TABLE OF CONTENTS

JUST-IN-TIME MANUFACTURING (JIT):..........................................................2

1.1

Introduction:.........................................................................................2

1.2

Basic Principles of Just In Time:............................................................3

1.2.1 Production in accordance with the Master Production Schedule

orders: 3
1.2.2

Production in small quantities:.......................................................3

1.2.3

Reduce waste:................................................................................3

1.2.4

Improvement of product flow continuously:...................................3

1.2.5

Improvement of the quality of the product:...................................4

1.2.6

Respect for all people / employees:...............................................4

1.2.7

Reduce all forms of uncertainty:.....................................................4

1.2.8

Attention in the long run:...............................................................4

1.3

Advantages Just-In-Time Systems:.......................................................4

1.4

Disadvantages:....................................................................................5

1.5

Precautions:.........................................................................................6

1.6

Conclusion:...........................................................................................7

1.7

Principles of JIT Manufacturing:............................................................7

1.8

JIT implementation process:.................................................................8

PRODUCTION MANAGEMENT:.....................................................................8

SUPPLIER MANAGEMENT:.........................................................................10

INVENTORY MANAGEMENT:......................................................................10

HUMAN RESOURCE MANAGEMENT:..........................................................11

TOTAL QUALITY MANAGEMENT:................................................................12

6.1

Importance of total quality management in JIT:.................................13

REFERENCES:...........................................................................................14

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JUST-IN-TIME MANUFACTURING AND TOTAL QUALITY

MANAGEMENT
1 JUST-IN-TIME MANUFACTURING (JIT):
Just-In-Time Manufacturing or JIT, is a philosophy of continuous improvement that puts
emphasis on prevention rather than correction, and demands a companywide focus on quality. It
is also an operational management approach to achieve world class manufacturing. I would also
like to emphasize that JIT is a philosophy, and that the philosophy bases production of demand.

1.1 Introduction:
Just-in-time manufacturing was a concept introduced to the United States by the Ford motor
company. It works on a demand-pull basis, contrary to hitherto used techniques, which worked
on a production-push basis.
To elaborate further, under just-in-time manufacturing (colloquially referred to as JIT production
systems), actual orders dictate what should be manufactured, so that the exact quantity is
produced at the exact time that is required.
Just-in-time manufacturing goes hand in hand with concepts such as Kanban, continuous
improvement and total quality management (TQM).
Just-in-time production requires intricate planning in terms of procurement policies and the
manufacturing process if its implementation is to be a success.
Highly advanced technological support systems provide the necessary back-up that Just-in-time
manufacturing demands with production scheduling software and electronic data interchange
being the most sought after.
Just in Time (JIT) is a production system that is designed to get quality, reduce costs, and achieve
delivery time as efficiently as possible by removing all types of waste present in the production
process so that companies are able to deliver their products (both goods and services) in
accordance with the will of the consumer right time. To achieve the goals of this system, the
company produced just as much as the amount needed / requested consumer at the right time so

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as to reduce the cost of maintenance as well as suppress the possibility of damage or loss due to
hoarding of goods.

1.2 Basic Principles of Just In Time:

To apply the method JIT then there are eight basic principles that should be considered in
determining the production system strategies, namely:
1.2.1 Production in accordance with the Master Production Schedule
orders:
New manufacturing system will be operated to produce ascertained wait after a certain amount of
incoming orders. The ultimate goal to produce finished goods on time and to the extent the
amount you want to be consumed alone (Just in Time), for it would result in the production
process as many times as needed and immediately sent to customers who need to avoid the stock
and to reduce the cost of storage (holding cost ).
1.2.2 Production in small quantities:
Production is carried out in a number of lots (Lot Size) are small to avoid planning and lead time
are complex as well as in the production of large quantities. Flexibility of production activities
will be done, because it is easier to make adjustments in the production plan especially against
changes in market demand.
1.2.3 Reduce waste:
Waste (waste) must be eliminated in every area of its existing operations. All use of input
resources (materials, energy, machinery or working hours, etc.) should not exceed the minimum
necessary to achieve the production target.
1.2.4 Improvement of product flow continuously:
The main aim is to eliminate processes that cause bottlenecks and unproductive all conditions
(idle, delay, material handling, etc.) that can hinder the smooth flow of production.

