1. A PRESENTATION ONJIT(JUST-IN-TIME)By: Ankit saxena

2. A philosophy of manufacturingbased on planned elimination ofwaste and continuousimprovement of productivityJIT? 3. Bottlenecks inimplementingJIT in anIndustryJIT improvement won`t do any good.Its sounds like a good thing but we still dont want to do itLook good on paper but..Costs are already as low as that can possibly getBut we already been doing things that wayWe can`t lower costs any more without lowering qualityEverything is going just fine now ,Why change it?That`s a lousy idea! We already tried that 20 years agoLook we understand this stuff better than anybody(so dont tell uswhat to do) 4. Evolved in Japan after World War II, asa result of their diminishing marketshare in the auto industry. Toyota Motor Company- first toimplement fully functioning andsuccessful JIT system, in 1970s. Japanese Manufacturers looked for away to gain the most efficient use oflimited resources. They worked on"optimal cost/quality relationship.Historyof JIT 5. The philosophy of JIT can be traced back to Henry Ford, but formalized JIToriginated in Japan as the Toyota Production System. W. Edwards Demingslesson of variability reduction was a huge influence.The focus of JIT is to improve the system of productionby eliminating all forms of waste. 6. ZERO INVENTORY ZERO LEAD TIME ZERO FAILUREJIT(JUST-IN-TIME) 7. Eliminates waste .Achieves streamlined production .Eliminate disruptions in production caused by poor quality,schedule changes, late deliveries. Makes the manufacturing delivery system flexible by allowing it tohandle a variety of products and changes in the level of output.Reduces setup and delivery times . 8. Waste Definition1. Overproduction Manufacturing an item before it is needed.2. Inappropriate Processing Using expensive high precision equipment whensimpler machines would suffice.3. Waiting Wasteful time incurred when product is not beingmoved or processed.4. Transportation Excessive movement and material handling ofproduct between processes.5. Motion Unnecessary effort related to the ergonomics ofbending, stretching, reaching, lifting, and walking.6. Inventory Excess inventory hides problems on the shopfloor, consumes space, increases lead times, andinhibits communication.7. Defects Quality defects result in rework and scrap, and addwasteful costs to the system in the form of lostcapacity, rescheduling effort, increasedinspection, and loss of customer good will.8. Underutilization of Employees Failure of the firm to learn from and capitalize onits employees knowledge and creativity impedeslong term efforts to eliminate waste. 9. Overproduction Waiting time Unnecessary transportation Processing waste Inefficient work methods Product defects 10. Strategies For Minimizing Waste By UsingJITManufacturing in smaller lot sizes reduces excess inventoryReducing inventory levels allows the problems to be uncovered thus creating opportunities for manufacturing process improvement 11. Principles Of JIT ManufacturingTotal quality ManagementProduction ManagementSupplier ManagementInventory ManagementHuman ResourceManagement 12. JIT Manufacturing Building BlocksProduct designProcess designPersonnel/organizationalelementsManufacturingplanning and control 13. 1. Product DesignStandard partsDesign SimplificationHighly capable production systemsConcurrent engineering 14. 2. Process DesignSmall lot sizesSetup time reductionLimited work in processQuality improvementProduction flexibilityLittle inventory storage 15. Benefits of Small Lot SizesReduced InventoryLess ReworkLess Storage SpaceProblems are more apparentIncrease Product FlexibilityEasier to balance operation 16. 3. Personnel/Organizational ElementsWorkers as assetsCross-trained workersContinuous improvementLeadership 17. 4. Manufacturing Planning and ControlPull systemsVisual systems (kanban)Close vendor relationshipsReduced transaction processing (delays indelivery)Preventive maintenance 18. Evaluation and selection of vendor (suppliers) networkto develop a tiered supplier network reducing thenumber of primary suppliersTraditional supplier NetworkTiered Supplier NetworkBuyerSupplierSupplier SupplierSupplierSupplier supplierBuyersupplier supplier supplier supplier 19. In McDonalds 20. In McDonaldsHigh holding costs are the nature of the fastfood industries. Wastage. Time. 21. In McDonaldsJIT system wherein McDonald's doesn't begin to cookits orders until a customer has placed a specific order. 22. Implementation of JITSophisticated burger-making technology (including arecord-breaking bun toaster)McDonald's is able to make food fast enough to wait untilit's been ordered.Reduction in wastage. 23. Implementing in JITProduction SystemsCriteria for successServiceQualityPeopleFood preparationProfitability. 