INTRODUCTION

In today's competitive world shorter product life cycles, customers rapid demands and quickly
changing business environment is putting lot of pressures on manufacturers for quicker response
and shorter cycle times. Now the manufacturers put pressures on their suppliers. One way to
ensure quick turnaround is by holding inventory, but inventory costs can easily become
prohibitive. A wiser approach is to make your production agile, able to adapt to changing
customer demands. This can only be done by JUST IN TIME (JIT) philosophy. JIT is both a
philosophy and collection of management methods and techniques used to eliminate waste
(particularly inventory).
Waste results from any activity that adds cost without adding value, such as moving and storing.
Just-in-time (JIT) is a management philosophy that strives to eliminate sources of such
manufacturing waste by producing the right part in the right place at the right time.

Features
JIT (also known as lean production or stockless production) should improve profits and return
on investment by reducing inventory levels (increasing the inventory turnover rate), reducing
variability, improving product quality, reducing production and delivery lead times, and reducing
other costs (such as those associated with machine setup and equipment breakdown).
The basic elements of JIT manufacturing are people involvement, plants, and system. People
involvement deal with maintaining a good support and agreement with the people involved in the
production. This is not only to reduce the time and effort of implementation of JIT, but also to
minimize the chance of creating implementation problems. The plant itself also has certain
requirements that are needed to implement the JIT, and those are plant layout, demand pull
production, Kanban, self-inspection, and continuous improvement. The plant layout mainly
focuses on maximizing working flexibility. It requires the use of multi-function workers”.
Demand pull production is where you produce when the order is received. This allows for better
management of quantity and time more appropriately. Kanban is a Japanese term for card or
tag. This is where special inventory and process information are written on the card. This helps
in tying and linking the process more efficiently. Self-inspection is where the workers on the line
inspect products as they move along, this helps in catching mistakes immediately. Lastly
continuous improvement which is the most important concept of the JIT system. This simply
asks the organization to improve its productivity, service, operation, and
customer service in an on-going basis.
In a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge
against problems that may arise. The target of JIT is to speed up customer response while minimizing
inventories at the same time. Inventories help to response quickly to changing customer demands, but inevitably
cost money and increase the needed working capital.
JIT requires precision, as the right parts must arrive "just-in-time" at the right position (work station at the
assembly line). It is used primarily for high-vPolume repetitive flow manufacturing processes.

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INTRODUCTION
In today's competitive world shorter product life cycles, customers rapid demands and quickly
changing business environment is putting lot of pressures on manufacturers for quicker response
and shorter cycle times. Now the manufacturers put pressures on their suppliers. One way to
ensure quick turnaround is by holding inventory, but inventory costs can easily become
prohibitive. A wiser approach is to make your production agile, able to adapt to changing
customer demands. This can only be done by JUST IN TIME (JIT) philosophy. JIT is both a
philosophy and collection of management methods and techniques used to eliminate waste
(particularly inventory).
Waste results from any activity that adds cost without adding value, such as moving and storing.
Just-in-time (JIT) is a management philosophy that strives to eliminate sources of such
manufacturing waste by producing the right part in the right place at the right time.

