Project Report On JIT Sanjay

JUST IN TIME PRODUCTION

A PROJECT REPORT Under the guidance of
Mr. Deepak Dhuri & Rajesh Gujrathi

Submitted by SANJAY KUMAR JHA (Registration No: 510916614) In partial fulfillment
of the requirements For the award of the degree of MASTER OF BUSINESS
ADMINISTRATION (MBA) IN OPERATION MANAGEMENT Session 2009-2010 (May 2010) Submitted
to
Sikkim-Manipal university of Health, Medical and technological sciences Distance
education wing Syndicate house Manipal – 576 104. Learning Centre code: Vashi
(02973)
By- Sanjay Kumar Jha (Roll No.510916614)
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ACKNOWLEDGEMENT
I have taken this opportunity to express my sincere gratitude towards the pillars
of successful completion of this Management thesis on “Just in Time Production”,
without whose unflinching assistance & co-operation at all times it would rather
have been impossible for me to achieve the desired goal. I would like to thank Mr.
A. R. Dixit, Mr. Amit Hota & Mr. Subhash Babar for his invaluable guidance and
support that made my going easy and provided me a good learning opportunity. I
would also like to express my sincere gratitude towards all supply chain team
colleagues of CIPLA LIMITED, who have always helped me to know and learn various
aspects of management at various stages. A special thanks to my parents they have
always tried to give me higher education.
SANJAY KUMAR JHA
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STUDENT DECLARATION I hereby declare that the project report entitled,
“JUST IN TIME PRODUCTION”

Submitted in partial fulfillment of the requirements for the degree of Masters of
business Administration to Sikkim-Manipal University, India, is my original work
and not submitted for the award of any other degree, diploma, fellowship, or any
other similar title or prizes.
Place: Vashi Centre Code : 02973 Date:
----------------------SANJAY KUMAR JHA Reg. No: 510916614
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JUST IN TIME PRODUCTION BONAFIDE CERTIFICATE
Certified that this project report titled “JUST IN TIME PRODUCTION” is the bonafide
work of “SANJAY KUMAR JHA” who carried out the project work under my supervision
SIGNATURE OF HOD STORES Cipla Limited, A-42, Patalganga, Raigad Maharashtra
SIGNATURE FACULTY INCHARGE Karrox college of Technology Vashi, New Mumbai,

Maharashtra
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EXAMINER‟S CERTIFICATION
The project report of
SANJAY KUMAR JHA

Is approved and is acceptable in quality and form.
Internal Examiner
External Examiners
Name:
Name:
Qualification:
Qualification:
Designation:
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UNIVERSITY STUDY CENTRE CERTIFICATE
This is to certify that the project report entitled,

Submitted in partial fulfillment of the requirements for the degree of Masters of
Business Administration of Sikkim-Manipal University of Health, Medical and
technological sciences by SANJAY KUMAR JHA (Reg. No: 510916614) has worked under my
supervision and guidance and that no part of this report has been submitted for the
award of any other degree, Diploma, Fellowship or other similar titles or prizes
and that the work has not been published in any journal or Magazine.
Certified
(Guide‟s Name and Qualification)
Page 6
Table of Contents UUITS 1. Executive Summary of the Project 2. Company Profile
(Cipla Ltd.) 2.1 Introduction 2.2 Visions, Mission and Objectives 2.3 Finance and
staffing 3. Brief Introduction about JIT 4. Just in Time Production 5. JIT -
Philosophy or Technique 6. KANBAN Just-in-Time at Toyota 7. JIT and IBS 7.1 JIT and
IBS 7.2 Classification of IBS 7.3 Value Stream Mapping 7.4 Example Structural Steel
Supply Chain in Building Construction 8. Case Studies 9. Case Study in Malaysia
(Putrajaya) 10.Abbreviations 11.References & Bibliography
Page No. 8 9-20
21-24 25-43 44-58 59-67 68-79
80-90 91-100 101 102

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Unit-1
Executive summary
In this paper, we are examining the implementation of Just-In-Time methodology in

Ford for its latest small car KA; possibly one of the most interesting
manufacturing revolution where companies involved in the production are integrated
not only in their business processes moreover in their physical plants. The concept
has been successfully developed and implemented in Valencia, Spain and is due to be
adopted in other Ford production plants. The case study clearly shows how companies
can work together in a harmonic and synchronised system meeting probably the most
idealistic manufacturing principles (JIT) to produce the best quality product
within the shortest time frame with minimum/no wastage and cost-effective to all
parties. Careful production planning, cost-benefit analysis, adequate outsourcing
plans and customer orientation are being praises as the key success factors of this
amazing Just-In-Time concept.
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Unit-2 HISTORY:-
Company Profile (Cipla Ltd.)
Khwaja Abdul Hamied, the founder of Cipla, was born on October 31, 1898. The fire
of nationalism was kindled in him when he was 15 as he witnessed a wanton act of
colonial highhandedness. The fire was to blaze within him right through his life.
In college, he found Chemistry fascinating. He set sail for Europe in 1924 and got
admission in Berlin University as a research student of "The Technology of Barium
Compounds". He earned his doctorate three years later. In October 1927, during the
long voyage from Europe to India, he drew up great plans for the future. He wrote:
"No modern industry could have been possible without the help of such centres of
research work where men are engaged in compelling nature to yield her secrets to
the ruthless search of an investigating chemist." His plan found many supporters
but no financiers. However, Dr Hamied was determined to being "a small wheel, no
matter how small, than be a cog in a big wheel.
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BORN OF CIPLA In 1935, he set up The Chemical, Industrial & Pharmaceutical
Laboratories, which came to be popularly known as Cipla. He gave the company all
his patent and proprietary formulas for several drugs and medicines, without
charging any royalty. On August 17, 1935, Cipla was registered as a public limited
company with an authorised capital of Rs 6 lakhs. The search for suitable premises
ended at 289, Bellasis Road (the present corporate office) where a small bungalow
with a few rooms was taken on lease for 20 years for Rs 350 a month. Cipla was
officially opened on September 22, 1937 when the first products were ready for the
market. The Sunday Standard wrote: "The birth of Cipla which was launched into the
world by Dr K A Hamied will be a red letter day in the annals of Bombay Industries.
The first city in India can now boast of a concern, which will supersede all
existing firms in the magnitude of its operations. India has lagged behind in the
march of science but she is now awakening from her lethargy. The new company has
mapped out an ambitious programme and with intelligent direction and skillful
production bids fair to establish a great reputation in the East. "
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July 4, 1939 was a red-letter day for Cipla, when the Father of the Nation, Mahatma
Gandhi, honoured the factory with a visit. He was "delighted to visit this Indian
enterprise", he noted later. From the time Cipla came to the aid of the nation
gasping for essential medicines during the Second World War, the company has been
among the leaders in the pharmaceutical industry in India. VISITED BY MAHATMA
GANDHI July 4, 1939 was a red-letter day for Cipla, when the Father of the Nation,
Mahatma Gandhi, honoured the factory with a visit. He was "delighted to visit this
Indian enterprise", he noted later. From the time Cipla came to the aid of the
nation gasping for essential medicines during the Second World War, the company has
been among the leaders in the pharmaceutical industry in India.
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On October 31, 1939, the books showed an alltime high loss of Rs 67,935. That was
the last time the company ever recorded a deficit. In 1942, Dr Hamied's blueprint
for a technical industrial research institute was accepted by the government and
led to the birth of the Council of Scientific and Industrial Research (CSIR), which
is today the apex research body in the country. In 1944, the company bought the
premises at Bombay Central and decided to put up a "first class modern
pharmaceutical works and laboratory." It was also decided to acquire land and
buildings at Vikhroli. With severe import restrictions hampering
production, the company decided to commence manufacturing the basic chemicals

required for pharmaceuticals. In 1946, Cipla's product for hypertension,
Serpinoid , was exported to the American Roland Corporation, to the tune of Rs 8
lakhs. Five years later, the company entered into an agreement with a Swiss firm
for manufacturing foromycene. Dr Yusuf Hamied, the founder's son, returned with a
doctorate in chemistry from Cambridge and joined Cipla as an officer in charge of
research and development in 1960.
By- Sanjay Kumar Jha (Roll No.510916614) Page 12
In 1961, the Vikhroli factory started manufacturing diosgenin. This heralded the
manufacture of several steroids and hormones derived from diosgenin Global Presence
Exports for the financial year ended March 31, 2009 amounted to more than Rs.
27,500 million. Cipla exports raw materials, intermediates, prescription drugs, OTC
products and veterinary products. Cipla also offers technology for products and
processes. Technical know-how/fees received during the year 2008-09 amounted to
about Rs. 2200 million
Cipla's manufacturing facilities have been approved by the following regulatory

