Just in Time Analysis

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JUST IN TIME

➢ INDEX

1) INTRODUCTION 3 2) HISTORY 5 3) REASONS FOR HIGH LEVEL OF INVENTORY 6 4) OBJECTIVES 12 5) REQUIREMENTS FOR JIT 15 6) IMPLEMENTATION OF JIT 16 7) JIT PURCHASING 21 8) TRADITIONAL V/S JIT 25 9) JIT IN SERVICES 27 10) BENEFITS OF JIT 30 11) KANBAN SYSTEM 31 12) TOYOTA PRODUCTION SYSTEM 38 13) CANON PRODUCTION SYSTEM 40 14) JIT MANUFACTURING IN DELL 41 JIT – JUST IN TIME PRODUCTION SYSTEM

In the modern world change is the only constant. Each and every organization is using more and more sophisticated technologies to continuously improve productivity and reduce the waste. JIT (Just In Time) is one of the most sophisticated practices all over the world.

Just In Time is the term used to indicate that a process is capable of instant response to demand without the need for over stocking either in expectation of the demand being forthcoming or as a result of inefficiencies in the process. The goal of JIT is the total elimination of inventory at all stages in the process. The process commences with the initial production of raw materials and ends with the satisfaction of the end users’ needs. In JIT setup, problem is defined as a “process out of control”.

Just-in-time systems attempt to increase flexibility and responsiveness between suppliers and customers in order to eliminate waste, improve customer satisfaction, and improve overall competitiveness.

DEFINITIONS

As defined by Monden,
JIT is “a production system to produce the kind of units needed, at the time needed, and in quantities needed.”

As defined in the APICS dictionary,
JIT is “a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity”.

Waste results from any activity that adds cost without adding value, such as the unnecessary moving of materials, the accumulation of excess inventory, or the use of faulty production methods that create products requiring subsequent rework.  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).  In a JIT system, underutilized (excess) capacity is used instead of buffer inventories to hedge against problems that may arise. JIT applies primarily to repetitive manufacturing processes in which the same products and components are produced over and over again.  The general idea is to establish flow processes (even when the facility uses a...
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