CAREER POINT UNIVERSITYTOPIC

CASE STUDY OF JUST IN TIME SYSTEM IN U.S FOOD INDUSTRY

Submitted to:Mr. BHUPENDRA GEHLOT

Asst. Prof.Department of mechanical engineering

Career Point University Kota 

Submitted by:SHIVAM

UID-K11915VIth sem/IIIrd year

Dept. Of mechanical engineering

WHAT IS JIT JIT In Services Case study Defination Goals of JIT JIT implemantation Benefits of JIT Rational behind carrying inventory Benefits to food industry

TABLE OF CONTENTS

Producing only what is needed, when it is needed

A philosophy An integrated management

systemJIT’s mandate:

Eliminate all waste

What is JIT ?

JIT In Services

Competition on speed & quality

Multifunctional department store workers

Work cells at fast-food restaurants

Just-in-time publishing for textbooks - on demand publishing a growing industry

Construction firms receiving material just as needed

1. Flexible resources2. Cellular layouts3. Pull production system4. Kanban production control5. Small-lot production6. Quick setups7. Uniform production levels8. Quality at the source9. Total productive maintenance10. Supplier networks

Basic Elements of JIT

JIT purchasing suggests, the minimisation of the stock to zero, or as near to zero as possible, the use of a regular daily deliveries and reliable local suppliers.

This is surely how the “grand hotels” of the last century operated and created their fame and fortune.

They would have had daily deliveries of fresh produce, there was after all no refrigeration, and many products both food and other items were perishable, (even beer did not have a long shelf life).

For the purpose of this paper a case study approach is used, based upon three distinctly different hotels:-

CASE STUDY

HOTEL A : A central London 5 star deluxe hotel,

comprising 500 luxry bedrooms, banqueting facilities for approximately 1000 people, 3 restaurants, and 5 bars

HOTEL B : A central London 4 star deluxe hotel, comprising 200 luxry bedrooms, banqueting and conference facilities for up to 250 people, a restaurant, coffee shop and cocktail bar.

HOTEL C : A Heathrow Airport Hotel, comprising 400 bedrooms, conference and banqueting facilities for up to 500 people, a restaurant, coffee shop and two bars.

DEFINATION

The just-in-time purchasing philosophy has been defined as “maintaining just enough in just the right place at just the right time to make just the right amount of product” or more concisely as “ the exact adjustment of product to quality and time held”. (Lyson 1990)

1. Controlling the inventory system.2. Reducing buffer inventory.3. Reducing space needed or used.4. Reducing material handling.5. Reducing waste materials.

For JIT to work, two thing must happen: All parts, or orders must arrive when and where, they are

needed, in the exact quantity that is need. All parts, or orders delivered, must be usable.

Just-in-time purchasing (JIT) is an important element of Just-in-time management, and it is effective for the

following reason

Goals of JIT

1. Reduced inventory - where?

2. Improved quality3. Lower costs4. Reduced space

requirements5. Shorter lead

time6. Increased

productivity7. Greater

flexibility

8. Better relations with suppliers

9. Simplified scheduling and control activities

10.Increased capacity11.Better use of

human resources12.More product

variety13.Continuous

Process Improvement

Use JIT to finely tune an operating system

Somewhat different in US than Japan

JIT is still evolving JIT as an inventory reduction

program isn’t for everyone - JIT as a CPI program is!

Some systems need Just-in-Case inventory

JIT Implementation

a) Parts costs : low scrap cost ; low inventory carrying

cost.b) Quality : fast detection and correction of unsatisfactory

quality and ultimate improved quality in purchased goods

c) Design: fast response to engineering/operational change requirements

d) Administration efficiency : fewer suppliers, minimal expenditure and order release work, simplified communication and receiving activities.

e) Productivity : reduced re-works, reduced inspections, reduced parts related delays.

BENEFITS OF JIT

1. Purchasing economics2. Transportation savings3. Safety stock4. Speculative purchases5. Seasonal supply6. Maintenance of the supply source

THE RATIONAL BEHIND CARRYING INVENTORY

Improvement in product quality: the incoming

inventory is, in most cases not going to change since most of the beverage items are of a set quality.

Ease of communication : a single source of supply will help create less or fewer communication problems. For example the current system involves the outlet ordering from the cellar, and receiving a daily delivery.

Reduction in lead time, storage levels, stock /inventory

Benefits to food industry from JIT

Thank you