authorities Food and Drug Administration (FDA), USA Medicines and Healthcare
products Regulatory Agency (MHRA), UK Therapeutic Goods Administration (TGA),
Australia Medicines Control Council (MCC), South Africa National Institute of
Pharmacy (NIP), Hungary Pharamaceutical Inspection Convention (PIC), Germany World
Health Organisation (WHO) Department of Health, Canada State Institute for the
Control of Drugs, Slovak Republic ANVISA, Brazil
JUST IN TIME PRODUCTION IMPORTANT DAYS MILESTONE OF CIPLA
1935 Dr K A Hamied sets up "The Chemical, Industrial and Pharmaceutical
Laboratories Ltd." in a rented bungalow, at Bombay Central.
1941 As the Second World War cuts off drug supplies, the company starts producing
fine chemicals, dedicating all its facilities for the war effort.
1952 Sets up first research division for attaining self-sufficiency in

technological development.
1960 Starts operations at second plant at Vikhroli, Mumbai, producing fine

chemicals with special emphasis on natural
products.
1968 Cipla manufactures ampicillin for the first time in the country.
1972 Starts Agricultural Research Division at Bangalore, for scientific cultivation

of medicinal plants.
1976 Cipla launches medicinal aerosols for asthma.
1980 Wins Chemexcil Award for Excellence for exports.
1982 Fourth factory begins operations at
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Patalganga, Maharashtra.
1984 Develops anti-cancer drugs, vinblastine and vincristine in collaboration with

the National Chemical Laboratory, Pune. Wins Sir P C Ray Award for developing
inhouse technology for indigenous manufacture of a number of basic drugs.
1985 US FDA approves Cipla's bulk drug manufacturing facilities.
1988 Cipla wins National Award for Successful Commercialisation of Publicly Funded
R&D.
1991 Lauches etoposide, a breakthrough in cancer chemotherapy, in association with

Indian Institute of Chemical Technology. The company pioneers the manufacture of
the antiretroviral drug, zidovudine, in technological collaboration with Indian
Institute of Chemical Technology, Hyderabad.
1994 Cipla's fifth factory begins commercial production at Kurkumbh, Maharashtra.
1997 Launches transparent Rotahaler, the world's first such dry powder inhaler
device now patented by Cipla in India and abroad. The palliative cancer care centre
set up by the Cipla Foundation, begins offering free services at Warje, near Pune.
1998 Launches lamivudine, becoming one of the few companies in the world to offer
all
three component drugs of retroviral combination therapy (zidovudine and stavudine
already launched).
1999 Launches Nevirapine, antiretroviral drug, used to prevent the transmission of

AIDS from mother to child.
2000 Cipla became the first company, outside the USA and Europe to launch CFC-free
inhalers – ten years before the deadline to phase out use of CFC in medicinal
products.
2002 Four state-of-the-art manufacturing facilities set up in Goa in a record time

of less than twelve months.
2003
Launches TIOVA (Tiotropium bromide), a novel inhaled, long-acting anticholinergic
bronchodilator that is employed as a oncedaily maintenance treatment for patients
with chronic obstructive pulmonary disease (COPD). Commissioned second phase of
manufacturing operations at Goa.
2005 Set-up state-of-the-art facility for manufacture of formulations at Baddi,

Himachal Pradesh.
2007 Set-up state-of-the-art facility for manufacture of formulations at Sikkim.
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Board of Directors
Founder Dr. K.A. Hamied (1898-1972)
Chairman & Managing Director Dr. Y.K. Hamied
Joint Managing Directors Mr. M.K.Hamied Mr. Amar Lulla
Non-Executive Directors Mr. V.C. Kotwal Dr. H.R. Manchanda Mr. S.A.A. Pinto Mr.
M.R. Raghavan Mr. Ramesh Shroff Mr. Pankaj Patel
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Unit-3
Brief Introduction about JIT
Introduction
Just-in-time (JIT) is a management philosophy that strives to eliminate sources of
manufacturing waste by producing the right part in the right place at the right
time. Waste results from any activity that adds cost without adding value, such as
moving and storing.JIT (also known as lean production or stockless production)
should improve profits and return on investment by reducing inventory levels
(increasing the inventory turnover rate), reducing variability, improving product
quality, reducing production and delivery lead times, and reducing other costs
(such as those associated with machine setup and equipment breakdown). In a JIT
system,
underutilized (excess) capacity is used instead of buffer inventories to hedge

against problems that may arise. JIT applies primarily to repetitive manufacturing
processes in which the same products and components are produced over and over
again. The general idea is to establish flow processes (even when the facility uses
a jobbing or batch process layout) by linking work centers so that there is an
even, balanced flow of materials throughout the entire production process, similar
to that found in an assembly line. To accomplish this, an attempt is made to reach
the goals of driving all queues toward zero and achieving the ideal lot size of one
unit. 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.
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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 don‟t practice JIT for the simple reason that their
operations are too complex for JIT application. On the other hand, that‟s 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.
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JUST IN TIME PRODUCTION Unit-4
History of Just in Time: Just-In-Time is a Japanese manufacturing management method
developed in 1970s. It was first adopted by Toyota manufacturing plants by Taiichi
Ohno. The main concern at that time was to meet consumer demands. Because of the
success of JIT management, Taiichi Ohno was named the Father of JIT. After the
first introduction of JIT by Toyota, many companies followed up and around mid
1970s‟, it gained extended support and widely used by many companies. One motivated
reason for developing JIT and some other better production techniques was that
after World War II, Japanese people had a very strong incentive to develop a good
manufacturing technique to help them rebuilding the economy. They also had a strong
working ethnic which was concentrated on work rather than leisure, seeked
continuous improvement, life commitment to work, group conscious rather than
individualism and achieved common goal. This kind of motivation had driven Japanese
economy to succeed. Because of the natural constraints and the economy constraints
after World War II, Japanese Manufacturers looked for a way to gain the most
efficient use of limited resources. They worked on "optimal cost/quality
relationship". Before the introduction of JIT, there were a lot of manufacturing
defects for the existing system at that time. According to Hirano, this included
inventory problem, product defects, risen cost, large lot production
Just in time Production

and delivery delays. The inventory problems included the unused accumulated
inventory that was not only unproductive, but also required a lot of effort in
storing and managing them. Other implied problems such as parts storage, equipment
breakdowns, and uneven production levels. For the product defects, manufacturers
knew that only one single product defects can destroy the producer‟s creditability.
They must create a "defect-free" process. Instead of large lot production -
producing one type of products, they awaked that they should produce more
diversified goods. There was also a problem of rising cost, the existing system
could not reduce cost any further but remember improvement always leads to cost
reduction. Lastly, the existing system did not manage well for fast delivery
request, so, there was a need to have a faster and reliable delivery system in
order to handle customers‟ needs. Thus, JIT manufacturing management was developed
based on these problems. Focus of JIT? Mainly JIT focuses to eliminate the waste or
the non-value added. Thus there are several types of wastes categorised. JIT
usually identifies seven prominent types of waste to be eliminated:    Waste
from Overproduction Transportation Waste Processing Waste
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   Waste from Product Defects Waste of waiting/idle time Inventory Waste
Introduction Phase for Just in Time: According to Hirano, the introductory phases
of JIT involve 5 steps.
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FIVE STEPS IN THE INTRODUCTORY PHASE OF JIT
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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: 5S‟s For Workplace Improvement
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The 5S‟s stand for: Seiri - Proper Arrangement Seiton - Orderliness Seiso -
Cleanliness Seiketsu - Cleanup Shitsuke – Discipline This 5S‟s 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.
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Step 3: Flow Manufacturing
Flow manufacturing means producing one single piece of product at a time but multi-
handling which follows the process sequence. There are several main points
concerning flow manufacturing:
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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.
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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: 1. 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 2. Work sequence 3. Standard stock-on-hand 4. Use operation charts Step 5:
Multi-Process Handling Multi-process handling means one worker is responsible for
several processes in a cell.
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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 multi-machine 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." Elements of Just in Time
According to Cheng, the basic elements of JIT manufacturing are: · People
Involvement · Plants · System
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People Involvement Maintaining a good support and agreement from people involved in
production. This is not only reduce the time and effort in implementation of JIT,
but also minimize the chance of creating implementation problem. 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.
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Plants Certain requirements are needed to implement JIT, there are: 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 ongoing basis.
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System This refers to the technology and process that combines the different
processes and activities together. Two major types are MRP (Material Requirement
Planning) and MRP II (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 and planning of
resources through the available capacity. Master production schedule involves what
products to be produced in what time. MRP II is mainly involved the management or
planning of financial resources in order to carry out the operation. Goal of Just
in Time According to Cheng in Just-In-Time Manufacturing – An Introduction, he
explains the objectives of JIT. There are three main objectives: 1. Increasing the
organization‟s ability to compete with others and remain competitive over the long
run. The competitiveness of the firms 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 short-term and long-term objectives are:1. 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.
2. Optimal quality/cost relationship. The organization should focus on zerodefect

production process. Although it seems to be unrealistic, in the long run, it will
eliminate a huge amount of resources and effort in inspecting, reworking and the
production of defected goods.
3. Reduce unwanted wastes. Wastes that do not add value to the products itself
should be eliminated.
4. Develop a reliable relationship between the suppliers. A good and longterm