Features
JIT (also known as lean production or stockless production) should improve profits and return
on investment by reducing inventory levels (increasing the inventory turnover rate), reducing
variability, improving product quality, reducing production and delivery lead times, and reducing
other costs (such as those associated with machine setup and equipment breakdown).
The basic elements of JIT manufacturing are people involvement, plants, and system. People
involvement deal with maintaining a good support and agreement with the people involved in the
production. This is not only to reduce the time and effort of implementation of JIT, but also to
minimize the chance of creating implementation problems. The plant itself also has certain
requirements that are needed to implement the JIT, and those are plant layout, demand pull
production, Kanban, self-inspection, and continuous improvement. The plant layout mainly
focuses on maximizing working flexibility. It requires the use of multi-function workers”.
Demand pull production is where you produce when the order is received. This allows for better
management of quantity and time more appropriately. Kanban is a Japanese term for card or
tag. This is where special inventory and process information are written on the card. This helps
in tying and linking the process more efficiently. Self-inspection is where the workers on the line
inspect products as they move along, this helps in catching mistakes immediately. Lastly
continuous improvement which is the most important concept of the JIT system. This simply
asks the organization to improve its productivity, service, operation, and
customer service in an on-going basis.
In a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge
against problems that may arise. The target of JIT is to speed up customer response while minimizing
inventories at the same time. Inventories help to response quickly to changing customer demands, but inevitably
cost money and increase the needed working capital.
JIT requires precision, as the right parts must arrive "just-in-time" at the right position (work station at the
assembly line). It is used primarily for high-vPolume repetitive flow manufacturing processes.
 HISTORY
The technique was first used by the Ford Motor Company as described explicitly by Henry
Ford's My Life and Work (1922):
"We have found in buying materials that it is not worth while to buy for other than immediate
needs.”
They bought only enough to fit into the plan of production, taking into consideration the state of
transportation at the time. If transportation were perfect and an even flow of materials could be
assured, it would not be necessary to carry any stock whatsoever. The carloads of raw materials
would arrive on schedule and in the planned order and amounts, and go from the railway cars
into production. That would save a great deal of money, for it would give a very rapid turnover
and thus decrease the amount of money tied up in materials. With bad transportation one has to
carry larger stocks.
They followed the concept of "dock to factory floor" in which incoming materials are not even
stored or warehoused before going into production. This paragraph also shows the need for an
effective freight management system (FMS) and Ford's Today and Tomorrow (1926) describes
one.
The technique was subsequently adopted and publicised by Toyota Motor Corporation of Japan
as part of its Toyota Production System (TPS).
Japanese corporations could afford large amounts of land to warehouse finished products and
parts. Before the 1950s, this was thought to be a disadvantage because it reduced the economic
lot size. (An economic lot size is the number of identical products that should be produced, given
the cost of changing the production process over to another product.) The undesirable result was
poor return on investment for a factory. Also at that time, Japanese companies had a bad reputation as
far as quality of manufacturing and car manufacturing in particular was concerned.
One motivated reason for developing JIT and some other better production techniques was that
after World War II, Japanese people had a very strong incentive to develop a good manufacturing
technique which would help them rebuild their economy. They also had a strong working ethic
which was concentrated on work rather than on leisure, and this kind of motivation was what
drove Japanese economy to succeed. Therefore Japan’s wish to improve the quality of its production led to
the worldwide launch of JIT method of inventory
Toyota Motors
The basic elements of JIT were developed by Toyota in the 1950's, and became known as the
Toyota Production System (TPS).The chief engineer Taiichi Ohno, a former shop manager and
eventually vice president of Toyota Motor Company at Toyota in the 1950s examined accounting
assumptions and realized that another method was possible. The factory could be made more
flexible, reducing the overhead costs of retooling and reducing the economic lot size to the
available warehouse space.
Over a period of several years, Toyota engineers redesigned car models for commonality of
tooling for such production processes as paint-spraying and welding. Toyota was one of the first
to apply flexible robotic systems for these tasks. Some of the changes were as simple as
standardizing the hole sizes used to hang parts on hooks. The number and types of fasteners were
reduced in order to standardize assembly steps and tools. In some cases, identical subassemblies
could be used in several models.
Toyota engineers then determined that the remaining critical bottleneck in the retooling process
was the time required to change the stamping dies used for body parts. These were adjusted by
hand, using crowbars and wrenches. It sometimes took as long as several days to install a large
(multiton) die set and adjust it for acceptable quality. Further, these were usually installed one at
a time by a team of experts, so that the line was down for several weeks.
Toyota implemented a program called Single Minute Exchange of Die (SMED). With very
simple fixtures, measurements were substituted for adjustments. Almost immediately, die change
times fell to about half an hour. At the same time, quality of the stampings became controlled by
a written recipe, reducing the skill required for the change. Analysis showed that the remaining
