Presented By-
Akshay Jain
(2013004)
Abhishek
Jain
(2013002)
TOYOTA'S JIT
REVOLUTION

WHY JIT??
“Toyota’s focus on JIT is a continual problem-solving process (not an
inventory reduction plan) illustrates why the automaker is a JIT leader
not only in its industry but all of industry.”
“Toyota is the benchmark in manufacturing and product development”
- General Motors Officials

INTRODUCTION
The Toyota Production System (TPS) is an integrated socio-technical
system, developed by Toyota, that comprises its management philosophy
and practices.
The TPS organizes manufacturing and logistics for the automobile
manufacturer, including interaction with suppliers and customers.
The system is a major precursor of the more generic "Lean manufacturing.

CONTD…………
 1897:- Sakichi Toyoda diversified his business.
 1926:-He formed Toyoda Automatic LoomWorks (TALW) to manufacturing
Loom workers
 1933:-Established an Automobile department within TALW.
 1935:-First Passenger car prototype was developed.
 1936:-Sakichi sold the patent rights of his Automatic loom to a UK based
Company.
 1947:-The passenger cars production began.
 1950-1955:-Foundation of Kanban System.

 1957:- Eijji Renamed Toyota as “The Toyota Company”
 1968:- Toyota’s first export to the USA.
 1970s:- Major boost in the Japan due to oil crises.
 1980s:- Toyota brought TPS in the USA with a Joint Venture to The GM.
 1983:- Company’s name changed to Toyota motor Corporation.
 1988:- Toyota Opened its New plant in Georgetown.
 1999-2000:- Toyota listed on NYSE & LSE and become one of the top
manufactures of cars in the world.

A LEGENDARY PRODUCTION SYSTEM
 More than 50 executives and engineers visited Toyota Motor
Company‘s
 TPS aimed to produce world-class quality
 Two main principles: Just-in-Time (JIT) production and Jidoka.
Base: Heijunka
1. JIT (the most visible and highly publicized characteristics of TPS)
2. Jidoka (never letting a defect pass to the next station; and freeing
people from machines)
3. Heijunka is leveling out production schedule for both volume and
variety.

JIT - BACKGROUND AND HISTORY
 Initially, JIT was used as a method for reducing inventories in Toyota's
shipyards, but later it evolved into a Japanese management philosophy
 First developed and perfected within the Toyota manufacturing plants by
Taiichi Ohno
 JIT would only be successful
 JIT has the capacity to strengthen the organization’s competitiveness
 Aimed at avoiding waste, reducing inventories and increasing
production efficiency

THE EXPERIMENTS OF THE TPS
Rule Problem Signals Responses
1 How People
Work
>Specifications
document all work
processes and
include content,
sequence, timing and
outcome.
>The work
procedure varies
from specification
>Defective
Products
>Improve training
>Improve Process
Capability
>Modify the work
specification
2 How Work
Connects
>Connections with
clear YES/NO
signals directly link
every customer and
supplier.
>Responses do not
keep pace with
requests.
>Supplier is idle
waiting for
requests.
>Determine true mix and
demand.
>Determine true supplier
capability.
>Retrain/improve/modify

3 The Physical
Arrangement
>Every product and
service travels a
single, simple and
direct flow path.
>A person or
machine is not
needed.
>Unspecified
supplier performs
work.
>Determine why
supplier was
unnecessary; redesign
flow.
>Determine reason for
unspecified supplier;
redesign flow.
4 How To
Improve
>Workers at the
lowest feasible level,
guided by a teacher
(Sensei), improve
their own work
processes.
>Actual result varies
from expected result.
>Determine why the
actual result differed
from the prediction.
>Redesign the change.

5 Problem
Alarms
>Integrated failure tests
automatically signal
deviations for every
activity, connection &
flow path.
>Defects are passed
through to the next
operation.
>Sub-Standard
Performance.
>Analyze and institute
new or improved
alarms.

JUST-IN-TIME PRODUCTION SYSTEM
What it is
 Management philosophy
 'Pull' System through the plant
What it does
 Attacks waste (time, inventory,
 scrap)
 Exposes problems and bottlenecks
 Achieves streamlined production
What it requires
 Employee participation
 Industrial engineering/basics
 Continuing improvement
 Total quality control
 Small lot sizes
What it assumes
 Stable environment

ADVANTAGES OF JIT
 Price flexibility,
 Reduction in product variation,
 Quick response to customers' demands,
 High quality products at low cost for consumers,
 Customer satisfaction.

JIT IN SERVICES (EXAMPLES)
• Organize Problem-Solving Groups
• Upgrade Housekeeping
• Upgrade Quality
• Clarify Process Flows
• Revise Equipment and Process
Technologies
• Level the Facility Load
• Eliminate Unnecessary Activities
• Reorganize Physical Configuration
• Introduce Demand-Pull Scheduling
• Develop Supplier Networks

SUPPLIER NETWORKS:
TRENDS IN SUPPLIER POLICIES
 Locate near to the customer
 Consider establishing small warehouses near to the customer or
consolidating warehouses with other suppliers
 Use standardized containers and make deliveries according to a precise
delivery schedule
 Become a certified supplier and accept payment at regular intervals rather
than upon delivery

THE KANBAN
 Essential component of Toyota's JIT concept.
 Japanese referred to Kanban as a simple parts-movement system that
depended on cards and boxes/containers to take parts from one
workstation to another on a production line.
 Ohno had developed the idea in 1956 from the super markets in the US.
 Kanban developed into a sophisticated information system.
 Ensured production in required quantities at the right time.
 A chain process in which orders flowed from one process to another, the
production or delivery of components was 'pulled' to the production
line.

KANBAN AT TOYOTA

 Withdrawal Kanban is carried when going from one process to the
preceding process.
 Three types of information were exchanged using Kanban
 Pick up information
 Transfer information
 Production information
 To make the Kanban system effective, Ohno framed six rules:
 Later process went to the earlier process to pick up products.
 The earlier process produced only the amount withdrawn by the
later process.
 Should not pick or produce goods without a Kanban.
 A Kanban should be attached to the goods.
 100% defect free parts were required.
 Reduce the number of Kanban.

ADVANTAGES OF KANBAN
 A simple and understandable process
 Provides quick and precise information
 Low costs associated with the transfer of information
 Provides quick response to changes
 Limit of over-capacity in process
 Avoids overproduction
 Minimizes waste
 Control can be maintained
 Delegates' responsibility to workers

Problems with JIT
• Based on the key assumption that sources and channels of supply were
reliable and dependable at all times
• Did not take into account the possibility of labor strikes at automotive
plants.
• JIT involved high set up costs
• Special training and reorganization of policies and procedures were
necessary
• Increases the risk of inventory shortage.
• Difficulty of removing the 'human element'

Successful Implementation
Ʊ Did not make frequent changes in production planning
Ʊ Forecasting procedures should be reliable
Ʊ Depended on highly experienced, highly motivated managers.
Ʊ A network of capable suppliers that operated in sync

Future of JIT
o Being a philosophy, JIT does not restrict itself to high technology
manufacturing environments
o Valid in any manufacturing environments
o Not limited to any specific type of industry nor does the size of the
organization matter.
o Service sector as growing very fast in developing countries like India but
poorly managed, JIT can be very useful in improving the performance

Companies currently using JIT
o Harley Davidson
o Toyota Motor Company
o General Motors
o Ford Motor Company
o Manufacturing Magic
o Hawthorne Management Consulting
o Strategy Manufacturing Inc.