1. GHANSHYAMDAS SARAF COLLEGE OF
ARTS & COMMERCE
SUBJECT:- PRODUCTION
MANAGEMENT AND MATERIAL
MANAGEMENT
TOPIC:- LEAN PRODUCTION AND
JIT(JUST-IN-TIME)
GROUP NO:- 6

2. GROUP MEMBERS:-
Names Roll no.
Kusum Parmar 65
Madhushree Rangrej 77
Thrapti Shetty 91
Pooja Singh 96
Kajal Singh Yadav 110
Sanjoli Bhageria 115
ACKNOWLEGEMENT

3. I would like to express my gratitude to all those who gave us the
possibility to complete this project. I want to thank prof. Dipti
Soni for her suggestions and encouragement in all the time
research of the project which has helped us to acquire a total
information. I would here by like to thank my parents and group
members who helped me throughout the project.
INDEX

4. 1. What is lean production?
2. About lean production.
3. JIT(just-in-time).
4. History & development of JIT system.
5. Concept of JIT
6. Characteristics/features of JIT.
7. Benefits of JIT.
8. Research methodology.
9. Introduction to Bisleri product.
10. Application of lean production-Bisleri
company.
11. Analysis.
12. Conclusion.
13. Appendix
WHAT IS LEAN PRODUCTION

5. Lean production has its roots in Toyota Automobiles Co. of
Japan, where waste was to be avoided at all costs:
1. The waste in time caused by having to repair faulty
products.
2. The waste of investment in keeping high inventories and
3. The waste of having ideal workers.
The elements of lean production are:
1. To consider the organization in terms of supply chain of
value streams that extends from suppliers of raw
materials, through transformation to the final customer.
2. To organize workers in terms and to have every one in
the organization conscious of his or her work.
3. To produce products of perfect quality and to have
continuous quality improvements as a goal.

6. 4. To organize the operation by product or cellular
manufacturing, rather than using a functional or process
lay-out.
5. To operate the facility in a just-in time mode.
Just-in-time is a key element of lean production,(conceived by
Taiichi Ohno, the former president of Toyota Motor Co. of
Japan in the 1980‘s). the Japanese manufacturing success, with
increased productivity, low product cost and often superior
quality products can very much be attributed to JIT
manufacturing.
The ultimate goal is to provide perfect value to the customer
through perfect value creation process that has ZERO waste.
Lean production has its key element that is -JIT (Just –In-Time)
JIT (JUST IN TIME)

7. JIT is defined as ―a philosophy of manufacturing based on
planned elimination of all waste and continuous improvements
of productivity. It encompasses the successful execution of all
manufacturing activities required to produce a final product,
from design engineering to delivery and including all stages of
conversation from raw materials onward. The primary elements
of JIT are to have only the required inventory when needed, to
improve quality to zero defects, to reduce lead times by reducing
set up times, queue lengths and lot sizes, to incrementally revise
the operations themselves and to accomplish these things at
minimum cost. In the broad sense, it applies to all forms of
manufacturing, job-shop, process as well as repetitive‖.
―JIT is an approach that seeks to eliminate all sources of waste
in production activities by providing the right part at the right
place at the right time.‖
It is known by different names:
- The Toyota system.
- Zero Inventory.
- Kan–Ban system.
JIT means:

8. 1. Producing the quantity of units that is needed, no more. No
less.
2. Producing term on the date and at the time required, not
before an not after .
3. That a supplier delivers the exact quality demanded, at the
scheduled time and date.
Any deviations from these requirements means that either
resources are being unnecessarily wasted or that customers‘
needs are not being respected.
JIT is simply an acronym for being efficient, organized and
rigorous, having the ability to be flexible, with an ultimate
objective of satisfying the customers, respecting delivery time,
having the specified quality and producing at minimum cost.
Just-in-time Philosophy
JIT is a philosophy of continuous and forced problem
solving. With JIT, supplies and components are ―pulled‖
through a system to arrive where they are needed and when they
are needed. When good units do not arrive in time (just in
needed), a ―problem‖ has been identified. This makes JIT an

9. excellent tool help operations managers add value by driving
out waste and unwanted variability. Because there is no excess
inventory or excess time in JIT system, cost associated with
unneeded inventory are eliminated and throughput improved.
Consequently, the benefits of JIT are particularly helpful in
supporting strategies of rapid response and low cost.

