The Super Seven presentS a

presentation on Just in time

Chahat – 47Shradha C -16Neha – 55Disha – 27Shraddha K– 56Chandini – 28Ayesha-58

Contents

Introduction

History Chahat

Definition

Objectives – Shradha C

Characterstics- Neha

Benefits - Disha

Limitations-Shraddha K

Methodology-Chandini

Elements- Aisha

Conclusion

Videos

Chahat

What is Just in Time?

A repetitive production systemin which the processing and movement of materials and goods occur just as they are needed!

Who created Just in Time?

The Just-in-Time concept was developed by Kiichiro Toyoda, the founder of Toyota Motor Corporation, but was first used by Henry Ford creator of the Ford company in the U.S.

How has Just in Time changed?

In 1910 Henry Ford and his buisness partner had developed a new manufacturing strategy that takes all the skills of different workers and converts it into one continuous process.

Today the process known as just in time is used in many companies especially in automotive and technology. Some of the largest companies that use this method are Ford,Harley Davidson, and Dell.

Definition of Just-in-Time/Lean

ProductionThe definition of Just in Time is -

Denoting a manufacturing system in which materials or components are delivered immediately before they are required in order to minimize inventory costs. This process allows companies to get their product to a customer faster and saves space for other products.

OBJECTIVES OF JIT

Customer satisfaction is the main focus of the competitive business environment today.

An organisation must understand its customers requirement in terms of quality of product, cost of product, quantity, lead time, scheduling of deliveries and other terms and conditions of the agreement.

J-I-T aims to achive the folowing to meet customers satisfaction.

OBECTIVES OF JIT

To Gain Competitive Advantage Improve responsiveness to

customers Production planning To achieve perfect quality Minimum lead time No waiting time

OBECTIVES OF JIT

1) To Gain Competitive Advantage: JIT consists of all activities : From customer

to supplier & shop-floor-office staff to executive management.

manufacturing process is reorganised by making continuous improvement.

2)To improve Responsiveness to Customer: Both goods and services should match the

customer needs quality characteristics result in greater

market share

OBECTIVES OF JIT 3) Production Planning: Should match the timely requirement of

goods and services by the customers . Results in success of the business.

4)To achieve Perfect Quality: Should conform to the specifications Should be acceptable to the customer

OBECTIVES OF JIT 5) Minimum Lead Time: Production in the minimum lead time ‘Right first time right every time’

manufacturing Linked to the market demand.

6)No Waiting Time: Queues and waiting should be avoided reducing the setup time as well as

processing time. Defects are not tolerated

7 WASTES / Characterstics of JIT

1) Waste of Over Production2) Waste of Inventory3) Waste of Waiting Time4) Waste of Movement5) Waste of Effort6) Waste of Defective

Products7) Waste of Over Processing

• 1)Waste of Over Production: Min. production levels • 2) Waste of Inventory : Min. storage space

• 3)Waste of Waiting Time: Less Idle Time• 4)Waste of movement : Specified transitions• 5)Waste of effort: Requirement of skills & education• 6)Waste Of defective products: Less waste should be generated• 7)Waste of Over Processing: Proper utilisation of resources

(JIT)

The just-in-time inventory model allows companies to reduce their overhead expenses while always ensuring that parts are available to manufacture their products.

Many companies, including Dell and McDonald's, use some sort of just-in-time inventory management to serve their customers better while lowering the cost of doing business.

Main benefits of JIT include: Reduced setup time. Cutting setup time allows

the company to reduce or eliminate inventory for "changeover" time. The tool used here is SMED (single-minute exchange of dies).

The flow of goods from warehouse to shelves improves. Small or individual piece lot sizes reduce lot delay inventories, which simplifies inventory flow and its management.

Employees with multiple skills are used more efficiently..

Production scheduling and work hour consistency synchronized with demand. If there is no demand for a product at the time, it is not made.

*Increased emphasis on supplier relationships. A company without inventory does not want a supply system problem that creates a part shortage. This makes supplier relationships extremely important.

*Supplies come in at regular intervals throughout the production day.When parts move directly from the truck to the point of assembly, the need for storage facilities is reduced.

