In todays competitive global business environment, the goal of all manufacturing systems to survive long term. Survival of manufacturing in an increasingly competitive market will depend on its ability to produce the best quality at the lowest price possible and in a timely manner with the shortest delivery times. Moreover, these goals must be achieved by paying greater respect to mankind staff who operate the system. It is not hard to build quality, but it becomes extremely difficult to do so while maintaining excellent quality and respect for the humanity of people who do the actual work of building the product. A Just-in-Time (JIT) approach proposed here is able to achieve all the objectives above.
Just-in-Time (JIT) On the basis of quality management is both a philosophy and guiding principles that integrates basic management techniques, existing improvement efforts and technical tools.
This approach focuses on long-term benefits due to the elimination of waste and continuous improvement of systems, programs, products and people. It has an important influence on quality control, purchasing, and work culture with a philosophy that includes the cost of meeting delivery schedules, employee empowerment and skills development, supplier relations and development new products. But this approach requires factories to keep inventories of finished goods, because even a small problem in the supply chain, and small errors on defective goods can increase production to stop. Some techniques for controlling single market and the quality is developed so that the raw materials or components of high quality can reach the factory, as they needed, and the production of defective products can be reduced to near zero degrees.
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Conceptually, this approach combines seemingly contradictory goals of low cost, quality, manufacturing flexibility, and reliability of delivery. Its effects are important for improving the overall performance of the entire organization. However, there is no standard for implementing JIT is not steady progress towards the ultimate goal of service you want, with a continuous flow smoothly synchronized correspond to final demand, with perfect quality goods receipt. The adoption of JIT approach in the context of India can be useful for these industries are still struggling with reliability issues and long delays, low quality, low productivity, high rates of waste and defects, shortages of raw materials, and underutilization of workers and equipment.
Theory of JIT production
Based on quality management, JIT includes inventory control, quality control and management functions of production that made sincere efforts to improve the quality of two ways. First, it focuses on the philosophical aspect of improving quality through accountability for the quality of each, and then focused on the effective implementation of quality control technician. He acknowledged that the most valuable resources of an organization are the workers and employees work best when they are motivated, valued, to contribute, and allowed to make their own decisions. Under this approach, workers inspect the quality of the product after each successive operation. They are trained with the managers in the preparation and interpretation of process control charts. Managers motivate employees to think about the quality of the production rate of the first and second. Workers have the power to stop the production line or cell, if quality problems are discovered.
Thus, this concept not only provides quality responsibilities of workers, but also reflect this responsibility with the authority to share the functions of quality control, if quality problems can be identified and resolved quickly. In addition, the JIT production system requires the purchase of parts in small series. Small batches require less space and time. Less space and requires less time to people and facilities to do the same job. In addition, small parties easy to inspect and identify gaps quickly. Thus, parties that are bought regularly in small batches with frequent deliveries contribute to improved quality and productivity through lower inventory levels and waste, reducing monitoring costs for parts used, and early detection of defects . In short, JIT approaches have the potential to improve product quality and productivity levels important, but organizations should adopt the principles in a way that meets their own organizational structure, design and processes.
Objective Of The Research
This research paper has the following two objectives:
Research Design And Methodology
This research has been conducted by taking SECONDARY DATA from the internet. The research is primarily based on analysis of two popular automobile manufacturers:
1. Maruti Suzuki
2. Ashok Leyland
Limitation Of The Study
The current report is limited to only two companies i.e., Maruti Suzuki and Ashok Leyland. The report represents an analysis based on the data that is available online.
The accuracy and reliability of the analysis is completely based on my interpretation and valuation of data.
The analysis and study could not be approved by company officials as they refuse to entertain students on such matters.
Automobile Industry Of India
India has a large automotive sector. The country ranks ninth in Asia and the world 4thin global automotive industry. India has an annual production of approximately 2.3 million units.
Today, India is the world’s largest maker of tractors, the second largest motorcycle manufacturer and the fifth largest manufacturer of commercial vehicles.
