Introduction

Just-In-time
philosophy

or

JIT,

aimed

is

a
at

management
eliminating

manufacturing wastes by producing only the

right amount and combination of parts at the
right place at the right time. It is also that Just
in

Time

(JIT)

enforces

Continuous

Improvement by continual reduction of nonvalue-added inventory stocks to lower and

then further lower levels. This is based on the
fact that wastes result from any activity that
adds cost without adding value to the product,
such as transferring of inventories from one
place to another or even the mere act of storing them.
The goal of JIT, therefore, is to minimize the presence of non-value-adding operations and
non-moving inventories in the production line. This will result in shorter throughput times,
better on-time delivery performance, higher equipment utilization, lesser space requirement,
lower costs, and greater profits.
JIT was developed as a means of meeting customer demands with minimum delays. Thus, in
the olden days, JIT is used not to reduce manufacturing wastage, but primarily to produce
goods so that customer orders are met exactly when they need the products.
JIT is also known as lean production or stockless production, since the key behind a
successful implementation of JIT is the reduction of inventory levels at the various stations of
the production line to the absolute minimum. This necessitates good coordination between
stations such that every station produces only the exact volume that the next station needs. On
the other hand, a station pulls in only the exact volume that it needs from the preceding
station.
The JIT system consists of defining the production flow and setting up the production floor
such that the flow of materials as they get manufactured through the line is smooth and
unimpeded, thereby reducing material waiting time.

This requires that the capacities of the various workstations that the materials pass through
are very evenly matched and balanced, such that bottlenecks in the production line are
eliminated. This set-up ensures that the materials will undergo manufacturing without
queuing or stoppage.
Another important aspect of JIT is the use of a 'pull' system to move inventories through
the production line. Under such a system, the requirements of the next station are what
modulate the production of a particular station. It is therefore necessary under JIT to define a
process by which the pulling of lots from one station to the next is facilitated.
JIT is most applicable to operations or production flows that do not change, i.e., those that are
simply repeated over and over again. An example of this would be an automobile assembly
line, wherein every car undergoes the same production process as the one before it.
Some semiconductor companies have likewise practiced JIT successfully. Still, there are
some semiconductor companies that dont practice JIT for the simple reason that their
operations are too complex for JIT application. On the other hand, thats precisely the
challenge of JIT creation of a production set-up that is simple enough to allow JIT. (find a
semi conductor factory)
Inventory stocks allow production process to continue even when some problem occurs. In a
way, inventory stocks act like a buffers to hide any problem that may occur. But, with JIT,
there are no buffers to hide problems and thus, occurrence of problem can shut down the
entire production process. Thus, JIT philosophy helps organization to prominently expose
problems and thus, bring a clear focus on removal of it at source, by eliminating the cause,
rather than effects, of problem.
With JIT, it is believed that the root causes of most problems are due to faulty production
process design. Hence, with JIT, nothing is taken for granted, everything is subject to
analysis.
Each activity is identified as either Value-Added or Non-Value-Added. The reduction of
Non-Value-Added activities is achieved mainly through increasing manufacturing
flexibility and improved quality.
JIT is an extremely powerful tool to identify where improvements should be made. It helps
you to identify cause (not the effect) of problem and its elimination. Failures and exceptions

are treated as opportunities to improve the system. In fact, JIT initiates failures due to
problems to expose them. It is a system of trouble-shooting, within a culture of constant
analysis and improvement. It is clear, as an attitude and approach, JIT and TQM are perfectly
complimentary to each other, to expose and correct problems at source, so as to avoid wasting
resources on production of defective products.
Just-in-time manufacturing is a process where suppliers deliver inventory to the factory only
when it's needed for assembly. Companies are beginning to turn to Internet-based
technologies to communicate with their suppliers, making the just-in-time ordering and
delivery process speedier and more flexible.

Background of JIT
JIT finds its origin in Japan, where it has been in practice
since the early 1970s. It was developed and perfected by
Taiichi Ohno of Toyota, who is now referred to as the father
of JIT.
Before the introduction of JIT, there were a lot of
manufacturing defects for the existing system at that time.
This included inventory problems, product defects, risen
costs, and large lot production and delivery delays. The
inventory problems included the unused accumulated
inventory that was not only unproductive but also required a lot of efforts in storing and
managing them. Other implied problems were parts storage, equipment breakdowns and
uneven production levels. For the product defects, manufacturers knew that only one single
product defect could destroy the producers credibility. They must create a defect free
process. Thus began the search for the system that could bring about a turnaround.
The original concepts for the present day JIT philosophy is derived from the car plant
developed by Henry Ford in the early part of the century.
The ideas probably originated even earlier than this. Although many elements of JIT
manufacturing were present in Ford's assembly line in the 1930s, JIT as a manufacturing
process was not refined until the 1970's by Toyota Motors. Springing from Japan's post World
War II goal of full employment through industrialization, Japanese manufacturers imported
technology to avoid heavy R & D expenditures and focused on improving the production
process. Their aim was to increase product quality and reliability. Tai-ichi Ohio established
Toyota as leaders in quality and delivery time through the implementation of JIT. This
position was gained due to a commitment to two philosophies: elimination of waste and
respect for people.
The Japanese developed what we today understand as Just-in-time, through intensive
government supported work, and intended to improve their then inferior industries. Their
programmes began by learning existing techniques from experts such as Deming and Juran,
American quality specialists.

The characteristics of Japan, restrained spaces, no natural energy sources or mineral wealth
put them under pressure and appear to have banished complacency.
Total Quality Manufacturing experts, Deming and Juran, are responsible for pushing North
American manufacturers to adopt JIT philosophies. JIT gained world prominence as North
American manufacturers modified JIT principles to fit into their top down planning and
manufacturing systems approach.

