japaneze concept for manufacturing works, industries, company. Useful for eliminante unnecessary things.
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JUST - IN - TIME
Just-In-Time
“it is a manufacturing philosophy
that attempts to produce with the shortest possible lead time, the lowest possible level of inventory, and lowest possible waste.” JUST-IN-TIME ( JIT )
JIT refers to zero inventory*
operation. It is continuous process it seeks eliminating raw material stock and finished goods stock.
*zero inventory means not zero
days but two days inventory. Key element of JIT :- Respect for the contribution that employees can make. Good relationship with suppliers. A demand pull system in which material only flows when needed. Kanban :- A Japanese method of controlling the movement of materials through a JIT system. Reduction of set up times. BAJAJ AUTO ABC and JIT This is a 3500 crore company. It uses 3000 and odd components in manufacturing its products. It classifies these components in A, B, and C category. The company applies different purchasing strategies to each category. Classification of components :
“A” “B” “C”
category category category
High value Medium value Low value
Rs.1000 Between Below And plus Rs.500-1000 Rs.500 Company applies different purchasing strategies to each category. “A” “B” “C” category category category
JIT is used These items These
to make are ordered items are deliveries . once a ordered These items fortnight. The monthly. have never inventory is an inventory maintained exceeding for one one week. week.