JUST IN TIME

The year was 2003

And an Indian company was

the first to win the JIT
Grand Prix award outside
Japan and Korea

Lucas TVS made history in

Lucas TVS bagged the prize
again
 Overview
• Origin of JIT
• Core concept of JIT
• Elements of JIT
• Goals of JIT
• Benefits of JIT
• Industrial perspective
 WHAT IS JIT?
Just In Time (JIT) is the name
used to describe a
manufacturing system where the
parts which are needed to
complete
the finished products are
produced or arrive at the
assembly site as they are
needed.

FOCUS OF JIT: Improve the system

 BENEFITS OF
JIT
 Defects
Surging Lot Size

Lead Time
0 Setups

Handling Breakdowns
 Origin
• JIT finds its origin in Japan,
where it has been in practice
since the early 1970’s. It was
developed and perfected by
Taiichi Ohno of Toyota, who is
now referred to as the father of
JIT.
• Taiichi Ohno developed this
philosophy as a means of
meeting customer demands with
 THE WATER FLOW
ANOLOGY

Water = Inventory

Material
Poor
Material quality
training Break
handlin problems
downs Long
g setup
s
e role of inventory in traditional systems:

Traditional systems use inventory

(water) to buffer the process from
problems (rocks) that cause disruption.

Material
Poor
Material quality
training Break
handlin problems
downs Long
g setup
s
he role of inventory in JIT systems:

JIT systems view inventory as waste and work to

lower inventory levels to expose and correct the
problems (rocks) that cause disruption.

Material
Poor
Material quality
training Break
handlin problems
downs Long
g setup
s
JUST IN TIME

STANDARDISED
OPERATIONS

LEVELLING

FLOW
MANUFACTURIN
G

5S FOR
FACTORY
IMPROVEMENT

BUILDING
AWARENESS
 Goals of JIT
Inc. Reduce 0 Defect
productivity costs process

Waste elimination Efficiency Optimal cost/quality

relationship

Respond to Competi Reliable relationship

customer needs tiveness with suppliers
 Elements of JIT

People Systems
JIT

Plant
 People

Stockholders

Labor

Management

Govt support
 System
Material Manufacturing
Requirement Planning Resource Planning

computer based
bottom-up
manufacturing approach
production plan
master production
schedule
 Demand
Pull

Plant Layout Kanban

Plant

Continuous Self
improvement inspection

Reduce
inventory
 Kanban
• Kanban: Kan → visual, Ban →
card/board
• It is a signaling system to
trigger action
Push system
Demand forecast

Pull system
Customer demand
 Types of Kanban
• One card system
• Two card system
 Number of Kanbans
• Standard containers
• Number of kanbans, K
• K = D ( P + C) X ( 1 + α )
Q
D = Demand rate
K = Number of kanbans
P = Production lead time
C = Conveyance lead time
α = safety factor
Q = Container size
 Kanban cards

Information about item

Its specification
Preceding process
Succeeding process
Quantities of such items
 Benefits
Set up times are significantly reduced in
the factory.
The flows of goods from warehouse to
shelves are improved.
Employees who possess multiple skills are
utilized more efficiently.
Better consistency of scheduling and
consistency of employee work hours.
Increased emphasis on supplier
relationships.
Supplies continue around the clock
keeping workers productive and businesses
focused on turnover.
 Mahadevan, B. (1997)
Are Indian
Companies Ready for
Just in Time?
IIMB Management Review
Volume 9, Nos. 2-3, 85-92
 Drawbacks of JIT
Drawbacks

Cultural differences Other problems Loss of autonomy

Production level/employee skills

Implem- TraditionalBenefits may

Individual Team Method
entation approach vary
Companies That
Have
Implemented JIT
IFB Automotive Pvt. Ltd.
Organization: IFB Automotive
Pvt. Ltd.

Location: Whitefield, Bangalor

Industry: Automotive parts

Products: Seat sliders

seat recliners, seat
Latches, seat frames, motors

Employee strength: 600

Person interviewed; Mr. Vivek

Assistant Manager
Business Development
 Just in Time

Sumedha Chatterjee
Priya Krishnan
Just in Time
MBA
Alliance Business Academy
Bangalore
Sumedha Chatterjee
Priya Krishnan
MBA
Alliance Business Academy
Bangalore
Thank you