Definitions
JIT has gained considerable interest because it allows a company to produce high quality
products with reduced waste and with increased levels of productivity.
Just-in-time (JIT) is defined by T.C.E Cheng
A philosophy of manufacturing based on planned elimination of all waste and on
continuous improvement of productivity. It also has been described as an approach with
the objective of producing the right part in the right place at the right time
David Hutchins (1995) defined Just in Time as
The term used to indicate that a process is capable of instant response to demand without
the need for any overstocking either in expectation of the demand being forthcoming or as a
result of inefficiency in the process.
Taichi Onho (1986) defined Just in Time as
Just in Time (JIT) is a manufacturing philosophy which leads to producing the necessary
units, in the necessary quantities at the necessary time with the required quality."
Schonberger describes the JIT system as to
"produce and deliver finished goods just in time to be sold, sub-assemblies just in time to
be assembled into finished goods, and purchased materials just in time to be
transformed into fabricated parts".
Monden describes JIT as
"a production system to produce the kind of units needed, at the time needed and in the
quantities needed".

Hall states that JIT

"is not confined to a set of techniques for improving production defined in the
narrowest way as material conversion. It is a way to visualize the physical operations of
the company from raw material to customer delivery".

Elements
The basic elements of JIT are:

S
P
System
ly
People Involvement:
s
a
Maintaining a good support and
t
agreement from people involved in n
production. This is not only reducing
e
the time and effort in implementation t
of JIT, but also minimize the chance of
mcreating implementation problem.
People Involvement
Plants

The attempt to

maximize people's involvement may carry through the introduction of quality circle and total
involvement concept.
Manufacturers can gain support from 4 sources.
1. Stockholders and owners of the company - should maintain a good long-term
relationship among them.
2. Labor organization - all labors should be well informed about the goals of JIT, this is
crucial in gaining support from the them.
3. Management support - support from all level of management. The ideas of continuous
improvement should spread all over the factory, managers and all shop floor labor.
4. Government support - government can show their support by extending tax and other
financial help. This can enhance the motivation, and also help in financing the
implementation of JIT.

Plants: Certain requirements are needed to implement JIT

1. Plant layout - the plant layout is mainly focus on maximizing working flexibility. It
requires the use of "multi-function workers".
2. Demand-pull production - it means to produce when the order is received. This can
manage the quantity and time more appropriately.
3. Kanban - a Japanese term for card or tag. Special inventory and process information are
written on the card. This helps tying and linking the process more efficiently.
4. Self inspection - it is carried out by the workers at catch mistakes immediately.
5. Continuous improvement - this concept should be adopted by every members in the
organization in order to carry out JIT. This is the most important concept of JIT. This can
allow an organization to improve its productivity, service, operation and even customer
satisfaction in an on-going basis.
System This refers to the technology and process that combines the different processes and
activities together. Two major types are Material Requirement Planning and Manufacturing
Resource Planning. MRP is a computer based, bottom-up manufacturing approach. This
involves two plans, production plan and master production schedule. Production plan
involves the management andplanning of resources through the available capacity. Master
production schedule involves what products to be produced in what time.

JIT - Philosophy or Technique????

Just In Time is a philosophy and not the technique for elimination of wastes. The JIT
strategy is to have "the right product at the right place at the right time."The Just-in-time
philosophy that emerged, is a management logic based on simplicity and continuous
improvement. It may be applied to any process where it will aim to make improvements
through elimination of excess, waste and unevenness.
The Just-in-Time concept comprises methods and techniques that aim to increase the
potential for short times to delivery. Production system in which both the movement of goods
during production and deliveries from suppliers are carefully timed so that at each step of the
process the next (usually small) batch arrives for processing just as the proceeding batch is
completed
The "Just in time" (JIT.) inventory concept, also called Kanban, asserts that just enough
inventories, arriving just in time to replace that which was just used, is all the inventory that
is necessary at any given time. Excessive inventory unnecessarily ties up money, adds
warehousing costs, increases risk of damage and risks obsolescence, and most of all, can
possibly obscure opportunities for operational improvements.
Storing inventory is still the basics of warehousing, but in todays business it constitutes only
part of the total. A modern thought on warehousing is that large inventories are really not as
necessary as once believed. To some companies storing large quantities of inventory is
detrimental to business because it ties up capital and can also disguise poor management
practices. The JIT philosophy emphasizes flow flexibility and developing supply chains to
reduce all excess and waste

Implementation Of JIT
Although the just-in-time (JIT) concept is very young, perhaps 10 to 15 years old in this
country, it is so widespread in American manufacturing and service. Perhaps this is because
the idea is so simple and so appealing.
In short, the JIT strategy is to have "the right product at the right place at the right time." It
implies that in manufacturing or service, each stages of the process produces exactly the
amount that is required for the next step in the process. This notion holds true for all steps
within the system.
Suppose, for example, that all products pass through a drilling operation and then a milling
operation. With JIT, the drill produces only what the mill will need next. It also holds for the
last step that is, the system produces only what the customer desires.
Most of the companies today seek this method of implementation:
Form a top-level team:
This teams responsibilities include deciding upon an organizational structure and developing
a plan to implement JIT within the company. This plan should include the companys goals
concerning production, as well as how to establish this plan among all employees (i.e.
motivation & discipline) This plan then be used to establish the overall philosophy of the
company concerning JIT
To train the top management in the basic concepts of JIT:
This is the first step of the implementation process. It is very important to educate and train
the top-level management, as they are the ones who frame policies and get things moving.
This being a new idea, getting this into practice will need full support & cooperation from
these people.
To implement this system to every aspect of the company from supplier to distributors:
First of all each department should establish its goals and a specific problem to attack. Then a
team should be chosen by each department and establish team leaders. The teams should
focus on the reduction of costs and the elimination of wastes. Data must then be collected on

the teams problems. This data should be plotted in order to find excess waste or costs. Once
this is done, measurement should be plotted in order to find excess waste or costs.
Once this is done, measurement should be made. Manipulation of this data should show at
least some apparent problems in the current system. Further analysis should help in the
implementation of JIT by showing problem areas. In addition, the data the data could be used
to show the effects of implementing JIT into the company.

How Can JIT Implementation be Successful??

