A Presentation on

Submitted to :-

K.K. Parekh Institute of Management Studies (Amreli)

JUST IN TIME (JIT)

Prepared by :-

Mehul Rasadiya

CONTENTS

What is JIT? Objective Concept Benefits Implementation in McDonald’s

WHAT IS JIT ?????

A corporate system designed to produce output within the minimum lead time and at the lowest total cost by continuously identifying and eliminating all forms of corporate waste and variance.

A corporate strategy

Focus of JIT:

• variance & waste

OBJECTIVE OF JIT

Produce only the products the customer wants.

Produce products only at the rate that the customer wants them.

Produce with perfect quality

Produce with minimum lead time.

Produce products with only those features the customer wants.

Produce with no waste of labor, material or equipment -- every movement must have a purpose so that there is zero idle inventory.

CONCEPT

Inventory Reduction

Quality Improvement

Lead time Reduction

Continuous Improvement

Strategic Gain

BENEFITS

Low Inventory levels

Shorter production cycle time

Improved Product Quality

Better labor utilization

IN MCDONALD’S

IN MCDONALD’S

High holding costs are the nature of the fast food industries

Wastage Time

IN MCDONALD’S

JIT system wherein McDonald's doesn't begin to cook its orders until a customer has placed a specific order.

IMPLEMENTATION OF JIT

sophisticated burger-making technology (including a record-breaking bun toaster)

McDonald's is able to make food fast enough to wait until it's been ordered.

Reduction in wastage

IMPLEMENTING IN JIT PRODUCTION SYSTEMS

Criteria for success

1. Service

2. Quality

3. People

4. Food preparation

5. Profitability

.

SUPPLY CHAIN INTEGRATION

BENEFITS

Improved Quality – The burgers are prepared freshly and hence the quality has improved.

Customer service – As the burger is made only after the order is placed, making special orders is not an issue.

Cost Reduction – Due to significant reduction in wastage as uncooked material has a higher shelf life.

Reduction in waiting – Customer’s waiting time reduce 11 min. to just 1 and half min.

JIT DEMAND-PULL LOGIC

Customers

Sub

Sub

Fab

Fab

Fab

Fab

Vendor

Vendor

Vendor

Vendor

Final Assembly

Here the customer starts the process, pulling an inventory item from Final Assembly…

Here the customer starts the process, pulling an inventory item from Final Assembly…

Then sub-assembly work is pulled forward by that demand…

Then sub-assembly work is pulled forward by that demand…

The process continues throughout the entire production process and supply chain

The process continues throughout the entire production process and supply chain