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.
5. Plant design for maximizing efficiency. The design of plant is essential in

terms of manufacturing efficiency and utility of resources.
6. Adopt the work ethnic of Japanese workers for continuous improvement.
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Commit a long-term continuous improvement throughout the organization. It will help
the organization to remain competitive in the long run. Other Similar Ideas 1.
Reduction of Inventory. JIT reduces inventory at all level of the organization.
2. Reduction of Lead Time. Lead time such as setup time and move time and waiting
time is reduced.
3. Quality Control. JIT improves the quality control by increasing its efficiency
of managing shop floor production and increasing its commitment to its suppliers.
4. Improvement for Performance. In JIT manufacturing, the organization can obtain a

greater impact/control over its suppliers. With fewer suppliers, organizations have
larger control because the amount purchased is usually large. And, organizations
can obtain a tighter requirement on products from their suppliers.
5. Total Preventive Maintenance. JIT provides preventive maintenance to lessen the

risk of machine breakdowns. 6. Continuous Improvement. JIT is a never-ending method
in operation management.
7. Strategic Gain. JIT helps organization to remain competitive in the market
place. 8. Reduction of Wastes. JIT helps significantly in reducing wastes. JIT can
help organization remains competitive by offering consumers higher quality of
products than their competitors, it is very important in the survival in the market
place. These major objectives are suitable for all organizations. But each
organization is unique in some way, adjustments of JIT objectives for each form
should be made in order to complement the overall production process. Limitation of
Just in Time Regardless of the great benefits of JIT, it has its limitations, the
following are the major limitations. · 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. This 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.
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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.
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JUST IN TIME PRODUCTION Unit – 5 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.
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Storing inventory is still the basics of warehousing, but in today‟s 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. Implementation of a JIT system typically includes emphasis on the
following aspects of the production process:
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Production Smoothing Capacity Buffers Set-up Reduction Cross Training and Plant
Layout Total Quality Management Most of the companies today seek this method of
implementation: Form a top-level team: This team‟s responsibilities include
deciding upon an organizational structure and developing a plan to implement JIT
within the company. This plan should include the company‟s 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.
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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 team‟s 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. 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 is an example of this Benefits of JIT Perhaps, the most significant benefit
of JIT is to improve the responsiveness of the firms to the market place thereby
affording it an overwhelming advantage in competition. Specific benefits will
depend upon size of the market, technology of processes etc. Therefore, they vary
from organizations to organization. One of the benefits of JIT is that with raw
materials and WIP being processed in smaller batches, errors can be easily
identified and corrected quickly, during each stage of the production process. This
in turn has the ‘knock-on’ effects of reducing non-value added costs Conceptually,
the 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. JIT systems have a number of other
important benefits also, which are attracting the attention of various companies.
The main 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 manufacturing lead times. Greater
flexibility in changing the production mix. Smoother production flow with fewer
disruptions. Worker participation in problem solving.
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   Pressure to build good relationships with vendors. Increased productivity
levels and utilization of equipment Reduction in the need for certain indirect
labour.
Just In Time (JIT) Manufacturing Just in Time manufacturing is a systems approach

to developing and operating a manufacturing system. It is based on the total
elimination of waste. JIT is not a new concept. It has been part and parcel of the
Japanese manufacturing industry adopted approach for quite some time. It requires
that equipment, resources and labor are made available only in the amount required
and at the time required to do the job. It is based on producing only the necessary
units in the necessary quantities at the necessary time by bringing production
rates exactly in line with market demand. In short, JIT means making what the
market wants, when it wants it. JIT has been found to be so effective that it
increases productivity, work performance and product quality, while saving costs.
JIT AND COSTS JIT can affect the bottom line in a variety of ways. Improvement in
quality and delivery times can increase demand and, thus, revenue. Costs are also
affected; the JIT philosophy contends that inventory reduction and increased
quality reduce costs. Traditional cost accounting Systems often makes it
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difficult to measure the effects of changes except in very aggregate terms. One of
the tenets of JIT is to account for these effects more accurately. Cost Accounting
Systems Costs are a major factor in PIM decisions. Unfortunately, traditional cost
accounting Systems often do not tell the decision maker how much a specific
decision wilt affect actual expenditures. This is due to overhead costs being
hidden by the allocation methods. For example, overhead costs usually are allocated
to departments (cost centres) rather than to activities, such as set-up, and
inspection and maintenance operations. In addition, allocation based on the
material or directs labour required to manufacture an item ignores the fact that
different items are in different stages of their life cycles. Thus, different items
may have different manufacturing, engineering, and tooting costs, may have quite
different quality and inspection requirements, and may require different marketing
and distribution expenditures. When these costs are aggregated and allocated on the
basis of the average direct labour cost of a part-as is the case with most
traditional cost accounting systems-some products are allocated costs considerably
below the actual expenditures required for their manufacture and distribution and
others are allocated more than their true cost. Thus, decisions often are based on
inaccurate information.
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In order to manage costs and base decisions on accurate information, the causes
(source) of the expenditures must be identified. Various expenditure causes; such
as set-up times, shop and purchase order processing, receiving, and material
handling deserve more discussion. These basic causes of indirect costs are called
cost drivers. The cost accounting system must report the cost of these activities
to accurately determine the costs of individual products. Such reporting enables
manufacturing management to treat set-up, inspection, receiving, and transaction
costs as direct costs, to base decisions on accurate information, and to focus on
reducing high cost elements. An ABC analysis can be used to select the activities
that are appropriate for cost reduction studies. JIT, TQM, AND THE PRODUCTION
PIPELINE Think of a company as a pipeline with raw materials entering at one end
and products emerging at the other.( the pipe can be extended conceptually with
customer needs or orders going in at one end and products arriving to customers at
the other.) The goal is to minimize the through put time, that is to move the
materials as quickly as possible Shorter throughput time is better But the pipeline
varies in size and has obstructions through out. Output is determined by the
narrowest part of the pipeline and the biggest obstruction.
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These must be identified and then eliminated to achieve the goal. As each
obstruction is eliminated the flow speeds up but only by as much as allowed by the
next biggest obstruction elsewhere in the pipeline. Identification and location of
these obstructions, understanding them, and finding ways to eliminate them are the
purposes of JIT and TQM. The pipeline analogy may give an impression those barriers
to flow / production, once removed is gone forever. This is not true. To identify
the obstruction and its precise location in itself is difficult and time consuming
Inventory as a way of avoiding problems Sources of obstructions keep changing and
it could be any one of the factors of production and /or in any combination of the
factors. One gets eliminated and another one crops up and therefore it has got to
be continuously attended to. The pipeline itself and the things that floe through
are changing always. The diameter of the pipeline may have to be changed. But only
the extent required. Over size is waste, while undersize would not meet the
required throughput. The BEST flow rate would be that which matches the required
output rate. At times the pipeline itself may have to be modified or even replaced.
As changing processes and products introduce whole new set of obstructions.
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In short the work on the pipeline is CONTINUOUS. JIT and TQM continuously enable
tinkering the pipeline so that the material coming out of the pipeline is the best
possible in all respects. JIT / TQM Difference in Organizations JIT /TQM greatly
increase the number of people who are involved in identifying and eliminating
obstructions. Every one does it Level of authority of workers to make and carry out
decisions is much higher Emphasis is on measure, diagnose, and improve it. Second
difference is in the process employed to identify and prioritise problems and
sources of waste In JIT the primary process is reduction of inventory, mainly to
reveal the obstructions (which were earlier hidden or ameliorated by the inventory)
and prioritise them. Just in Time Summary Efficient Techniques Reduce Leeway
(Maintaining Continuity) 1. Prepare a disaster plan, e.g. firing protection or
backing-up data. He believes that the better the disaster plan, the larger chance
the companies will survive after disaster. 2. Cost -reduction strategies.
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3. Develop long-term continuity plan. 4. Identify critical functions and estimate
the time, the company can afford without such function. 5. Identify potential
alternative suppliers. 6. avoid too complicated continuity plan. 7. Evaluate risk
before any decision. 8. Conducting continuity tests. Just in Time-----Manufacturing
(1) Introduction Just in Time---manufacturing is a systems method to develop and
operate a factory system. It is mainly basis on the total Decrease of waste. As you
know, many people think JIT is not a new knowledge field. As a matter of fact, it
has been part and plays an important role of the Japanese manufacturing industry
adopted method for a long time. It requires all the materials such as equipment,
human resources, and management skills are made available only in the amount
required and at the time required to do the job. It is based on producing only the
necessary units in the necessary quantities at the necessary time by bringing
production rates exactly in line with market demand. Generally speaking, JIT means
making what the market wants. JIT has been found to be so effective that it
increases
productivity, work performance and product quality. What‟s even more, it plays a
vital role to increase productivity and decrease the total cost of manufacturing
production. (2) Planning for JIT Since each manufacturing process is different, it
is up to the individual company to determine the degree of appropriateness and the
final application of JIT. However, it is very important to define the plan and
objectives before setting up a JIT manufacturing system. It is impossible to
establish a new JIT system that can be used successfully without change. Therefore,
we should take serious consideration to make a plan for Just-InTime, which will
benefit to our factory performance. (3) Defining the Planning JIT manufacturing
system requires an understanding of the objectives of JIT, and objectives of the
JIT system. After the objectives are set up for the manufacturing, the process of
planning becomes one of determining what is required to meet those objectives. The
goal of a JIT approach is to develop a system that allows a factory to have only
the materials equipment and people by hand required doing the some plan. T o
achieve this goal, we should have equipped with at least five fundamental plan: ·
Integrating and optimizing every step of the manufacturing process · Reducing
manufacturing cost · Producing product on demand · Developing
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manufacturing flexibility · Produce quality product to maintain commitments and
links made between Customers and Suppliers We also should keep in mind that
achieving these obtaining targets does not automatically make a company a JIT
manufacturer. On the contrary, it will lead to achieve even one of these objectives
will prevent a manufacturer from establishing a successful JIT system. According to
Common Wealth on May, 1996 report, it said that “A company cannot decide to
implement JIT; they must earn the right to use JIT by revising their quality for
system." (4) Reducing Manufacturing Cost If we can design products that it will
speed up and decrease manufacturing processes. Gradually, it will help us to reduce
the cost of manufacturing and building the product to specifications benefit. One
aspect in designing products for manufacture ability is the need to set up a good
boss and employee relationship. At least, this is to cultivate and procure the
resources of the production experts, and the line employees to develop cost saving
solutions. Participatory quality programs utilize employee knowledge about their
job functions and review the department performance. It will, finally, encourage
with rewards for suggested total cost saving. (5) Manufacturing Flexibility
According to China time report on August 1996. "Manufacturing flexibility is the
ability to start new projects or the rate at which the production mix can be
adjusted to meet customer demand." Planning for manufacturing
flexibility requires the understanding of the elements in the manufacturing process
and understanding elements in the process that restrict flexibility and improving
on these areas. The unique feature of Just-In-Time is the modification from between
pull and push systems. The main idea behind these approaches is that "work should
not be pushed on to the next worker until that worker is ready for it." (Hauser,
J.R.) As a result, manufacturing flexibility requires production managers to
consider the some important factors, such as supplier lead time, production process
time, process setup time and so forth. (6) Keep in touch between customers and
suppliers For factory main commitment to achieving the internal structures, both
customer and supplier are also playing a vital role to support JIT manufacturing.
Because it is the primary requirement for developing the JIT system, each other can
establish trust and honest between the supplier and the customer which is a must,
since every Just-in-Time operation depends on it. Supposed, finally, it leads to
failure to keep the commitments each other. Finally, it will be result to a serious
form of breakdown manufacturing systems. Therefore, we should pay attention to this
kind of serious call. Never be ignorant of this commitment. If we can make use of
Just-In-Time (manufacturing approaches), it, eventually, will attain those goal,
which are the fundamental concept of producing product only as needed or on demand.
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JUST IN TIME PRODUCTION UNIT – 6
INTRODUCTION: When we talk about Kanban Just-In-Time, you maybe have a question
which company set a very good example to fulfill this approach. The answer is
Japanese company ------Toyota. Not only did Toyota take advantage of Kanban Just-
In-Time, but it also get a very good benefit to operate its company. Kanban just-
In-Time helps companies solving many
KANBAN JUST-IN-TIME AT TOYOTA
Manufacturing problems. Kanban derives it name from the manufacturing systems and
processes implemented at Toyota Motor Manufacturing that are so effective at
producing at low cost, high quality, and short cycle times. As a consequence, these
systems are highly flexible and responsive to customer requirements. Toyota
capabilities are listed below. Kanban Just-In-Time impact on whole Toyota
production approach as following: (a) Standardized work Manufacturing Cells
Manufacturing Lines Facility Layout Technology Development Simulation of processes
and systems
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(b) Quality Improvement In Process Inspection Experimental Design Process
Development (c) Continuous Improvement Example: Toyota manufacturing processes
route the product around the plant to various work centers where work is staged to
be processed. Implementing manufacturing cells typically increases net income
dramatically and reduces cycle time over 50%. The cost of design and implementation
is usually recovered within the first year from inventory savings. In this paper,
we present the benefits of bringing the processes to the product and discuss the
value of simulation as a tool to design and predict cell performance prior to
implementation; therefore, reducing financial and technical risk to the company. On
September 10, 1997, Mr. Hoskins presented on "Improve Profits and Reduce Cycle Time
with Manufacturing Cells and Simulation" for the National Technology University
series on Kanban just-In-Time
Manufacturing of this series. On October 27 - 28, 1996 Jerry Hoskins, President

