layouts
need to be re-formatted, so as to incorporate just-in-time
manufacturing.

21. KANBAN
• Kanban is a card that represents a unit of work
• Flow work in single units or small batches
• Pace the work by limiting WIP
• Use signaling to trigger pull
• New work can start only when a space is available

22. • A space becomes available when previous work is complete
• Level of mix and quantity to spread risk and optimize portfolio
• In ‘push’ system of production start date and finish date is
planned up front
• But we don’t know what we need to build and how long it will
take to build

27. • WorkCentre B uses parts
produced by WorkCentre A
• How can we control the
flow so that B always has
parts and A doesn’t
overproduce ??

28. Signal To Produce
• When a container is
opened by WorkCentre B,
its kanban card is sent back
to WorkCentre A
• This is a signal to
WorkCentre A to produce
another box of parts

29. Signal To Pull
• Empty box sent back.
Signal to pull another full
box to WorkCentre B

30. REFERENCES
• http://en.wikipedia.org/wiki/Just_in_time_(business)
• http://www.investopedia.com/terms/j/jit.asp
• http://www.toyota-
global.com/company/vision_philosophy/toyota_production_syst
em/just-in-time.html
• http://www.tutebox.com/3309/business/management/introduct
ion-to-jit-just-in-time-concept/
• http://www.ijest.info/docs/IJEST10-02-01-06.pdf
• http://www.articlesbase.com/business-ideas-articles/the-
concept-of-just-in-time-management-1879039.html
• http://www.cir-q-tech.net/Lean-Manufacturing/just-in-time-
Kaizen