1. 1
By:-
Ashutosh Kumar Jha(91011)
Deepinder Singh(91016)
Divanshu Kapoor(91017)
Harsh Agrawal(91022)
Nishant Singh(91039)
Sweta Agarwal(91059)
JIT
Just-in-Time (JIT)

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Definition
JIT
Just-in-time (JIT) is an inventory strategy that
strives to improve a business's return on
investment by reducing in-process inventory and
associated carrying costs.

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Goals
JIT
 Total quality control
 Total elimination of waste
 Zero inventory
 Zero setup time
 Zero lead time
 Zero Transactions

4. 4
Toyota
JIT
 They produce 20000 cars per day
 Two 8 hr shifts (separated by 4 hrs)
 Daily schedule adherence @ 97%
 Sheet steel to car, less than 16hrs
 Average 6 hrs of component inventory
 Delivery of components to plant organised by
Toyota
 No incoming inspection
 As a general policy Toyota do not dual source
Toyota: Derby

5. 5
Toyota Production System (TPS)
JIT
 It follows “Just In Time Production” approach created by the
founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and
the engineer Taiichi Ohno.
 Definition: The production system developed by Toyota
Motor Corporation to provide best quality, lowest cost, and
shortest lead time through the elimination of waste.
 TPS is comprised of two pillars, Just-in-Time and Jidoka
(autonomation).
 TPS is maintained and improved through
 Iterations of standardized work and kaizen (continuous
improvement)
 It follows Plan–Do-Check-Act (PDCA Cycle) or the
scientific method.

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House of Toyota
JIT

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TPS (contd)
The main objectives of the TPS are to design out overburden
(muri) and inconsistency (mura), and to eliminate waste
(muda). There are seven kinds of muda that are addressed in
the TPS:-
 over-production
 motion (of operator or machine)
 waiting (of operator or machine)
 conveyance
 processing itself
 inventory (raw material)
 correction (rework and scrap)

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What it is
•Management Philosophy
•‘Pull’ system through the plant
What it Does
•Attacks waste (time, inventory,
scrap)
•Exposes problems &
bottlenecks
•Achieves streamline
production
What it require
•Employee Participation
•Industrial engineering
•Continuing improvement
•Total quality control
•Small lot sizes
What it assumes
•Stable environment

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JIT Tactics by Toyota
 Use pull system to move inventory
 Reduce setup time
 Reduce lot size

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Pull System
 Toyota use a kanban system (pull-system) to pull parts to
the next production stage only when they are needed.
 A kanban is a card that is attached to a storage and transport
container.
 A sequence of kanbans pulls material through the process.

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Work
cell
Raw
Material
Supplier
Kanban
Purchased
Parts
Supplier
Sub-
assembly
Ship
Kanban
Kanban
Kanban
Kanban
Finished
goods
Customer
order
Final
assembly
Kanban
Kanban

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Reducing Setup Time
 More frequent orders require reducing setup costs,
otherwise, inventory costs will rise. Setup cost is highly
correlated with setup time.
 Methods used to reduce setup time:-
 organizing procedures
 using carts
 training workers to do their own setups
 Toyota managed to slash setup times from months to hours
and sometimes even minutes

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Reducing Lot Size
JIT
 With close cooperation with its suppliers and the
implementation of Kaiban system lot sizes are
reduced significantly.
Toyota USA Sweden Germany
Setup time 10
minutes
6 hours 4 hours 4 hours
Lot size
(inventory)
1 day* 10 days 1 month -

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Worker Characteristics
 Employees are cross trained for flexibility and efficiency
 Toyota use unskilled workers, preferring to train them
itself
 Improved communications facilitate the passing on of
important information about the process.
 Toyota designed the factory to be 30 percent more
compact than other factories with similar output, to curb
building and operating costs and enhance communication.
 Each Toyota employees has right to stop production line
when defect occur

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5S
TPM
SMED
KANBAN
POKAYOKE
JIT techniques

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JIT Methods
JIT
 Total productive maintenance (TPM):Designed to ensure
that every machine in a production process always performs its
required task and its output rate is never disrupted
 SMED (single minute exchange of dies): Lean production
methods for reducing waste in a manufacturing process. It
provides a rapid and efficient way of converting a
manufacturing process from running the current product to
running the next product. This rapid changeover is key to
reducing production lot sizes and thereby improving flow which
is a 'Lean' aim. It is also often referred to as Quick Changeover
(QCO).

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JIT Methods
JIT
 Pokayoke: Poka Yoke is one of the main components of Shingo's Zero
Defect Quality Control (ZQC) system . The idea being to produce zero
defective products.
One way this is achieved is through the use of Poka Yoke Multiple
Devices that are used to either Detect or Prevent Defects from
occurring in the First Place. These CIW Poka Yoke Multi-Patented
Welding Methods are simple Real-Time Methods to help achieve Zero
Defects.
 Andon Lights: one of the visual management tools used in places
which have adapted a lean manufacturing philosophy. When the term
visual management is used, its main meaning is if you were to walk out
on the production floor, and look around, you could visually see the
status of the lines or work cells.

