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LOGO

JUST-IN- TIME
Presented by:-
Sebastian Jacobs
Rahul Passi
Monica Chopra
Shilpa Mehra www.company.com
 OVERVIEW
• Learning objective
• History
• Meaning
• Concept
• Characteristics & Advantages
• Practical example
• How it works?
 LEARNING OBJECTIVES

•Understanding the theory behind just-in-time

•Understanding when just-in-time is a suitable production

system to use

•Understanding the advantages of using just-in-time.

 HISTORY
• 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.
– W. Edwards Deming
– 14 points for Management

• JIT is now on the rise in American Industries.

 WHAT IS JIT ???
• Just-in-time is an easy concept to understand.

• Think about someone's journey to work .

• Think about your journey here today. Could this be

applied?

• However, achieving it would be rather more complex

and so too is applying this concept in engineering
manufacture.
• In engineering, using the just-in-time theory would
allow the components that are needed to produce a
product to be delivered to the worker, just-in-time.

• The products can then be made available for the

customers just-in-time.

• Implementing a just-in-time structure can mean a

company is adopting a lean production system.
 THE CONCEPT

‘NOTHING IS PRODUCED UNTIL IT IS REQUIRED’

FINISHED PRODUCTS ASSEMBLED JUST BEFORE THEY’RE SOLD

SUB- ASSEMBLIES MADE JUST BEFORE PRODUCTS ARE ASSEMBLED

COMPONENTS FABRICATED JUST BEFORE SUB-ASSEMBLIES ARE MADE

INVENTORY HIDES PROBLEMS

Inventory
level
Inventory
level

Process Process
Scrap Scrap
downtim downtim
Setup Setup Quality e
Quality e time
time problem problem
s s
Late Late
deliveries deliveries
 LOWERING INVENTORY
REDUCES WASTE

Work in process inventory level

(hides problems)

Unreliable Capacity
Scrap
Vendors Imbalances
 Reducing inventory reveals
problems so they can be solved.

WIP
Unreliable Capacity
Scrap
Vendors Imbalances
 Reducing inventory reveals
problems so they can be solved.

Unreliable WIP Capacity

Scrap
Vendors Imbalances
 ESSENTIALS

• It includes two important and mutually

supporting components
1.) People involvement
a.) Teamwork
b.)Discipline
c.) Supplier involvement
2.) Total quality control
 Lean Production

Lean Production supplies

customers with exactly what
the customer wants, when
the customer wants, without
waste, through continuous
improvement.
CHARACTERISTICS OF JIT SYSTEMS
• Uniform workstation load

• Small lot sizes

• Closer supplier ties

• Maintenance of high quality

• Quick and economic setups

• Flexible facilities and multi-skilled workforce

• Preventive maintenance

• Continous improvement
 ADVANTAGES OF USING JIT

• Products are of a better standard.

• Less waste and, in turn, less rework.

• Set up times are reduced.

• Production flow is improved.

• Less stock.

• Overall savings.

• Efficiency is increased.

• Relations with suppliers are enhanced.

 QUOTATION

Waste is ‘anything other than the

minimum amount of equipment,
materials, parts, space, and
worker’s time, which are
absolutely essential to add value
to the product.’
— Shoichiro Toyoda
President, Toyota
 TYPE OF WASTES

• Overproduction
• Waiting
• Transportation
• Inefficient processing
• Inventory
• Unnecessary motion
• Product defects
JIT REDUCED WASTE AT Hewlett-Packard

Waste Reduction (%)

Setup Time 20%
Scrap 30%
Finished Goods
Inventory 30%
Space 40%
Lead Time 50%
Raw Material
Inventory 50%
Work-in-Process
Inventory 82%
0% 20% 40% 60% 80% 100%
 PUSH versus PULL
• Push system: material is pushed into downstream
workstations regardless of whether resources are available
• Pull system: material is pulled to a workstation just as it is
needed
WHEN JIT IS SUITABLE SYSTEM TO USE?
JIT is a suitable production system when:
• The engineering manufacturer has a standard product
that is steadily produced in practical amounts.

• The product is of high value.

• The workforce producing the product is a disciplined

one.
• Flexible working practices are maintained.

• Machinery does not demand lengthy set up times.