Stabilize and level the MPS with uniform plant loading: create a uniform load on all work
centres through constant daily production (establish freeze windows to prevent changes in the
production plan for some period of time) 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.
Reduce or eliminate set-up times: aim for single digit set-up times (less than 10 minutes) or
"one-touch" set-up -- this can be done through better planning, process redesign, and product
redesign.
Reduce lot sizes (manufacturing and purchase): 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.
Reduce lead times (production and delivery): production lead times can be reduced by
moving work stations closer together, applying group technology and cellular manufacturing
concepts, reducing queue length (reducing the number of jobs waiting to be processed at a
given machine), and improving the coordination and cooperation between successive
processes; delivery lead times can be reduced through close cooperation with suppliers,
possibly by inducing suppliers to locate closer to the factory
Preventive maintenance: use machine and worker idle time to maintain equipment and
prevent breakdowns
Flexible work force: workers should be trained to operate several machines, to perform
maintenance tasks, and to perform quality inspections. In general, the attitude of respect for
people leads to giving workers more responsibility for their own work.
Require supplier quality assurance and implement a zero defects quality program:
errors leading to defective items must be eliminated, since there are no buffers of excess
parts. A quality at the source (jidoka) program must be implemented to give workers the
personal responsibility for the quality of the work they do, and the authority to stop
production when something goes wrong.

Techniques such as "JIT lights" (to indicate line slowdowns or stoppages) and "tally boards"
(to record and analyze causes of production stoppages and slowdowns to facilitate correcting
them later) may be used.
Small-lot (single unit) conveyance: use a control system such as a kanban (card) system to
convey parts between workstations in small quantities (ideally, one unit at a time). In its
largest sense, JIT is not the same thing as a kanban system, and a kanban system is not
required to implement JIT (some companies have instituted a JIT program along with a MRP
system), although JIT is required to implement a kanban system and the two concepts are
frequently equated with one another.

Problems Implementing JIT

JIT is a philosophy whose objective is to eliminate all sources of waste, including
unnecessary inventory and scrap in the production. Although JIT can eliminate many wastes,
it also has problems in the implementation.
Repetitive production.
Standard products.
Short set-up times.
Demands discipline.
Sloppy work, no late delivery.
Bad management.
Stable demand, level production.
Cooperation and trust between people.

Guidelines for Successful JIT Implementation

Make the factory loadings uniform, linear, and stable. Fluctuations in manufacturing
loadings will result in bottlenecks.
Reduce, if not eliminate, conversion and set-up times.
Reduce lot sizes. This will smoothen out the flow of inventories from one station to another,
although this may necessitate more frequent deliveries or transfers.
Reduce lead times by moving work stations closer together and streamlining the production
floor lay-out, applying cellular manufacturing concepts, using technology to automate
processes and improve coordination.
Reduce equipment downtimes through good preventive maintenance.
Cross-train personnel to achieve a very flexible work force.
Require stringent supplier quality assurance since an operation under JIT can not afford to
incur errors due to defects.
Use a control system to convey lots between workstations efficiently; the use of a kanban
system

Benefits of JIT
JIT benefits could be grouped into the following categories;
Product Cost: This is greatly reduced of manufacturing cycle time, reduction of scraps,
inventories, space requirement, and material handling and eliminations of non-value adding
operations.
Quality: It has greatly improved due to fast detection and correction of defects, use of
automatic stop devices, higher quality of purchased parts, worker centered quality control and
statistical process control. Total preventive maintenance an d lower inventory levels also help
in quality improvements.
Design: Due to fast response to engineering change, alternative designs can be quickly
brought on the shop floor.
Productivity: Order magnitude productivity improvements are obtained due to the use of
flexible workforce, reduced rework, reduced inspection, reduced part delay and reduced
throughout time. Workers acquire multiple skills and become highly productive.
The other benefits are:
Reduced levels of in-process inventories, purchased goods, and finished goods.
Reduced space requirements.
Increased product quality and reduced scrap and rework.
Reduced lead times.
Greater flexibility in changing the production mix.
Worker participation in problem solving.
Pressure to build good relationships with vendors.

Drawbacks of Just In Time

Regardless of the great benefits of JIT, it has its drawbacks.
JIT has the following major drawbacks:
Culture Differences: The organizational cultures vary from firm to firm. There are some
cultures that tie to JIT success but it is difficult for an organization to change its cultures
within a short time.
Traditional Approach: The traditional approach in manufacturing is to store up a large
amount of inventory in the means of backing up during bad time. Those companies rely on
safety stocks may have a problem with the use of JIT.
Difference in implementation of JIT. Because JIT was originally established in Japanese, it
is somehow different for implementing in western countries. The benefits may vary.
Loss of individual autonomy: his is mainly due to the shorter cycle times which adds
pressures and stress on the workers.
Loss of team autonomy: This is the result of decreasing buffer inventories which lead to a
lower flexibility of the workers to solve problem individually.
Loss of method autonomy: It means the workers must act some way when problems occur,
this does not allow them to have their own method to solve a problem.
JIT success is varied from industry to industry. Some industries are benefit more from JIT
while others do not.
Resistance to change JIT involves a change throughout the whole organization, but human
nature resists to changes. The most common resistances are emotional resistance and rational
resistance. Emotional resistance are those psychological feeling which hinder performance
such as anxiety. Rational resistance is the deficient of the needed information for the workers
to perform the job well.
Some other limitations:Relationship between management and employees is important .A mutual trust must be built
between management and employees in order to have effective decision making.

Employee commitment: Employees must commit to JIT, to enhance the quality as their
ultimate goal, and to see JIT as a way to compete rather than method used by managers to
increase their workload.
Production level JIT works best for medium to high range of production volume.
Employee skill JIT requires workers to be multi-skilled and flexible to change.
Compensation should be set on time-based wages. This allows the workers to concentrate on
building what the customers wants.

