1. ADINARAYANA DEEPAK DWIPANNITA SHRUTI

3. Toyota became the world's largest automaker in the first half of 2008, with sales of more than 4.8 million cars and trucks,

7. JIT also involves the elimination of waste in production effort

9. Big JIT (also called Lean Management) is a philosophy of operations management that seeks to eliminate waste in all aspects of a firm’s production activities: human relations, vendor relations, technology, and the management of materials and inventory

11. Produce as and when the customer wants

12. Produce products with perfect quality

13. Produce with minimum possible lead time

14. Produce products only with features that customer wants-nothing more

16. Post JIT-

17. Minimizing Waste: Inventory Hides Problems Example: By identifying defective items from a vendor early in the production process the downstream work is saved Machine downtime Scrap Vendor Change delinquencies Work in orders process queues Engineering design Design (banks) redundancies backlogs Example: By identifying defective work by employees upstream, the downstream work is saved Decision Inspection Paperwork backlogs backlogs backlog

18. Close to production plant Produce Quality components Maintain Good labor relations Fewer suppliers (keiretsu) Contingency plans to cope with disruptions like the effect of bad weather, a truck drivers strike, blocking roads/ports etc. In order to practice JIT the suppliers of an organization must meet the criteria

19. Quality Commitment Cost Saving Additional Resources and Capabilities Prior Work Experience Contract Terms Confidentiality Financial Stability Contd….

20. 2) WHAT ARE THE ADVANTAGES & DISADVANTAGES OF JIT?

21. LOWER INVENTORY LEVELS LESS PRODUCTION CYCLE TIME QUALITY OUTPUT LESS MATERIAL HANDLING LESS WORKER IDLE TIME IMPROVED EMPLOYEE MORALE ADVANTAGES OF JIT

22. Only 8 weeks required to reach full production capacity Automatic delivery system and aerial tunnels are developed There is barely any stock required as most parts are made to order The need of conventional truck delivery is minimum BENEFITS FOR

23. FORD &ITS SUPPLIERS STARTED WORKING AS ONE TEAM 25% SHORTER TIME PRODUCTION TIME NEEDED SAVING $6+ MILLION PER YEAR ON TRANSPORT BENEFITS FOR

25. More efficient when demand pattern is stable.

27. Cont. . . It requires more training, more consciousness, more employee commitment. More difficult goals to be attained. Coordination between customer and suppliers need to be much better and disciplined.

28. Toyota the Developer of JIT SystemToyota, the developer of JIT, found this out the hard way. One Saturday, a fire at Aisin seiki Company's plant in Aichi Prefecture stopped the delivery of all break parts to Toyota. By Tuesday, Toyota had to close down all of its Japanese assembly line. By the time the supply of break parts had been restored, Toyota had lost an estimated $15 billion in sales. DISADVANTAGES FOR TOYOTA

29. 3) Explain with examples (a) Kanban (b) Milk Run Concept. Discuss how these two concepts a help a firm like Toyota to be more efficient and effective.

30. Kan-card, Ban-Signal Small signboard, visual card etc that is a key control tool for JIT production Communication signal from a downstream process to an upstream process. KANBAN

31. HOW KANBAN MOVES??? RAW MATERIAL WORK STATION 1 FINISHED PARTS WORK STATION 2 FINISHED PARTS ASSEMBLY FINISHED PRODUCTS

34. Production Kanban

35. Reduce Inventory Improve work flow Prevent Overproduction Improves responsiveness to changes in demand Minimize risk of obsolete inventory, because inventory is only created as it is needed. BENEFITS OF KANBAN

36. Delivery method for mixed loads from different suppliers. A transport and logistic technique for the collection and transport of goods from suppliers with a defined delivery route, in which various stops are planned and executed in terms of quantities and timing. Milk Run is one of the advanced delivery concepts that can improve your transportation management system. Milk Run Delivery means a routing of a supply or delivery vehicle to make multiple pickups or drop-offs at different locations on a regularly scheduled basis. MILK RUN CONCEPT

37. SAME FREIGHT COSTS DESPITE INCREASED DELIVERY FREQUENCY AND SMALLER PARTIAL DELIVERIES REDUCED STOCK IN GOODS RECEIPT AND THUS REDUCED HANDLING EXPENSES INCREASED INVENTORY TURNOVER BENEFITS OF MRS