Definition and Introduction of Just In Time (JIT)

JUST-IN-TIME (JIT) is defined in the APICS dictionary as a philosophy of manufacturing based on planned elimination of all waste
and on continuous improvement of productivity.
Wikipedia defines JIT as - 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 (JIT) production system was founded by Taiichi Ohno (a Vice President at Toyota) and first successfully
implemented at the Toyota Motor Company s plants in Japan.

Just-in-time production, or JIT, and cellular manufacturing are closely related, as a cellular production layout is typically a
prerequisite for achieving just-in-time production.

JIT (also known as lean production or stockless production) should improve profits and return on investment by
reducing inventory levels (increasing the inventory turnover rate), reducing variability, improving product quality,
reducing production and delivery lead times, and reducing other costs (such as those associated with machine setup
and equipment breakdown).see fig (a)

JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over
and over again.

The basic elements of JIT were developed by Toyota in the 1950's, and became well-known as the Toyota Production System
(TPS).

JIT was well-established in many Japanese factories by the early 1970's.

JIT began to be adopted in the U.S. in the 1980's (General Electric was an early adopter), and the JIT/lean concepts are
now widely accepted and used.

The competiveness of Japanese manufactured products has focused attention on their manufacturing systems since the
basis of their success has been high-quality, competitively priced products.

Some companies, IBM for example, refer to JIT as

Continuous flow manufacture; some others, like Hewlett-Packard, for example, call it stockless production and
repetitive manufacturing system; GE calls it management by sight and Japanese firms use the term Toyota System
instead of JIT.

To meet JIT objectives, the process relies on signals or Kanban between different points, which are involved in the process, which
tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or
absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing
organization's return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow,
employee involvement and quality.
JIT relies on other elements in the inventory chain as well. For instance, its effective application cannot be independent of other
key components of a lean manufacturing system or it can "end up with the opposite of the desired result." In recent years
manufacturers have continued to try to hone forecasting methods such as applying a trailing 13-week average as a better predictor
for JIT planning; however, some research demonstrates that basing JIT on the presumption of stability is inherently flawed.

Advantages Just-In-Time Systems

Following are the advantages of Adopting Just-In-Time Manufacturing Systems:

Just-in-time manufacturing keeps stock holding costs to a bare minimum. The release of storage space results in
better utilization of space and thereby bears a favourable impact on the rent paid and on any insurance premiums that
would otherwise need to be made. It also reduces or eliminates setup times, reduces lot sizes, reduces lead times,
reduces preventive maintenance and allows flexible work force.

Just-in-time manufacturing eliminates waste, as out-of-date or expired products; do not enter into this equation at all.

As under this technique, only essential stocks are obtained, less working capital is required to finance procurement. Here,
a minimum re-order level is set, and only once that mark is reached, fresh stocks are ordered making this a boon to
inventory management too.

Due to the aforementioned low level of stocks held, the organizations return on investment (referred to as ROI, in
management parlance) would generally be high.

As just-in-time production works on a demand-pull basis, all goods made would be sold, and thus it incorporates changes in
demand with surprising ease. This makes it especially appealing today, where the market demand is volatile and somewhat
unpredictable.

Just-in-time manufacturing encourages the 'right first time' concept, so that inspection costs and cost of rework is
minimized.

High quality products and greater efficiency can be derived from following a just-in-time production system.

Close relationships are fostered along the production chain under a just-in-time manufacturing system.

Constant communication with the customer results in high customer satisfaction.

Overproduction is eliminated when just-in-time manufacturing is adopted.

Disadvantages:
Following are the disadvantages of Adopting Just-In-Time Manufacturing Systems:

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.

Due to there being no buffers for delays, production downtime and line idling can occur which would bear a detrimental
effect on finances and on the equilibrium of the production process. Of course there are ways to eliminate that; one of

them being penalizing the supplier heavily or buying product from other vendors and charging difference and transportation
to charges to original vendor etc.

The organization would not be able to meet an unexpected increase in orders due to the fact that there are no excess
finish goods.

Transaction costs would be relatively high as frequent transactions would be made. Sometimes Vendors/manufacturers
themselves charge 5-7% charge for JIT implementation and support in any of its clients.

Just-in-time manufacturing may have certain detrimental effects on the environment due to the frequent deliveries that
would result in increased use of transportation, which in turn would consume more fossil fuels. In-short cost, whether a
social or financial, is bound to increase.

