Presented By

Saddam Hossain Opu

Afsana Zarin Priyas Paul Sumaiya Afroz Suraiya Akter

ID-09102101008
ID-09102101010 ID-09102101011 ID-09102101035 Id-o9102101041

Definition
Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. Just-in-time production method is also called the Toyota Production System.

It originally referred to the production of goods to meet customer demand exactly, in time, quality and quantity, whether the `customer' is the final purchaser of the product or another process further along the production line.

Philosophy
Just-in-time' is a management philosophy and not a technique. JIT is a Japanese management philosophy which has been applied in practice since the early 1970s in many Japanese manufacturing organizations. It was first developed and perfected within the Toyota manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays .

Philosophy (cont.)
Taiichi Ohno is frequently referred to as the father of JIT. Toyota realized that JIT would only be successful if every individual within the organization was involved and committed to it, if the plant and processes were arranged for maximum output and efficiency, and if quality and production programs were scheduled to meet demands exactly.

The JIT inventory philosophy defines how inventory is viewed and how it relates to management

Philosophy (cont.)
Just-in-Time inventory system focus is having the right material, at the right time, at the right place, and in the exact amount without the safety net of inventory. The JIT system has broad implications for implementers. The ideas in this way of working come from many different disciplines including statistics, industrial engineering, production management, and behavioral science.

Objectives of JIT
Produce only the products the customer wants. Produce products only at the rate that the customer wants them. Produce with perfect quality Produce with minimum lead time. Produce products with only those features the customer wants.

Objectives of JIT
Produce with no waste of labor, material or equipment -- every movement must have a purpose so that there is zero idle inventory.

Produce with methods that allow for the development of people

Benefits of JIT
Making only "what is needed, when it is needed, and in the amount needed.
Provides a reduction in storage space which saves rent and insurance costs As stock is only obtained when it is needed, less working capital is tied up in stock There is less likelihood of stock perishing, becoming obsolete or out of date

Benefits of JIT
Eliminating waste from overproduction of waiting time of transportation of processing of inventory of motion from product defects

Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time

Limitations of JIT
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. The organization would not be able to meet an unexpected increase in orders, due to the fact that there are no excess finish goods. Lots of pressure and stress are put on workers due to shorter cycle time.

Conclusion
Just-in-time manufacturing is a philosophy that has been successfully implemented in many manufacturing organizations. It is an optimal system that reduces inventory whilst being increasingly responsive to customer needs, This is not to say that it is not without its drawbacks. However, these disadvantages can be overcome, with a little forethought and a lot of commitment at all levels of the organization.