10. HISTORY AND DEVELOPMENT OF JIT
SYSTEM
The JIT system was developed at the Toyota Motor Company in
Japan. Even though JIT might be traced back to the Japanese
shipbuilding industry, the modern application of JIT was
popularized in the mid 1970‘s by Toyota, by Taiichi Ohno and
his colleagues. The JIT concept was then transferred to the U.S.
about 1980 at Kawasaki‘s Licoln, Nebraska plant. Since then,
many leading cooperations in the US have implemented JIT and
it has achieved widespread use around the world.
The roots of the JIT system can probably be traced to the
Japanese environment. Owing to lack of space and lack of
natural resources, the Japanese have developed an aversion to
waste. They view scrap and rework as waste and thus strive for
perfect quality. They also believe that inventory storage waste
space and ties up valuable materials. Anything that does not
contribute to value to the product is viewed as waste. U.S.
companies, with wide open space and vast supply of raw
material, have not viewed waste in the same way as the
Japanese. As a result, naturally, JIT philosophy developed in
Japan. Yet, there is nothing cultural inherent in the JIT system
that prevents companies anywhere in the world from using it or
improving on it.

11. CONCEPTS OF JIT
The three fundamental concepts of JIT are:
i. Elimination of waste and variability
ii. ―pull‖ versus ―push‖ system and
iii. Manufacturing cycle time (or ―throughput‖ time)
These concepts are discussed below:
Waste reduction and variability reduction
Waste reduction: ‗Any thing that does not add value‘ is
described as a waste in the production of goods or services.
Products being stored, inspected or delayed, products waiting in
queue and defective products do not add value and hence, they
are 100 percent waste. Moreover, any activity that does not add
value to product from the customer‘s perspective is waste. JIT
speeds throughout, allowing faster delivery times and reducing
work-in-process. Reduced work-in-process releases capital tied
up in inventory for other more productive purposes.
Variability reduction: To achieve just-in-time material
movement, it is necessary that variability caused by both internal
and external factors are reduced. Variability is any deviation

12. from the optimum process that delivers perfect product on time,
everytime. Inventory hides variability or in other words
problems. The less variability in a system, the less waste in the
system. Most of the variability is caused by tolerating waste or
by poor management.
Reasons for occurrence of variability are:
1. Employees, machines and suppliers produce units that do
not conform to standards, are late or not of the proper
quantity.
2. Engineering drawings or specifications are inaccurate.
3. Production personal try to produce before drawing or
specification are complete.
4. Customer demands are unknown.
Variability may often go unseen when inventory exists. The JIT
philosophy of continuous improvements removes variability,
which allows movement of good materials just-in-time for use.
JIT reduce materials throughout the supply chain.
Push versus Pull system:
The concept behind JIT is that of a pull system. It is a JIT
concept that results in material being produced or supplied only
when requested and moved to where it is needed just as it is

13. needed. A pull system uses signals to request production and
delivery from upstream sections to the stations that has
production capacity available. This concept is used both within
the immediate production process and with suppliers. By pulling
the material through the system in very small lots, just as it is
needed. The cushion by inventory that hides problems is
removed, problems becomes evident and continuous
improvement is emphasized. Removing the cushion of inventory
also reduces both investment in inventory and manufacturing
cycle time.
Push system is system that pushes materials into downstream
workstations regardless of their timelines or availability of
resources to perform the work. Push system are antithesis of JIT.
Manufacturing cycle time is the time between the arrival of raw
material and then shipping of finished products. JIT helps in
reducing the manufacturing cycle time.