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Contd..
JIT
 5s: 5S is a system of workplace organization. It is
fundamental to the implementation of the Lean
Manufacturing principles.
 The 5S are :
 Sort
 Set in Order
 Shine
 Standardize
 Sustain
 Each component of the 5S is necessary to derive the
benefits and sustain workplace organization.

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The 5-S Program
JIT
 Seiri
 segregate and discard
 get rid of what is not needed
 Seiton
 arrange and identify for ease of use
 a place for everything and everything in its place
 Seiso
 Clean Daily
 clean work place enhances quality
 Seiketsu
 Revisit frequently
 revisit the first 3 steps to maintain workplace safety and
effectiveness
 Shitsuki
 Motivate to sustain
 promote adherence through visual
 performance measurement tools

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Companies Currently using JIT
JIT
 Xerox
 Harley Davidson
 Toyota Motor Company
 General Motors
 Ford Motor Company
 Manufacturing Magic
 Hawthorne Management Consulting
 Strategy Manufacturing Inc.
 And Many more…

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JIT at Xerox
JIT
 Rank Xerox Manufacturing (Netherlands)
 Largest Xerox company outside US.
 Produces and refurbished mid-volume copier
equipment for distribution throughout the world.
 Implemented JIT ~1980s.
 Part of JIT program:-
 Installed an automated materials handling
system and information processing system
 Production procedures were modified

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Xerox-Result of Implementing JIT
JIT
 Warehouse stock 3-month  ½ month
supply
 Supplier base 3000  300
 98% on-time inbound delivery, 70%
materials arriving within an hour
 Overall material costs reduce 40%
 Most inbound product inspection stations
were eliminated because of higher-quality
materials from suppliers.

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Contd…
JIT
 Inbound transportation costs were reduced
40%
 Reject levels for defective or inferior
materials 17%  0.8%
 Positions for 40 repack people were
eliminated because of standardized
shipment-packaging criteria
 On-time inbound delivery performance
improved 28%

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JIT at McDonald’s
JIT
 Before JIT:
 PRE COOK A BATCH AND PUT THEM UNDER
HEAT LAMPS
 DISCARD WHAT COULD NOT BE SOLD
 FRESH FOOD OBTAINED BY SPECIAL ORDERS

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JIT at McDonald’s (Contd..)
JIT
 After JIT:
 Burger assembled when order is placed
 Raised quality and reduced costs
 Higher quality customer service
 Adapt to demand in a better manner

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JIT and Lean Management
JIT
 JIT can be divided into two terms: “Big JIT” and
“Little JIT”
 Big JIT (also called Lean Management) is a
philosophy of operations management that seeks
to eliminate waste in all aspects of a firm’s
production activities:
 human relations
 vendor relations
 technology, and
 Materials and inventory management
 Little JIT – narrow focus
 Scheduling materials
 Scheduling services of production

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JIT at Harley Davidson
JIT
 Just-in-time inventory was the driving
force of Harley's quality-improvement
program
 Harley trusted its partners to deliver the
quantities it needed
 Suppliers of Harley had to implement JIT
into their production process to
compliment Harley's system

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Outcomes
JIT
 Inventory levels down 75 %.
 Percentage of motorcycles coming off
the line completed up from 76% to 99%
 Scrap and rework reduced by 68 %.
 Productivity up by 50 %.
 Space requirements down by 25 %.

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Comparison of MRP (Material Requirements Planning),
JIT, and TOC (Theory of Constraints)
JIT
MRP JIT TOC
Loading of
operations
Checked by
capacity
requirements
Planning
afterward
Controlled
by kanban
system
Controlled by
bottleneck
operation
Batch sizes One week or
more
Small as
possible
Variable to exploit
constraint
Importance of
data
accuracy
Critical Unnecessar
y
Critical for
bottleneck
and feeder
operations
Speed of
scheduled
development
Slow Very fast Fast

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Contd…
JIT
MRP JIT TOC
Flexibility Lowest Highest Moderate
Cost Highest Lowest Moderate
Goals Meet demand
Have doable
plan
Meet
demand
Eliminate
waste
Meet demand
Maximize profits
Planning focus Master
schedule
Final
assembly
schedule
Bottleneck
Production
basis
Plan Need Need and plan

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Advantages
JIT
 Higher profits and improved customer satisfaction.
 Waste Reduction.
 Stronger and more reliable working relations with
suppliers.
 Improved working relations between employees.

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Limitations
JIT
 Loss of individual autonomy
 Resistance to change
 Success varies from industry to industry
 Employee commitment
 Limited to Japanese environment:
 Participation resulting from the use of quality
circles.
 Participation involves empowering the
workforce with respect to decision making.

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Contd...
JIT
 It is prone to inventory shortage which may result
in reducing efficiency of whole process.
 High cost of training the employees is involved.
 Leaves consumers and suppliers open to supply
shocks.
 Strategy is heavily dependent on the demand
curve of the time when it is applied.

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THANK YOU
JIT