Just In Time (JIT)

Just In Time approach. Philosophy. Advantages. Tools of JIT in manufacturing and service industry.

1. Presentation on JIT Presented By: Bhagrathi G.C. Manoj Subedi

2. Outlines Introduction History Philosophy Elements of JIT Objectives o f JIT Advantages o f JIT System Disadvantages of JIT Conclusion

3. Introduction Japanese management philosophy An inventory strategy Attempts to accurately match demand with supply Balancing the goals of avoiding stock-outs while minimizing inventory costs At a time process (Involves ordering and receiving inventory for production and customer sales only as it is needed to produce goods, and not before) Eliminates the issues associated with stock outs and overstocks Requires producers to  forecast demand accurately.

4. History Applied in practice since the early 1970s Taiichi Ohno - Father of JIT F irst developed and perfected within the Toyota (  response to the country’s limited natural resources, leaving little room for wastage) Japanese automotive manufactures applies to overcome American motor  competition G ained extended support and widely used by many companies

5. Philosophy “ the right material, at the right time, at the right place, and in the exact amount.”

6. Philosophy (Cont..) Waste Elimination (quality defects, inventories of all kinds, time spent to move material and time spent in setting up the machines) Pull System

7. Elements of JIT Flexible Resources Cellular Layouts ( machines are grouped according to the process requirements) Kanban System ( emphasis on continual delivery) Small-Lot Production Quick Setups Standardization Jidoka ( ability to detect when an abnormal condition) Total Quality Management Total Productive Maintenance Life Time Employment.

8. JIT in Service Industry S ervices involving “manufacturing-like” operations (Operations are repetitive, have reasonably high volumes, and deal with tangible items) Concept of JIT Consistently high quality ( Benchmarking , service design, use quality function deployment providing defect-free services) Uniform facility loads ( Reservation systems and differential pricing are two ways in which service providers can level the loads on their facilities ) Standard work methods:  ( analyzing work methods and standardization improvements for all employees to use)

9. JIT in Service Industry Close supplier ties ( Volume services require close supplier contacts to ensure frequent , short lead time and high-quality shipments of supplier .) Flexible work force ( multi-skilled work force ) Automation   (banks offer ATMs that provide various bank services on demand 24 hours a day ) Preventive maintenance (Services that are highly dependent on machinery can make good use of routine preventive maintenance) Pull method of material flows ( Services operations where tangible items are processed can utilize the pull method) Product focus (Managers of service operations can organize their employees and equipment)

10. Objectives of JIT Zero Inventory Zero Failures Zero Lead Time Elimination of Wastes Smooth Flow Process Increased Return on Investment (ROI)

11. Advantages of JIT K eeps stock holding costs to a bare minimum E liminates wastes E ncourages the ‘right first time’ concept ( inspection costs and cost of rework is minimized) High quality products and greater efficiency can be derived Can adapt to changes in demand Smoother production flow Smoother production flow

12. Disadvantages of JIT L ead to expensive production delays (e.g. if suppliers do not reach on time due to strike) Delivery costs will increase (due to frequent small orders will be required ) Administration costs may rise (due to small orders being placed) Loss in discount due to small orders. R eputation of the firm (the reliability of the supplying firm)

13. Conclusion F ound various benefit in Japanese and USA firms C omplete implementation package of zero wastage, full management of supply chain A pplied to service sector in addition to the manufacturing Industry JIT in action: Apple, Xiaomi, Zara, Tesla, Kelloggs

14. Thank You!