14. CHARACTERISTICS OF JUST-IN –TIME
SYSTEM:
JIT system focus on reducing inefficiency and unproductive
time in production process to improve continuously the process
and quality of the products or services. Employee involvement
and inventory reduction are essential to JIT operations. The
salient characteristics of JIT are:
1. Pull method of material flow.
2. Constantly high quality.
3. Small lot sizes.
4. Uniform workstation loads.
5. Standardized components and work methods.
6. Close supplier ties.
7. Flexible workforce.
8. Line flow strategy.
9. Automated production and
10. Preventive maintenance.

15. The above characteristics are discussed in the following
paragraphs.
1. Pull Method of Materials flow: In the pull method, the
customer demand activates production of the item. The
concept behind JIT is that of a pull system, which is a
system that pulls a unit to where it is needed just as it is
needed. A pull system uses signals to request production
and delivery from stations upstream to the station that has
production capacity available. The ―pull‖ concept is used
both within the immediate production process and with
suppliers. By pulling material through the system in very
small lots just as it is needed, the cushion of inventory that
hides problems is removed, problems become evident and a
continuous improvements emphasized. Removing the
cushion of inventory also reduces both investments in
inventory and manufacturing cycle time.
2. Consistent high quality: JIT systems seek to eliminate
scrap and rework in order to achieve a uniform flow of
materials. Efficient JIT operations require conformation to
product or services specification and implementation of
behavioural and statistical methods of TQM. JIT system
control quality at the source, with workers acting as their
own quality inspector.

16. Management must realise the enormous responsibility this
method places on the workers and must prepare them for
the same in one division of general motors (GM), when JIT
was implemented in 1985, management authorized its
workers to stop the production line by pulling a cord if
quality problem arose at their stations- a practice the
Japanese call ―andon‖. GM also eliminated production line
inspectors and cut the number of supervisors by half. Later,
the ―andon‖ system was modified to include a yellow
warning cord so that workers can call for help without
stopping the line.
3. Small lot sizes: Rather than building up a cushion of
inventory, users of JIT system maintain inventory with lot
sizes that are as small as possible. The benefits of lot sizes
are:
a. Reduction of cycle inventory (work-in-process). The
average cycle inventory equals one-half the lot size.
Reducing lot size reduces the cycle inventory which in
turn reduces the time and space involved in
manufacturing and holding inventory.
b. Small lot sizes help reduce lead times. A decline in lead
in turn reduces WIP inventory because the total
processing time at each workstation is greater for large
lots than for small lots. Also, a large lot has to wait
longer to be processed at the next workstation while that
workstation finishes working on another large lot. In

17. addition, if any defective items are discovered, large lots
cause longer delay because the entire lot must be
inspected to find all the items that need rework.
c. Small lots help achieve a uniform operating system
workload. Large lots consume large chunks of
processing time on workstations and therefore
complicate scheduling. Small lots can be processed more
effectively, enabling utilization of capacities more
efficiently.
However, the disadvantages of small lot sizes is increases
in the frequency of set-ups. For operations having sizeable
set-up times, small lots may result in waste of employees
and equipment time due to repetitive set-up. Hence, in JIT
production , the operations must reduce the set-up time to
realize the benefits of small-lot production.
4. Uniform workstation loads: The JIT system works best if
the daily load on individual workstation is relatively
uniform. Uniform loads can be achieved by assembling the
same type and number of products each day, thus creating a
uniform daily demand at all workstations. Capacity
planning which recognize capacity constraints at critical
workstations and line balancing are used to develop the
monthly master production schedule.

18. 5. Standardized components and work methods: The
standardization of components called part commonality or
modularity increase repeatability. For example, a firm
producing 10 products from 1000 different components
could redesign its products so that they consist of only 100
different components with longer daily requirements.
Because the requirements per components increases, so
does repeatability, that is, each worker performs a
standardized tasks or work method more often each day.
Productivity tends to increase because with increased
repetition, workers learn to do tasks more repetition,
workers learn to do tasks more efficiently. Standardized of
components and work methods aid in achieving the high
productivity, low inventory objectives of JIT systems.
6. Close suppliers ties: Because JIT system operates with
very low levels of inventory, close relationships with
suppliers are necessary. Stock shipments must be frequent,
have short lead times, arrive on schedule and be of high
quality. A supplier may have to deliver goods to factory as
often as several times per day. Purchasing managers focus
on reducing the number of suppliers, using local suppliers
and improving supplier relations.
Manufacturers using JIT system generally utilize local suppliers.
Firms that have no suppliers close by must rely on a finely tuned