Factors Debilitating JIT

Listed below are few of the factors that can debilitate JIT:
Lack of Experience and expertise: JIT being a relatively novel concept for the Indian
Industries, lack of experience and expertise at every level of management could in turn hinder
the growth and development of the organization.
Shortcoming of Suppliers: These include factors such as unpredictable quality, erratic
deliver schedules, varying quantity dispatches, machine breakdowns and quality related
losses etc
Little or no incentive for suppliers to adopt JIT delivery: JIT generally does not provide
any incentives such as credit facilities, discounts on bulk purchases, etc. to the suppliers to
meet with the delivery dates. It is mandatory that they provide the same.
Lack of commitment from buyers: This basically means cancellation of orders by the
buyer. This happens due to termination or postponement of orders down the line.
Unreliable power supply: Power is among the basic necessity for any plant operation.
Unreliable power supply is quite a common phenomenon is a country like India. Very few
places in the country get uninterrupted power supply throughout the day. This halts
production and deliver dates cannot be met by the supplier.
Labour problems such as lockouts, strikes, etc: Labour unrest also can be a hindrance in
the JIT system. Laborers from labour unions and take out strikes and can vow not to work
unless their demands are fulfilled. These obstacles are mostly expected in developing or
under developed economies like India. Thus, there it is essential to see that such situations do
not occur frequently.
Poor transport and infrastructure facilities: this is a major concern for factories located in
remote areas. Taking India as an example, we cannot boast of a good transport and
infrastructure capacity for the movement of men and material. We lag behind by 10-15 yrs as
compared to the western and South-Eastern Nations. JIT is only possible when there is an
uninterrupted flow of material, which is likely to happen when there exists coordinated and
smooth transportation.

Focus of JIT
Mainly JIT focuses to eliminate the waste or the non-value added. Thus there are several
types of wastes categorisedThe following "seven wastes" identify resources which are
commonly wasted. They were identified by Toyota's Chief Engineer, Taiichi Ohno as part of
the Toyota Production System:

Transportation
Each time a product is moved it stands the risk of being damaged, lost, delayed, etc. as well
as being a cost for no added value. Transportation does not make any transformation to the
product that the consumer is supposed to pay for.
Inventory
Inventory, be it in the form of raw materials, work-in-progress (WIP), or finished goods,
represents a capital outlay that has not yet produced an income either by the producer or for
the consumer. Any of these three items not being actively processed to add value is waste.
Motion
As compared to Transportation, Motion refers to the producer, worker or equipment. This has
significance to damage, wear and safety. It also includes the fixed assets and expenses
incurred in the production.
Waiting
Whenever goods are not in transport or being processed, they are waiting. In traditional
processes, a large part of an individual product's life is spent waiting to be worked on.
Over-processing

Over-processing occurs any time more work is done on a piece than what is required by the
customer. This also includes using tools that are more precise, complex, or expensive than
absolutely required.
Over-production
Overproduction occurs when more product is produced than is required at that time by your
customers. One common practice that leads to this muda is the production of large batches, as
oftentimes consumer needs change over the long times large batches require. Overproduction
is considered the worst muda because it hides and/or generates all the others. Overproduction
leads to excess inventory, which then requires the expenditure of resources on storage space
and preservation, activities that do not benefit the customer.
Defects
Whenever defects occur, extra costs are incurred reworking the part, rescheduling production,
etc.

Objective of JIT
The prime goal of JIT is the achievement of zero inventories, minimal work in progress not
just within the confine of a single organization, but ultimately through out the entire supply
chain.
There are three main objectives.
1. Increasing the organizations ability to complete with others and remain
competitive over the long run. The competitiveness of the firm is increased by the use
of JIT manufacturing process as they can develop a more optimal process for their
firms.
2. Increasing efficiency within the production process. Efficiency is obtained through
the increase of productivity and decrease of cost.
3. Reducing wasted materials, time and effort. It can help to reduce the costs.
Other objectives of JIT:
4. Identify and response to consumers needs. Customers needs and wants seem to be
the major focus for business now, this objective will help the firm on what is
demanded from customers, and what is required of production.
5. Optimal quality/ cost relationship. The organization should focus on zero defect
production process. Although it seems to be unrealistic, in the long run, it will
eliminate a huge a huge amount of resources and efforts in inspecting, reworking &
the production of defected goods.
6. Plant design for maximizing efficiency. The design of plant is essential in terms of
manufacturing efficiency and utility of resources.

7. Develop a reliable relationship between the suppliers. A good and long long-term
relationship between organization and its suppliers helps to manage a more efficient
process in inventory management, material management and delivery system. It will
also assure that the supply is stable and available when needed.
8. Adopt the work for continuous improvement. Commit a long- term continuous
improvement throughout the organization. It will help the organization to remain
competitive in the long run.

9. Reduce unwanted wastes. Wastes that do not add value to the products itself should
be eliminated. JIT helps significantly in reducing wastes
JIT can help an organization to remain competitive by offering consumers higher quality of
products than their competitors, which is very important in the survival of the market
place.

Introduction Phase for Just in Time:

According to Hirano, the introductory phases of JIT involve 5 steps.

5 STEPS IN THE INTRODUCTORY PHASE OF JIT

Step 1: Awareness Revolution

It means giving up old concept of managing and adopting JIT way of thinking. There are 10
principles for improvement:
1.Abolish old tradition concepts.
2. Assume that new method will work.
3. No excuses are accepted.

4. It is not seeking for perfection, absolutely zero-defect process, few defects is acceptable.
5. Correct mistakes immediately.
6. Do not spend money on improvement.
7. Use you brain to solve problem.
8. Repeat to ask yourself 5 times before any decision.
9. Gather information from several people, more is better!
10. Remember that improvement has no limits.
The idea of giving up old concept was especially for the large lot production, The lot
production was felt that "having fewer changeover was better", but it was no longer true.
Whereas JIT is a one-piece flow manufacturing. To compare the two, Hirano had this
idea:Lot production: "Unneeded goods...In unneeded quantities...At unneeded times..." JIT:
"Needed goods...In needed quantities...At needed times..." The main point here is to have an
awareness of the need of throwing out old system and adopting a new one.
Step 2: 5Ss For Workplace Improvement
The 5Ss stand for:
Seiri - Proper Arrangement
Seiton - Orderliness
Seiso - Cleanliness
Seiketsu Cleanup
Shitsuke Discipline
This 5Ss should be implemented company-wide and this should be part of a total
improvement program.
Seiri - Proper Arrangement means sorting what you have, identifying the needs and throwing
out those unnecessary.One example is using red-tags. This is a little red-bordered paper
saying what the production is, how many are accumulated and then stick these red tags onto

every box of inventory . It enhances the easiness to know the inventory status and can reduce
cost.
Seiton - Orderliness means making thing in order. Examples include keeping shelves in
order, keeping storage areas in order, keeping workplace in order, keeping worktables in
order and keeping the office in order.
Seiso - Cleanliness means having a clean workplace, equipment, etc.
Seiketsu - Cleanup mean maintaining equipment and tools.
Shitsuke - Discipline means following the rules and making them a habit.

