JIT (JUST IN TIME) INVENTORY MANAGEMENT CONCEPT | ADVANTAGES & DISADVANTAGES OF JIT

 JIT (JUST IN TIME)

• JIT is an inventory management concept which refers to the elimination of manufacturing wastes by receiving the right quantity of raw materials, producing and supplying the right quantity of products at right time.

• It is a Japanese philosophy based on the principles that manufacturer should receive the raw materials only when they are needed for production, produce the products what are demanded exactly and supply the finished products instantly so as to avoid the inventory stock. 

• This concept was originally developed in japan during 1970's by TAIICHI OHNO (father of JIT). 

• It is also known as Toyota Production System (TPS) because it was first adopted by car manufacturer i.e. Toyota Motors. 

• Just like zero defects, zero inventory is also impossible but theoretically it is considered as zero due to negligible amount. 

Advantages of JIT

• It eliminates the waste in terms of inventory, transportation, overproduction, defects etc. 

• It reduces inventory costs because manufacturer purchase the raw materials enough as needed for production and do not have to pay storage costs.

• It reduces the production cost by eliminating defects, scraps and inventory. 

• It fulfils the customer's demand exactly. 

• It improves the product quality. 

• It improves the productivity. 

Disadvantages of JIT

• Manufacturer may not be able to supply the extra products if there is sudden increase in demand because all products are made to meet the actual demand of customer. 

• Production schedule may be delayed if raw materials are not received on time because there are no extra inventory stock. 

• Manufacturers have zero margin to make errors. 

TPM (TOTAL PRODUCTIVE MAINTENANCE) | 8 PILLARS OF TPM

 TOTAL PRODUCTIVE MAINTENANCE (TPM)

• It is a Japanese Concept which involves all the employees from top to bottom in maintaining and improving the machines and equipment of a particular organization.

• Its main aim is to keep the machines always working at their best.

• It improves the performance of machines and reduces operating cost to an organization.

• It increases Overall Equipment Effectiveness (OEE) i.e. minimum 90% OEE by reducing Downtime, Performance Losses and Quality losses.

• It was developed by SEIICHI NAKAJIMA during 1950's in Japan.

• It minimizes the machines failure and breakdown.

• It helps the teams and departments to exchange their knowledge, skills and experiences.

• It is the most useful Lean Manufacturing Tool in improving the productivity of an organization.

8 PILLARS OF TPM

All Eight Pillars of TPM are mainly focused on preventive techniques for improving machine reliability as stated below:-

Autonomous Maintenance

In this pillar, daily routine maintenance activity such as cleaning of machines, lubrication of all moving parts, tightening of nut & screw and inspection of machine parts are performed by machine operator.

Planned Maintenance

A preventive or schedule maintenance activity which is performed before breakdown occurs in order to avoid unexpected failure of machines in future.

Quality Maintenance

Specifically focused on quality issues and removes source of quality defects by applying root cause analysis.

Focused Improvement

A small group are formed from various departments to identify the cause of machine failure and work together to achieve continuous improvements in machine operation.

Early Equipment Management

Improving the design of new equipment based on knowledge and understanding gained through TPM program.

Education and Training

Educate and train all the employees from time to time about new equipment and basic knowledge of maintenance to achieve TPM goals. 

Administrative and Office TPM

Apply TPM concept to administrative and office functions to remove wasteful activities and supports the plant TPM by improving administrative activities like order processing, procurement of materials, tools & equipment and production scheduling.

Safety, Health and Environmental Conditions

It also aims at zero work accidents, zero pollution and zero burnout which can be achieved by proper maintenance of machines.