Just in Time

By
Dr. Pritpal Singh Bhullar
B.Tech(Mechanical) MBA(Finance)
UGC NET , Phd (Finance)

Just in Time
JIT is a management system for productivity and efficiency improvement.
JIT philosophy means getting the right quantity of goods at the right place and the
right time

Just in time is processing the exact information, materials, services and

products in the required or ordered quantity, when required by downstream
processes or customers.
This means that stock levels of raw materials, components, work in progress
and finished goods can be kept to a minimum.

Elements of JIT
1. Stabilized and uniform plant loading-Create a uniform load on all work
centers through constant daily, production and mixed model assembly
(Produce roughly the same mix of products each day, using a repeating
sequence if several products are produced. on the same line). Meet demand
fluctuations through end-item inventory rather than through fluctuations in
production level.
2. Reduce setup time-Setup time should be very less so that quick demands
can be met. Company must aim for single digit set up time .
Set up time < 10 Minutes
This can be done through better, planning, process redesign and product
redesign.

For Uniform plant loading a level schedule is developed so that the same mix of
products is made every day in small quantities
Weekly Production Required
A
B
C
D
E
Traditional Production Plan
Monday
Tuesday
AAAAA
BBBBB
AAAAA
BBBBB
JIT Plan with Level Scheduling
Monday
Tuesday
AABBBB
AABBBB
CDEE
CDEE

10 units
20 units
5 units
5 units
10 units
Wednesday
BBBBB
BBBBB

Thursday
DDDDD
CCCCC

Friday
EEEEE
EEEEE

Wednesday
AABBBB
CDEE

Thursday
AABBBB
CDEE

Friday
AABBBB
CDEE

Elements of JIT
3. Reduce lot sizes Small lots mean less average inventory and shorten
manufacturing lead time
Reducing set up times allows economical production of smaller lots, close
cooperation with suppliers is necessary to achieve reductions in order lot
sizes for purchased items, since this will require more frequent deliveries.
4. Preventive maintenanceUse effective machines but the key is to use
machine and worker idle time to maintain equipment and prevent break
downs.
5. Flexible work forceWorkers should be trained to operate several
machines, to perform maintenance tasks, and to perform quality
inspections. In general JIT requires teams of competent, empowered
employees who have more responsibility for their own work. The Toyota
production system concept of respect for people contributes to a good
relationship between workers and management.

Plant Layout of JIT

The layout in JIT manufacturing is often in the form of product
focus and manufacturing cells. This type of layout is necessary
because lot size production requires that the layout to be compact
and efficient to ensure smooth flow of materials.
A pull production system requires close communication between
work stations, unlike traditional manufacturing. The flow in a JIT
system is in two directions, material is pulled forward, but
information flows backward to provide feedback on material
requirements.

Plant Layout in JIT

1. Lot size - In contrast to the traditional manufacturing, JIT manufacturing requires
production of small lot sizes.
Production of small lot sizes is made possible by drastically reducing set-up
times. Production of small lot sizes leads to improved quality, reduced inventory,
easier delivery and other market responsiveness.
2. Employee and supplier involvement - Employee involvement leads to high level
of activity coordination and information sharing among team members. It also
helps in better decision making and in developing innovative ideas of production.
In JIT involvement of suppliers leads to improve quality, shorten delivery time and
offer ideas towards new design.

Plant Layout in JIT

3. QualityUnder JIT manufacturing organizations are often positive and
quality means getting it right the first time.
In JIT, because of small lot sizes ,small setup time and continuous
improvement quality of product can be improved.
4. Just in time purchasingJIT is an approach with the objective of
producing the right part in the right place at the right time. This obviously
means that purchasing the raw material should also beat the right time or
just in time. It helps in reducing inventory that further leads to reduction in
various losses to company.

Plant Layout in JIT

5. TechnologyIn a JIT manufacturing system technology comes after
simplification and understanding of the entire system. Effective use of
technologies and tools in a coordinated and logical manner, dramatically
shorten setup time, reduce the number of prototypes, cut costs and
improve quality of the design.
6. Just in time productionJIT production is closely related to the practices
of designing.
Focused factories These are small specialized manufacturing plants that
are dedicated to the production of a small number of products
Cellular manufacturing - It is the practice of organizing a factory into
manufacturing cells that are dedicated to the production of a single
product, or a few similar products
Such layout leads to obtaining more accurate product costs and less product
diversity within a cell.