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1.2.5 Improvement of the quality of the product:

Product quality is the goal of the application Just in Time production system. Here has always
strived to achieve a state of Zero Defect by way of total control in every step of the process.
All forms of deviation must be identified and corrected as early as possible.
1.2.6 Respect for all people / employees:
With the method of Just in Time production system every worker will be given a full opportunity
and authority to govern and make decisions whether a stream operation should be continued or
terminated because of serious problems encountered in a particular work station.
1.2.7 Reduce all forms of uncertainty:
Inventories are expected to anticipate the basic idea that fluctuating demand and any unexpected
conditions, it will turn into waste if not used immediately. Similarly, recruitment of labor in large
numbers in an uncontrolled manner as commonly encountered in the project activity will lead to
waste if not used in time. Therefore, in planning and scheduling of production must be carefully
designed and controlled. Any form that gives the impression of uncertainty must be eliminated
and should be included in the consideration and formulation models.
1.2.8 Attention in the long run:
The seven principles of the implementation of Just in Time production system above is not a firm
commitment that is applied in the short term, but it must be built on an ongoing basis and the
commitment of all parties in the long run. In the short term, there is the possibility of application
of Just in Time production system will only add to the cost of production following the
consequences of the process of formation of a learning curve.

1.3 Advantages Just-In-Time Systems:

Following are the advantages of Adopting Just-In-Time Manufacturing Systems
Just-in-time manufacturing keeps stock holding costs to a bare minimum. The release of
storage space results in better utilization of space and thereby bears a favorable impact on
the rent paid and on any insurance premiums that would otherwise need to be made.
Just-in-time manufacturing eliminates waste, as out-of-date or expired products; do not
enter into this equation at all.

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 As under this technique, only essential stocks are obtained, less working capital is
required to finance procurement. Here, a minimum re-order level is set, and only once
that mark is reached, fresh stocks are ordered making this a boon to inventory
management too.
Due to the aforementioned low level of stocks held, the organizations return on
investment (referred to as ROI, in management parlance) would generally be high.
As just-in-time production works on a demand-pull basis, all goods made would be sold,
and thus it incorporates changes in demand with surprising ease. This makes it especially
appealing today, where the market demand is volatile and somewhat unpredictable.
Just-in-time manufacturing encourages the 'right first time' concept, so that inspection
costs and cost of rework is minimized.
High quality products and greater efficiency can be derived from following a just-in-time
production system.
Close relationships are fostered along the production chain under a just-in-time
manufacturing system.
Constant communication with the customer results in high customer satisfaction.
Overproduction is eliminated when just-in-time manufacturing is adopted.

1.4 Disadvantages:
Following are the disadvantages of Adopting Just-In-Time Manufacturing Systems
Just-in-time manufacturing provides zero tolerance for mistakes, as it makes re-working
very difficult in practice, as inventory is kept to a bare minimum.
There is a high reliance on suppliers, whose performance is generally outside the purview
of the manufacturer.
Due to there being no buffers for delays, production downtime and line idling can occur
which would bear a detrimental effect on finances and on the equilibrium of the
production process.
The organization would not be able to meet an unexpected increase in orders due to the
fact that there are no excess finish goods.
Transaction costs would be relatively high as frequent transactions would be made.
Just-in-time manufacturing may have certain detrimental effects on the environment due
to the frequent deliveries that would result in increased use of transportation, which in
turn would consume more fossil fuels.

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1.5 Precautions:
Following are the things to remember When Implementing a Just-In-Time Manufacturing
System
Management buy-in and support at all levels of the organization are required; if a just-intime manufacturing system is to be successfully adopted.
Adequate resources should be allocated, so as to obtain technologically advanced
software that is generally required if a just-in-time system is to be a success.
Building a close, trusting relationship with reputed and time-tested suppliers will
minimize unexpected delays in the receipt of inventory.
Just-in-time manufacturing cannot be adopted overnight. It requires commitment in terms
of time and adjustments to corporate culture would be required, as it is starkly different to
traditional production processes.
The design flow process needs to be redesigned and layouts need to be re-formatted, so as

to incorporate just-in-time manufacturing.