24. Supply Chain Integration 25. Benefits Improved Quality The burgers are prepared freshly andhence the quality has improved. Customer service As the burger is made only after theorder is placed, making special orders is not an issue. Cost Reduction Due to significant reduction in wastageas uncooked material has a higher shelf life. Reduction in waiting Customers waiting time reduce 11min. to just 1 and half min. 26. Companies adopted JIT 27. TOYOTA PRODUCTION SYSTEM 28. Minimizing Waste:Focused FactoryNetworksCoordinationSystem IntegrationThese are small specialized plants thatlimit the range of products produced(sometimes only one type of productfor an entire facility)Some plants inJapan have as fewas 30 and as manyas 1000 employees 29. Minimizing Waste: Group Technology (Part 1)Note how the flow lines are going back and forthUsing Departmental Specialization for plant layout can cause a lot ofunnecessary material movementSaw SawGrinderGrinderLathe Press PressSawLathe LathePressHeat Treat 30. Minimizing Waste:Group Technology (Part 2)Revising by using Group Technology Cells can reduce movement andimprove product flow .PressGrinderSaw Lathe LatheGrinderLatheHeat TreatA2Saw BLathe Press1 31. Minimizing Waste: Just-In-Time ProductionWHAT IT IS Management philosophy Pull system though the plant Hydraulic Push SystemsWHAT IT REQUIRES Employee participation Industrial engineering/basics Continuing improvement Total quality control Small lot sizesWHAT IT DOES Attacks waste Exposes problems and bottlenecks Achieves streamlined productionWHAT IT ASSUMES Stable environment 32. Minimizing Waste: InventoryHides ProblemsWork inprocessqueues(banks)ChangeordersVendordelinquenciesScrapEngineering designredundanciesDesignbacklogsMachinedowntimeDecisionbacklogsInspectionbacklogsPaperworkbacklogExample: By identifyingdefective items from avendor early in theproduction process thedownstream work is savedExample: By identifyingdefective work by employeesupstream, the downstreamwork is saved 33. Minimizing Waste: Kanban Production ControlSystemsStoragePart AStorageMachine Part ACenterAssemblyLineMaterial FlowCard (signal) FlowWithdrawalkanbanOnce the Production kanban isreceived, the Machine Centerproduces a unit to replace theone taken by the Assembly Linepeople in the first placeThis puts the systemback were it wasbefore the item waspulledProduction kanbanThe process begins by the Assembly Linepeople pulling Part A from Storage 34. Determining the Number of Kanban NeededSetting up a kanban system requires determining the number of kanbancards (or containers) needed.Each container represents the minimum production lot size.An accurate estimate of the lead time required to produce a container iskey to determining how many kanban are required.Side Bar In Japan space is a very important consideration since there is solittle of it. This process saves on space requirements. 35. Example of Kanban Card Determination:Problem DataA switch assembly is assembled in batches of 4 units from an upstreamassembly area and delivered in a special container to a downstreamcontrol-panel assembly operation.The control-panel assembly area requires 5 switch assemblies per hour.The switch assembly area can produce a container of switch assemblies in2 hours.Safety stock has been set at 10% of needed inventory. 36. Example of Kanban Card Determination:CalculationsAlways round up! 37. A.gunasekaran and J.lyu in their research implementation of just-in-timein a small company has depicted its advantage in SMEs. he depictedthat implementation of JIT in SMEs should start with layout revision,schedule stability and the development of long-term supplier-customerrelationships.A new purchasing policy supporting frequent purchases of small lotsizes may help SMEs in implementing a JIT system.Education and training of workers in SMEs about JIT concept and theirhigh leverage opportunity would tremendously support theimplementation of JIT system in SMEs. 38. Requirement for the implementation of JIT inIndian industry 39. Management Support And Understanding Of the System.Management And Labour Responsibilities.Training.Supplier Management.Production Layout And Work Flow.Longterm Planning.Government Support. 40. JIT BenefitsReduced InventoryImproved qualityLower costsReduced space requirementsShorter lead-timeIncreased productivityGreater flexibilityImproved vendor relations 41. JIT Benefits (contd.)Simplified scheduling & controlIncreased capacityBetter utilization of personnelMore product varietyIncreased equipment utilizationReduced paperworkValid production prioritiesWork force participation 42. Disadvantages of JIT Danger of disrupted production due to non-arrival of supplies. Danger of lost sales. High dependence on suppliers. Less time for quality control on arrival of materials. Increased ordering and admin costs. May lose bulk-buying discounts. 43. JIT Not For EveryoneJIT concepts work best when goods can be produced in response toconsumer demand (e.g. automobiles, etc.)JIT is less effective for the production of standardized consumergoods (e.g. basic clothing, food, soft drinks, toasters, etc.)There are cases where JIT concepts apply to sub-processes of amake to stock environment. (e.g. computers etc.)