Plant Layout in JIT

JIT production also emphasizes continuously reducing the time required to
perform the needed machine set-ups and operation, thus reducing down
time and production lead time to a minimum correcting defects as they
occur and emphasizing on small or zero inventories
7. Fail proof devices and preventive manufacturing
Fail proof devices such as warning bells times electric eyes and alignment
templates are also used to prevent from occurring off. JIT also helps in
excessive manufacturing. In JIT production is done as per the demand of
customers for products.

Advantages of Just in Time

Lower stock holding means a reduction in storage space which saves rent and
insurance costs
As stock is only obtained when it is needed, less working capital is tied up in
stock
There is less likelihood of stock perishing, becoming obsolete or out of date
Avoids the build-up of unsold finished product that can occur with sudden
changes in demand
Less time is spent on checking and re-working the product of others as the
emphasis is on getting the work right first time

Advantages of JIT
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.
Just-in-time manufacturing encourages the right first time concept, so that
inspection costs and cost of rework is minimized.
High quality products and greater efficiency can be derived by just-in-time
production system.
Close relationships are established along the production chain under a justin-time manufacturing system.
Constant communication with the customer results in high customer
satisfaction.
Over production is eliminated, when just-in-time manufacturing is adopted.

Disadvantages of Just in Time

Just-in-time manufacturing provides zero tolerance for mistakes, as it makes reworking very difficult in practice, as inventory is kept to a bare minimum.
There is a high dependency 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.

Role of Management in JIT

Responsible for culture of mutual trust

Serve as coaches & facilitators
Support culture with appropriate incentive system including non-monetary
Responsible for developing workers
Provide multi-functional training
Facilitate teamwork

Kanban System
Kanban is a Japanese noun which means visible record. .
Kanban refers to cards used to control flow of production through a
factory.
Kanban signal (communicate) some or all of the following:
what parts to manufacture,
when to start manufacturing,
when to stop manufacturing,
how many to manufacture, and
where to deliver them to.
KANBAN IS A FORM OF JIT-SYSTEM or PULL SYSTEM

Operating Rules of Kanban

1.Each container must have a card.
2.The assembly line always withdraws materials from fabrication
(pullsystem).
3.Containers of parts must never be removed from a storage area without a
kanban being posted on the receiving post.
4.The containers should always contain the same number of good parts. The
use of nonstandard containers or irregularly filled containers disrupts the
production flow of the assembly line.
5.Only non defective parts should be passed along.
6.Total production should not exceed the total amount authorized on the
kanbans in the system

Kanban
A Kanban system is a means to achieve just in time (JIT) production. It
works on the basis that each process on a production line pulls just the
number and type of components the process requires, at just the right time.
The mechanism used is a Kanban card. This is usually a physical card but
other devices can be used. Two types of such cards are usually used.
One card is used as a signal for the need to deliver more parts whereas the
other card is used as a signal for the need to produce more parts.
Withdrawal KANBAN
Production KANBAN

Kanban
Withdrawal Kanban :
It Specifies the kind and quantity of product which a manufacturing
process should withdraw from a preceding process.
This card (following card) shows that the preceding process which makes
this part is forging, and the person carrying this card from the subsequent
process must go to position B-2 of the forging department to withdraw
drive pinions.
Each box of drive pinions contain 20 units and the shape of box is B.
This Kanban is the 4th of 8 issued. The item back number is an
abbreviation of the item.

Withdrawal Kan ban System

The main function of a withdrawal Kan-ban is to pass the authorization for
the movement of parts from one stage to another.
Once it gets the parts from the preceding process and moves them to the
next process, remaining with the parts until the last part has been
consumed by the next process.
The withdrawal Kanban then travels back to the preceding process to get
parts thus creating the cycle.

