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JUST

IN

TIME

BySnehal Adsule

Roll no. 11-E04

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Introduction

Ford X

Invented byTaiichi Ohino

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JIT Objectives Zero Inventory.

Zero lead time.

Zero failures.

Flow process.

Flexible

manufacture. Eliminate waste.

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Implementing JIT Starts with a company shared vision of where it

is and where it wants to go

Management needs to create the rightatmosphere

Implementation needs a designated Champion

Implement the sequence of following steps

Make quality improvements

Reorganize workplace

Reduce setup times

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Implementing JIT - continued Reduce lot sizes & lead times

Implement layout changes

Cellular manufacturing & close proximity

Switch to pull production

Develop relationship with suppliers

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The Major Misconceptions of

JIT JIT is Only an Inventory Control System

It is a Method to Push Inventory Backto the Supplier

JIT is a Quality Control Program

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Advantage Minimum stock

holding cost

Eliminates waste Less Working Capital

Elimination of over

production Ease of

incorporatingchanges.

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Limitations Zero tolerances for mistakes.

Higher dependency on suppliers

Unexpected demand increase cannot befulfilled

Higher transaction cost

Detrimental effects on the environment

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JIT is a suitable production

system when: Have steady production of clearly defined

standard products A reasonable number of units made A high value product Have flexible working practices and a

disciplined workforce Short setup times on machines Quality can be assured, e.g. zero defects

either though good working practices orthough a cost penalty

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General Motors General Motors (GM) in the USA has (approximately) 1700 suppliers

who ship to 31 assembly plants scattered throughout the continentalUSA. These shipments total about 30 million metric tons per day andGM spends about 1,000 million dollars a year in transport costs onthese shipments (1990 figures).

JIT implies frequent, small, shipments. When GM moved to JIT therewere simply too many (lightly loaded) trucks attempting to deliver toeach assembly plant. GM's solution to this problem was to introduceconsolidation centersat which full truckloads were consolidated fromsupplier deliveries.

This obviously involved deciding how many consolidation centers to

have, where they should be, their size (capacity) and which suppliersshould ship to which consolidation centers (suppliers can also still shipdirect to assembly plants).

As of 1990 some 20% by weight of shipments go through consolidationcenters and about 98% of suppliers ship at least one item through aconsolidation centre.

All this has been achieved withoutsacrificing the benefits of JIT.

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List of Companies that use

just in time (JIT) Harley Davidson

Toyota Motor Company

General Motors

Ford Motor Company

Manufacturing Magic Hawthorne Management Consulting

Strategy Manufacturing Inc.

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Thank You