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Just In Time concept has been borrowed from the inventory system of American Supermarkets
i.e only the units that are sold are replaced. It is a production and material planning system
where the production and procurement closely follow the actual demand. JIT is a combination
of single unit production and conveyor system(Assembly Line) and is called ‘Ikko Nagare’ in
Japanese meaning Single Unit Production and Conveyance.
The other important aspect of JIT is the ‘smoothing of Production’. Since inventories are to be
avoided at all places including the finished goods and to have uniform workload at all work
places, it is essential to convert the demands for the final products into a sequence of single
unit production, the sequence repeating in time.
JIT has the ability to operate with minimal levels of inventory. As inventory reduction exposes
the defects in manufacturing process and required managers and workers to eliminate sources
of variability and waste in the production system, so it has became a philosophy of
manufacturing based on planned elimination of waste and continuous improvement of
productivity.
JIT is known by different names in different companies. IBM equates JIT with ‘Continuous Flow
Manufacturing’, HP calls it ‘Stockless Production’ and Repetitive Manufacturing System’, GE
elaborates JIT as ‘Management by Sight’, Boeing calls JIT ‘Learn Manufacturing’, Motorola
states it to be ‘Short Cycle manufacturing’.
Demand Pull System of Production :
This is based on the principle that we should manufacture only as much as is required by the
next stage and is known as demand pull system. In earlier days the method used was demand
push system. This methods supersedes the push system in respect to following features :
• Reduces transportation and handling by linking the work stages directly.
• Adopts one‐piece flow and eliminates delays of batch production.
• Manages inventory not by the magnitude of demand and supply but by improved
response to demand variance.
• Involves higher level of employee involvement.
Example :
1. Push Type Production System : If four operators are working in a sequence to make a
carton and when completed, it is removed to the next stage by the material handler and
each worker is paid @ Rs, 8 per carton. It is push type of production system.
2. Pull Type of Production System : Herein four workers work in a group. They make one
box at a time and make it whenever it is required by the next stage. Operators move up
and down freely and exchange ideas among themselves. They also carry out self
inspection and are paid @ Rs. 32 per carton as a group. Because of the nature of work it
is called pull type of production.
Under ‘Push System’ manufacturing/production schedule is followed to determine what is
to be produced next whereas in Pull System what to produce is determined looking into the
next stage of production.
Pre‐requisites of JIT :
1. The worker should be empowered to take his own decision with respect to the item.
2. There should be minimum supervision in production process i.e. limited to guidance.
3. The vendor should produce defect‐free raw material or components.
4. The vendors should deliver material on time.
5. The workers should be multi‐skilled, so that in case of problem they could help each
other.
6. The workers should be motivated to produce defect‐free items, they should feel more
responsible.
7. Work in progress inventories should be minimized.
8. JIT required accurate planning so accurate sales forecast should be available.
9. The nature of production system should be high speed and high‐volume production.
10. Materials should come in continuous flow.