Withdrawal Kanban
A withdrawal Kanban usually carries the following information:
o part number
o part name
o lot size
o routing process
o name of the next process
o location of the next process
o name of the preceding process
o location of the preceding process
o container type
o container capacity
o number of containers released

Kanban

Production Kan ban System (Single Card

Kanban)
The primary function of the production Kan-ban is to release an order to
the preceding stage to build the lot size indicated on the card.
The production Kan-ban card should have the following information :
o materials required as inputs at the preceding stage
o parts required as inputs at the preceding stage
o information stated on withdrawals Kan-ban

Kanban
Production ordering Kanban :
Specifies the kind and quantity of the product which the preceding process
must produce.
The one illustrated below shows that the machining process SB-8 must
produce the crankshaft for the car type X5OBC-150. The crankshaft
produced should be placed at store F26-18. The production ordering
Kanban is often called an in-process or simply a production Kanban.

Kanban

Advantages of Kanban System

Low costs associated with the transfer of information.

Provides quick response to changes.
Delegates responsibility to line workers.
It is a simple technique not involving computers so its cost is low.
Lead times are reduced.

Disadvantages of Kanban
It is less effective in shared-resource situations. Suppose the upstream
station made several parts. Then a request to make more of the part needed
by the downstream station will have to wait if other parts have to be made.
A buffer is needed to ensure the downstream station doesnt run out mean
while. And, because each part needs a separate signaling card, the system
becomes more complex than if the resources were dedicated.
Surges in mix or demand cause problems because Kanban assumes stable
repetitive production plans. It is less suited to industries where mix and
volumes fluctuate. Kanban in itself doesnt eliminate variability, so
unpredictable and lengthy down times could disrupt the system; poor
quality in terms of scrap and rework also affect its good functioning.

Disadvantages of Kanban
Kanban systems are not suited for manufacturing environments with short
production runs, highly variable product demand, poor quality products,
and a multitude of product types.
A breakdown in the Kanban system can result in the entire line shutting
down.
The throughput of a Kanban system is not managed but is instead a result of
controlled WIP and known cycle times.

Kanban System

JIT Cause & Effect Chain

The cause-and-effect diagram, also called fishbone or the Ishikawa
diagram (named after its inventor),
It permits identification and organization of a list of factors thought
to cause a problem or affect variation in a desired outcome.
The cause-and-effect diagram is essentially a pictorial display of a list.
Each diagram has a large arrow pointing to the name of the problem or
issue.
The branches off the large arrow represent main categories of potential
causes. Smaller branches, representing sub-categories (can be a list of
items) are then drawn off of each major branch.

JIT Cause & Effect Chain

These main categories ("Bones") may be customized to fit the process
under study, however, typical categories of major causes used with the
cause-and-effect diagram are:
Equipment, Methods, Materials, People,
Environment/Measurements/Procedures
Steps of Process (Block Diagram)
Who--What--When--Where
People, Provisions (Supplies), Procedures, Place, Patrons (Patients)

JIT Cause & Effect Chain

Machinery

Deicing
equipment
not
available

Inadequate

& blankets
on-board

Material

Insufficient
clean
pillows

Cause-and-Effect Diagrams

Manpower

Poorly
trained
attendants

Methods

Mistagge
d bags
Poor checkin policies

Mechanical
supply of
delay on plane
magazines Inadequate
Broken
luggage
special meals
carousel
on-board
Understaffe
Overbooking policies
d crew
Understaffed
Bumping policies
ticket
counters

Dissatisfied
Airline
Customer

Waste
Waste is non value added activities in the company which consumes time,
money and resources.
It is important for every company to eliminate these non value added
activities (waste) for an efficient production system.
There are mainly seven types of wastes
1) Overproduction
5) Waiting
2) Defects
6) Motion
3) Inventory
7) Over - processing
4) Transportation

Types of Wastes
1.

Overproduction - Overproduction is regarded as the most serious waste.

Overproduction is producing more than demanded or producing it too
early before it is needed.
This increases the risk of obsolescence, increases the risk of producing
the wrong thing and increases the possibility of having to sell those items
at a discount or discard them as scrap.
Overproduction also tends to lead to excessive lead and storage times. As
a result, defects may not be detected early, products may deteriorate and
artificial pressures on work rate may not be generated

Types of Wastes
2. Defects - Defects waste is a direct cost. When defect occurs, rework may
be required otherwise the product will be scrapped.
Following losses happen to company due to defects
a) Wastage of materials
b) Wastage of labour resources
c) Create material shortages,
d) Hinder meeting schedules,
e) Create idle time at subsequent workstations and
f) Increase manufacturing lead time

Types of Wastes
3. Inventory - Inventory waste means having unnecessarily high levels of
raw materials, works-in-process and finished products.
Extra inventory leads to following losses to company due to high inventory

a) Higher storage cost

b) Higher defect rates
c) Prevent rapid identification of problems
d) Increase space requirement
e) Increase lead time
f) Additional requirement of material handling resources.