• Quality can be guaranteed through either a cost

penalty for defects or good working practices.
 JIT SUCCESS FACTORS

Suppliers
Employee
Layout
Empowerment

JIT
Quality Inventory

Preventive
Scheduling
Maintenance
 STREAMLINED PRODUCTION
Traditional Flow Production Process
(stream of water)

Suppliers
Customers
Inventory (stagnant
Flow with JIT ponds) Material
(water in
Suppliers stream)

Customers
 PRACTICAL EXAMPLES
Two-week production forecast

A ™
B
vs. C
Typical US
automaker
plant

50 % 25 % 25 %

Accounting for
JIT and accounting 11/03/2009
Managers II
 PRACTICAL EXAMPLES
Typical US automaker

A B C

5
Week 1 days

Week 2 2½ 2½
days days
Accounting for
JIT and accounting 11/03/2009
Managers II
 PRACTICAL EXAMPLES
Toyota JIT plant

A B C
A
Week 1
10
days

Week 2 C B

Accounting for
JIT and accounting 11/03/2009
Managers II
 PRACTICAL EXAMPLES
Typical US automaker
Disadvantages of the typical design

• Inventory stocks of product A (WIP and FG)

AA AA AA AA AA
Week 1 • Demand of B and C cannot be satisfied
AA AA AA AA AA
• Setup time after 5 and 7 ½ days, respectively
• Disruptions when changing products

Week 2
BB BB
• Late identification of defects BB CC CC
BB BB CC CC CC

Accounting for
JIT and accounting 11/03/2009
Managers II
 PRACTICAL EXAMPLES
Toyota JIT plant
Advantages of the JIT design
• Greater flexibility
• Mixed production
AB AB AB AB AB
Week 1 • No disruptions
AC AC AC AC AC
• Low setups and little adjustment for workers
• Less inventory capacity needed (WIP and FG)

Week 2
AB AB
• Immediate identification of defects AB AB AB
AC AC AC AC AC

Accounting for
JIT and accounting 11/03/2009
Managers II
 PRACTICAL EXAMPLES
Porsche’s Stuttgart plant
™
Production time of 911
120
in hours
50 %
60

New model development

7
time in years

3
> 50 %

Source: Garrison et. al.: Managerial Accounting, 11th edition, 2006, McGraw-Hill.
Accounting for
JIT and accounting 11/03/2009
Managers II
 LAYOUT
• JIT objective: Reduce movement of people and
material
– Movement is waste!
• JIT requires
– Work cells for product families
– Moveable or changeable machines
– Short distances
– Little space for inventory
– Delivery directly to work areas
WORK CELL versus PROCESS LAYOUT
 REDUCING LOT SIZES

Customer Lot size = 5

orders 10 Lot 1 Lot 2

Lot size = 2
Lot 1 Lot 2 Lot 3 Lot 4 Lot 5
UNLESS SETUP COSTS ARE REDUCED
Cost

Setup Cost

New Original
optimal lot optimal
Lot Size
size lot size
 SMALL VERSUS LARGE LOTS
JIT produces same amount in same
JIT Small Lots time if setup times are lowered

A A B B B C A A B B B C

Time
Small lots also increase flexibility to meet
customer demands
Large-Lot Approach

A A A A B B B B B B C C

Time
 KANBAN
• Japanese word for card
– Pronounced ‘kahn-bahn’ (not ‘can-ban’)
• Authorizes production from downstream
operations
– ‘Pulls’ material through plant
• May be a card, flag, verbal signal etc.
• Used often with fixed-size containers
– Add or remove containers to change production
rate
DIAGRAM OF OUTBOUND STOCKPOINT
 Minimizing Waste: Kanban Production
Control Systems
Once the Production kanban is This puts the
received, the Machine Center Withdrawal system back
produces a unit to replace the kanban were it was
one taken by the Assembly Line before the item
people in the first place was pulled

Storage Storage
Machine Part A Part A Assembly
Center
Line

Production kanban
Material Flow
The process begins by the Assembly Line
people pulling Part A from Storage Card (signal) Flow
 IMPLEMENTATION PROBLEMS

• Worker resistance

• Lack of top management support

• Lack of communication

• Lack of formal training

What phrase best
describes the Just-In-Time
philosophy?
 CONTINOUS
IMPROVEMENT
Ideals survive through change,
they die through inertia in the
face of challenge. Tony Blair