LALA LAJPATRAI COLLEGE OF COMMERCE AND

ECONOMICS

SUBJECT: PRODUCTION & QUALITY MANAGEMENT

TOPIC: JUST IN TIME

DATE: 08/11/2008

GROUP NUMBER: 1

TO: PROF. HEMLATA

 GROUP NAME

PRATIK DESAI – 781011

SAGAR RAO – 781013
DIVYA DAVE – 781021
MD. AAMIR GAZIANI – 781029
NIKHIL JAIN – 781035
SHRIYA KHANNA – 781050
 INTODUCTION

The technique was first used by the Ford Motor Company as

described explicitly by Henry Ford's My Life and Work (1923).

The technique was subsequently adopted and publicized by

Toyota Motor Corporation of Japan as part of its Toyota
Production System (TPS).

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, seek 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.

Just in Time (JIT) production is a manufacturing

philosophy which eliminates waste associated with time, labour,
and storage space. Basics of the concept are that the company
produces only what is needed, when it is needed and in the
quantity that is needed. The company produces only what the
customer requests, to actual orders, not to forecast.
JIT can also be defined as producing the necessary units,
with the required quality, in the necessary quantities, at the last
safe moment. It means that company can manage with their own
resources and allocate them very easily.

“An operating environment that seeks to reduce the

levels of inventory where by companies work with
suppliers to coordinate and schedule deliveries so
that goods arrive just at the time they are needed.”

Just-in-time (JIT) is an inventory strategy implemented to

improve the return on investment of a business by reducing in-
process inventory and its associated carrying costs. In order to
achieve JIT the process must have signals of what is going on
elsewhere within the process. This means that the process is
often driven by a series of signals, which can be Kanban (看板
Kanban?), that tell production processes when to make the next
part. Kanban are usually 'tickets' but can be simple visual signals,
such as the presence or absence of a part on a shelf. When
implemented correctly, JIT can lead to dramatic improvements in
a manufacturing organization's return on investment, quality, and
efficiency. Some have suggested that "Just on Time" would be a
more appropriate name since it emphasizes that production
should create items that arrive when needed and neither earlier
nor later.
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 centre at which full truckloads were
consolidated from supplier deliveries.

This obviously involved deciding how many consolidation centre

to have, where they should be, their size (capacity) and which
suppliers should ship to which consolidation centre (suppliers can
also still ship direct to assembly plants).

As of 1990 some 20% by weight of shipments go through

consolidation centre 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

OBJECTIVES
There are three main objectives:

1. Long Run Competition: 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: Efficiency is obtained within the

production process through the increase of productivity and
decrease of cost.

3. Reducing waste: Waste of materials, time and effort must be

reduced. It can help to reduce the costs.

Other objectives of JIT:

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 zero-defect 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. Develop a reliable relationship between the suppliers and

organization: A good and long-term relationship between
organization and its suppliers helps to manage a more efficient
process in inventory management, material management and
delivery system. It will also assure that the supply is stable and
available when needed.

4. Plant design for maximizing efficiency: The design of plant

is essential in terms of manufacturing efficiency and utility of
resources.

5. Adopt the work ethnic of Japanese workers for continuous

improvement: Commit a long-term continuous improvement
throughout the organization. It will help the organization to
remain competitive in the long run.

WASTE - "Anything other than the minimum amount

of equipment, materials, parts, and workers which are
absolutely essential to production."
 Seven Types of Waste to Eliminate
1. Waste from overproduction
2. Waste of waiting time
3. Transportation waste
4. Inventory waste
5. Processing waste
6. Waste of motion
7. Waste from product defects

JIT can help organization remains competitive by offering

consumers higher quality of products than their competitors, it is
very important in the survival of 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.
 Classic JIT diagram
The classic JIT diagram is as below. There the company (the boat)
floats on a sea of inventory, lurking beneath the sea are the
rocks, the problems that are hidden by the sea of inventory.

|
--|--
|
---------------
\ /
========\ Company /========{Sea of inventory}
\----------------/
X x
xxx xxx
xxxxx xxxxx
xxxxxxxxxxxxxxx

{x = Rocks which are the problems hidden by

the sea of inventory.}
If we reduce the inventory level then the rocks become exposed,
as below.

|
--|--
|
--------------- x x
\ / xxx xxx
========\ Company /====xxxxxxxxxx
\---------/ xxxxxxxxxxxx

Now the company can see the rocks (problems) and hopefully
solve them before it runs aground.
JIT outline points: Originated in Japan
Often said Japanese industry works - just-in-time, Western
industry works - just-in-case

JIT is also known as stockless production or lean production

JIT is a suitable production system when:

• have steady production of clearly defined standard products

• a reasonable number of units made
• a high value product
• have flexible working practices and a disciplined workforce
• short setup times on machines
• quality can be assured, e.g. zero defects either though good
working practices or though a cost penalty

JIT philosophy
• elimination of waste in its many forms
• belief that ordering/holding costs can be reduced
• continuous improvement, always striving to improve

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 stock

JIT need not be applied to all stages of the process. For example
we could keep large stocks of raw material but operate our
production process internally in a JIT fashion (hence eliminating
work-in-progress stocks).
 BENEFITS
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

However you should be absolutely clear that

implementing a JIT system is a task that cannot be
undertaken lightly. It will be expensive in terms of
management time and effort, both in terms of the
initial implementation and in terms of the continuing
effort required to run the system over time.
 CONCLUSION

We think that if the company wants to have a JIT concept it

does not mean that everything must be done very fast. The most
important thing for the company is to have good organized
resource allocation. Just-In-Time is a manufacturing philosophy
which leads to producing the required items, at the required quality
and in the right quantities at the precise time as they are required.
It is an approach to achieving excellence in elimination of waste.
Just-In-Time has its influence in ordering, scheduling and
producing sides of a manufacturing firm. In all, JIT is an important
operational system for manufacturing and supplying companies to
adopt and implement. It is true that implementation and
development of JIT is a long-lasting and expensive process, but if
the company can manage with these difficulties it is possible to
achieve high levels of workflow. The JIT concept is only one part
in the value chain that brings the satisfaction to the customers.
The JIT system really is a state of the art idea that is beginning to
catch on in a tremendous way all over the world.
SUGGESTION
 REFERENCES

1. www.wikipedia.com
2. www.google.co.in
3. http://just-in-time2005.tripod.com/index.html
AKNOWLEDGEMENT