This is for Mechanical Engineering Prasentation.

1. PRESENTATION ON
JUST IN TIME MODEL
Submitted to:
Mr. Rupesh Kumar
Submitted by:
Suraj Kumar
Aryabhatt College Of
Engineering
AndTechonology

2. What is JIT ?
•“A philosophy of manufacturing based on
planned elimination of waste and continuous
improvement of productivity ……”

3. Emergence of JIT
• Evolved in Japan after World War II, as a result of
their diminishing market share in the auto industry.
• Toyota Motor Company- first to implement fully
functioning and successful JIT system, in 1970’s.
• Japanese Manufacturers looked for a way to
gain the most efficient use of limited resources. They
worked on "optimal cost/quality relationship.

4. Functioning of JIT
 Involves keeping stock
levels to a minimum
 Stock arrives just in time
to be used in production
 Works best where there
is a close relationship
between manufacturer and
suppliers
 Goods not produced unless
firm has an order from a
customer
 Aims to get highest
volume of output at the
lowest unit cost.

5. Functioning of JIT
 A method of production
control.
 No demand - no production!
 Anticipated/planned consumer
demand triggers production
 Finished goods assembled just
in time to be sold to customer
 Component parts assembled
just in time to become finished
goods
 Materials purchased just in
time to make component parts.

6. JIT Purchasing
 Just In Time (JIT) Purchasing Is Directed Toward The
Reduction of
 Waste (That Is Present At Incoming Inspection, Excess
Inventory and Poor Quality)
 Delay

7. Objectives of JIT Purchasing
 To Reduce All Non-Value-
Added Activities.
 Elimination Of In-Plant
Inventory.
 Elimination Of In-Transit
Inventory
 Quality And Reliability
Improvement

8. Companies adopted JIT

9. Some companies, benefited by
adopting JIT
• Dell do not have to tie up capital in stock which means they can invest it
in other areas of the business, such as R&D or promotion, to increase
sales.
• Dell require less space for stock which means they save money on
storage facilities which will increase their profit margins.
• Dell have a high dependence on their suppliers and should the suppliers
fail them, it is Dell’s reputation and sales which would suffer if they were
unable to meet demand from their customers.
• Dell may be unable to benefit from bulk-buy discounts which leaves
them with an option of increasing the price to the customer or reducing
their own profit margin.

10. Advantages of JIT
 Capital not tied up in stocks
 Less space required for stock
 Closer relationships with suppliers
 Reduced deterioration
 Less vulnerability to fashion and technology
changes
 Reduction in stockholding costs
 Increase in cash flow

11. Disadvantages of JIT
 Danger of disrupted production due to non-
arrival of supplies
 Danger of lost sales
 High dependence on suppliers
 Less time for quality control on arrival of
materials
 Increased ordering and admin costs
 May lose bulk-buying discounts