The automobile industry in India has accelerated after deregulation in 1991. The industry continued to grow steadily and is increasingly relevant in the global market. In the recent past, India has experienced a resurgence in the automotive sector with its relaxed restrictions on investment policies in the sector. overall economic growth in India has also played an important role in attracting foreign investors to invest in India in the automotive sector in the country.
The automobile sector in India has shown great progress in the use of new technologies and be flexible in the wake of the changing business situation.
In addition, the growth of India’s middle class and greater purchasing power with the support of strong macroeconomic fundamentals have helped to attract leading car manufacturers in India. Several global players, including major automakers Suzuki and Honda have invested heavily in India and was able to exploit the market in India.
All these factors and initiatives that the government is an indication that the Indian car industry was becoming a new industry that has unlimited potential for growth and promises to provide valuable return on investment. The automotive sector was not only satisfy the requirements of the market, but was deeply into the international market.
Maruti Suzuki India Limited
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation in Japan, is a leading Indian car market for about two decades. Maruti’s growth driven by the automotive industry in India, in fact, its impact on lifestyle and psyche of an entire generation of Indian middle class, it is widely recognized. Maruti tops customer satisfaction again for the seventh consecutive year, according to JD Power Asia Pacific Index 2006, India Customer Satisfaction (CSI) Study. The company also ranked highest in India Sales Satisfaction Study. TNS Automotive Maruti also ranks first corporate social responsibility.
Maruti is also one of the top five car rental companies: Forbes list of the best-known companies in the world – November 6 In 2001, Maruti Suzuki India Ltd has become one of the first car companies around the world to receive ISO 9001:2000 certification. AV Belgium assessed the quality systems and practices “related to the automotive industry worldwide” global auditors International Organization for Standardization.
Maruti has already implemented more than 6 million cars by 2006, in fact an average of two vehicles from the factory to roll every minute. In March 2007, Maruti crossed cumulative total exports of 450,000 vehicles since its first exports in 1986. Vehicles for export and manufactured in the same production facilities.
Ashok Leyland Motor began assembling commercial involvement vehicles.With British Leyland in the capital, in 1954, the Company has been renamed as Ashok Leyland. Since then Ashok Leyland has been a significant presence in the Indian industry of commercial vehicles. These years were marked by a series of technological innovations that became industry standards. This tradition of technological leadership have been made through comparisons with international technology leaders and through vigorous R & D.http://www.topnews.in/files/Ashok-Leyland_1.gif
Ashok Leyland vehicles have built a reputation for reliability and susceptibility to interference. 375 000 vehicles, we have placed additional pressure on the common road of independent India. The share of road freight transport increased from 12% in 1950 to 60% in 1995. In the carriage of passengers, the jump is equally dramatic: from 25% to 80%. At 60 million passengers a day, Ashok Leyland buses carry more passengers than the entire Indian railway network. In populous metros in India, four of the five-state transport company (STU) buses come from Ashok Leyland. Some of them like the double-decker bus and hallways are unique Ashok Leyland, tailor-made for high-density routes.
In 1987, the exploitation by foreign LRLIH (Land Rover Leyland International Holdings Limited) was incorporated as a joint venture between the Hinduja Group, the Non-Resident Indian transnational group and Iveco Fiat SpA, part of Fiat Group and the manufacturer Trucks Europe leading. Global Standards, Global Markets prepared the blue print for the future reflects the Company’s global ambitions, captured in four words: Global standards, global markets (liberalization and globalization still air). Encouraged by the support of two global giants, Ashok Leyland launched a significant product and process technology Upgradation the world-class standards of technology. On the way to global quality standards, Ashok Leyland reached a milestone in 1993 when he became the first in the automotive industry in India to win ISO 9002 certification. The most comprehensive ISO 9001 certification came in 1994.
1994 was also the year that global technology has changed the way India perceived trucks. The year of a new world-class race truck – a superior technology and environmentally friendly – to roll on road in India. Our factory of state-of the-art House, near Bangalore. They were called Cargo. Loading brought a new set of values â€‹â€‹and a basket of unmatched performance, paving the way for a change.
Just In Time At Ashok Leyland
Ashok Leyland, one of the largest private companies in the country, had sales of about Rs 6,000 crore in 2005-06. Ashok Leyland is part of the Hinduja Group. It is also one of the largest automakers and auto component companies in India.
