- Just In Time INTRODUCTION The JIT concept was developed by Taiichi Ohno of Toyota to improve Toyotas competitiveness in the

global market and soon it was adopted by many Japanese industries. By early 1980s, many Western managers found themselves losing ground in the manufacturing race against the Japanese. A common misconception of many managers in the eighties and even today is that JIT, in a narrow sense, was another planning tool that simply requires all the supplies to be shipped exactly as needed on time. In fact JIT has a much broader perspective than that understanding. It is a broad-based philosophy of management, which embraces everybody in the organization and covers every process towards a culture of never ending or continuous improvement by removing wastes and non-value-adding processes. JIT purchasing is an essential part of the entire JIT manufacturing concept. In JIT manufacturing, inventory is seen as an evil, because it covers up quality problems and is costly to maintain. The essence of JIT purchasing is to purchase materials and be just-in-time for consumption. And obviously, it also means that all these materials must be of high quality to enable smooth running of the system. Many companies are moving to JIT, the just-in-time inventory. Their current reality is JIC, the just-in-case inventory. Companies know that they will have to supply their output to customers. Usually, they are just not certain when the demand will come or how much the customer will need. So they always make just a little extra somewhere to be on the safe side. Sometimes, they make a lot extra. The company should be getting rid of the inventory. It is there only to take up the slack due to uncertainty. If we remove the uncertainty, we will have no slack, and no need for the inventory. One way is by structuring processes so that suppliers & customers plan and schedule their work together. JIT is a system of managing operations with little or no idle inventories, or no delays in time, between one process and the next. It seeks to produce instantaneously, with perfect quality, and with no waste. It applies equally to running a chemical plant, a hospital, a management consulting firm, etc. By implementing JIT, we can discover several hidden problems as well e.g. By reducing stocks of raw materials, we may discover problems related to the quality of suppliers, or whether they deliver on time. By reducing work-in-progress, we may discover a high level of scrap and re-work. Organizations must have confidence in the materials they obtain from suppliers. They should not feel the need to constantly check the quality. Preventive maintenance plans should be prepared for all equipment. Statistical Process Control should be used to establish process capabilities, and to detect changes. Good housekeeping will ensure correct equipment and materials Just-in-time (JIT): A highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed, JIT lean production JIT pull (demand) system JIT operates with very little fat

Principle:
The process is driven by a series of signals, which can be Kanban, that tell production processes 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. When implemented correctly, JIT can lead to dramatic improvements in a manufacturing organization's return on investment, quality, and efficiency

Advantages of JIT
Lower stock holding means a reduction in storage space which saves rent and insurance costs As stock is only obtained when it is needed, less working capital is tied up in stock There is less likelihood of stock perishing, becoming obsolete or out of date Avoids the build-up of unsold finished product that can occur with sudden changes in demand Less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time

Disadvantages of JIT
There is little room for mistakes as minimal stock is kept for re-working faulty product Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed There is no spare finished product available to meet unexpected orders, because all products are made to meet actual orders.

Goals of JIT

The ultimate goal of JIT is a balanced system. Achieves a smooth, rapid flow of materials through the

system.