presented a paper titled "Developing a Lean Implementation Roadmap" at the SME
Kanban Manufacturing Conference in Dearborn,
Michigan. The intent of this paper is to provide information to companies on where
to start with a Kanban implementation based on where one is currently manufacturing
operation. His theory help our many manufactures implement all the elements of
Kanban Manufacturing directed at elimination of manufacturing waste as defined by
the Toyota Production System. These systems are more flexible, responsive, and
profitable than traditional manufacturing systems. And, its theory also help our
many participate determine where best to start with a Kanban implementation which
usually involves an assessment of current operations. Once plan is developed we
design the system to be implemented which may involve layout, cells, JIT, process
technology, and process simulation. Conclusion: To sum up, we should make fully use
of Kanban in order to improve the performance of a production line which is under
controlled by Kanban. Generally speaking, Kanban is combined with base stock or
immediately improvement to create a hybrid production control system. Simulation
results based on a Toyota factory show that this policy meets throughput targets
with significantly lower inventories than Kanban alone. As a result, Toyota
research considers a line production system which purchases raw materials from a
supplier, processes them into finished products and delivers them to a buyer just
in time. This study focuses on finding the optimal number of raw material orders,
finished goods deliveries and Kanbans between work stations for a time-
proportionate demand of finished goods.
JUST IN TIME PRODUCTION Unit – 7
FORD KA IN JUST IN TIME Production of Ford latest small car, the Ford KA has been a
dramatic improvement compared to Ford previous product, Fiesta (Kochan, 1997). This
is a real example of successful JIT implementation with all its outsourcing
strategies. The production target of 1,100 KA cars per day has been reached only
within 8 weeks since the launch date, compared to 15 weeks required for Fiesta.
Ford found that the initial bottleneck was caused by material handling, assembly
time and inbound logistic. Some of the components in Fiesta are supplied by various
suppliers and these components had to be made, loaded in the container and
scheduled for delivery before finally delivered by trucks. This common process is
found to be inefficient as every part has to be continuously handled by human and
this causes big risks of damages, misplaced and imperfection in quality, especially
for cosmetically sensitive and fragile parts such as instrument consoles,
electrical wiring and airbags. With the new developed JIT system supported with
sophisticated aerial tunnels connecting Ford with its suppliers, production lead
times can be minimised, product quality can be improved, responsiveness towards
customer demands can me boosted and the most important thing is inventory, space
requirements, handling and transportation cost can be dramatically reduced (Kochan,
1997). Ford is now connected with more than 50 suppliers in Valencia with
specifically designed aerial tunnels. These
JUST IN TIME IN FORD

tunnels are also very useful to transport bulky and heavy items such as seats and
fuel tank. The brain of this amazing system is DAD (direct automated delivery)
which will integrate the whole processes virtually as one extended manufacturing
warehouse. DAD will enable a smooth manufacturing process by applying Ford
scheduling system so that all the supplied components being delivered right on time
they are needed. In addition, DAD and its tunnels enable the integration of
manufacturing equipment so that the component being delivered can be immediately
installed with the main body or other components in Ford factory. Summary of Ford
Valencia manufacturing system prior JIT implementation: Minimum of 15 weeks to
reach full production capacity Required at least 3,000 parts to be assembled for
each car Very small outsourcing involve for car components All parts from suppliers
are delivered on trucks Stock must be kept at certain level to assure the
continuity of production Parts are often damaged during packaging, handling or
delivery Spent over $6 million for inefficient delivery system (250+ trucks per
day) 80 per cent automation in overall Manual seats and battery placement and this
may cause injury for employee
In a dynamic market trends, pre-JIT system clearly is not responsive enough as an
answer. There are minor inefficiencies throughout the system which accumulate into
serious problem that may cause Ford being less competitive in the market.
Improvement Process analysis The main objectives of JIT are obtaining low-cost high
quality products and on-time production as well as eliminating waste and stagnant
stock (Svensson, 2001). Even though most of JIT implementation has similar aim and
purposes, the strategies involved may differ from industry to industry or company
to company. Ford has smartly chosen the right methods and strategies by reducing
the barriers in relation with its suppliers. Through JIT, Ford is achieving the
highest efficiency in car manufacturing industry. Its plant in Valencia has become
the standard and being adopted in its other plants in many other countries. Apart
from its tangible benefits such as saving on transport costs, stock/inventory
costs, quicker manufacturing process and minimised risk/wastage, JIT will also
bring immediate intangible benefits such as improved customer satisfaction through
immediate responses and shorter timeframe to respond towards market trends.
Improvements being achieved through JIT implementation: Only 8 weeks required to
reach full production capacity
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Only 1,200 parts need to be assembled, the rest have been done by its suppliers All
the outsource-viable production parts are outsourced Automatic delivery system and
aerial tunnels are developed to minimise transport There is barely any stock
required as most parts are made to order The whole manufacturing process including
the suppliers are working as one system The need of conventional truck delivery is
minimum 98 per cent automation Seats and battery placement are being done by
automated highprecision machines There is not enough detail to measure the benefit
of JIT implementation against the pre-JIT system, however from rough analysis Ford
will gain the benefit immediately and get the investment back in virtually no time.
JIT cost/benefit analysis for Ford Valencia COSTS Extending control) $500 million
pilot plan and analysis outsourcing (losing BENEFITS Speed-up production process 8
weeks Smaller number or manufacturing parts Concentrating on core business
functions 25% shorter time production time needed Accuracy of production on plan
Building aerial tunnels Setup Direct Automated Delivery DAD $16 million delivery
system Less handling = less damages / costs Less conventional transport
dependent Time saving Manufacturing integration Further suppliers Saving $6+

