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JIT in Supply Chain Management: Submitted By: Kuntay Karthik (011) T.Sumith Singh

JIT in Supply chain management aims to provide fast, reliable, and flexible response to customer requirements at the lowest cost with minimal inventory dependence throughout the entire supply chain. JIT originated at Toyota car plants in Japan, known as the Toyota Production System, and is now widely used globally under various names including Lean Manufacturing. Key elements of JIT include eliminating waste, reducing manufacturing times, improving supplier performance and quality, and creating a highly responsive organization. JIT requires close collaboration with suppliers for small, frequent deliveries synchronized with production to meet daily demand.

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73 views4 pages

JIT in Supply Chain Management: Submitted By: Kuntay Karthik (011) T.Sumith Singh

JIT in Supply chain management aims to provide fast, reliable, and flexible response to customer requirements at the lowest cost with minimal inventory dependence throughout the entire supply chain. JIT originated at Toyota car plants in Japan, known as the Toyota Production System, and is now widely used globally under various names including Lean Manufacturing. Key elements of JIT include eliminating waste, reducing manufacturing times, improving supplier performance and quality, and creating a highly responsive organization. JIT requires close collaboration with suppliers for small, frequent deliveries synchronized with production to meet daily demand.

Uploaded by

sunnydversatileguy
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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JIT in Supply chain management

Submitted by: Kuntay Karthik (011) T.Sumith Singh (029)

AIM of JIT: To create a Supply Chain which provides fast, reliable and flexible response to customer requirement at least cost and minimal dependence on inventory.

Provide fast, reliable and flexible response to customer requirement at least cost and minimal dependence on inventory not just within the confines of a single organization, but ultimately throughout the entire supply chain by creating a highly responsive organization which is devoid of any waste.

ORIGIN OF JIT:

Commenced at Toyota car plant in Japan and is thus known as Toyota Production System ( TPS)

A Japanese concept now widely used all over the

world

Also referred to as, Lean Manufacturing / Time

Based Manufacturing /Agile Manufacturing /


Toyota Production system ( TPS)

JIT- Some common misunderstandings:

Putting pressure on the suppliers / management of suppliers only Getting deliveries at the last moment Suppliers holding the stock for us JIT is applicable only in foreign countries like Japan Not practical in remote units

Not applicable to process industries

JIT

VS

Traditional Approach to Manufacturing

problem Unreliable machines Bottleneck areas Large lot sizes Long mfg.. lead times Poor Quality

JIT Solution Improved reliability Increase capacity Reduce set up times Pull system Improve process

Key Elements of JIT Philosophy:


Expose and Eliminate Fundamental Problems Reduce Manufacturing Throughput Time Improve Supplier Performance Improve Quality Improve Flexibility Create High Responsive Organization Eliminate Waste (Non Value Adding)

JIT Purchasing Features:


Preferably single source for each item Long term contacts Very short lead times Frequent deliveries of small lots 100% good quality Close interaction with supplier Proper delivery schedules and plans to supplier Local source as far as possible Training assistance in SQC, JIT & Technical Assistance Treat the supplier as CO-MAKER

JIT Effect on Material Ordering:

TRADITIONAL MFG
Order quantity is
determined by the

JIT MFG
Supply exactly meets
demand. Delivery is

Economic Order
Quantity

when required

JIT Effect on Purchasing: TRADITIONAL MFG


Large, Just In Case covers several weeks production Deliveries are not linked to manufacture and are in bulk. Relationship is adversarial Multiple suppliers. ST Agreements

JIT MFG
Small, IT For daily production Deliveries are synchronized with production Relationship is based on Co Maker principle. Single supplier. LT Agreements

JIT Supplier Selection Criteria:

Close to plant Quality product Good industrial relations Reduce total number of suppliers

Just In Time Approach means Challenge the Following:

Set up Time
Process Cycle Time

Batch Size
Planning System Material Handling In Short All Existing Practices !

Thank You

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