Step 3: Flow Manufacturing

Flow manufacturing means producing one single piece of product at a time but multihandling which follows the process sequence.
There are several main points concerning flow manufacturing:
1. Arrange machines in sequence.
2. U-shaped production line (Cellular
Manufacturing).
3. Produce one-piece at a time.
4. Train workers to be multi-skilled.
5. Follow the cycle time.
6. Let the workers standing and
walking around while working.
7. Use small and dedicated machines.

Step 4: Standard Operations

Standard Operation means to produce quality safely and less expensively through efficient
rules and methods of arranging people, products and machines.
The basis of standard operations is:
Cycle time It means how long it would take to "carry out part all the way through the cell".
Following are the equations for calculating cycle time.
Daily Quantity Required = Monthly Quantity Needed / Working Days per month
Cycle Time = Working Hours per day / Daily Quantity Required Work sequence
Standard stock-on-hand
Use operation charts
Step 5: Multi-Process Handling
Multi-process handling means one worker is responsible for several processes in a cell.
Some points that should be aware:
Clearly assign jobs to machines and workers.
Make a good use of

U-shaped cell

manufacturing.

Multi-skilled workers
Operation should be able to perform multimachine handling and multi process handling.
Multi-machine handling - a worker should handle several machines at once, this is also
called "horizontal handling".
Multi-process handling - a worker should handle several different processes at once, this is
also called "vertical handling" and this is the basis for JIT production.Uses casters
extensively as author written, "Floor bolts are our enemies! Machines must be movable."

Technique Use
1.Kanban an Integrated JIT System
Kanban stands for Kan-card, Ban-signal. It was originally developed at Toyota in the 1950s
as a way of managing material flow on the assembly line. This is simple parts-movement
system that depends on cards and boxes to take parts from one workstation to another on a
production line.
The essence of the Kanban concept is that a supplier or the warehouse should only deliver
components to the production line as and when needed, so that there is no storage in the

production area. In this system, workstations located along production lines only produce or
deliver desired components when they receive a card and an empty container.Kanban is a
production system, which draws many of its elements from two primary sources, industrial
re-engineering, and work force. Industrial reengineering along with Kanban consists of
Elements such as:
1.
2.
3.
4.

Modular/cell production. Products-oriented layout of processes and machine layout.

U-shaped production / processing lines.
Total Preventive Maintenance
Mass production of mixed models

Advantages of Kanban Process:

1.
2.
3.
4.
5.
6.
7.
8.
9.

It is a simple and understandable process.

Provides quick and precise information.
Provides quick response to changes.
Low costs associated with the transfer of information.
Limit of over-capacity in processes.
Avoids over production.
Minimize waste.
Control can be maintained.
Delegates responsibility to line workers.

2.Group Technology (GT)

This is a modular manufacturing system, which involves organizing machineries so that
related products can be manufactured in a continuous flow. Here, products flow smoothly
from start to finish, parts do not wait for move.
This can be contrasted to a typical production system, where machines are grouped by
function and products move from one function to another and back again. This results in long
waiting times between procedures.
Characteristics of GT
1.
2.
3.
4.
5.
6.

Number of new parts is less

Any new part required are designed to suit the manufacturing system.
Manufacturing standards are set for each part family.
Set up time is reduced. However number of settings per period does increase.
Varity of processes to be handled by workman giving him increased job satisfaction.
It provides flexible manufacturing systems and computer aided manufacturing.

Benefits of GT
1. Reduction in work in process

2. Reduction in over all stocks of material

3. Reduction in through put time
4. Reduction in over due orders
5. Reduced data processing
6. Increase in out put per employee
7. Increase in sales
8. Simplification of material flow system.
9. Improvement of production and planning control
10. Improvement in material handling
11. Better allocation of responsibility

3.SMED (Single digit Minute Exchange Die)

SMED, stands for Single-Minute Exchange of Die, is a technique for performing setup
operations in number of minutes expressed in a single digit. Mr. Shingo revolutionized the
SMED method since 1950 in Japan.

E.g. Bottling industries sometimes spend more than 20% of their planned production time on
changeovers. These setup and changeover times can be reduced significantly when the
changeover SMED system is applied.
4.JIDOKA (Automation)

JIDOKA is the concept of adding an element of human judgment to automated equipment.

So that the equipment can identify unacceptable items and the automated process becomes
more reliable.

JIDOKA means not allowing problems to pass from one workstation to the next. Such that
the production of a defective part is detected immediately and machine responds by stopping
and requesting help.
E.g.

In

Toyota

power

loom

the

shuttlecocks would stick and create defects

in the cloth being produced. The Toyota
loom incorporated a simple stopper that
was activated by a sticking shuttlecock.
The operator could stop machine when the
shuttle would stick.
Objective of JIDOKA
1. Ensuring 100% quality.
2. Preventing equipment breakdowns.
3. Using manpower efficiently.
5.Total Productive Maintenance (TPM)
In any factory it is necessary to run all the equipments on continuous basis to get maximum
out put. It is found that generally that does not happen. There is loss if any tool or machine is
not in use. Due to any reason like material not available or the machine is not working. In
order to avoid such losses TPM is implemented. For this purpose following steps should be
taken.

1.
2.
3.
4.

All the reason for the loss of equipment should be avoided.

Preventive Maintenance program is to be made.
Operator should be given training to maintain his equipment when required.
Autonomous maintenance by the operator along with the small group activity is to be
done.

6.Pokayoke (Mistake Proofing)

Pokayoke invented by Shigeo Shingo in the 1960s. The term Pokayoke comes from the
Japanese words Poka(mistake) and yoke (prevent).People are human and cannot be
expected to do everything like a machine, exactly the same each time.

The basic principles of Pokayoke advocate developing tools, techniques and processes such
that it is impossible or very difficult for people to make mistakes. E.g. a plate that must be
screwed down in one orientation only could have the screw holes in non-symmetrical
positions so that it can only be screwed in the right orientation.Following are the principles
of improvement
1.
2.
3.
4.
5.
6.

Build quality in processes.