million per year on transport interest from more seamless
Conclusion In this paper, we examined the implementation of Just-In-Time

methodology in Ford for its latest small car KA; possibly one of the most
interesting manufacturing revolutions where companies involved in the production
are integrated not only in their business processes moreover in their physical
plants. JIT has shown it success to produce the best quality product within the
shortest time frame with minimum/no wastage and cost-effective to all parties.
Careful production planning, cost-benefit analysis, adequate
outsourcing plans and customer orientation are being praises as the key success
factors of this amazing Just-In-Time concept. General Motors An example of the use
of JIT in General Motors is given below. General Motors (GM) in the USA has
(approximately) 1700 suppliers who ship to 31 assembly plants scattered throughout
the continental USA. These shipments total about 30 million metric tons per day and
GM spends about 1,000 million dollars a year in transport costs on these shipments
(1990 figures). JIT implies frequent, small, shipments. When GM moved to JIT there
were simply too many (lightly loaded) trucks attempting to deliver to each assembly
plant. GM's solution to this problem was to introduce consolidation centres at
which full truckloads were consolidated from supplier deliveries. This obviously
involved deciding how many consolidation centres to have, where they should be,
their size (capacity) and which suppliers should ship to which consolidation
centres (suppliers can also still ship direct to assembly plants). As of 1990 some
20% by weight of shipments go through consolidation centres and about 98% of
suppliers ship at least one item through a consolidation centre. All this has been
achieved without sacrificing the benefits of JIT.
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1. Uniit – 7 JIT and IBS
AN OVERVIEW OF IBS
7.1 JIT and IBS The term „Just-In-Time‟ (JIT), used for instance to describe the
delivery of materials to a construction site, suggests that materials will be
brought to their location for final installation and be installed immediately upon
arrival without incurring any delay due to storage in a laydown or staging area.
JIT is a concept developed by the Japanese who created the Toyota Production
System, later translated into English as the lean production system. The ultimate
objective of JIT production is to supply the right materials at the right time and
in the right amount at every step in the process. Thus, IBS is one example of JIT
in construction. Rahman and Omar (2006) defined IBS as a construction system that
is built using pre-fabricated components. The manufacturing of the components is
systematically done using machine, formworks and other forms of mechanical
equipment. IBS is defined as products, systems and techniques used in making
construction less labour-oriented, faster as well as quality controlled. It
generally involves prefabricated products, factory manufactured elements that
transported to the construction sites and erected. (Shaari, Bulletin Ingénieur,
2003) According to Abraham Warszawski (1999), IBS is defined as a set of element or
component which is inter-related towards helping the implementation of
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construction works activities. He also expounded that an industrialisation process
is an investment in equipment, facilities, and technology with the objective of
maximising production output, minimising labour resource, and improving quality
while a building system is defined as a set of interconnected element that joint
together to enable the designated performance of a building.
7.2 Classification of IBS According to Badir- Razali, generally, there are four
types of building systems currently available in Malaysia‟s building system
classification (Badir et al. 1998), namely conventional, cast in-situ,
prefabricated and composite building systems. Each building system is represented
by its respective construction method which is further characterised by its
construction technology, functional and geometrical configuration. Fig. 3 : Type of
building system in Malaysia Nonetheless, according to CIDB (2003), the structural
aspects of IBS of the systems, divided into five major types as follows:
1. Precast Concrete Framing, Panel and Box Systems Precast columns, beams, slabs,
3-D components (balconies, staircases, toilets, lift chambers), permanent concrete
formwork, etc;
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Precast concrete wall 2. Steel Formwork Systems Tunnel forms, beams and columns
molding forms, permanent steel formworks (metal decks, etc;
Steel formwork system
3. Steel Framing Systems Steel beams and columns, portal frames, roof trusses, etc;
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Steel roof trusses 4. Prefabricated Timber Framing Systems Timber frames, roof
trusses, etc;
Prefabricated timber framing system for a double storey house
5. Block Work Systems Interlocking concrete masonry units (CMU), lightweight

concrete blocks, etc.
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Lightweight concrete blocks are used for wall construction The pre-cast concrete
components are among the most common prefabricated elements that are available both
locally and abroad. The pre-cast concrete elements are concrete products that are
manufactured and cured in a plant environment and then transported to a job site
for installation. The elements are columns, beams, slabs, walls, 3-D elements
(balconies, staircase, toilets, and lift chambers), permanent concrete formwork and
etc. The steel formwork is prefabricated in the factory and then installed on site.
However the steel reinforcement and services conduit are installed on site before
the steel formwork are installed. The installation of this formwork is easy by
using simple bracing system. Then concrete is poured into the formwork and after
seven days, the formwork can be removed and there is some system whereby the
formwork served as a part of the structure itself after concreting. The steel
formwork systems are used in tunnel forms, beams, column moulding forms and
permanent steel formworks. The elements of steel framing system are rolled into the
specific sizes and then the elements are fabricated that involves cutting,
drilling, shot blasting, welding and painting. Fabricated elements are sent to the
construction site to be then erected whereby welding and the tightening of bolts at
joints are conducted. The elements include steel beams and columns, portal frames
and roof trusses the prefabricated timber framing system is normally used in the
conventional roof truss and timber frames. The timber is prefabricated by joining
the members of the truss by using steel plate. It is important that all members are
treated with the anti pest chemical. Then, the installation is done on site by
connecting the prefabricated roof truss to the reinforcement of the roof beams. The
elements of block work system include interlocking concrete masonry units (CMU) and
lightweight concrete blocks. The elements are fabricated and cured in the factory.
The elements are normally used as bricks in structures and interlocking concrete
block pavement.
7.3 Value Stream Mapping Koskela (1992) pointed out that architects, engineers, and
construction practitioners have for the longest time focused on conversion
activities and overlooked issues of flow. Flow is important because work or
materials that do not flow sit idle in inventory, tying up money (including the
procurement cost of ingredients plus labor and machine time to bring them to the
stage of completion they are in) as well as space. They stand the risk of being
damaged or becoming obsolete due to design changes or market competition. Inventory
means productwaits: its cycle time increases, that is, it takes longer for the
product to traverse all production steps it needs to go
Page 73