Lot sizes need to be minimized.
Workstation capacity should be balanced whenever possible.
Preventive maintenance should be carried out, so as to minimize machine breakdowns.
Set-up times should be reduced wherever possible.
Quality enhancement programs should be adopted, so that total quality control practices

can be adopted.
Reduction in lead times and frequent deliveries should be incorporated.
Motion waste should be minimized, so the incorporation of conveyor belts might prove to
be a good idea when implementing a just-in-time manufacturing system.

1.6 Conclusion:
In dealing with the high costs, declining profits and the sharpening of competition has resulted in
companies looking for ways their activities and gather more accurate data for decision-making
purposes. Hence came the idea of Just in Time (JIT), which is only produced when there is a
demand. As a result, waste can be removed on a large scale, in the form of improved quality and
lower production costs. The main purpose of JIT is to increase company profits and competitive

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position achieved through cost control efforts, improving quality, and improving delivery
performance.

1.7 Principles of JIT Manufacturing:

There are the 5 main principles of JIT Management: Total Quality Management, Production
Management,

Supplier

Management,

Inventory

Management,

and

Human

Resource

Management.
WIP Example:
Here is an example of how JIT Manufacturing can reduce total defects, in the event of a problem
in work station B. In a real world example, a simple reduction in product defects would save
your company a significant amount of time and money. In a true JIT system, the product would
have never left station B in a defective state, and if it did, a halt would be put of the process to
prevent it from happening again.

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1.8 JIT implementation process:

The JIT implementation process consists of the following steps, which are listed in order.

Make quality improvements.

Reorganize the workplace.

Reduce setup times.

Reduce lot sizes and lead times.

Implement layout changes.

Switch to pull production.

Develop relationships with suppliers.

Some steps must be done before others to allow us to be successful. For example, we cannot
effectively and efficiently reduce lot sizes until we first reduce the setup times.

2 PRODUCTION MANAGEMENT:
The second principle of JIT Manufacturing is Production Management.
The principle of Production Management is important to sustain quality in the process.
JIT philosophy uses a Pull System as opposed to a Push System. Pull = Made to order, and Push
= Made for inventory. This allows for demand to set the tone for production.
It is also important for the system to be flexible. This means that production levels must have the
ability to change from day to day, working with the aspect of made to order.
From a production management standpoint designing for testability is essential in the process, to
aid in the quest for ZERO DEFECTS. One tool used to aid in this quest is the Poka-Yoke device,
also known as a mistake proofing device. This device will prevent mistakes from happening, or
display obvious problems at a glance.
It is also important to test throughout the entire process to ensure Zero defects.

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Reduction of lot sizes will shorten the cycle times, and as a result this reduction will free up
capital that was otherwise tied up in Inventory.
JIT should eliminate any disruptions in the process, to maximize productivity, while eliminating
any bottlenecks.
Standardized parts should be used to increase simplicity in a process, and as a result defective
products will be reduced and eventually eliminated.
The JIT philosophy uses multiple communication techniques to aid in the production process,
two of which are the use of a Kanban system and an Andon.
Kanban is Japanese for the word Card.

Kanban is used to control the flow of inventory

throughout the process in a pull system utilizing a card to signal demand.

An Andon is a light or signal in the process throughout the work stations that will alarm the
workers that there is a problem in the process, and there is a collaborative effort to correct and
prevent the problem from happening again.
Stopping the process in this manner is referred to in Japanese as Jidoka, or a halt of the line.
Preventive maintenance is necessary to eliminate any down time for machinery failure in a
process.
Production Management at Toyota:
Throughout my research Toyota was the predominant example in each book. So I will continue
to refer to Toyota in my examples.
Toyota uses a Kanban pull system throughout the production process. Each task in the process
seems to take identical length and work content, so everyone is working at the same pace to
reduce bottlenecks.

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3 SUPPLIER MANAGEMENT:
The next principle in JIT Manufacturing is supplier management.
The main focus of supplier management is to establish long term relationships with few firms.
By doing this, you can grow with your supplier. JIT considers inventory to be wasteful, so
therefore it is eliminated. When inventory is eliminated, parts need to be delivered exactally
when they are needed, where they are needed, in the exact quantity, and in addition need to be
100% DEFECT FREE.
This is why it is important to work together as a team with your supplier.
Establishing this relationship will also allow for the elimination of high levels of inventory being
inspected for use in the production process.
Communication is vital Supplier Management; therefore efficient Information systems will open
new line of communication with these suppliers.

