Just In Time

JUST IN TIME

The year was 2003 And an Indian company was the first to win the JIT Grand Prix award outside Japan and Korea Lucas TVS made history in

Lucas TVS bagged the prize again

Overview • • • • • •

Origin of JIT Core concept of JIT Elements of JIT Goals of JIT Benefits of JIT Industrial perspective

WHAT IS JIT?

Just In Time (JIT) is the name used to describe a manufacturing system where the parts which are needed to complete the finished products are produced or arrive at the assembly site as they are needed. FOCUS OF JIT: Improve the system

BENEFITS OF JIT

Surging

Lead Time

Defects

0

Handling

Lot Size

Setups

Breakdowns

Origin • JIT finds its origin in Japan, where it has been in practice since the early 1970’s. It was developed and perfected by Taiichi Ohno of Toyota, who is now referred to as the father of JIT. • Taiichi Ohno developed this philosophy as a means of meeting customer demands with

THE WATER FLOW ANOLOGY

Water = Inventory

Material handlin g

Poor training

Break downs

Material quality problems

Long setup s

e role of inventory in traditional systems:

Traditional systems use inventory (water) to buffer the process from problems (rocks) that cause disruption.

Material handlin g

Poor training

Break downs

Material quality problems

Long setup s

he role of inventory in JIT systems: JIT systems view inventory as waste and work to lower inventory levels to expose and correct the problems (rocks) that cause disruption.

Material handlin g

Poor training

Break downs

Material quality problems

Long setup s

JUST IN TIME

STANDARDISED OPERATIONS

LEVELLING

FLOW MANUFACTURIN G 5S FOR FACTORY IMPROVEMENT

BUILDING AWARENESS

Goals of JIT Reduce Inc. productivity costs

Waste elimination

Efficiency

Respond to customer needs

Competi tiveness

0 Defect process

Optimal cost/quality relationship

Reliable relationship with suppliers

Elements of JIT

People

Systems JIT

Plant

People

Stockholders

Labor Management Govt support

System Material Requirement Planning

Manufacturing Resource Planning

computer based bottom-up manufacturing approach production plan master production schedule

Demand Pull

Kanban

Plant Layout

Plant Self inspection

Continuous improvement Reduce inventory

Kanban • Kanban: Kan → visual, Ban → card/board • It is a signaling system to trigger action Push system Demand forecast

Pull system Customer demand

Types of Kanban • One card system • Two card system

Number of Kanbans • Standard containers • Number of kanbans, K • K = D ( P + C) X ( 1 + α ) Q D = Demand rate K = Number of kanbans P = Production lead time C = Conveyance lead time α = safety factor Q = Container size

Kanban cards

Information about item Its specification Preceding process Succeeding process Quantities of such items

Benefits Set up times are significantly reduced in the factory. The flows of goods from warehouse to shelves are improved. Employees who possess multiple skills are utilized more efficiently. Better consistency of scheduling and consistency of employee work hours. Increased emphasis on supplier relationships. Supplies continue around the clock keeping workers productive and businesses focused on turnover.

Mahadevan, B. (1997) Are Indian Companies Ready for Just in Time? IIMB Management Review Volume 9, Nos. 2-3, 85-92

Drawbacks of JIT Drawbacks

Cultural differences

Other problems

Loss of autonomy

Production level/employee skills

Implem- TraditionalBenefits may entation approach vary

Individual

Team

Method

Companies That Have Implemented JIT

IFB Automotive Pvt. Ltd. Organization: IFB Automotive Pvt. Ltd.

Location: Whitefield, Bangalor Industry: Automotive parts Products: Seat sliders seat recliners, seat Latches, seat frames, motors Employee strength: 600 Person interviewed; Mr. Vivek Assistant Manager Business Development

Just in Time Sumedha Chatterjee Priya Krishnan Just in Time MBA Alliance Business Academy Bangalore Sumedha Chatterjee Priya Krishnan MBA Alliance Business Academy Bangalore

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