19. supplier delivery system. Geographic proximity of suppliers
enable the firms to reduce the need for stocks.
Firms implementing JIT system reduces the number of their
suppliers considerably. This approach puts a lot of pressure on
these suppliers to deliver high quality components on time. JIT
users extend their contract with their suppliers and give them
firm advances order information. In addition, they include their
suppliers in the early phases of product design to avoid problems
after production has begun. They also work with their suppliers,
vendors to achieve JIT inventory flows throughout the entire
supply chain.
7. Flexible Workforce: Workers in a flexible work force can
be trained to perform more than one job. When the skill
levels required to perform most tasks are low, a high degree
of flexibility in the workforce can be achieved with little
training. In situations requiring higher skills levels, shifting
workers to other jobs may require extensive, costly
training. Flexibility can be very beneficial: workers can be
shifted among workstations to help relive bottle-necks as
they arise without resolving to inventory buffers — an
important aspects to uniform flow of JIT system. Multi-
skilled workers may do the job of those who are on
vacation or who are absent due to sickness.
8. Line Flow Strategy: A line flow strategy can reduce
frequency of set-ups. If volume of specific products are

20. large enough(mass production), groups of machines and
workers can be organized into a products lay-out to
eliminate set-ups entirely. If volume is insufficient to keep
a line of similar products busy, group technology can be
used to design small products lines that manufactures, in
volume, families of components with common attributes.
Change over from components in one product family to the
next components in the same family are minimal.
9. Automated high quality: Automation plays a big role in
JIT system and is key to low cost production. Money freed
up because of JIT inventory reduction can be invested in
automation to reduce costs. The benefits, of course are
greater profits, greater market share or both. However,
automation should be planned carefully.
10. Preventive Maintenance: Because JIT emphasis
finely tuned flows of materials and little buffer inventory
between workstation, unplanned machine down time can be
disruptive. Preventive maintenance can reduce the
frequency and duration of machine down time.
Maintenance is done on a scheduled (frequency) that
balances the cost of the preventive maintenance program
against the risks and costs of machine failure.
Total preventive/productive maintenance concept makes
workers responsible for routinely maintaining their own

21. equipment and to develop employee pride in keeping their
machines in top condition. This is however restricted for simple
maintenance tasks such as lubrication, cleaning and minor
adjustment of the machines. Maintenance of high-tech machines
need trained specialists.

22. BENIFTS OF JIT SYSTEM:
Some of the benefits claimed for JIT systems are:
i. Inventory levels are drastically reduced. Inventory turnover
as high as 50 to 100 times per year have been achieved.
The raw material inventory, work-in-process inventory and
finished goods inventories have been reduced considerably.
ii. The time taken for products to get through the
factory(product throughout time or production cycle time)
is greatly reduced, thus enabling manufacturers to engage
in time-based competitions, using speed as a weapon to
capture market share.
iii. Product quality is improved and hence the cost of scrap is
reduced. Product quality improves because of workers
involvement in solving the causes of production problems.
iv. Because the focus in manufacturing is on finding and
correcting the causes of production problems,
manufacturing operations are streamlined and problem free.
v. With less-in-process inventory inventory, less space is
taken up by inventory and materials handling equipments.
vi. Multi-skilled, flexible workforce brought benefits like less
worker idle time, reduced overheads, fewer lay-offs due to
demand fluctuation in specific product lines and increased
responsiveness.
Some additional benefits of JIT system are:

23. Elimination of unpleasant suppliers such as those with late
deliveries and unacceptable quality.
Reduction in customer-related problems.
Significant improvements in quality(near to zero defects).
Improvements in communication.
Reduction in floor space needs due to lesser work-in-
process inventory and smaller lot sizes.
Shorter lead times of suppliers, allowing them to respond
more quickly to changing customers needs.
Improvements in employee morale due to higher employee
involvement and employee empowerment.
Reduced pressure on inwards goods receiving and
incoming inspection areas.

