Guardians of E-Commerce: Harnessing NLP and Machine Learning Approaches for A...
Just in time model
1. PRESENTATION ON
JUST IN TIME MODEL
Submitted to:
Mr. Rupesh Kumar
Submitted by:
Suraj Kumar
Aryabhatt College Of
Engineering
AndTechonology
2. What is JIT ?
•“A philosophy of manufacturing based on
planned elimination of waste and continuous
improvement of productivity ……”
3. Emergence of JIT
• 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.
4. Functioning of JIT
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.
5. Functioning of JIT
A method of production
control.
No demand - no production!
Anticipated/planned consumer
demand triggers 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. JIT Purchasing
Just In Time (JIT) Purchasing Is Directed Toward The
Reduction of
Waste (That Is Present At Incoming Inspection, Excess
Inventory and Poor Quality)
Delay
7. Objectives of JIT Purchasing
To Reduce All Non-Value-
Added Activities.
Elimination Of In-Plant
Inventory.
Elimination Of In-Transit
Inventory
Quality And Reliability
Improvement
9. Some companies, benefited by
adopting JIT
• 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.
10. Advantages of JIT
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
11. Disadvantages of JIT
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