through before reaching its customer. As a result, project durations are larger
than they would have been had flow not been inhibited. Most tools used today by
practitioners who manage construction, such as those fordesign, planning,
scheduling, and costing, do not acknowledge flow: they do not explicitly capture
changes of resource characteristics over time. Process modeling tools for discrete
event simulation are an important exception and warrant more attention by the lean
construction community. Such models can incorporate input regarding
individuallycharacterized components, uncertainties of numerous kinds, and
sequencing rules (e.g., Tommelein 1997) and then produce output data regarding
buffer sizes, cycle times, idle times, production rates, etc. The symbols commonly
used to depict process models for construction, however, have yet to distinguish
how processes are being managed, for instance, whether or not a JIT system has been
implemented. Practitioners in manufacturing, working for Toyota and then later for
other companies „going lean‟ developed their own pictorial language to help focus
attention on what matters in their transition. We borrowed such symbols from Rother
and Shook (1998) and used them to map structural steel supply chains. Boxes denote
value-adding processes or tasks, such as ordering raw materials, fabricating steel,
and transporting shipments to a site. A triangle denotes work in progress or
inventory. It represents an accumulation of product (materials or information)
possibly of unlimited amount and for an indeterminate duration. An inverted
triangle is an order to batch. Kanban (introduced in Figure 1) denote orders to
withdraw or produce product, in order to deplete or replenish a supermarket. A
supermarket, represented by ,
refers to controlled inventory in terms of how much material is kept on hand and
how replenishment takes place. The FIFO symbol denotes the first-infirst out
release of resources output by a task. The circular arrow denotes a physical pull
of materials from a supermarket. It differs from the withdrawal kanban in that it
pertains to the amount of product needed at the time of the withdrawal and not
necessarily a predetermined fixed quantity. A dashed line with an arrow designates
the flow of product. A solid white line is transportation of product to the
customer site. A black-andwhite dotted line shows that product is pushed into
inventory. Rother and Shook (1998) use these symbols for so-called “value stream
mapping” where the term “value” pertains mainly to reducing work n process
inventories and product cycle times. Our use of this notation stems as much from
our desire to engage in mapping the structural steel supply chain as it does from
our desire to test the adequacy of those symbols in representing
architecture/engineering/construction processes and in
capturing value.
7.4 Example Structural Steel Supply Chain for Building Construction The structural
steel supply chain for building construction differs in several regards from the
one for industrial construction. The building‟s frame may in fact be more complex,
especially when it supports a very tall structure, so the major steel sections
require extra procurement effort. The industry is also organized differently. On
design-bid-build projects, a common delivery method for buildings, the owner
typically hires an architectural engineering (AE) firm, which in turn hires a
structural designer.
When the AE has prepared all bid documents, the project is put out for bid. A
general contractor (GC) is then selected. The GC subcontracts the steel work to the
fabricator, who in turn subcontracts field installation work to a structural steel
erector. The latter essentially provides the crane and skilled labor, whereas the
former is responsible for acquiring, fabricating, and shipping the materials to
site in the sequence needed for erection. The fabricator may also subcontract the
structural steel detailing work. Fabricator and erector work as a tightly knit
team. The GC will meet with them during bid preparation. They must assess the
project site constraints to position the erector‟s crane, as it determines not only
the steel erection sequence but also the layout of other temporary facilities and
thus the flow of many construction resources. This sequencing in turn drives the
fabrication schedule. It must of course meet the GC‟s master schedule but must also
be efficient4 the fabricator who subcontracts the erection work has an incentive to
minimize that work and does so by thoroughly planning the sequencing and site
delivery of steel pieces in the order they will be needed. As for logistics, a big
difference between the industrial and the building sector is that more often than
not building space is very tight, especially on projects located in an urban
environment. Industrial projects tend to be more remotely sited. Materials
deliveries to building projects accordingly are constrained by traffic patterns and
transportation permit requirements. Trucks parked in the street along the edge of a
site ready to off-load steel may not remain there for any extended time. When
deliveries take place, the crane gets dedicated to off-loading and moving pieces to
a staging area, namely the highest floor with decking, from where steel will
subsequently
be picked up and moved into final position. Only in exceptional cases will steel be
erected directly off the flatbed truck. This saves extra handling steps but can be
done only when it is acceptable to tie up the truck longer and provided the steel
has been loaded in inverse order needed. Differences in value stream maps between
industrial and building construction are therefore expected at least near the end
of the chain, especially in the way delivery to the project site is organized. If
JIT is practiced in industry today one possible way is depicted in figure 3.
Figure 3 includes two supermarkets, which illustrate the presence of pull

mechanisms. The steel mill (IV) still takes special orders. The resulting output is
stored in a generic buffer (triangle). The buffer is not specifically controlled in
size but it is filled only based on firm customer orders. That product is sold so
it is unlikely to become obsolete (waste). The mill also produces run-of-the-mill
product in anticipation of customer orders. As was the case in figure 2, this is
denoted by a supermarket where quantity-on-hand will not exceed a threshold value
and gets replenished at appropriate times. A second supermarket is shown in figure
3 to handle output from fabrication
(III). For instance, the fabricator of a 20-story building could complete the steel
for stories 1 through 3, then await orders from the construction site (withdrawal
kanban) to ship them steel for story 1 before starting work on story 4 (production
kanban). A smaller inventory buffer may be well suited provided fabrication can
keep pace with erection. Since there is virtually no storage space on site, no
buffer of materials is shown preceding ERECT [ion] (VI). The creation of large
buffers either at the contractor‟s or fabricator‟s site is contrary to JIT
production system design. As the word JIT suggests, materials must be fabricated or
delivered on time, which means not too late but not too early either. This implies
that variability regarding timing, actual pieces released, as well as quality must
be limited and controlled. In a true JIT system, this timeliness pertains not only
to a single handoff between two production steps, but rather, one aims at achieving
JIT flow between all production steps. In the idealistic extreme, this means having
no buffers at all! In practice, this means buffers must be determined trategically.
Admittedly, doing so is not an easy task, especially in a production system of
complex products that involve several organizations as is the case for structural
steel. But this is what lean Because of construction‟s one-of-a-kind project
nature, the structural steel supply chain differs from manufacturing systems for
more standardized products, which can be likened to the Toyota Production System.
The manufacturing symbols used here for mapping the steel supply chain provide no
room for defining individually-characterized resources or detailed sequencing
rules. While their ability to show processing durations and delay times has not
been used in this paper (we expect to do so in future work), we doubt that using
only deterministic values will suffice. Some representation of uncertainty will
have to be incorporated in the maps. The current practice of buffering stems from
the desire to optimize labor and machine utilization and from admitting that
uncertainties exist in the supply chain. Many uncertainties are the result of
variability, which could be understood better if at least it were measured and
explicitly accounted for. This is not the current practice in construction.
Uncertainties and variability should not be taken for granted. They should be
acknowledged, managed, and minimized to a reasonable degree. In fact, one technique
to identify them is to reduce buffer sizes in-between various production steps in
order to see and learn the extent to which they are needed. Process improvement
efforts can then focus on those steps where the impact on throughput of the system
as a whole will be most significant. Example improvements in construction are those
that aim at reducing uncertainty, as is done for instance through reliable planning
by the Last Planner (Ballard and Howell 1998), work methods design, and work
structuring (Ballard et al. 1999).
Page 79
Unit – 8 CASE STUDY – 1 CASE STUDY JUST IN TIME
JUST IN TIME A case study pertains contractors who bids on projects from County of
San Francisco, the Public Utilities Commission as well as the Water Department.
Most of these jobs include concrete of a well-defining and widely-used kind through
quantities usually small in comparison to what is needed for residential or office
building projects. Concrete is a very common construction material. Projects
ranging from a single family home to a highrise building all may need concrete for
their foundation, slabs, columns, beams, walls, etc. to be constructed. In urban
settings, the task of delivering concrete moreoften than not has been delegated to
ready-mix batch plants and contractors has to rely on the timing and reliability of
their service. Although this set-up puts the contractor‟s project somewhat at the
mercy of the batch plant, most batch plants perform at their very best to meet
their customers‟ schedules. On-time delivery is part of the product they sell. The
interplay between contractors and batch plants is interesting. On one hand, the
contractor must order a large enough quantity, sufficiently long ahead of time to
ensure available batch plant capacity and timely delivery service in order to
maximize productivity of their placing crew. On the other hand, the batch plant
tries to time its deliveries so that all projects are served according to the
contractors‟ needs and the plant as well
as the trucks and drivers have little idle time. This balancing act between the two
parties is not always achieved due to the nature of concrete and the nature of the
production systems being used.
In addition to contractors and batch plants, this balancing act also involves the
suppliers of raw materials to the batch plant, crews on site that erect formwork
and tie reinforcing basin preparation for concrete placement, as well as others.
Although the interdependence of all these parties typically results in
uncertainties rippling through the supply chain, the focus of this paper is limited
to the downstream-, namely the contractor vs. batch plant relationship. The batch
plant could, in order to level its load, vary its unit price of readymix concrete
based on the time and day of the week at which concrete is to be delivered. This
would illustrate a market mechanism at work, however, we are not aware of such
differential pricing being advertised in the industry today. As one can imagine the
city imposes limits on working hours in order to avoid congestion during peak
traffic times, excessively long closure of a road for vehicular or of a sidewalk
for pedestrian traffic, undue inconvenience of road users and complaints about
noise from citizens or area residents. In addition, contractors must obtain a work
permit from the city in order to work at a specific location.
Page 81
This contractor s main concern has been tardiness of deliveries made by batch
plants. Because most of these jobs have restricted working hours, punctual delivery
is of paramount importance. However because each order is small ( a few cubic yard
at a time),this Contractor cannot get any plants attention. Went plant truck arrive
late to his jobs, he loses that time for the concrete to set and may therefore not
be able to open the site to traffic when needed. To achieve on-time performance
this contractor has acquired a fleet of small revolving-drum trucks as well as dump
trucks (used to fill „potholes with concrete) to meet his projects concrete
transportation needs, The latter trucks are not so good as the former for
transporting concrete as the mix may segregate.
This contractor has its trucks pull into any batch- plant during operating hours
and order concrete. The contractor-owned trucks simply join the line of plant
trucks waiting to be loaded. The driver then goes to the operator‟s walk-up window
and orders the needed mix design and quantity. The batch plant fills these trucks
in the same way as it fills its own in a first-in-first-out manner. The contractor
then gets billed on a regular basis for exact amount loaded. At the site, the
driver works with the crew in placing concrete. Providing one‟s own ready-mix
trucks does not mean that the unit price of concrete is any cheaper but it
overcomes many scheduling hassles. No advance order needs to be placed to reserve
plant capacity as only a few cubic yards of commodity mix are needed each time.
Page 82

