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Shortened product life cycles and demanding costumers have placed intense
pressure on manufactures for quicker response and shorter cycle times.

It became necessary to implement a production system which is lean and agile . It should be able to adapt to changing customer demands.

JIT- It is a difficult to implement philosophy. Used to describe the TOYOTA production system.

JIT requires only necessary units to be provided in necessary quantities at necessary times. Producing one unit extra is as bad as being one unit short. Completing production one day early is as bad as finishing one day late. Items are supplied only when needed or JUST-IN-TIME. Taichi Ohno is the individually most credited person associated to the development of JIT

For JIT to work the following elements should be in place

Steady production

Flexible resources
Extremely high quality No machine breakdowns Reliable suppliers Quick machine setups

Building Blocks for Just-in-Time

JIT Objectives
Ultimate objectives: Zero Inventory. Zero lead time. Zero failures. Flow process. Flexible manufacture. Eliminate waste.
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ELEMENTS OF JIT
Flexible resources Cellular Layouts

Pull production systems

Kanban production system Small lot production Quick setups Uniform production levels Quality at the source Supplier networks Total productive maintenance
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FLEXIBLE RESOURCES

It initiates the use of multifunctional workers and general purpose machines. Ohno eliminated different wastes occurring during production and concentrated on worker productivity. Workers were trained to operate more then one machines which are not of the same type.

WASTE IN OPERATIONS

PULL AND PUSH SYSTEM In a push system a schedule is prepared in advance for a series of workstations and each workstation pushes it completed work to the next station. In a pull system workers go back to previous stations and take only the parts or materials that are needed and can process immediately.

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KANBAN SYSTEM
Kanban is the Japanese word for card. Ohno observed the method adapted by American supermarkets for replenishing empty shelves in racks. He adopted the same method to Toyota Motor Company.

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JIT Benefit Summary

Improvement Aggregate percentage (3-5 years) Annual percentage 80-90% 30-40%

Manufacturing cycle time reduction Inventory reductions: Raw materials Work-in-process Finished goods Labor cost reductions: Direct Indirect Space requirements reduction Quality cost reduction Material cost reduction

35-70 70-90 60-90

10-50 20-60 40-80 25-60 5-25

10-30 30-50 25-60

3-20 3-20 25-50 10-30 2-10
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