All errors and defects can be eliminated.
Stop doing wrong and start doing right.
Dont think of excuses. Think about how to do right.
60% chance of success is good enough.
Mistakes and defects can be reduced to zero when every one works together to

eliminate.
7. Ten heads are better than one.
8. Seek out true cause using 5Ws and one H.

Why Should You Use JIT?

1.JIT Improves Organizational Efficiency
Just in Time Inventory Control eliminates waste and improves quality, and in the process,
improves all round organizational efficiency.JIT improves organizational efficiency in five
major ways:
1. The Just in Time method entails sourcing the required raw material or item for
processing on demand, and scheduling the work based on order or demand for the
product. This synchronization of supply with production, and production with
demand improves the flow of goods and reduces the need for storage facilities.
2. JITs focus on eliminating waste from the production process lead to redesign of the
workspace to ensure a smooth flow of goods or processes, eliminating redundant
tasks and minimizing transportation of the product across the workspace.
3. The traditional manufacturing process call for batch manufacturing or
manufacturing of a particular component or model in a lot before moving on to
another batch or lot. JIT makes it possible to manufacture even single pieces or
components without any delays.
4. JITs system of kanban or specific instructions for each worker eliminates all scope
for mistakes in the workfloor.
5. The relentless effort to eliminate waste and achieve zero-defects improves
productivity, cuts down manufacturing time, and improves product quality
2.JIT Reduce Costs
Among the major benefits of JIT system is the elimination of raw material, inventory and
product storage costs.

1. The traditional notion is to consider raw materials or inventory of finished goods as

an asset. The JIT method turns this concept upside down and considers stock as
waste or dead investment incurring opportunity costs.
2. The JIT system sources raw materials close to the manufacturing time, and ships out
the product to the customer immediately without storage, leading to substantial
savings resultant from not storing raw materials or stocking up finished goods.
Deploying funds tied up in raw materials and inventories to generate additional
revenue do wonders to the finances of the organization.
3. JITs thrust on elimination of waste from the production process and improving
product quality reduces damaged goods and saves on Human Resources costs
considerably. All these cost savings translate to a lower manufacturing price for the
product.
3.JIT Improves Supplier Relationships
The success of JIT depends on the ability of the supplier to produce raw materials on
demand.The benefits of JIT extend to improved relationship with the suppliers on many
counts:
1. JIT develops a system of effective communication with the supplier, specifying the
exact product required in exact quantity and the specific time of delivery. This
eliminates all scope of misunderstandings or miscommunication.
2. The success of JIT requires reliable suppliers and organizations takes the initiative to
upgrade supplier competencies and establish a long-term relationship with the
supplier to ensure compatibility and standardized products
3. The exact nature of order and the long-term proactive relationship with suppliers
eliminate the need for inspection of received goods
4.JIT Allows Customization and Increase Customer Satisfaction
Just in Time Inventory adjusts production to demand, making possible fulfillment of custom
orders without any extra effort or extra time, leading to increased customer satisfaction.

A practical example in this aspect relates to McDonald's. The application of JIT principles has
helped McDonalds cater to the order of any special type of burger with equal ease and in the
same time as any other burger. Without JIT, the workforce would be geared to deliver fast
moving burgers fast, but a peak-hour order of a rare item on the menu, or a special order
would throw the kitchen out of gear.

5.JIT Develops Human Resources

Implementation of JIT requires workforce flexibility and a highly skilled and committed
workforce. The advantages of Just in Time Inventory extend to the companys Human
Resources in the following ways:
1. Investment in training to develop existing skill and broaden skill sets
2. More effective usage of employees with multiple skills
3. Increased motivation through job rotation
4. Better productivity

JIT vs MRP
JIT and MRP are completely unlike, but are complementary concepts used in material
planning and control. MRP stands for Manufacturing Resource Planning, while JIT is Just in
Time. MRP is a resource and planning tool that is forward-thinking, and time-phased. The
philosophy of JIT, on the other hand, is based on the riddance of waste. One important feature
of JIT is known as kanbas, which is a method of performance based on restoring used
material that has no forward visibility.
While operating a manufacturing business, it is possible to operate only with MRP, but the
case isnt the same with JIT, because it does allow for forward planning, which is a vital
planning requirement when running a manufacturing operation. There is a need to ensure that
materials which cannot be replaced by kanbas, can be availed when needed. This makes
MRP a tool that gives more control, while JIT increases the value of your processes.
There is a mistaken analysis of referring to JIT as a pull system, and to MRP as a push
system. This analysis can be greatly misleading. MRP is a system which focuses on satisfying
the requirements of the projected usage in a determined time frame. JIT is very much
focused on the current, real usage, where parts of the production system are connected
with the use of Kanbans, while the system runs. It is this kind of linkage that is the main
distinguishing feature between JIT and MRP. The JIT system is dynamically linked, whereas
MRP is not. This means that JIT is most applicable when lead times are short, whereas MRP
is suited for longer lead times. To add to that, for computerized operations, you are better off
implementing MRP, than JIT.
Generally, in MRP, there are two basic information types that are required: Structural and
tactical. Structural information includes the information about the components used by the
company, and the relationship between the different items. Things such as the lead time and
batch size rule are included in structural information. The essential point about this
information, is that it does infrequently vary.
Tactical information includes such things as the current state of the operation, for instance,
pending sales orders, master production schedules, inventory levels, and purchase orders.
Obviously, the fundamental point about this information, is that it frequently varies.

