Toyota's JIT Revolution: A

Legendary Production System

Presented By:
Athar Abbas 2015-im-45
Ali Raza 2015-im-20
Shahid Saeed 2015-im-38
Saqib Naseer 2015-im-30
Aqib Amin 2015-im-48
Muhammad Awais 2015-im-05
Muhammad Zahid 2015-im-06
 Just In Time:

The JIT production was defined as 'producing only necessary units in a necessary
quantity at a necessary time resulting in decreased excess inventories and excess
workforce, thereby increasing productivity. JIT was based on the principle of producing
only what is needed and nothing more than needed.JIT focuses on continuous
improvement.

TOYOTA MOTOR CORPORATION


TOYOTA MOTORS is a Japanese automobile manufacturer headquartered in Toyota, Aichi,
Japan.
 
November 2014, is the twelfth-largest company in the world by revenue. Toyota
was the largest automobile manufacturer in 2012 (by production)

Toyota is the world's first automobile manufacturer to produce more than 10 million
vehicles per year

. As of July 2014, Toyota was the largest listed company in Japan by market
capitalization and by revenue.
 Background of Toyota

Sakichi Toyoda(1867-1930)
Toyota Automatic Loom Work

Kiichiro Toyoda (1894- 1952)
Used chain conveyor into the Assembly line

Taiichi Ohno (1970)
Implemented JIT in Toyota’s manufacturing plants to
avoiding waste, reducing inventories & increasing
production efficiency to compete .
 A Legendary Production System


Toyota production system also known as “TOYOTA WAY” was developed & promoted by Toyota Motor Corporation.


The main purpose of TPS is to eliminate waste through continuous improvement activities.

Profit through cost reduction


Elimination of over production


Quality control , Quality assurance.
 Toyota Production System
Cost Reduction Increase of capital
turnover ratio

Elimination of Waste

Continuous flow of Production

Just-in time production Jidoka(automation)

Production Information Control by Automatic

methods system teamwork stop device

Heijunka Kanban
Features of Just-In-Time Production System

What it is:
• Management philosophy
• 'Pull' System through the plant

What it does:
• Attacks waste (time, inventory, scrap)
• Exposes problems and bottlenecks
• Achieves streamlined production

What it requires:
• Employee participation
• Industrial engineering/basics
• Continuing improvement
• Total quality control
• Small lot sizes

What it assumes:
• Stable environment
 Principles or Components of JIT:

Kanban:
A simple parts-movement system that depended on cards and boxes/containers to
take parts from one workstation to another on a production line.

o Conveyance Kanban card/ withdrawal card:

The kanban card used to move parts from one place to another, known as the
Conveyance Kanban card.

o Production Kanban card:

The second card to authorize the production of parts, known as the production
kanban card. A standard size container was used to store parts and each card was
treated like a coupon.
 
Heijunka:

Another important component of JIT was Heijunka (finding and keeping
average production volumes).


JIT's principle of building only the required number of items helped keep the
production costs low.


Heijunka helped in the accomplishment of this principle by creating a
consistent production volume.


Heijunka averaged the highest and lowest variations of the orders. The variations were
then removed from the production schedule. This ensured that the right quantity of
parts was produced with minimum workforce.
STRATEGIES FOR THE IMPLEMENTATION OF JIT

Customer satisfaction

Employee involvement

Continues improvement

Pull system

Supply chain management

Adward deming wheel

CHECK PLAN

ACT DO
 PROBLEMS AND THE ACTIONS
TAKEN
WHY TOYOTA INTRODUCED JUST IN TIME
PRODUCTION PHILOSOPHY?


In the early 1930s, the technology used by American automobile companies was
superior to that used by Japanese companies.


After thorough study and research Kiichiro sort out the root causes to the failure of not
competing in the global market. He then reorganized the production system in Toyota in a
unique way.


This reorganization eventually led to the development of JIT concept
GHRAPHICAL REPRESENTATION OF CAUSES OF PRODUCTION FAILURE

Supplier Production process

inelastic production system
Delayed delivery
Difficult to identify defects during production
Improper delivery of material
Increased dead stock
Delivery of wrong items
large production lots
Weak business relations with supplier
Equipment Breakdown
Risen cost
Production
failure
Lack of coordination among workers
No employee empowerment Increased unused accumulated inventory
Lack of training Increased inventory storage cost
Absenteeism Increased work in process
Increased boredom during work

Workers Inventory Management

 Advantages of JIT

Production flexibility

Quick response to customers Demand

High quality products at low prices for customers

Customer satisfaction

Low inventory investment
 
Early detection of quality problems Small
lot sizes

Low cost of production

Shortened lead times

Employee empowerment

Increased supplier relations.
 Disadvantages of JIT:


JIT involved high set up costs

Special training and reorganization of policies and procedures in the
company were necessary to implement JIT


The supplier relations of the company also needed to be improved to ensure
timely delivery. In the absence of good supplier relations, JIT increased the risk of
inventory shortage.


Change in Organizational culture.
 CONCLUSION


The JIT system was aimed at avoiding waste, reducing inventories and increasing
production efficiency.


JIT principles is respect for people or maintaining relationship at all levels,
be it employees, customers, suppliers or management.


Success of JIT depends on identification of what the customer needs and
fulfilling the request in the best possible manner.