Producing necessary quantity at necessary time

JUST-IN-TIME (JIT) MANUFACTURING

DEFINATIONJIT Manufacturing means producing the necessary

items in necessary quantities at the necessary time.Making only what is needed, when it is needed, and in

the amount needed, delivered just as they are needed.

It’s a Low Cost Optimum Inventory Technique Items called only as they are needed.JIT means the production of the minimum number of

different units, in the smallest possible quantities, at the latest possible time, thereby eliminating the need for inventory

JIT does not mean to produce on time, but to produce just in time.

JIT LogicDemand

Production Consumption

Buffer QuantitySupply Supply

Why Just-In-Time manufacturing(JIT) manufacturing distances itself from the

competition because no large capital outlays are required

Other methods promote complexity, large overheads, automation, and other "state-of-the-art" technologies, while JIT advocates simplifying and streamlining the existing manufacturing process.

A properly implemented JIT system shouldProduce products customers want.Produce products only at the rate that

customers want them.Produce with perfect quality.Produce instantly with zero unnecessary

lead time.Produce with no waste of labor, material, or

equipment. Every move has a purpose and there is no

idle inventory.

CASE STUDYCustomer (Phase 1)

Sales Personal (Phase 2)

Finished Product Manufacturing

PlantSupplier

Phase 3Phase 4

Direct Delivery to Customer

virtually integrated network

JIT Model Phase 1: Customer calls up the sales staff and places an order for a car. The customer

also specifies the features he/she wanted in his/her car. Phase 2: The sales executive quickly passes this order details with all the specification

information to their manufacturing plant to initiate the build to order process. Phase 3: The manufacturing plant maintains a virtually integrated network with all its

suppliers where by it shares inventory data, design databases, quality data, technology plans as well as daily production requirements. All the raw materials enter the plant through one side and are manufactured in cells by teams with a rigorous testing at each stage.

Phase 4: The finished products are dispatched through other side of the plant and are

shipped for direct delivery to the customer. Usually no component is in the plant for many days.

BENEFITS OF JIT Reduce operating costs Greater performance Higher quality Improved delivery Increased flexibility & Innovativeness Shorten lead time Reduce inventory Better balance between different processes Problem clarification Reductions in down time. Reductions in scrap and re-work. Increased equipment utilization. Improved service to customers. Effective utilization of employee skills helps in increasing the product quality on-

time production and delivery of the products. The process emphasizes on building quality relations with the suppliers

DisadvantagesInitial investment in the process is too high

with no immediate results. Reliability of production system completely

on suppliers. Resistance from the employees lengthens

the implementation process. No scopes to meet the unexpected orders

as products are made to meet the actual order.

JIT in eresource ERPEresource ERP helps you reduce the

inventory material investment and improve productivity and customers by getting the right product at the right time to meet the schedules.

MRP in eresource, provides formal plans for each part number, whether raw material, component, or finished good. With the MRP activity in eresource, you can make purchasing and production-scheduling decision based on real-time circumstances.

JIT in eresource ERPDirect Sales

OrderSales Work

OrderOrder

based BOM MPS MRP

Material RequisitionIndent

Direct Purchase

OrderMaterial

IssuePurchase Invoice

BOM Debit Transfer FG Sales Invoice

Direct Sales Order

Sales Work Order

Order based BOM

MPS

MRP

Material Requisition

Indent

Direct Purchase Order

Material Issue

Purchase Invoice

BOM Debit

Transfer FG

Sales Invoice

KAIZEN“Continuous improvement” As no process can ever be declared perfect, there is

always room for improvementKaizen means that all team members throughout

the organization are continuously looking for ways to improve operations, and people at all levels in the company support this process of improvement.

Kaizen also requires clarity in terms of what is to be achieved – setting clear objectives and targets for improvement. It is very much a matter of positive attitude, with the focus on what should be done rather than what can be done.

KANBAN CARDIn order to have flexibility and efficient, smooth workflows, it is necessary to have the right things at the right place at the right time. In TPS it means having just the right components to build the product.The kanban card is the simple, highly-visible device that TPS

uses to call-up components as they are required. This means only a minimum stock of components is held in the assembly area. Before stocks need replenishing, a kanban card instruction from the operator ensures a just-in-time delivery. The process is based on a ‘pull’ principle – with items called only as they are required, as opposed to a ‘push’ principle that may not take account of actual need.