1. Just-in-Time SystemsJust-in-Time Systems
Reducing Waste and Lead Time in the Supply ChainReducing Waste and Lead Time in the Supply Chain
BYBY
SUDHIR REDDY S.V.RSUDHIR REDDY S.V.R

2. Topics to be CoveredTopics to be Covered
 Review of JIT & WasteReview of JIT & Waste
 JIT PrinciplesJIT Principles
 BENEFITS OF JITBENEFITS OF JIT
 JIT RELATION TO F.M.SJIT RELATION TO F.M.S

3. WasteWaste is ‘anything other thanis ‘anything other than
thethe minimumminimum amount ofamount of
equipment, materials, parts,equipment, materials, parts,
space, and worker’s time,space, and worker’s time,
which are absolutelywhich are absolutely
essential toessential to add valueadd value to theto the
product.’product.’
—— Shoichiro ToyodaShoichiro Toyoda
President, ToyotaPresident, Toyota © 1995 Corel Corp.
Introductory QuotationIntroductory Quotation

4. What is JIT?What is JIT?
 A corporate system designed to produceA corporate system designed to produce
output within the minimum lead time and atoutput within the minimum lead time and at
the lowest total cost by continuouslythe lowest total cost by continuously
identifying and eliminating all forms ofidentifying and eliminating all forms of
corporate waste.corporate waste.
 It is used to describe stockless productionIt is used to describe stockless production
manufacturing approach, where only rightmanufacturing approach, where only right
parts are completed at right time.parts are completed at right time.
 Focus of JIT:Focus of JIT:
•• Stockless production.Stockless production.

5. Seven Basic Types of WasteSeven Basic Types of Waste
 Transportation wasteTransportation waste
 Process WasteProcess Waste
 Inventory WasteInventory Waste
 Waste of motionWaste of motion
 Waste from product defectsWaste from product defects
 Waiting timeWaiting time
 OverproductionOverproduction

6. Push versus PullPush versus Pull
 PushPush system: material issystem: material is pushedpushed intointo
downstream workstations regardless ofdownstream workstations regardless of
whether resources are availablewhether resources are available
 PullPull system: material issystem: material is pulledpulled to ato a
workstation just as it is neededworkstation just as it is needed
JIT is a pull system.JIT is a pull system.

7. Pull System
 Material is pulled through the system whenMaterial is pulled through the system when
neededneeded
 Reversal of traditional push system whereReversal of traditional push system where
material is pushed according to a schedulematerial is pushed according to a schedule
 Forces cooperationForces cooperation
 Prevent over and underproductionPrevent over and underproduction
 While push systems rely on a predetermined
schedule, pull systems rely on customer
requests.
 Part is produced on the authorization referred to
as a KANBAN is issued from the next
workstation

8. What is kanban?What is kanban?
 Developed at Toyota 1950s to manage lineDeveloped at Toyota 1950s to manage line
material flows.material flows.
 Kanban ( Kan=card, Ban= signal )Kanban ( Kan=card, Ban= signal )
 simple movement systemsimple movement system
 Boxes/containers to take “lots” of parts from one workBoxes/containers to take “lots” of parts from one work
station to another (client-server).station to another (client-server).
 ““Cards” to signal & communicate reorder informationCards” to signal & communicate reorder information

9. What is kanban?What is kanban?
 Server only delivers components to client work station asServer only delivers components to client work station as
& when needed (called/pulled).& when needed (called/pulled).
 Minimise storage in the production area.Minimise storage in the production area.
 Workstations only produce/deliver components whenWorkstations only produce/deliver components when
called (they receive card + empty container).called (they receive card + empty container).
 The work-station produces enough to fill the containerThe work-station produces enough to fill the container
 Kanban = an authorization to produce more inventoryKanban = an authorization to produce more inventory
 We thus limit the amount of inventory in process.We thus limit the amount of inventory in process.

10. BENEFITS OF JITBENEFITS OF JIT
 Reduced inventoryReduced inventory
 Reduced working progressReduced working progress
 Improved qualityImproved quality
 Reduced direct laborReduced direct labor
 Reduced floor spaceReduced floor space
 Minimum tool repair costMinimum tool repair cost
 Reduced material handling and increaseReduced material handling and increase
in overall through put.in overall through put.

11. JIT RELATION TO FMSJIT RELATION TO FMS
 JIT can be either a cause or an effect ofJIT can be either a cause or an effect of
F.M.SF.M.S
 Achievement of true results of F.M.SAchievement of true results of F.M.S
without implementing JIT is difficult.without implementing JIT is difficult.
 Results due to incorporation of JIT inResults due to incorporation of JIT in
F.M.S are decreased lead times, less workF.M.S are decreased lead times, less work
in process on shop floor, smaller finishedin process on shop floor, smaller finished
part inventory and increased customerpart inventory and increased customer
satisfaction.satisfaction.

12. THANQTHANQ