Jit Method

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Just-In-Time Method
Just-In-Time Method

Professor: Filip Ivanovski
Course: Operational Management
Made by: Nela Pamukova ID: 9589
Skopje, 2012

Professor: Filip Ivanovski
Course: Operational Management
Made by: Nela Pamukova ID: 9589
Skopje, 2012

Just-in-Time Method presented with Case Studies in the auto industries in India with wide elaboration of the cases and concepts.

Just-in-Time Method presented with Case Studies in the auto industries in India with wide elaboration of the cases and concepts.

Just in Time (JIT) Manufacturing and Inventory Control System: Learning objectives of the project:
* Define and explain the concept of just in time manufacturing and inventory control system. * Beyond the concept of Just-In-Time.
* What are advantages and disadvantages of just in time manufacturing system? * Just-In-Time thought case studies.
* How to implement JIT successfully?
* Conclusion

1. History
JIT originated in Japan. Its recognized philosophy of working is commonly associated with the Toyota motor company, JIT being initially known as the "Toyota Production System". Note the emphasis here - JIT is very much a mindset way of looking at a production system that is distinctly different from what traditionally had been done previous to its conception. Toyota Taiichi Ohno is the father/originator of this way of working. The beginnings of this production system are rooted in the historical situation that Toyota faced. After the Second World War the president of Toyota said "Catch up with America in three years, otherwise the automobile industry of Japan will not survive" (Beasley). At that time one American car worker produced approximately nine times as much as a Japanese car worker. Taiichi Ohno examined the American industry and found that American manufacturers made great use of economic order quantities - the traditional idea that it is best to make a "lot" or "batch" of an item (such as a particular model of car or a particular component) before switching to a new item. They also made use of economic order quantities in terms of ordering and stocking the many parts needed to assemble a car. According to Beasley, Ohno felt that such methods would not work in Japan because the total domestic demand was low and the domestic marketplace demanded production of small quantities of many different models. Therefore, Ohno devised a new system of production based on the elimination of waste. In his system waste was eliminated by:

* just-in-time - items only move through the production system as and when they are needed * autonomation - automating the production system so as to include inspection - human attention only being needed when a defect is automatically detected whereupon the system will stop and not proceed until the problem has been solved In this system inventory (stock) is regarded as an unnecessary waste as too has to deal with defects. 2. Introduction - What is Just in Time?

The JIT approach is based on the manufacturers who have forecasted demand for their products for the future and have goal to smooth out production to meet that forecasted demand. At the same time, they have also attempted to keep everyone as busy as possible producing output so as to maximize "efficiency", (hopefully) reduce costs, and built a teamwork among the employees. Unfortunately, this method has a number of major drawbacks including large inventories, long production times, high defect rates, production obsolescence, inability to meet delivery schedules, and (ironically) high costs. None of this is obvious-if it were, companies would long ago have abandoned this approach (Accounting). Ohno regarded waste as a general term including time and resources as well as materials. He identified a number of sources of waste that he felt should be eliminated (Beasley): * overproduction - waste from producing more than is needed; * time spent waiting - waste...
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