JIT manufacturing

technique and
modifications
 Introduction
• Just-in-time is an inventory strategy that strives to
improve business’s return on investment and
associated carrying costs.
• JIT inventory systems expose hidden causes of
inventory keeping and are therefore not a simple
solution to adopt.
• The JIT inventory philosophy defines how inventory
is viewed and how it relates to management.
• The focus of JIT is having the right material at the
right place ad at the right time.
• JIT finds it’s origins in japan where it has been in
pratice since 1970’s
• It was perfected and developed by Taichii Ohno of
Toyota
• JIT is also known as lean production and stockless
production.
• JIT uses pull system in which the requirements of
the next station is what modulates the production of
the previous station.
Assembly Line
 Planning for JIT
• It requires understanding the goals and objectives of
the JIT system.
• Integrating and optimizing every step of the
manufacturing process.
• Reducing manufacturing cost
• Producing product on deamand
• Developing manufacturing flexibility
• Keeping customers and links made between
customers and suppliers.
• According to John Young, President of Hewlett-
Packard-” A company cannot decide to implement
JIT system , they must earn the right to use JIT by
revising their quality procurement system.”
 Requirements for JIT
manufacturing
• The corporate commitment to developing the
internal structures and the customer and supplier
bases to support JIT manufacturing is the primary
requirement.
• There has to be alignment within every department
to a common goal.
• A significant financial commitment is necessary
during early stages of development.
• Trust and commitment between a supplier and the
customer is a must.
 Critical elements in JIT
manufacturing
• Commitments- The concept of trust and commitment in JIT is
use to build partnerships.
• Contracts supporting partnerships-Through contracts many of
the problems in developing customer supplier relationships are
overcome by JIT manufacturers.
• Developing JIT suppliers-It is important to develop a link
between the companies so as to ensure long term business
relationship.
• Partnerships- A mutually beneficial system which involves early
supplier involvement , JIT materials shipment and invoicing
systems.
• Customer-Supplier Proximity- It helps in early supplier
involvement , line problems are easier to resolve and
communications are easier.
Integrated Process Control
• The company must be aware of changes in
reqirements and continually improve the production
process.
• IPC achieves the goals of JIT manufacturing by
optimizing the production to meet both manufacturer
and customer reqirements.
• There is continual improvement directed toward
producing product of quality at low cost.\
• Customer needs need to be continuously monitorred
as they change regularly.
 Quality for JIT
• Quality control concentrates on quality at every
stage of manufacturing including the purchase of the
raw material.
• To improve quality two methods used are supplier
quality engineering and receiving inspection.
• On time delivery, fequency of delivery and receiving
and stocking the material are three major aspects
important in purchasing in JIT.
 Issues
• Transaction cost approach- JIT allows a firm to leave the
inventory to it’s suppliers thereby reducing the transaction costs.
• Environmental Concerns-JIT has negative impact on
environment as muliple deliveries have to be made.
• Price Volatility- JIT does respond to price rise as storing
inventory at low price levels is not possible.
• Quality Volatility- Input parts quality may vary with time
impacting the quality of the product.
• Demand Stability- Without significant stable demand efficient
capital utilization is not possible.
 Guidelines for successful
JIT implementation
• Based on diagram modeled after the one used by
Hewlett-Packard’s Boise plant to accompalish it’s
JIT program-
• Design Flow Process
• Reduce Lot sizes
• Link Operations
• Balance workstation capacity
• Preventive Maintaianace
• Reduce setup times
• Worker compliance
• Automatic inspection
• Quality measures
• Level Schedule
• Establish freeze windows
• Kanban pull system
• Reduce lead time
• Frequent deliveries
• Quality Expectatons
• Standard Product configuration
• Process design with product design
 Effects
• One effect was factory time fell to about a day.
• Improved customer satisfaction
• Improvement in product quality
• Just in time manufacture could be applied to other
segments of supply chain also
• Reduction in setup time
• Improvement in flow of goods to warehouses
• Production scheduling got improved.
• Increased emphasis on supplier relationships
 Case Study- Toyota
• Toyota Production System (TPS) is a good
example of JIT.
• It is ranked in top production systems of the
world.
• Toyota relies on lean manufacturing
system,efficient human resource system and
effective JIT inventory system
• Pull production is one of the principles
of TPS where quantity of material of
first stage is guided by the demand
from the next stage.
• The effort is to meet the demand and
satisfy the customer.
• Providing the highest quality at lowest
cost in shortest possible time.
Thank You!!