Just in time production (JIT)

Just in time is a pull system of production, so actual orders provide a signal for when a
product should be manufactured. Demand-pull enables a firm to produce only what is
required, in the correct quantity and at the correct time.
This means that stock levels of raw materials, components, work in progress and finished
goods can be kept to a minimum. This requires a carefully planned scheduling and flow of
resources through the production process. Modern manufacturing firms use sophisticated
production scheduling software to plan production for each period of time, which includes
ordering the correct stock. Information is exchanged with suppliers and customers through
EDI (Electronic Data Interchange) to help ensure that every detail is correct.
Supplies are delivered right to the production line only when they are needed. For example, a
car manufacturing plant might receive exactly the right number and type of tyres for one
days production, and the supplier would be expected to deliver them to the correct loading
bay on the production line within a very narrow time slot.
Advantages of JIT

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

Disadvantages of JIT

There is little room for mistakes as minimal stock is kept for re-working faulty
product

Production is very reliant on suppliers and if stock is not delivered on time, the whole
production schedule can be delayed

There is no spare finished product available to meet unexpected orders, because all
product is made to meet actual orders however, JIT is a very responsive method of
production

Just in time manufacturing

Just in Time or JIT is a philosophy from Japan.Just in time or JIT manufacturing involves
efficient production of high quality goods using minimum amount of Raw materials, WIP
(Work in progress), and Finished Products.
Just in Time or JIT philosophy aims at eliminating all kinds of waste.JIT also
seeks continuous improvement in terms of quality and productivity.
The system operates with very little inventory and the output reaches at the next workstation
Just in time.The final assembly is put just before the sale takes place .The goods will not
be produced until and unless they are needed, and this depends on the demand for the
product.
There are Seven Wastes in Just in Time or JIT: Waste of overproduction, Waste of waiting,
Waste of transportation, Waste of processing, Waste of stocks, Waste of motion, Waste of
defectives
Advantages or Benefits of Just in Time or JIT:

Continuous improvement in quality

Cost is reduced

Elimination of waste

Manufacturing time is cut down

Better productivity

Lower Work in progress

Better supplier relationships

Cost efficient production

Defect free output

Drawbacks or Disadvantages of Just in Time or JIT:

JIT system may not be able to manage sudden variations in demand

Just-in-Time Purchasing
The Japanese by no means confine the JIT concept to in-plant production.

Purchased

inventories are considered as evil as in-plant inventories.

The Japanese tend to buy in small lots from the same few suppliers year after year. Suppliers
develop a competency that is particularly attuned to the delivery and quality needs of the
buying firm. Confidence in the supplier reduces buffer inventories which are sometimes used
up in only a few hours. Delivery frequency from the supplier may be more than once a day.
And over time, some suppliers achieve quality levels high enough for all receiving
inspections to be bypassed and for the parts to go right to the production line rather than to a
receiving dock.
Under JIT, suppliers also benefit, especially from long-term contracts and stable relationships
with the buying plant. By making parts steadily rather than in batches, the supplier realizes

inventory, quality, and scrap improvements. Defects are identified early, and there are fewer
defectives to throw out or rework. Further inventory benefits may be gained if the supplier
also initiates JIT buying from its own suppliers.
A less obvious but potentially great benefit to the supplier is less need for large, expensive
equipment and steadier utilization of existing equipment since the supplier may produce in
the same steady daily amounts as are called for in the JIT purchase agreement.
The benefits of JIT buying are greatest in the case of materials used every day. For materials
whose usage rates are irregular, one can go only so far toward frequent deliveries in small
amounts. But still the point is to try to go as far as possible.
In Japan it is common for a JIT purchase agreement to involve very little paper work. The
purchase order (PO) or contract may specify an overall quantity to be delivered during a
period of several months in accordance with a long-term production schedule provided by the
buying plant.
Some Japanese OEM companies use kanban instead of a production schedule to trigger
deliveries. The kanban are released from the using work center on the shop floor of the OEM
Company. Deliveries are thus matched with the work centers rate of usage and hence are
closer to being just-in-time than would be the case if they were based on a production
schedule. The kanban may serve as the invoice when returned with the parts to the OEM
plant. The quantity of cards is totaled. The total is payable perhaps once a month.
Another notable feature of the Japanese system of industrial buying is simplicity of the
product specifications. The Japanese way, is to rely more on performance specifications and
less on design specifications. The idea is to let a supplier innovate. After all, the supplier is
the expert. Why not rely on the suppliers expertise?
It is common practice for U S suppliers to ship somewhat more or less than the quantity
called for in the purchase agreement. The Japanese buyer expects and gets an exact quantity
or very

close to it. The Japanese commonly use packages or containers with a standard

number of divided spaces or an exact cube. This makes it easy to count out the right number.
American buyers take shipping costs and the whole freight handling system to be a given,
which tends to force large-lot buying. JIT buying, like JIT production, considers any such

obstacles to cutting lot sizes as a challenge rather than as a given. The freight system may be
attacked in various ways, and distances to suppliers must become an important consideration
in selecting them. These issues are examined further in the next sections.
The typical U S way of dealing with inbound freight is to leave it to the supplier and the
transportation industry. But the transportation systems, primary concern is with optimal
utilization of drivers, storage space, and trailer or rail-car cubes. One way is to try to deal
with clusters of vendors rather than widely scattered ones, so that freight may be consolidated
daily in economical full trailer loads or carloads. Vendor clusters also afford increased use of
contract shipping or company-owned trucks and use of trailers as portable warehouses.
These measures improve control over freight scheduling and make it possible to avoid the
uncertainties of dealing with break-bulk warehouses.
As deliveries become frequent, full truck loads may not be possible. Unit-load economics
may be overcome by cutting the transportation distance between supplier and buyer plants.
Proximity also means that there are numerous coordination benefits.
Toyota, Nissan, Honda, and many other companies that seem not to be vertically integrated
actually exercise extensive control over their suppliers. Sometimes the supplier plants are
partially owned by the buying firm. But even when that is not the case, control is exercised.
Buyer representatives constantly visit the supplier plants and come to know the suppliers
capabilities and weaknesses, perhaps even better than a U S assembly plant typically knows
its own subsidiary fabrication plants. On the other hand, Japanese companies that are highly
vertically integrated in an ownership sense are often internally organized into small units, so
that over control does not stifle local initiative and pride.
A rule of thumb in the U S purchasing trade is to have at least two suppliers for a given
purchased part. Japanese companies, by contrast, hope to evolve to buying a given part from
just one supplier but a good one, and preferably one that does little business with other buyer
companies. The Japanese buying firm wants to be the dominant reason for the suppliers
existence. A supplier selling, say, 60 percent of its output to a single buying company will go
to great lengths to be responsive.
Building up and staying with a base of dedicated, high-quality suppliers seems resourceful, as
compared with the musical-chairs pattern practised in the U S.

