PRESENTATION ON

JIT

MEANING OF JIT
Just in Time, or JIT is a set of techniques to improve the return on investment of a business by reducing inprocess inventory,it is a japanese production management philosophy which has been applied in practice since the early 1970s in many japanese manufacturing organizations. there are strong cultural aspects associated with ahe emergence of JIT in JAPAN.in addition JIT also emerged as a means of obtaining the highest levels of usage out of limited resources available.so the philosophy was developed as aresult of aversion to waste.

JIT is not about automation. JIT eliminates waste by providing the environment to perfect and simplify the processes. JIT is a collection of techniques used to improve operations It can also be a new production system that is used to produce goods or services.

JIT is a philosophy of continuous improvement in which non-value-adding activities (or wastes) are identified and removed for the purposes of: *Reducing Cost *Improving Quality *Improving Performance * Improving Delivery * Adding Flexibility *Increase innovativeness

JIT - Background and History

JIT is a Japanese management philosophy which has been applied in practice since the early 1970s in many Japanese manufacturing organisations. It was first developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays . Taiichi Ohno is frequently referred to as the father of JIT. Toyota was able to meet the increasing challenges for survival through an approach that focused on people, plants and systems JIT manufacturing has the capacity, when properly adapted to the organisation, to strengthen the organisation's competitiveness in the marketplace substantially by reducing wastes and improving product quality and efficiency of production. There are strong cultural aspects associated with the emergence of JIT in Japan. The Japanese work ethic involves the following concepts. Workers are highly motivated Companies focus on group effort Work itself takes precedence over leisure Employees tend to remain with one company throughout the course of their career span

HISTORY

The technique was first adopted and publicized by Toyota Motor Corporation of Japan as part of its Toyota Production System (TPS). Japanese corporations cannot afford large amounts of land to warehouse finished products and parts. Before the 1950s this was thought to be a disadvantage because it reduced the economic lot size

JIT IN TOYOTA

The chief engineer at Toyota in the 1950s examined accounting assumptions, and realized that another method was possible. The factory could be made more flexible, reducing the overhead costs of retooling, and therefore reducing the economic lot size to the available warehouse space. Over a period of several years, Toyota engineers redesigned car models for commonality of tooling for such production processes as paint-spraying and welding. Toyota was one of the first to apply flexible robotic systems for these tasks .

JIT IN TOYOTA
Toyota Motor Corporation's vehicle production system is a way of "making things" that is sometimes referred to as a "lean manufacturing system" or a "Just-in-Time (JIT) system," and has come to be well known and studied worldwide. The Toyota Production System (TPS) was established based on two concepts: The first is called "jidoka" (which can be loosely translated as "automation with a human touch") which means that when a problem occurs, the equipment stops immediately, preventing defective products from being produced; The second is the concept of "Just-in-Time," in which each process produces only what is needed by the next process in a continuous flow.

JIT IN OTHER SEGMENTS

The just-in-time philosophy was also applied to other segments of the supply chain in several types of industries. In the commercial sector, it meant eliminating one or all of the warehouses in the link between a factory and a retail establishment. Examples in sales, marketing, and customer service involve applying information systems and mobile hardware to deliver customer information as needed, and reducing waste by video conferenci

Elements of JIT -

*regular meetings of the workforce (e.g. daily/weekly) *discuss work practices, confront and solve problems an emphasis on consultation and cooperation (i.e. involving the workforce) rather than confrontation *modify machinery, e.g. to reduce setup time *reduce buffer stock *expose problems, rather than have them covered up reveal bad practices *take away the "security blanket" of stockBenefi

Main benefits of JIT. The benefits of JIT are: *better quality products quality the responsibility of every worker, not just quality control inspectors *reduced scrap and rework *reduced cycle times *lower setup times *smoother production flow *less inventory, of raw materials, work-in-progress and finished goods *cost savings *higher productivity *higher worker participation *more skilled workforce, able and wiling to switch roles *reduced space requirements *improved relationships with suppliers

JIT can be implemented, as Toyota Production System A production system which is steeped in the philosophy of "the complete elimination of all waste" imbuing all aspects of production in pursuit of the most efficient methods. This production control system has been established based on many years of continuous improvements, with the objective of "making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible."

LIMITATIONS OF JIT

1.

2.

3.

4.

THERE IS NO FLEXIBILITY only first come first served principle is applied There is no safety stock to offset inaccurate demand forecasts Jit production is effective only when the daily demands are fairly stable Loss of individual autonomy is another possible shortcoming of JIT

JIT PURCHASING

TRADITIONAL PURCHASING

DIFFERENCE

PRIMERY OBJECTIVE IS TO ACHIEVE PRODUCT QUALITY THROUGH A LONG TERM CONTRACT AND FAIR PRICE DELIVERY SCHDULE LEFT TO THE BUYER LESS FORMAL PAPERWORK DELIVERY TIME AND QUANTITY LEVEL CAN BE CHANGED BY TELEPHONE CALLS

PRIMERY OBJECTIVE IS TO GET THE LOWEST POSSIBLE PRICE DELIVERY SCHDULE LEFT TO THE SUPPLIER REQUIRES GREAT DEAL OF TIME AND FORMAL PAPERWORK

PREPARED BY SATNAM PARKASH MBA 2ND SEM