The company offers a range of world-class trucks, buses, special application vehicles and engines, the passage of millions of people in over 40 countries worldwide. During 2005-06, the company produced a total of 65 085 vehicles, of which it exported 4,879 units. Domestically, the company has sold a total of 56 776 units.
Oscar incoming The project SCM provider partnership comprises the supply base rationalization, tiered suppliers and cluster information, the optimization of inventories through JIT and LCL, total cost management, logistics initiatives, and -sourcing and global supply. The proceeds from the Oscar entry -provider partnership includes technical support and engineering, the global market, the worldwide availability of spare parts, testing capabilities, improved performance on the field, a provider of systems, JIT deliveries and world class technology.
the profits of the partnership are Level I, vendor consolidation, continuous technological upgradation of products without any inward investment, shorter development lead time, value engineering and cost reduction, improved performance on the field, the ‘ effectiveness of JIT inventory supplies and human power to rationalize.
Vendor base rationalisation
Gains from price reductions include the amount, to improve the quality and reliability of the seller to improve the framework for continuous improvement, multi-layered system to facilitate the purchase, installation and reduce paperwork.
Supplier tierisation accompanying economies of scale, purchasing a system to rationalize the supplier base material to a cluster of compliance with the 5S-error-checking, process improvement, resulting in self.
Inventory levels have decreased from 23 to 18 days.
Total cost management includes a number of cost management initiatives, such as management, process management, design, technology and capabilities. The total savings were 3% of total operating costs.
Logistics initiative included the rationalization of transport based, drawn from Kanban satellite stores, improving truck turn around, load, mode and route optimization for the benefit of the logistics process that led Ted to save the company more than Rs1.25 crore a year.
Just In Time At Maruti Suzuki
The Company has adopted the Japanese system, JIT to achieve greater operational efficiency and reduce inventory carrying costs. JIT improves return on investment in a business by reducing in-process inventory and transportation costs.
To ensure the supply of raw JIT, the company gives preference to local vendors and suppliers to promote the function of the distance to establish the base near Maruti Suzuki `s facilities. Over 76% of 246 company suppliers are within 100 km radius. providers are strategically located in major components such as instrument panels, fuel tanks, bumpers, seats adjacent to the manufacturing facilities of the company’s supplier park.
JIT has evolved over the past 25 years, the company’s monthly time of daily programs of parts orders and, finally, in 2003, and system-Nagare, which means the delivery systems for planning time, a practice that helps maintain a list of less than two hours in some parts of society.
The e-Nagare successfully run the business today and helps to maintain the population of the right material at the right time, right place and the exact amount, without the safety net of excess inventory, reducing inventory levels, cost of ownership .
Maruti Suzuki driven by manufacturing excellence principles to reduce waste, inconvenience and inconsistency drank parent SMC, Japan.
Maruti Suzuki, using best practices such as Just in Time (JIT), Kaizen (continuous improvement), Quick Quick, and Poka Yoke (fail-safe feature). The best practices are replicated in business processes and business partners to make its operations lean and free of blemishes.
The company is actually connected via resellers Dealer Management System (DMS), the interaction dealer and annual reviews that will help retailers to cost savings and customer convenience.
Storage levels are maintained to reduce the burden of holding inventory. higher inventory levels are adjusted as necessary for financial viability. The result is a multiplicity of efficiency in the value chain.
Limitations Of Interfirm Production
Culture Differences: Organizational cultures differ from company to company. There are cultures that bind to JIT success in international business, but it is difficult for an organization to change its culture few
Time frame : The production is highly dependent on suppliers and if the unit is not delivered on time, the entire production schedule may be delayed.
Crunch on delivery : Today, many Tier1, Tier2 and Tier 3 suppliers are struggling financially to meet their customer demands for lower cost, better quality and results of the time.
Loss of team autonomy: This is the result of lower buffer stocks that result in less flexibility for employees to solve the problem individually.
Loss of method autonomy: This means that workers must act in a way, when problems occur, it is not possible for them to have their own method to solve a problem.