Frequent rebidding is

supposed to search out the best current price. But that opens the door to those who quote low
to get the contract and then fail to perform satisfactorily. Also in awarding a contract to a
new lower bidder, the previous supplier is taken off his learning curve and a supplier who
may have to go through a debugging period that the first supplier already experienced. Of
course, the purchasing department is supposed to thoroughly check out a potential new
suppliers capabilities before awarding a contract. But such investigation is time-consuming
and subject to error as compared with the administrative simplicity of sticking with the old
supplier. Rebidding also fails to generate supplier loyalty, which can mean panic when a
supplier is unable to fill orders fast enough and must decide which buyer to favor

Just-in-Time Production
Just-in-time production is a simple concept. It is not about automation. It requires little use of
computers. In some industries, JIT can provide far tighter controls on inventory than are
attainable through U S computer-based approaches. Furthermore, JIT leads to significantly
higher quality and productivity. JIT provides visibility for results so that worker responsibility
and commitment are improved. Applications and benefits of JIT/TQC may be extended from
the factory itself forward into distribution and backward into the supplier end of the business.
The JIT idea is simple. Produce and deliver finished goods just in time to be sold,
subassemblies just in time to be assembled into finished goods, fabricated parts just in time to
go into subassemblies, and purchased materials just in time to be transformed into fabricated
parts. All materials must be in the processing stage, never at rest collecting carrying charges.
This hand-to-mouth mode of operation, approaches piece-by-piece production.

The system becomes very transparent. If a worker makes only one of a given part and passes
it to the next worker immediately, the first worker will hear about it if soon the part does not
fit at one of the next work stations. Thus, defects are discovered quickly. The causes of
defects can be nipped in the bud. Production of large lots high in defects is avoided. Due to
reduced scrap and more good parts, the time and money spent on rework drops. So does the
cost of wasted materials.
Under JIT, if a part doesnt fit at the new work station, the worker who made the bad part will
probably not find it hard to guess what he did wrong. In short, the workers awareness of
defect causation is heightened. So, the worker is strongly motivated to improve.
Large lot sizes lead to carelessness on the part of the worker, the workers peer group, and
perhaps the labor union and management as well. They may feel, with some justification, that
a certain percentage of bad parts in a large lot causes little harm; in a large lot there may be
plenty of good items for every bad one.

Just toss the defectives aside and keep on

assembling. With small JIT lot sizes, by contrast, a few defectives parts pinch hard. The
need to avoid errors is apparent, which heightens the sense of responsibility.
Western observers have marveled at how Japanese workers come to one anothers aid to
resolve problems. We might expect such behaviour in a JIT plant. It is natural for each
affected worker to want to come to the aid of the worker whose drive belt breaks, whose
machine is jammed, or who is having any of a large variety of other common problems.
The Japanese no longer accept the buffer principle. They seem to have understood the
essence of the buffer inventory principle: The more irregularity, the more buffer stock.
Instead of adding buffer stocks at the points of irregularity, Japanese production managers
deliberately expose the work force to the consequences. The response is that workers and
foreman rally to root out the causes of irregularity. They know that otherwise there may be
work stoppages.
The Japanese principle of exposing the workers to the consequences of production
irregularities is not applied passively. In the Toyota Kanban system, for example, each time
that workers succeed in correcting the causes of recent irregularity the managers remove still
more buffer stock. The workers are never allowed to settle into a comfortable pattern. The
pattern becomes one of continually perfecting the production process.

A happy incidental benefit of JIT is faster market response, better forecasting, and less
administration. Less idle inventory in the system cuts overall lead time from raw materials
purchasing to shipping of finished goods. Marketing can thereby promise deliveries faster,
can effect a change in the product mix or quantity faster, and can forecast demand better since
the time horizon is shorter. In as much as JIT systems tend to be run by workers and
foremen, the administrative budget for data processing, accounting, inspection, materials,
production planning and control and so forth is less. With fire-fighting responsibilities clearly
recognized and accepted by line workers, the executives can sit back and focus on strategy.

Is Just In Time Right for your Business?

Just In Time usually works best if your business produces a medium to high volume of a
relatively high value product. (Its origins are in car manufacturing). Ideally your company
should have short setup times on machines, and a commitment to quality assurance.
To see if Just In Time might be applicable to some or all of your business, work through the
following steps.
Examine your business model

Are major customers driving an initiative towards more automated ordering and
supply?

Could you extract more value from your suppliers by communicating directly with
their systems?

Could you win more customers or foster increased customer loyalty by extending
your business processes into supply partner organisations?

If you answered "Yes" to any of these questions, your business could benefit from employing
JIT techniques in your ordering, planning and dispatch.
Identify key stages in the business

Can

you

identify the key interfaces

between

your

business

and

your

suppliers/customers?

Are ordering, delivery or transportation failures costing you time and money?

Can you quantify the cost of failure/delay at any given interface between you and
your suppliers/customers?

Have you calculated the cost of managing your supply chain and could you reduce the
cost by automating the processes?

If you answered "Yes" to any of these questions you are ready to look at the next section
below on inventory. If you answered "No" to any of these questions you should review your
processes further.
Minimise inventory

Do you know how much inventory you hold at any one time?

Do you know how much inventory you need to hold at any one time?

Would you benefit from implementing systems that communicate this information
automatically to supply chain partners?

If you answered "Yes" to these questions, you are ready to look at the next section below on
demand planning. Weigh up the benefits of minimising inventory against the costs of
investing in JIT technology.
Analyse demand peaks

Does production proceed at a rate dictated by your customers rather than your supply
chain partners?

Do you know in advance when demand peaks will occur?

Do your supply chain partners know in advance when your demand peaks will affect
their business?

Can you quantify the cost of delays at peak periods?

If you answered "No" to any of these questions, you should consider using automated JIT
techniques in ordering, supply and production to streamline your supply chain.
Review your working practices

Is the sequence of steps required to take a product from point of sale to point of
delivery a standard one, repeatable at a pre-defined quality level?

Do your business partners' systems give you automated access to component/material

histories, quality procedures or safety certifications?

Can you trace what you produce (including its constituent parts) back to source and
prove that you meet the appropriate commercial or regulatory standards?

If you answered "No" to any of these questions, consider how you could increase efficiency
and improve customer satisfaction by automating the interfaces with your supply chain.