Eliminating barriers to information will

increase the efficiency.

Communicate problems to your suppliers in a positive manner. Dont assign the blame, work
together to overcome the problem to prevent it from happening in the future.
Supplier Relations at Toyota:
Toyota communicates their demand for parts 20 days in advance to their suppliers, with the right
to change the forecast up to the 10th day.

4 INVENTORY MANAGEMENT:
The next principle in JIT Manufacturing is Inventory Management.
A main emphasis in JIT manufacturing is the goal of Zero Inventory; to achieve this goal you
must eliminate safety stock.
A reduction in WIP will reduce the number of defects in the event of a problem.
JIT is not an inventory control system; it is a philosophy for continuous improvement of quality
that puts emphasis on prevention rather than correction.
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Reduction of Inventory will also open up more space in your factory.

Next is an analogy of how reducing inventory will aid in overall performance.
Inventory hides problems in a process, if you reduce it, then problems in the system become
most clear.

Look at the above pictures. In the first picture the boat in clearly above all rocks in the water,
and no problems clearly exist. In the second picture the water level lower and the rocks have
now become a problem for the boat.
The water level represents inventory, the rocks represent problems in the system, and the boat
represents the companys operations.
If inventory is reduced, problems in the system become most clear from the operations
standpoint.

5 HUMAN RESOURCE MANAGEMENT:

The last principle in JIT manufacturing is Human resource management.

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To be successful in a JIT manufacturing or quality based process the need for Human resource
management is essential. You need companywide involvement across all departments.
Motivation is needed from a managerial standpoint to maintain continuous improvement.
Problem solving skills are needed to maintain speed of the line in the event of a halt.
High employee interaction is essential for employees to work together to change the process for
the better.
Build Pride in Workmanship to increase the level of quality.
Self-Inspection of work is needed to keep the process flowing smoothly.
The moving around of employees to different work stations throughout the day is needed in the
event of absenteeism and a technique to break up the routine task of the process.
Management support and empowerment of the work force is needed, so that employees are not
afraid of stopping the process in the event of a problem.
Human Resource Management at Toyota:
In 1986 from a labor force of 60,000 Toyota received 2.6 million improvement proposals, 96%
of which were implemented by either management or the employees themselves.

6 TOTAL QUALITY MANAGEMENT:

Total Quality Management (TQM) refers to management methods used to enhance quality and
productivity in business organizations. TQM is a comprehensive management approach that
works horizontally across an organization, involving all departments and employees and
extending backward and forward to include both suppliers and clients/customers.
TQM is only one of many acronyms used to label management systems that focus on quality.
Other acronyms include CQI (continuous quality improvement), SQC (statistical quality control),
QFD (quality function deployment), QIDW (quality in daily work), TQC (total quality control),
etc. Like many of these other systems, TQM provides a framework for implementing effective

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quality and productivity initiatives that can increase the profitability and competitiveness of
organizations.
The first principle that we will focus on today is Total Quality Management. JIT will not survive
if there is not a strong emphasis on TQM.
There are countless points to emphasize when considering TQM, some of the stronger areas to
concentrate on are as follows.
Seeking long-term commitment to quality efforts will ensure that the efforts will be maintained
throughout the life of the company.
Quality must be a higher priority than cost because in the market of today, quality is no longer an
order winner, it is an order qualifier.
Minimizing Waste in production consists of more than minimizing losses of time and resources.
Waste can be defined in production terms as "everything not needed in production."
Eliminate Quality Inspectors, Make Quality everyones responsibility, and doing the job right the
first time delegates the responsibility of quality across all levels of the organization.

6.1 Importance of total quality management in JIT:

TQM is critical in JIT since poor quality would cause us to not deliver the right products at the
right time in the right quantities. Poor quality would cause us to have to either spent time fixing
the product or to scrap it if it cannot be fixed.

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7 REFERENCES:
http://www.tutorialspoint.com/management_concepts/just_in_time_manufact
uring.htm
http://en.wikipedia.org/wiki/Just-in-Time_Manufacturing
http://scholar.lib.vt.edu/ejournals/JOTS/Summer-Fall-2000/waldrop.html
http://www.betsaonline.com/JIT/JITTQMSCM.pdf
https://imamkhomainie.wordpress.com/2012/12/20/summary-of-the-basicprinciple-of-just-in-time/

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