2. ACMA Presentation
Just In Time

3. Group Members

4. What Is JIT
• Management philosophy (produce only
what is needed when it is needed)
• A highly coordinated processing system
in which goods move through the
system, and services are performed, just
as they are needed
• Represents Pull type system e.g kanban

5. History of JIT Manufacturing
• Evolved in Japan after World War II, as a
result of their diminishing market share in the
auto industry.
• Toyota Motor Company- Birthplace of the JIT
Philosophy Under Taiichi Ohno.
• JIT is now on the rise in American Industries.

6. Definition
• JIT is a manufacturing philosophy involving
an integrated set of procedures/activities
designed to achieve a high volume of
production using minimal inventories

7. More Introduction
• Raw materials, parts & sub assemblies
are pulled through the manufacturing
process when they are needed.
• Simply put, JIT is a philosophy of
“make what is needed … when it is
needed”.

8. Goal of JIT
• The ultimate goal of JIT is a balanced
system.
• Achieves a smooth, rapid flow of
materials through the system
• Eliminate disruptions
• Make system flexible
• Eliminate waste, especially excess
inventory

9. Big vs. Little JIT
• Big JIT – broad focus
–
–
–
–
Vendor relations
Human relations
Technology management
Materials and inventory management
• Little JIT – narrow focus
– Scheduling materials
– Scheduling services of production

10. What JIT Does
• Eliminates waste
• Achieves streamlined production
• Eliminate disruptions in production …
caused by poor quality, schedule changes,
late deliveries.
• Makes the manufacturing delivery system
flexible by allowing it to handle a variety of
products and changes in the level of output
• Reduces setup and delivery times

11. SEVEN Wastes
THE SEVEN TYPES OF WASTE OR MUDA
Waste
Overproduction
Definition
Manufacturing an item before it is needed.
3. Waiting
Wasteful time incurred when product is not being moved
or processed.
4. Transportation
Excessive movement and material handling of product
between processes.
5. Motion
Unnecessary effort related to the ergonomics of bending,
stretching, reaching, lifting, and walking.
Inventory
Excess inventory hides problems on the shop floor,
consumes space, increases lead times, and inhibits
communication.
Defects
Quality defects result in rework and scrap, and add
wasteful costs to the system in the form of lost capacity,
rescheduling effort, increased inspection, and loss of
customer good will.
Underutilization of
Employees
Failure of the firm to learn from and capitalize on its
employees’ knowledge and creativity impedes long term
efforts to eliminate waste.

12. Sources of Waste
• Overproduction
• Waiting time
• Unnecessary transportation
• Processing waste
• Inefficient work methods
• Product defects

13. Strategies For Minimizing Waste By
Using JIT
• Manufacturing in smaller lot sizes
reduces excess inventory
• Reducing inventory levels allows the
problems to be uncovered … thus
creating opportunities for
manufacturing process improvement

14. Principles Of JIT Manufacturing
• Total Quality Management
• Production Management
• Supplier Management
• Inventory Management

15. 1st Principle Of JIT
Total Quality Management

16. Total Quality Management
• Seek long-term commitment to quality
efforts with continuous improvement
• Quality must be a higher priority than
cost
• Minimizing waste

17. Total Quality Management
• Eliminate Quality Inspectors
• Quality is everyone‟s responsibility
• Do it right the first time

18. 2nd Principle Of JIT
Production Management

19. Production Management
• Pull System vs. Push System
– Pull = Made to order
– Push = Made for inventory
• Flexibility of the system
• Design For Testability – In the process
– Poka-Yoke= Mistake-proofing
– Throughout entire process

20. Production Management
• Reduced lot sizes= Shorter cycle times
• Eliminate disruptions in the process
• Standardized Parts/ Simplicity

21. Production Management
• Communication Techniques
– Completion of task-Kanban
– Problem- Siren/light
• Stopping the process if something goes
wrong =Jidoka
• Preventive Maintenance

22. 3rd Principle Of JIT
Supplier Management

23. Supplier Management
• Establish Long Term Relationships with
few suppliers.
• Delivery of Parts = 100% Defect Free
– Where they are needed
– When they are needed
– The exact quantity
• Work Together

24. Supplier Management
• Elimination inspection of parts
• Communicate problems to suppliers in a
positive manner.

25. 4th Principle Of JIT
Inventory Management

26. Inventory Management
• Eliminate Safety Stock = Zero Inventory
• JIT is not an inventory control system
• Reduction in inventory opens up space

27. • Inventory hides problems in a
process.
• Water Level = Inventory
• Rocks = Problems in the
system

28. JIT Manufacturing Building Blocks
• Product design
• Process design
• Personnel/organizational
elements
• Manufacturing
planning and control

29. 1. Product Design
• Standard parts
• Design Simplification
• Highly capable production systems
• Concurrent
engineering

30. Design Simplification

31. 2. Process Design
• Small lot sizes
• Setup time reduction
• Limited work in process
• Quality improvement
• Production flexibility
• Little inventory storage

32. Quality Improvement
• Autonomation
– Automatic detection of defects during
production
• Jidoka
– Japanese term for autonomation

33. Production Flexibility
• Reduce downtime by reducing changeover
time
• Use preventive maintenance to reduce
breakdowns
• Cross-train workers to help clear
bottlenecks
• Use many small units of capacity
• Reserve capacity for important customers

34. 3. Personnel/Organizational
Elements
• Workers as assets
• Cross-trained workers
• Continuous improvement
• Leadership

35. 4. Manufacturing Planning
and Control
• Pull systems
• Visual systems (kanban)
• Close vendor relationships
• Reduced transaction
processing (delays in
delievery)
• Preventive maintenance

36. Comparison of JIT and Traditional
Factor
Traditional
JIT
Inventory
Much to offset forecast
errors, late deliveries
Minimal necessary to operate
Deliveries
Large
Small
Lot sizes
Large
Small
Setup; runs
Few, long runs
Many, short runs
Vendors
Long-term relationships Partners
are unusual
Workers
Necessary to do the
work
Assets

37. JIT in Services
The basic goal of the demand flow
technology in the service organization is to
provide optimum response to the customer
with the highest quality service and
lowest possible cost.

38. Benefits of JIT Systems
• Increased equipment utilization
• Reduced scrap and rework
• Reduced space requirements
• Pressure for good vendor relationships
• Reduced need for indirect labor

39. • Reduced Setup time , also known as
„Changeover‟ time.
• Funds tied up in inventories can be
used elsewhere.
• Storage area used up can be utilized.
• Throughput Time is reduced
resulting in greater output
• Production scheduling and work
hour consistency is synchronized
with demand.

40. • Supplies come in regular intervals throughout
the production day
• The risk of inventory breaking/expiring is
reduced largely.
• Inventory flow becomes simpler and easier to
manage due to smaller lot sizes.
• Cuts the risk of supply system problems.

41. Disadvantages
• Every job is a „High
Stress‟ Rush order
• Balanced systems
MUST be in place
• Setup times will
greatly impact
throughput
• Any problem will lead
to unhappy customers
(either internal or
external)