*Minimizes storage space needed.

*Smaller chance of inventory breaking/expiring.

*Waste Elimination Supports Continuous Quality and Productivity Improvement

Lower Warehouse Costs: Storing excess inventory can cost a lot of money, and reducing the amount of inventory you keep on hand can reduce your carrying costs as well

Better Supply Chain Management: The just-in-time inventory model can also help companies be more efficient and competitive in the way they handle their supply chains and use their parts to assemble products for their customers.

Better Customer Satisfaction: Implementing the just-in-time inventory management model can allow companies to serve their customers faster and more efficiently.

Less Waste: When companies use the traditional method of inventory management and control, they can end up with pallets of unsold items that simply go to waste.

Limitation of Just in Time Regardless of the great benefits of JIT, it has its limitations, the following are the major limitations.

• Culture Differences The organizational cultures vary from firm to firm. There are some cultures that tie to JIT success but it is difficult for an organization to change its cultures within a short time.

• Traditional Approach The traditional approach in manufacturing is to store up a large amount of inventory in the means of backing up during bad time. Those companies rely on safety stocks may have a problem with the use of JIT.

•

Difference in implementation of JIT Because JIT was originally established in Japanese, it is somehow different for implementing in western countries. The benefits may vary.

• Loss of individual autonomy. This is mainly due to the shorter cycle times which adds pressures and stress on the workers.

• Loss of team autonomy. This is the result of decreasing buffer inventories which lead to a lower flexibility of the workers to solve problem individually.

• Loss of method autonomy. It means the workers must act some way when problems occur, this does not allow them to have their own method to solve a problem.

• JIT success is varied from industry to industry. Some industries are benefit more from JIT while others do not.

• Resistance to change JIT involves a change throughout the whole organization, but human nature resists to changes. The most common resistances are emotional resistance and rational resistance. Emotional resistance are those psychological feeling which hinder performance such as anxiety. Rational resistance is the deficient of the needed information for the workers to perform the job well.

Some other limitations:-

Relationship between management and employees is important .A mutual trust must be built between management and employees in order to have effective decision making.

• Employee commitment Employees must commit to JIT, to enhance the quality as their ultimate goal, and to see JIT as a way to compete rather than method used by managers to increase their workload.

• Production level JIT works best for medium to high range of production volume.

• Employee skill JIT requires workers to be multi-skilled and flexible to change.

• Compensation should be set on time-based wages. This allows the workers to concentrate on building what the customers wants.

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METHODOLOGY IN IMPLEMENTATION OF JIT

Just-in-time is a managephilosophy and not a technique. Just in time is a pull system of production, so it provides the necessary material only when required in the correct quantity and at the correct time. It is a manufacturing/delivery ment process where a minimum of goods are kept in stock. Items are planned to arrive precisely at the time they are required for use or dispatch.

The JIT system consists of defining the production flow and setting up the production floor such that the flow of materials as they get manufactured through the line is smooth and unimpeded, thereby reducing material waiting time.

The goal of JIT is to minimize the presence of non-value-adding operations and non-moving inventories in the production line. This will result in shorter throughput times, better on-time delivery performance, higher equipment utilization, lesser space requirement, lower costs, and greater profits.

Just In Time focuses on 1) Inventory Reduction2) Quality Control3) Waste Reduction4) Smaller production lots and batch sizesJIT can also be referred as an inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.

Elements of J-I-T

There are three important

elements in J-I-T processing:

DEPENDABLE SUPPLIERS

• Suppliers must be willing to drive on short notice exact quantities of raw material according to precise quality specifications.• Supplier must also be willing to drive the raw

material at specified work station rather than at a central receiving department.• This type of purchasing requires constant and

direct communication.

Under J-I-T machine are often grouped into work and much of the work is automated.

As a result ,one work may operate and maintain several different type of machine.

A Multiskilled Work Force

A TOTAL QUALITY CONTROL SYSTEM

• The company must establish total quality control throughout the manufacturing operations.• Total quality control means no defects.• Total quality control requires continuous

monitoring by both line employees and supervisors at each work station.

CONCLUSION