JUST-IN-TIME

GROUP 10

Nguyen Thi My Linh-BA070093

Hoang Thi Thanh Huyen-BA070081
Nguyen Nu Phuong Hanh-BA070072
Dao Manh Linh-BA070092
Tran Thi Dieu Nguyen-BA070112
OUTLINE

- Key concepts
- Case of Toyota
- JIT in Vietnam
- Conclusion
I. Key concepts

+ Just-in-time (JIT): Continuous and forced problem

solving via a focus on throughput and reduced
inventory

+ Toyota Production System (TPS): Focus on

continuous improvement, respect for people, and
standard work practices

+ Lean operations: eliminate waste through a focus

on exactly what the customer wants
I. Key concepts

GOOD PRODUCTION SYSTEM

REQUIRES

Eliminate Remove Improve

waste + variability + throughput
I. Key concepts

Eliminate waste

- 7 wastes: Overproduction; Queues; Transportation;

Inventory; Motion; Over-processing; Defective product.

- 5Ss: A lean production checklist: Sort; Simplify; Shine;

Standardize; Sustain
I. Key concepts

Remove variability:

Some sources of variability:

+ Incomplete or inaccurate drawings or specifications
+ Poor production process
+ Unknown customer demands
I. Key concepts

Improve throughput:

Throughput: the time required to move orders through

the production process, from receipt to delivery.

Pull system- technique for increasing throughput- pulls

a unit to where it is needed just as it is needed
I. Key concepts

JIT : materials arrive where they are needed

only when they needed

When goods do not arrive just as needed  problems

identified problems solved drive out waste & delay
cut cost, variability, and improve throughput  improve
operation  competitive advantages
I. Key concepts
JIT Techniques:
+ Suppliers
+ Layout
+ Inventory
+ Scheduling
+ Preventive maintenance
+ Quality production
+ Employee empowerment
+ Commitment
II. Case of Toyota
 JIT partnerships:
Definition :

• Partnerships of suppliers
and purchasers that
remove waste and drive
down costs for mutual
benefits
 JIT partnerships:
Goals of JIT partnerships

• Elimination of unnecessary activities

• Elimination of in-plant inventory
• Elimination of in-transit inventory
• Elimination of poor supplier
 JIT partnerships:
Characteristics :
 JIT partnerships:
Apply in Toyota

• Basic Principles of Purchasing :

+Fair competition based on an open door
policy
 Every step in making Toyotas, from
+ Mutual benefit based on mutual trust
development to production, consists of
+Contribution
joint work with to local !economies,
suppliers good
(Atsushi Niimi- Chief
corporate
Purchasing citizenship
Officer)
 JIT partnerships:
Apply in Toyota

• Helping Suppliers Compete

+Annual Purchasing Policy

+Supplier Support System

 JIT partnerships:
Challenges in building JIT partnerships

• Desire for diversification

• Poor customer scheduling
• Engineering changes
• Quality assurance
• Small lot sizes
• Proximity
 JIT layout
• JIT objective: Reduce movement of
people and material
– Movement is waste!
 Use assembly line
 Benefits of Layout in JIP
•Distance reduction
•Increased flexibility
•Impact on employees
•Reduced space and inventory
 Toyota
*Large lots and long production lines with
single-purpose machinery are being
replaced by smaller flexible cells
U-shaped cells
•Maximum visibility
•Shorter paths
•Flexible in number of
workers
•Facilitates monitoring of
work entering and leaving
cell
•Workers can Inbound Stock Outbound Stock
conveniently cooperate to
smooth flow and address
problems
•Improved communicated
*Build work cells based on group technology codes
help identify components with similar characteristics
group them into families
-Cells designed to be rearranged as
volume or designs change
-Applicable in office environments as
well as production settings
-Facilitates both product and process
improvement

Increased Flexibility
- Employees are cross trained for flexibility and efficiency
 Toyota use unskilled workers,preferring to train them itself

-Improved communications facilitate the passing on of

important information about the process.
Toyota designed the Valenciennes factory to be 30 percent
more compact than other factories with similar output, to
curb building and operating costs and enhance
communication.(
communication. www.nytimes.com )
-Each Toyota employees has right to stop production line
when defect occur

Impact on Employees
- NO executive dining room. Managers dine in the
same cafeteria as other employees do, but on a
later shift.( www.nytimes.com )

reduce space
 JIT Inventory & scheduling:
Just in time Inventory: the minimum
inventory necessary to keep a perfect
system running.

“Inventory is evil” Shigo Shingo

• Holding cost

• Hide problems in the production system

Hide problems in the production
system
 JIT tactics of Toyota
• Use pull system to move inventory

• Reduce setup time

• Reduce lot size

Use pull system to move inventory
• Toyota use a kanban system (pull‑system)
to pull parts to the next production stage
only when they are needed
• A kanban is a card that is attached to a
storage and transport container
• A sequence of kanbans pulls material
through the process
 Kanban

Kanban Finished Customer

goods order
Work
cell
Ship

Raw Kanban Final Kanban

Material assembly
Supplier
Kanban Kanban
Sub-
Purchased assembly
Parts Kanban
Supplier
 Reduce setup time
More frequently orders require reducing setup
costs, otherwise, inventory costs will rise.
Setup cost is highly correlated with setup time.

• organizing procedures
• using carts
• training workers to do their own setups
Toyota managed to slash setup times from
months to hours and sometimes even minutes
 Reduce lot size
With close cooperation with its suppliers
and the implementation of Kaiban system
Lot sizes are reduced significantly.
Hood and Fender press comparison:
Toyota USA Sweden Germany

Setup time 10 minutes 6 hours 4 hours 4 hours

Lot size 1 day* 10 days 1 month -

(inventory)

*Measured in days of usage

 III. JIT in Vietnam

Some companies in Vietnam have applied jit

such as: Pin acquy Mien Nam, My Duc
ceramics…

NOT very SUCCESSFUL

+ Lack of knowledge, experiences of jit of both

management and employees
+ Limitation in technology in Vietnam
+ Trouble in transportation
+ Difficulties in buying materials ( My Duc ceramics)
IV. CONCLUSION

JIT Advantages
-Shortened lead time
-Reduced time spent on non-process work
-Reduced inventory
-Better balance between different processes
-Problem clarification
-Reduced operating costs
-Greater performance and throughput
-Higher quality
-Improved delivery
-Increased flexibility and innovativeness
IV. CONCLUSION

Pitfalls:
- Production process strongly depends on the suppliers.

- There are no substitute products in order to respond to

unpredicted events.