By taking control over the transportations process and the contractors crew can
work at their own pace and not have to fret over when concrete would arrive. This
kanban system work well especially on these projects where timing of need is not
dictated exclusively be the contractor, but as is the case here also to a
significant extent by the owne.This contractors has its trucks pull into any batch-
plant during operating hours and order concrete. The contractorowned truck simply
join the line of plant trucks waiting to be loaded. The driver then goes to the
operators walk-up window and orders the needed mix design and quantity. The batch
plant fills these trucks in the same way as it fills its own, in a firstin- first –
out manner. The contractor then gets billed on a regular basis for exact amount
loaded. At the site the driver works with the crew in placing concrete. Providing
ones own ready mix trucks does not mean that the unit price of concrete is any
cheaper but it overcomes many scheduling hassle. No advance order needs to be
placed to reserve plant capacity as only a few cubic yards of commodity mix are
needed each time.
By taking control over the transportation process and using trucks as kanban each
time concrete is needed, the contractor‟s crew can work at their own pace and not
have to fret over when concrete would arrive. This kanban system works well
especially on these projects where timing of need is not dictated exclusively by
the contractor, but as is the case here, also to a significant extent by the owner.
This contractor thus controls what is otherwise a system variable controlled by an
upstream supplier, namely the batch plant‟s delivery of concrete. As a result, the
contractor can better schedule his work and be more reliable in making project due
dates. Should one batch plant not be able to serve his needs, he can easily go
elsewhere. The contractors pays for this ability. He now needs to have capital tied
up in trucks and is responsible for hiring and training drivers. Because he has a
fairly steady need for concrete from one project to the next(contrary to many other
who need concrete only for one phase of their work.)he can keep them gainfully
employed. Ready-mix concrete is a prototypical of a JIT production system in
construction. Two practices regarding ready-mix batching and delivery were
described in this paper and depicted using value stream mapping symbols. Each case
highlighted the presence of buffers of information, materials, and time as well as
production order and withdrawal mechanisms positioned at strategic locations to
meet specific system requirements, as defined by the nature of the contractor‟s
work. One alternative is favored over the other depending on the amount of control
the contractor wants in terms of on-time delivery of concrete and the variability
in the contractor‟s demand for concrete project after project. While these
practices clearly exemplify JIT production, the paper was limited in scope. No data
was included to characterize the actual performance in terms of timeliness, buffer
sizes, error rates, etc. Moreover, the paper focused on batching and delivery,
which are only parts of the entire concrete production system.
Current practices for managing the concrete supply chain upstream in terms
of raw materials acquisition or prerequisite work on site are not geared oward JIT
production. Further investigation is therefore warranted and significant process
improvements may be achieved by those working towards fully implementing a lean
construction system.
Case Study 2 : Fakuda Production System (FPS) The construction companies that
adopted the Toyota Production System and Just in Time on a large scale in Japan are
Fakuda Corporation in the field of building construction and couple of companies in
the field of housing construction. Fakuda Corp. is a Niigita-based construction
company having annual sales of $ 946 million (in 2003).With the objective of making
construction work more efficient and reducing construction costs, the company
introduced the system in construction work in 2002. In order to introduce the
system the company received guidance from consultants CULMAN CO.LTD who were former
employees of Toyota otor Corp. This building production system is called the Fakuda
Production System ( FPS)
Page 85
The material distribution facilities were established so that materials can be

delivered to the site JIT. In addition, the JIT material distribution network was
set up to link the field office,branch offices, and material distribution
facilities, Necessary materials are delivered to the predetermined location( Room C
on Floor B at Site A,for example)in time. To visualize the JIT delivery process,
the JIT delivery system board is posted to boost awareness. Time is Money among
Page 86
workers. The JIT ideal is elimination of physical buffers (materials or
time)between production processes, and the achievement of one piece flow within
processes, i.e. batch sizes of one.JIT was able to virtually eliminate such in-
process inventories because production scheduling provided sufficiently stable
coordination of flows. Construction scheduling does not provide such stabilization.
Consequently, it is not appropriate to simply eliminate physical buffers without
first attacking the causes of variation and uncertainty. Even though manufacturing
and construction share the same ultimate objective of reducing variation and waste,
their strategies for achieving that objective must be different. Materials
constitute a huge proportion of the cost of construction. Materials are sometimes
ordered weeks or even months ahead of requirement leading to uneconomical inventory
on construction sites or contractors' warehouses. Building material inventory
represents cost to procure, cost to store and insure, cost to guard against theft
and cost incurred when inventory becomes obsolete. This paper presents an overview
of the Just-in-Time (JIT) production system and discusses application and
implementation issues for the control of material inventory in building
construction. JIT ensures that suppliers deliver directly to the production floor
to achieve either a reduction in inventory or zero inventory and consequently a
reduction in production costs. Implementation of JIT building material management
in construction has the potential to realize the same far reaching benefits
experienced in manufacturing. Relevant factors to consider in JIT implementation
for material inventory management in construction are implications for construction
output and quantities, production planning,
design planning, construction contractor and suppliers' relationships, material
sourcing, and education and training.
Case Study 3 The Byggelogistik project
Up till now Byggelogistik has been tested on six housing schemes, the first being
Sophiehaven approximately 20 miles north of Copenhagen. The project is a typical
Danish social housing project comprising 100 flats in two stories blocks, erected
in two phases - not a big project on an international scale (Bertelsen 1993, 1994-
1, 1994-2). Contractually the project was undertaken by a general contractor and
approximately 10 trade contractors. The general contractor's staff participated in
the whole planning of the project. It was also from the staff of the general
contactor that the provider was recruited and his job developed, as the project
progressed, into being the production manager of the construction site. He planned
the day-to-day operations, he provided the materials required, he coordinated the
individual trade contractors' works and he followed up on the co-operation with the
wholesale dealers. In order not to overreach the experiment in the first phase it
was decided to restrict the logistics to a minor number of the trades. This
decision caused a great deal of trouble. Those not participating were repeatedly in
the way of those who were. In the second phase all trades participated and this
problem was solved. Even though the methods were developed with EDP in mind the
first tests were restricted to management by
Page 88

paper and pencil only. EDP was used in the usual manner in the participants' own
operations but no attempt was made to use IT in the logistics.
Inspired by the Toyota Production System the aim of Byggelogistik is to reduce cost
by eliminating waste of all kinds. Foremost waste of materials, but also waste of
labour time and transportation. In this the Byggelogistik concept is an instrument
for making the whole building process more effective. The main objective is to look
not only at direct transportation costs but at all costs in the building
procesrelated to materials delivery. Materials are not considered delivered until
the workers lay their hands on them in the exact quantity as the first step in the
construction. Packing, temporary storage, on site transportation, on site losses
and breakage, and low effectiveness due to badly and impedingly delivered and
stored materials are all considered as belonging to the transportation costs. A
Swedish study (Hammarlund 1989) has shown that approximately a third of the time
used by the worker on the building site is spent procuring his materials in the
widest sense, equalling about 10 percent of the total building cost. The hypothesis
of Byggelogistik is that a near-optimum form of supply will increase costs only
marginally, but will reduce waste of time considerably. This means that materials
delivery in Byggelogistik is looked upon from the point of view of an optimum
building process primarily.
Byggelogistik (Bertelsen 1994-1) makes use of a two level logistics with a planning
approach for the over all logistics and a JIT consumption approach for the daily
deliveries. The logistics are considered already on the
drawing board. Materials are, where it is possible, specified as belonging to the
separate building operation during the detailed design. In the planning of the
operations all supplies are described in detail aiming at JIT supply once a day,
comprising only materials needed until the next day, and packed for the various
trades and heir individual tasks and work areas. Such assemblies of materials are
named 'units'. Each type of unit is carefully specified to include all materials
needed for the particular task, and form of packing as well as equipment for the
delivery is detailed. Each type of unit is given a specific number for
identification. Several participants in the project consider the unit the most
original element in the whole concept. The idea is taken from the Swedish furniture
chain Ikea who sells furniture in parts to be assembled by the customer but with
all the parts – and often tools and assembly instructions in the same box. In order
to manage sorting, packing and delivery a close co-operation with the wholesale
dealers must be established. In Denmark 3 kinds of dealers cover all necessary
materials, and their warehouses are used as store room for the building site. A few
kinds of materials are Delivered directly in units packed by the manufacturer, but
most materials are delivered to the warehouse to be sorted and packed in units,
ready for transportation as the work progresses. In order to reduce the costs of
external transportation joint deliveries are used containing all units from the
dealer regardless of contractor, and to minimize internal transportation delivery
of units takes place as close to the work area as possible. The dealers' drivers
are considered as part of the building team in as much as the aim is to employ the
same drivers to load the trucks and deliver the materials every day thereby making
them familiar with the ever
changing lay out of the building site and choose the best sequence for the
unloading. Byggelogistik is characterized by careful planning, daily management
executed from the building site - not the head office - and immediate and direct
feed back of all mistakes. Careful planning demands that detailed design is fully
completed before the building process is started, in order that all materials may
be counted and specified in units. In this way delivery schedules on a weekly basis
may be worked out right from the start, covering the entire building period, and
all materials may be ordered bindingly. Planning must take place in close co-
operation between designers and trade contractors, and the wholesale dealer's
employees should take part in this. Tests have shown that this kind of co-operation
has resulted in a good deal of suggestions for more appropriate solutions and
choice of materials. At the same time better terms for delivery are obtained since
favorable prices may be offered by the producers due to early notice. Construction
JIT will be advanced by implementing demonstrated techniques and industry research
to test theoriesand develop new tools and techniques. Research topics have
beenproposed that constitute a strategy for implementing
Page 91
Unit – 9 CASE STUDY IN MALAYSIA (PUTRAJAYA)
AN OVERVIEW ON THE CASE STUDY PROJECT Presint 9 is the selected project to be used
as our case study in this task. The selection was made because Presint 9 is one of
the examples of constructions using the IBS technique. Located in our Government
administration areas, this Presint 9 is one of the projects in the development of
Putrajaya areas. Presint 9 is the residential area construct by Setia Putrajaya
Sdn. Bhd. The company had managed to complete the construction of Presint 9 in a
minimum time by using the IBS method of construction. Based on the observation
carried out by Putrajaya Holdings, noticed that the contractor only need four (4)
month to complete the full structure of the apartment until level six (6) comparing
to the used of conventional method that can only construct full structure of the
building until level four (4) in the same period. Based on this statement prove
that by using the IBS system to the construction of the building may reduced the
time for the completion. It also be noted that this IBS system not only give the
advantages in term of time to this construction but also give benefit in term of
cost for the development. The contractor managed to reduced cost on labor because
this method will reduced the used of labor in the construction. Moreover, there
will be a reduction in the cost of project, this is because this method will
reduced the waste in the construction that will contribute to the minimizing the
cost of project. These prove that the application of IBS method is one of the
techniques that can achieve the implementation of JIT approach.
FIGURE 2: PICTURES OF THE PRESINT 9 PROJECT USING IBS
Problem in the implementation JIT Approach into the Construction Industries JIT
gives a lot of benefits to our construction industries, but there are several
problems that may contribute to the failure on its implementation. The problems
that occur may contribute to the inefficiency and ineffectiveness for JIT approach
been implemented. The problems may occur based on the unique characteristic of the
construction industries itself. Below are several problems that been identified
faced in the implementation of JIT approach in the construction industries.
Material Shortage
Material is one of the crucial items in the process of production in the

