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CONFIDENTIAL This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client anisation without prior written approval from McKinsey amp。 Company. This material was used by McKinsey amp。 Company during an oral presentation。 it is not a plete record of the discussion. date Just in Time client name 169。 Copyright McKinsey amp。 Company, Inc 20xx Manufacturing and conveying what is needed, when it is needed, in the amount needed, in the shortest possible leadtime. What is JustinTime (JIT)? JIT Delivery JIT Delivery is not enough ? Product is supplied directly from the finished product inventory ? Production orders are provided to each stage of the process (via MRP) ? There is no direct link with the customer Production control Process A Process B Inventory Inventory Order Finished Goods Build List Delivery List Build List customer JIT Manufacturing amp。 Delivery ? Product can be built to order (if manufacturing leadtime is shorter than customer lead time) ? The production process is synchronised to customer demand ? FIFO must be maintained FIFO Maintained FIFO Maintained Build List Process A Process B Finished Goods Production control Order customer Just in Time Just in Time has three parts, based on one prerequisite: Continuous Flow Processing P F C Levelled production Takt time Pull system ? Continuous Flow Processing ? Takt time ? Pull system ? Levelled Production Continuous Flow Processing Continuous Flow Processing eliminates product stagnation within and between processes: Continuous Flow Processing P F C Levelled production Takt time Pull system ? One piece at a time production ? Multiprocess handling One piece at a time production One piece flow is the first step in improving material flow. Process C Process A Process B Process ABC C F P Traditional manufacturing inhibits material flow and creates WIP. Multiprocess handling Machine layout to support product flow eliminates material stagnation. Store Multimachine handling Drill A Drill C Drill B B A C Mill B Mill C Turn A Turn B Turn C Mill A B A C B A C Mill A Drill A Turn A Mill B Drill B Turn B Mill C Drill C Turn C Multiprocess handling Store B A C C F P 1 2 3 Process 1 2 3 4 5 6 7 8 9 (time in minutes) Continuous Flow Processing