time was used to search for hand tools and move dies. Procedural changes (such as moving the
new die in place with the line in operation) and dedicated tool-racks reduced the die-change
times to as little as 40 seconds. Dies were changed in a ripple through the factory as a new
product began flowing.
After SMED, economic lot sizes fell to as little as one vehicle in some Toyota plants. Carrying
the process into parts-storage made it possible to store as little as one part in each assembly
station. When a part disappeared, that was used as a signal to produce or order a replacement.
JIT was firmly in place in numerous Japanese plants by the early 1970's. JIT began to be
adopted in the U.S. in the 1980's.
 REQUIREMENTS
JIT applies primarily to repetitive manufacturing processes in which the same products and
components are produced over and over again
For Example Cars, Fast Food Chains
The requirements for a proper just-in-time management are:
STANDARDIZATION: Where the supplies are standardized and the suppliers are trustable and
close to the plant. As there is little buffer inventory between the workstations, so the quality must
be high and efforts are made to prevent machine breakdowns. Those organizations that need to
respond to customer demands regularly this system is also being able to respond to changes in
customer demands.
SOFTWARE:For JIT to work efficiently Supply Chain Planning software, companies have in the mean time
extended Just-in-time manufacturing externally, by demanding from their suppliers to deliver inventory to the
factory only when it's needed for assembly, making JIT manufacturing, ordering and delivery processes even
speedier, more flexible and more efficient.
MULTI-FUNCTIONALITY In JIT workers are multifunctional and are required to perform
different tasks. Machines are also multifunction and are arranged in small U-shaped work cells
that enable parts to processed in a continuous flow through the cell. Workers produce pars one at
a time within cells and transport those parts between cells in small lots.
CLEANLINESS Environment is kept clean and free of waste so that any unusual occurrence are
visible.
SCHEDULES: Schedules are prepared only for the final assembly line, in which several
different models are assembled at the same line. Requirements for the component parts and
subassemblies are then pulled through the system. The "PULL" element of JIT will not work
unless production is uniform and lot sizes are low. Pull system is also used to order material from
suppliers (fewer in numbers usually). They make be requested to make multiple deliveries of the
same item in the same day, so the manufacturing system must be flexible.
QUALITY: Quality within JIT manufacturing is necessary, because without a quality program
in JIT, the JIT will fail. Here we think about quality at the source and the Plan, Do, Check,
Action with its statistical process control. Furthermore, techniques are also very important. The
JIT technique is a pull system rather than a pull system, based on not producing things until they
are needed. The well known Kanban card is used as a signal to produce. Moreover, integration
also plays a key role in JIT systems. JIT integration can be found in four points of the
manufacturing firm. The Accounting side, Engineering side, Customer side and Supplier side.
At the accounting side, JIT has concern for WIP, utilization and overhead allocation and at the
engineering side of JIT focuses on simultaneously and participative design of products and
processes.
JUST-IN-TIME TOTAL QUALITY MANAGEMENT
Just-In-Time Total Quality Management is the mean of market and factory management within a
humanistic environment of continuing improvement. Moreover, it means continuing
improvement in social life, and working life. When applied to the factory, Kaizen means
continual improvement involving managers and workers alike. When it comes to Total Quality
Management, Japans strong industrial reputation is well-known around the world. Total quality
control is the system, which Japan has developed to implement Kaizen or continuous
improvement. The traditional description of Just-In-Time is a system for manufacturing and
supplying goods that are needed. There are several important tools that are important for total
quality management control, but there are seven that are even more important. These are
relations diagram, affinity diagram, systematic diagram or tree diagram, matrix diagram,
matrix data analysis, process decision program chart, and arrow diagram. When used properly,
these seven tools will help the total quality management system by eliminating defective
products. Moreover, they will help in assisting to improve productivity, complete tasks on time,
eliminate waste, and reduce lead time and inventory cost.

PROS AND CONS OF JUST-IN-TIME

Pros of Just-In-Time:
Goals of JIT can vary, but there are a few that should be constant in any JIT system:
1. Increasing the organization’s ability to compete with others and remain competitive over
the long run is very important.
2. The competitiveness of the firms is increased by the use of JIT manufacturing process as
they can develop a more optimal process for their firms.
3. The key is to identify and respond to consumers needs. Customers’ needs and wants
should be the most important focus for business today. This objective will help the firm
on what is demanded from customers, and what is required of production.
4. Moreover, the optimal quality and cost relationship is also important. The organization
should focus on zero-defect production process. Although it seems to be unrealistic in
the long run, it will eliminate a huge amount of resources and effort in inspecting, and
reworking defected goods.
5. Another important goal should be to develop a reliable relationship between the
suppliers. A good and long-term relationship between an organization and its suppliers
helps to manage a more efficient process in inventory management, material
management, and delivery system. It will also assure that the supply is stable and
available when needed.
6. Moreover, adopt the idea of continuous improvement. If committed to a long-term
continuous improvement idea, it will help the organization to remain competitive in the
future.

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