Types of Wastes
4. Transportation - Transportation includes any movement of materials that
does not add any value to the product, such as moving materials between
workstations.
Transportation waste leads to following losses
a) Multiple storage locations
b) Extra material racks
c) Complex inventory management
d) Extra facility space
e) Incorrect inventory counts
f) Damaged materials

Types of Wastes
5. Waiting Time - When time is being used ineffectively then the waste of
waiting occurs. This waste occurs whenever goods are not moving or
being worked on.
Waiting is idle time for workers or machines due to inefficient production
flow on the factory floor or small delays between processing of units.
Waiting leads o following losses
a) unbalanced operations
b) lack of operator concern for equipment breakdown, and
c) unplanned equipment downtime

Types of Wastes
6.

Motion - Motion includes any unnecessary physical motions or walking

by workers which divert them from actual processing work.

Motion waste involves following losses to company

a) Poor ergonomics of production where operators have to stretch, bend
and pick
b) poor productivity
c) quality problems
d) Excessive reaching or bending,
e) Tools missing
f) Poor managerial control.

Types of Wastes
7.

Over processing - Over-processing is unintentionally doing more

processing work than the customer requires in terms of product quality
or features- such as polishing or applying finishing in some areas of
product that will not be seen by the customer
Over-processing leads to following losses in company
a) Lack of clear customer specifications,
b) redundant approvals
c) extra copies
d) excessive information

Elimination of waste
Steps in waste elimination
1) Find the waste Company must find the waste in the system. Waste may
be in the form of Profits, Sales, Cost of quality, Lead time, Waiting time
etc.
2) Measure the waste - The objective is to accurately define the magnitude
of waste that currently exists. Numerous tools are available to measure the
waste like fish-bone diagrams, process analysis flow charts etc.
3) Pareto analysis - This charting technique is used to visually apply the
80/20 rule to identify the larger areas of waste.
4) Assign root causes Try to fin the main root or origin of waste.

Elimination of waste
5. Brainstorming Formulate the group of experts of different areas and try
to find out best feasible alternative for waste elimination. Sessions should
be short and lively, and absolutely no criticism of ideas is allowed. The
objective is to generate and document a huge quantity of ideas.
6. Select action items Evaluate each brainstorming idea and select which
idea/ alternative one is best and effective to implement.
Prioritize the list by weighing the benefit of each idea/ alternative against
its difficulty of implementation. Keep the list short and powerful.

Elimination of waste
7. Action plan Adopt a standardize plan to implement the alternatives.
8. Monitor the plan Stick to the plan and avoid starts and stops. Status
The team of experts must review the progress and effectiveness of plan
and try to remove any distraction in plan.
9. Measure the results Record all the results. Measure the actual results
against the expected results.
10. Use check sheets to record all identified waste and sum up all eliminated
wastes in terms of profits and benefits the company gains from it.

Implementation of JIT
1.
2.
3.
4.
5.
6.
7.
8.

Review of segmentation of inventory by item types

Ensure that all items are classified
Ensure that unit cost is stated for each item.
Establish anticipated annual demand quantity for each item.
Establish purchase order, purchasing agreement or contract for selected
items with qualified vendors
Establish inventory policy code for each item based on method of
inventory control and method of transaction reporting and recording
Review and establish minimum economical order quantities and safety
stocks required by JIT production
Measure inventory performance to determine effectiveness of Just in
time production and inventory management.

JIT Philosophy
Just in Time is a philosophy which believes that waste can be eliminated
by cutting unnecessary inventory and removing non- value added activities
in operations. The goals are to produce goods and services as
specifications and continuous improvement through value additions.
Job scheduling systems are also known as optimisers. Working out the
optimum way to allocate jobs amongst field workers so that the jobs can be
carried out in the most efficient way and at the least cost to the business.