The KANBAN solutions (Discussed below) for JIT used by fortune 100 and 500 companies are very costly which any small
company would hardly afford to apply.

How JIT works

A kanban or pull production control system uses simple, visual signals to control the movement of materials between work
centers as well as the production of new materials to replenish those sent downstream to the next work center.

A KANBAN is a card that is attached to a storage and transport container.

It identifies the part number and container capacity, along with other information, and is used to provide an easily
understood, visual signal that a specific activity is required.

A J-I-T production system uses a peculiar material withdrawal and work ordering system. This is called the Kanban (or
market) system.

The J-I-T system works based on the requirement at the final product level.

Basically, it believes in producing at a time only that many items as have been withdrawn.

This chain of withdrawal-and-production is continuous from the end product to the beginning process.

This is the way the work-in-process inventory is kept very low.

The withdrawal of material from the preceding process and the production of items to replace this are ordered through a
withdrawal and production Kanban (or maker card.)
It is physical control system, and is visual in nature which is an advantage over the conventional production control paper
work which could be quite confusing at times.

The containers for the material are of fixed size, and the production lot-size is that which a container can contain. The
number of containers used depends upon: (i) the cycle time for a container to go the next work centre and return, (ii) The
rate at which the material is getting consumed, and (iii) size of the container. Needless to say, the number of containers
(i.e., the work-in-process inventory) should be small. This can be achieved by reducing the cycle time. This means a
reduction in the set-up and conveyance times. (see fig c)

In Toyotas dual-card Kanban system, there are two main types of Kanban:

Production Kanban: signals the need to produce more parts

Withdrawal Kanban also called a "move" or a "conveyance kanban): signals the need to withdraw parts from one
work center and deliver them to the next work center.

Dual-card Kanban Rules:

No parts are made unless there is a production kanban to authorize production. If no production kanban are in the in box
at a work center, the process remains idle, and workers perform other assigned activities. This rule enforces the pull
nature of the process control.

There is exactly one kanban per container.

Containers for each specific part are standardized, and they are always filled with the same (ideally, small) quantity.
Short set up times:

In the Toyota Motor Company in Japan there have been continuous efforts to reduce the set-up times.
For example, the set-up time of the pressing department which was 2-3 hours during 1945-64 was reduced to 3 minutes

after 1965.
Such set-ups which have single digit (in minutes) set-up times are called single set-ups. Through the use of Quality Circles,
set-up times of even less than a minute have been achieved in some cases at the Toyota Motor Company, Japan.
These may be appropriately called One Touch Set-ups.
This kind of reduction in set-ups times has been achieved by (i) recognized the internal portion of the set-up being
different from the external portion, i.e. activities that can be done while the machine is running,(ii) by converting
internal set-up to external set-up as much as possible , and iii by eliminating the adjustment aspects in the set-up.

A simple and understandable process.

Provides quick and precise information.

Low costs associated with the transfer of information.

Provides quick response to changes.

Limit of over-capacity in processes.

Avoids overproduction.

Is minimizing waste.

Control can be maintained.

Delegates responsibility to line workers.

Precautions:
Following are the things to remember When Implementing a Just-In-Time Manufacturing System:

Management supports at all levels of the organization are required; if a just-in-time manufacturing system is to be
successfully adopted.

Adequate resources should be allocated, so as to obtain technologically advanced software that is generally required if a
just-in-time system is to be a success.

Building a close, trusting relationship with reputed and time-tested suppliers will minimize unexpected delays in the
receipt of inventory.

Just-in-time manufacturing cannot be adopted overnight. It requires commitment in terms of time and adjustments to
corporate culture would be required, as it is starkly different to traditional production processes.

The design flow process needs to be redesigned and layouts need to be re-formatted, so as to incorporate just-in-time
manufacturing.

Lot sizes need to be minimized.

Workstation capacity should be balanced whenever possible.

Preventive maintenance should be carried out, so as to minimize machine breakdowns.

Set-up times should be reduced wherever possible.

Quality enhancement programs should be adopted, so that total quality control practices can be adopted.

Reduction in lead times and frequent deliveries should be incorporated.

Motion waste should be minimized, so the incorporation of conveyor belts might prove to be a good idea when
implementing a just-in-time manufacturing system.

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 pitfalls. However, these disadvantages can be overcome with a little forethought and a lot of commitment at all levels
of the organization.