24. INTODUCTION TO THE BISLERI
PRODUCT:
I have visited Bisleri factory for my production and quality
management project this data is primary data which help you to
understand the process of production.
M.R RAMESH CHAUHAN is the vintage boss of the 250 crore
PARLE BISLERI LIMITED. The brand has some 18
manufacturing locations spread across the country. The
mainstream competition is in the form of coca-cola India‘s
Kinley, Acquafina from Pepsi foods and nestle India‘s pure.
Bisleri continues to lead in the Rs 700-1,000 crore organized,
packaged water market with an estimated 40 per cent market
share, followed by Kinley at 28 per cent and Aquafina with an
11 per cent share. In terms of volumes, the North and West
remain Bisleri‘s biggest performing markets, despite the brand‘s
sustained national-level presence.
OPERATION OF BISLERI: –
The Bisleri bottled water range comprises the conventional 500
ml, one litre, 1.2 litre and two litre bottles; five litre and 20 litre
jars for the home segment, and smaller packs sizes of 250 ml
cups and 330 ml bottles, though in very limited numbers for
now. Among all pack sizes the brand straddles, it is the one-litre
non-returnable bottles priced at Rs 10 each, and the 20-litre jars
for Rs 40 aimed at the home segment that are Bisleri‘s
bestsellers at present. While the 20-litre jar comprises about 40
per cent of overall Bisleri sales, the one-litre bottles account for

25. approximately 25 per cent brand sales. The main source of water
is bore wells from where they get thee water. Then the raw
materials required for the bottle is PET i.e. poly ethylene
terephatalable. There are 250 workers working in mumbai and
3000 all over India. The production process adopted by bisleri is
batch production. The time taken to fill one bottle is
approximately 5 minutes. The workers work in 3 shifts which
comprises of 60-70 workers per shift. The maintenance of the
machines is done every month and every 45 days there is
sanitation and cleaning of the machine.
PRODUCTION CYCLE:
There are mainly three stages in the production cycle:
1. Disinfection: In this stage, water is collected from bore
wells which are then disinfected using chemicals.
2. Filterization: In this stage, water is passed through
different filters to kill the bacteria present in it. Then, the
water is passed on to the next level for filling up.
3. Filling: In this stage, the bottles are ozonated and then the
water is filled in the bottles.

26. PRODUCTION PROCESS:
1.Quality management of water:
Raw water which is collected from the wells is stored in a tank
which has a capacity to store 1 lakh liters of water. Then the
water is chlorinated to kill the bacteria present in the water
which is passed through 20 micro arcal filters. Then it is passed
through carbon filter which is used for removing activated
carbon and odor and also acts as chlorine remover. Then it is
passed through 10-micron filter. Then it goes through
REVERSE AUSMOSES PLANT, which contains semi-
pomitable membrane which removes dissolved solids and
bacteria of size 0.001 micron. It is passed through 1 micron and
0.5-micron filters. T hen the water gets ozonated and passed
through SS 316 MACHINE. Water is stored in 10000 liter tanks.
2. Blowing of Bottles:
The bottles in this factory are given the desired shape by the use
of blowing machines. These machines blow at a temperature of
300 degrees Celsius. The machine used for the blowing purpose
is known as the AOKI MACHINE. This machine has a blowing
capacity of 10 bottles per minute.
3.Filling of Bottles: There are three types of filling machines,
which are used for the filling purpose. The different sizes of
bottles that are filed are of 500ml, 1liter, 1.2liters and 2liters
respectively. First the bottle gets ozonized when it is passed
through JET MACHINES. In this the bottle gets integrated and

