JUST IN TIME

Presented by
Aarti
Lakhan
Heeralal
Sudhir
Parvinder
Hemangi
Wasim
Siddhant

Introduction
The

JIT concept was described by

Henry Ford in his 1923 book, My
Life and Work.

Just-In-Time

is a Japanese
manufacturing management
method developed in 1970s. It was
first adopted by Toyota
manufacturing plants by Taiichi
Ohno. The main concern at that
time was to meet consumer

After

the first introduction of JIT by Toyota,

many companies followed up and around
mid 1970s, it gained extended support
and widely used by many companies.

An

inventory strategy companies employ

to increase efficiency and decrease waste
by receiving goods only as they are
needed in the production process, thereby
reducing inventory costs.
This method requires that producers are
able to accurately forecast demand.

Principles of JIT

Adopting JIT means optimising every stage of a

manufacturing process to follow these principles:
Storage space is minimised to prevent excessive
inventory becoming stocked.
Parts are only bought to match the number of
products requested by the customer.
Replenishment systems, such as Kanban, are used to
minimise inventory.
Only the quantity requested by the customer is
manufactured.
The manufacturing process is constantly improved to
minimise the time taken and energy used to produce
each product.
Workers are trained for every section to provide
greater flexibility.
Smaller batches are produced in order to prevent

Example
A good example would be a car manufacturer that
operates with very low inventory levels, relying on their
supply chain to deliver the parts they need to build cars.
The parts needed to manufacture the cars do not arrive
before nor after they are needed, rather they arrive just
as they are needed.
This inventory supply system represents a shift away
from the older "just in case" strategy where producers
carried large inventories in case higher demand had to
be met.

Indian Automotive Industry Today

3rd

largest small car manufacturer in the World

2nd

Largest Two Wheeler manufacturer in the World

Worlds largest

Motorcycle manufacturer is in India

2nd

Largest Tractor manufacturer in the World

7th

Largest Commercial vehicle manufacturer in the World

6th

Largest Car manufacturer in the World

Just in Time in Indian Companies

Indian

automotive component industry has

shown tremendous growth over the lastdecade.
Today The it has 480 companies, employees
more than 2,50,000 people and has an estimated
turnover of approximately Rs. 50,000 crore
(US$ 10 billion). Just-in-Time has been widely
adopted in the Indian companies specially in
Indian automobile and manufacturing industry.

List of Indian companies using Just in

Time:

Lucas-TVS

Tata Motors

Volkswagen India

Maruti

Hero Honda

Bajaj Auto

Kirloskar Toyota

General Motors

MARUTI SUZUKI
Problem

Faced by Maruti Suzuki :

In 2005, Marutis production got

affected because of heavy rainfall.

MARUTI SUZUKI
The

Company has adopted the Japanese

System, JIT to achieve higher operational
efficiencies and reduce inventory carrying
cost.
To achieve JIT material supplies, the
company gives preference to locally based
suppliers and encourages far distance
suppliers to set up base close to Maruti
Suzuki`s facilities.

Continued..
Over

76% of the company's 246 suppliers

are located within 100 kms of radius. Have
strategically located the suppliers of bulky
components such as instrument panels, fuel
tanks, bumpers, seats, etc. adjacent to the
company's manufacturing facilities in the
Suppliers' Park.
The JIT system has evolved over the last 25
years in the company from monthly
scheduling to daily scheduling of parts orders

Conclusion