construction industries. Shortage in the material supply is one of the problems in
our industries. Therefore, the material cannot be distributes to
Page 93
the site on time and this situation may affect the time factor for the project
progress.
Weather
The production place for the construction is unique and not similar to other
manufacturing production. Generally, construction activities located in the open
space known as site omparing with manufacturing production that were conducted in
the building. Weather is one of the factors that may contribute to the interruption
in the construction activities. The uncertainty of weather may contribute to the
problems in the JIT implementation.
Design Changes
To fulfill the client satisfaction, most of the procurement methods in our

industries give a space for the client to makes changes in the design during the
construction progress. This factor may effect the time and the cost for the
project. We cannot achieve the completion dates because the changes may influence
to extend and add the time of completion for the project. Therefore, JIT approaches
are not applicable to this kind of construction.
Cost
IBS system been said as the effective construction technique in the implementation
the JIT approach. IBS system may cut the time factor for the
construction industries and reduce the numbers of delays on the project. The
problem is the cost to be used in this system is higher compared to the
conventional techniques used in this construction industry.
Page 95
ANALYSIS
Page 96
Page 97
Page 98
CONCLUSION After doing two times analysis (see analysis I and II) we can see for
this particular project how the correlation between adopting JIT principles and
advantages in IBS system. Putrajaya Holding Sdn Bhd doing IBS system in their
project in Presint 9. We can see that in their process of implementation IBS
project they fulfill six (6) JIT key principles in the first analysis. Then we try
to relate with the main advantages of IBS in second analysis. We can see that
Putrajaya Holding Sdn Bhd also can obtain all the main advantages
of IBS. From this case study analysis, as a conclusion we can say that if a
contractor doing an IBS project and applying JIT six (6) key principles completely,
there is a big opportunity that the contractor can obtain the maximal of IBS
system. From the theory framework (see figure 2), it could be explained that this
parallel correlation between JIT and IBS because both of it comes from the
manufacture philosophy. And with this case study, we can recommend that if you want
to gain maximal advantages of IBS system, by applying JIT in the process can give
you a big guaranty of the successful of the project. This recommendation can be use
if Malaysian promoting IBS system in their construction industry in the future.
Page 100
ABBREVIATIONS
123456789-
JIT MRS BOM MPS MRP II ABC AE IBS DND
Just In Time Material Requirement Planning Bill Of Material Master Production

System Manufacturing Resource Planning Always Better Control Analysis Architectural
Engineering Integrated Business Strategy Direct Automated Delivery Total Quality
Management
10- TQM
Page 101
REFERENCES www.google.com www.scribd.com www.bdaconnect.com/india/ficci

www.wikipedia.org www.ibef.org www.trai.gov.in
www.networkcomputing.in/Connectivity-Convergence-012Dec008/3GServices
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Project Report On JIT Sanjay

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JUST IN TIME PRODUCTION

JUST IN TIME PRODUCTION

Mr. Deepak Dhuri & Rajesh Gujrathi

By- Sanjay Kumar Jha (Roll No.510916614)

SANJAY KUMAR JHA

By- Sanjay Kumar Jha (Roll No.510916614)

STUDENT DECLARATION I hereby declare that the project report entitled,

“JUST IN TIME PRODUCTION”

Place: Vashi Centre Code : 02973 Date:

----------------------SANJAY KUMAR JHA Reg. No: 510916614

By- Sanjay Kumar Jha (Roll No.510916614)

SIGNATURE OF HOD STORES Cipla Limited, A-42, Patalganga, Raigad Maharashtra

SIGNATURE FACULTY INCHARGE Karrox college of Technology Vashi, New Mumbai,

By- Sanjay Kumar Jha (Roll No.510916614)

The project report of

SANJAY KUMAR JHA

“JUST IN TIME PRODUCTION”

By- Sanjay Kumar Jha (Roll No.510916614)

UNIVERSITY STUDY CENTRE CERTIFICATE

This is to certify that the project report entitled,

“JUST IN TIME PRODUCTION”

(Guide‟s Name and Qualification)

By- Sanjay Kumar Jha (Roll No.510916614)

Page No. 8 9-20

21-24 25-43 44-58 59-67 68-79

80-90 91-100 101 102

In this paper, we are examining the implementation of Just-In-Time methodology in

By- Sanjay Kumar Jha (Roll No.510916614)

Company Profile (Cipla Ltd.)

By- Sanjay Kumar Jha (Roll No.510916614)

By- Sanjay Kumar Jha (Roll No.510916614)

By- Sanjay Kumar Jha (Roll No.510916614)

production, the company decided to commence manufacturing the basic chemicals

Cipla's manufacturing facilities have been approved by the following regulatory

1952 Sets up first research division for attaining self-sufficiency in

1960 Starts operations at second plant at Vikhroli, Mumbai, producing fine

1972 Starts Agricultural Research Division at Bangalore, for scientific cultivation

1976 Cipla launches medicinal aerosols for asthma.

1980 Wins Chemexcil Award for Excellence for exports.

1982 Fourth factory begins operations at

By- Sanjay Kumar Jha (Roll No.510916614)

1984 Develops anti-cancer drugs, vinblastine and vincristine in collaboration with

1985 US FDA approves Cipla's bulk drug manufacturing facilities.

1991 Lauches etoposide, a breakthrough in cancer chemotherapy, in association with

1994 Cipla's fifth factory begins commercial production at Kurkumbh, Maharashtra.

1999 Launches Nevirapine, antiretroviral drug, used to prevent the transmission of

2002 Four state-of-the-art manufacturing facilities set up in Goa in a record time

2005 Set-up state-of-the-art facility for manufacture of formulations at Baddi,

2007 Set-up state-of-the-art facility for manufacture of formulations at Sikkim.

By- Sanjay Kumar Jha (Roll No.510916614)

Founder Dr. K.A. Hamied (1898-1972)

Chairman & Managing Director Dr. Y.K. Hamied

Joint Managing Directors Mr. M.K.Hamied Mr. Amar Lulla

By- Sanjay Kumar Jha (Roll No.510916614)

Brief Introduction about JIT

underutilized (excess) capacity is used instead of buffer inventories to hedge

By- Sanjay Kumar Jha (Roll No.510916614)

By- Sanjay Kumar Jha (Roll No.510916614)

Just in time Production

By- Sanjay Kumar Jha (Roll No.510916614)

By- Sanjay Kumar Jha (Roll No.510916614)

FIVE STEPS IN THE INTRODUCTORY PHASE OF JIT

By- Sanjay Kumar Jha (Roll No.510916614)