just in time process by toyota

2.  Evolved in Japan after World War II, as a result
of their diminishing market share in the auto
industry.
 Toyota Motor Company- first to implement
fully functioning and successful JIT system, in
1970’s.
 Japanese Manufacturers looked for a way to
gain the most efficient use of limited resources.
They worked on "optimal cost/quality
relationship.

3.  Eliminating wastes
 Total quality management
 Parallel processing
 Jit purchasing
 E-commerce and JIT purchasing
 Reducing inventories through setup reduction
 working towards repetitive manufacturing

4.  Involves keeping stock
levels to a minimum
 Stock arrives just in time
to be used in production
 Works best where there
is a close relationship
between manufacturer and
suppliers
 Goods not produced unless
firm has an order from a
customer
 Aims to get highest
volume of output at the
lowest unit cost.
Functioning of JIT

5. Functioning of JIT
 A method of production
control.
 No demand - no production!
 Finished goods assembled
just in time to be sold to
customer
 Component parts assembled
just in time to become
finished goods
 Materials purchased just in
time to make component
parts.

6. Reduces inventory
Reduces lead time
Reduces setup time
Just-in-Time ManufacturingJust-in-Time ManufacturingTraditional ManufacturingTraditional Manufacturing
Increases inventory to
protect against process
problems
Increases lead time to
protect against uncertainty
Disregards setup time
as an improvement priority
Just-in-Time PrinciplesJust-in-Time Principles

7. Emphasizes team-
oriented employee
involvement
Emphasizes pull
manufacturing
Emphasizes zero
defects
7
Just-in-Time ManufacturingJust-in-Time ManufacturingTraditional ManufacturingTraditional Manufacturing
Emphasizes work of
individuals, following
manager instructions
Emphasizes push
manufacturing
Tolerates defects

10. • Dell do not have to tie up capital in stock which means they can
invest it in other areas of the business, such as R&D or promotion,
to increase sales.
• Dell require less space for stock which means they save money on
storage facilities which will increase their profit margins.
• Dell have a high dependence on their suppliers and should the
suppliers fail them, it is Dell’s reputation and sales which would
suffer if they were unable to meet demand from their customers.
• Dell may be unable to benefit from bulk-buy discounts which
leaves them with an option of increasing the price to the customer
or reducing their own profit margin.

11. • Continuous improvement
• Build an organizational culture and value
system that stresses improvement of all
processes
• Part of everyone’s job
• Respect for people
• People are treated as
knowledge workers
• Engage mental and
physical capabilities
• Empower employees

12. • Standard work practice
• Work shall be completely specified as to
content, sequence, timing, and outcome
• Internal and external customer-supplier
connection are direct
• Product and service flows must be simple
and direct
• Any improvement must be made in
accordance with the scientific method at
the lowest possible level of the
organization
Toyota Production System

13.  Capital not tied up in stocks
 Less space required for stock
 Closer relationships with suppliers
 Reduced deterioration
 Less vulnerability to fashion and
technology changes
 Reduction in stockholding costs
 Increase in cash flow

14.  Danger of disrupted production due to non-
arrival of supplies
 Danger of lost sales
 High dependence on suppliers
 Less time for quality control on arrival of
materials
 Increased ordering and admin costs
 May lose bulk-buying discounts