Responsive method : It is not the final product available to order spare unexpected, because all the product is manufactured to meet actual orders – JIT, however, is highly responsive method of production.
Some Important Features of JIT Based Quality Management
This section describes some unique features of this concept, which plays a crucial role to achieve its goal of continuously improving quality, eliminating waste and reducing costs.
â€¢ One of the most remarkable features of JIT is that it produces a large number of proposals that employee participation in continuous improvement. Management works hard to implement these proposals. A number of proposals considered as an important criterion to assess the performance of the employee. This conclusion recognizes employee efforts to improve quality. quality circles in accordance with a proposal for a group focused on improving the system. In a nutshell, the JIT system requires an effective proposal for the production operations of employees.
â€¢ JIT emphasizes awareness and provide clues to identify problems. When a problem is detected, it must be resolved. So, this concept requires training with a variety of tools for problem-solving.
â€¢ Improve the success of any problem is solved. To consolidate a new level, the improvement is standardized. Thus JIT also requires the standardization of methods and procedures.
â€¢ Often, the heterogeneous composition of the workforce and the negative relationship between the labor market, it is difficult to introduce changes to improve productivity and quality. Therefore, strong motivation, employee involvement and an open corporate culture is crucial for the effective implementation of JIT. â€¢ JIT requires experience working with concrete data. Put more emphasis on the use and analysis of statistical data for quality control and troubleshooting.
â€¢ Due to construction workers in many different machines at the same time, this system leads to a significant expansion of responsibilities of workers and skills. Therefore, effective training programs are the main requirements of JIT to develop multiple skills among workers.
â€¢ JIT is to encourage suppliers to make a commitment to provide excellent quality products. In order to fulfill this commitment, lasting quality software is essential to the operations of the supplier in constant communication between the buyer and supplier.
Implications for Indian industries
Indian manufacturing sector is one of the largest industries in the world that has never been implemented by governments and potential protectionist bureaucracy. Thus, Indian goods are now classified competitiveness fund sector effectiveness, personnel management, product quality and productivity of workers, 15 In these circumstances, the urgent need to implement JIT practices in India. But in some states in India to regulate the relations between business, labor, suppliers and financial institutions. These relationships have a major impact on the fact that the team can be deployed in India present economic, cultural and social system, attitudes and trends. With the implementation of a JIT Indian industry a huge savings to be produced and the productivity of the new ethics may arise, which can help to strengthen the Indian economy.
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In addition, JIT practices can help Indian firms become more competitive by improving its exports in the global market. But we find that social, cultural and political have a significant impact on JIT practices in different parts of the world. In India, suppliers of various raw materials (domestic and imported) are under government control through supply agencies, resulting in considerable uncertainty.
The government controls the prices of key resources, and tax rates, to create obstacles to applying the JIT 16 Some of the reasons for the slow implementation of JIT are listed below. In addition, the workforce in India is generally ignorant, lack of motivation and more concerned about the monetary benefits and job security as the development of the carrier and develop their potential. Trade unions and their resistance is also promoted the implementation team. Therefore, the specific cultural changes necessary to successfully implement JIT. Education can play a crucial role in this direction. On this issue, some researchers have argued that the Japanese models are very successful in India. Therefore, some training programs with deadlines, should be organized in the Indian work force, after a careful examination of their behaviour, personal characteristics, attitudes and social values.
Reasons for Slow Implementation of Just-in-Time (JIT) in Indian Context.
Based on JIT quality management to make dramatic improvements in cost and quality through optimum utilization of human resources with emphasis on simplicity, elimination of waste and continuous improvement. This could be a great opportunity for Indian industry because of its relatively low investment requirements and compatibility for small businesses. This approach exploits the full capacity of workers and allows them to systematic analysis of the root causes of quality problems by making small sustainable changes in organizational arrangements. It allows workers to become involved in decision making through the trust and responsibility in their hands. Several Indian industry is leading the joint investigation team with the belief that it would be useful to counter global competition. But the effectiveness depends on the qualities, attitudes and values â€‹â€‹of Indian labor.
Ultimately, it is hoped that the Indian industry to be able to undertake the necessary changes to existing production systems for JIT Quality Management to get the maximum benefit.
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