27. disintegrated, it gets rinsed, and then the water is filled into the
bottles.
4. Filling of Jars: The different sizes of jars are 5liters, 10liters
and 20liters. The jars are cleaned manually by soap and water.
Then it is cleaned with sodium hypo-chloride and virosin, which
are disinfectors. When jars are passed through washing machine
first it is rinsed with hot water, then disinfected and then it is
ozonated. Then jars are passed on to jar fillers where it gets
filled and the packing of sealed jars into boxes is done manually.
5. Laboratory Testing: Every hour samples of water that are
filled in to the bottles are taken and various testing is done. First
it is checked for odor if any, presence of alkanity, chlorine and
calcium. The water is also checked in machines like PH
METER, TDS(TOTAL DISSLOVE SOLIDS) METER,
NEPHLOMETER, SPECTROPHOTOMETER AND
MEASURING OF TUBILITY. They also do aerobic microbial
count and pathogen testing.
6.FURURE PLANS: Bisleri have been the market leaders in
India as far as mineral waters are concerned. Every time their
bottle and waters are checked and rechecked for its purity. Their
main aim is to stay ahead of the main rivals i.e. Pepsi and Coca
Cola. Their raw material comes from reliance industries limited
who are their main suppliers of the raw material i.e. PET.

28. APPLICATION OF LEAN PRODUCTION-
BISLERI COPMANY:
1. At the bisleri production plant situated in Mumbai near
Andheri East, the production line has been designed using
the principles of lean production.
2. In the ‗old days‘ bisleri production took up much more
factory space because of lot stocks and suppliers were kept
on the factory floor.
3. Now-a-days all stocks are kept in a separate a separate
storage area where they are delivered just-in-time to feed
the production process.
4. On the production line operative‘s work with the minimum
required quantity of stocks. When more are needed,
production line workers use a ‗KANBAN‘ signalling
system to inform that they need more suppliers.

29. ANALYSIS
We visited the bisleri company which is located in Andheri
(E). Mr. Wahid Patel the sales officer of Bisleri
International. Pvt. Ltd. told us that how they supply their
product to retailers in time.
They told that there are many company salesman who
comes in daily morning and collects some bottles, jars of
bisleri and goes to the retailers shop.
If the retailer is in need and place the order, then at the
same time they supply the order for which the retailer has
asked.
The area in Mumbai where the product is much demanded
is Andheri.
The company salesman is the one who is link between the
retailer and the suppliers.
There products are always just on time.

30. CONCLUSION
Today more and more companies are coming up in the
package drinking water market as there is a lot of scope in bottle
water market as seeing the increase in Indian population. Today
the people of India are very hygienic and only prefer bottle
water which increases in the scope of bottle water market. By
looking at the increasing demand of bottle water companies
have to see that they use modern marketing strategies and also
come up with trendy bottles and satisfy the wants of the
consumer.
Till today bisleri company has used so many different marketing
and production technologies and systems. Today the company is
at its topmost level trying to expand it to international level that
is because of the different technologies used by it.
Over the period of time it has reduced its cost of production
and have established good reputation in the market. Because of
its product, quality level, good supply chain and that is where
we call it JIT. The product is just in time in the market.

31. APPENDIX
1. How do you supply the product?
2. What is the supply chain of the product?
3. Is the product supplied or reached to the market every-day?
4. In which area is the product supplied first and foremost?
5. Is supply according to the demand of the retailer?
6. Does the product reaches market Just- in-time?

33. BIBLIOGRAPHY
For the information we referred to the Himalaya Publishing
House‘s Production Management & Materials Management
book by Prof. K. Shridhara Bhat. We referred to page no.333-
361.
While working on this project we did a lot of surveys by asking
people personally about the brand of package drinking water
they prefer; as well as caring on survey by questionnaires.
we personally visited the BISLERI plant at Western Express
Highway Andheri East, visiting the plan was an experience of a
life time we saw the whole manufacturing process and how the
water is purified and then packed. We personally talked to the
sales officer of BISLERI where he told us about their marketing
strategies and how they carried on their distribution and how
BISLERI is able to maintain its standard at the market. Apart
from this I visited sites like—
www.bisleri.com
www.wikipedia.com
www.Google.com.