nirdosh gupta mosebaer

7/30/2019 Nirdosh Gupta Mosebaer

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PROJECT REPORT

ON

IMPLIMENTATION OF JUST IN

TIME AT MOSER BAER

Submitted in the partial fulfillment of the requirement

For the award of

POST GRADUATE DIPLOMA IN BUSINESS

MANAGEMENT (OPERATION)

SUBMITTED BY

NIRDOSH GUPTA

EN.NO. 200714990

SUBMITTED TO

SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)


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CERTIFICATE

This is to certify that NIRDOSH GUPTA, student of SCDL Pune studying Post Graduate

Diploma in Business Administration has completed his Project in my guidance on title

IMPLIMENTATION OF JUST IN TIME AT MOSER BAER

Mr.

MBA

For VINAYAKA VIDYAPEETH.,


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ACKNOWLEDGEMENT

I take the opportunity to express my gratitude to all the concerned people who have directly

or indirectly contributed towards completion of this project. I extend my sincere gratitude

towards for providing the opportunity and resources to work on this project.

I am extremely grateful to my mentor in for his guidance and invaluable advice during the

projects.

At Last I would like to thank my parents for their constant support, throughout this project

NIRDOSH GUPTA


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OBJECTIVES


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EXECUTIVE SUMMARY

In this Project, I am going to examining the implementation of Just-In-Time methodology

in Moser Bear for its CD Making plant. Although this system was initially developed for

automobile industry but now the scene have changed this system is equally usefully for

other production houses also. This is possibly one of the most interesting manufacturing

revolution where companies involved in the production are integrated not only in their

business processes moreover in their physical plants. The concept has been is due to be

adopt. The case study clearly shows how companies can work together in a harmonic and

synchronised system meeting probably the most idealistic manufacturing principles (JIT) to

produce the best quality product within the shortest time frame with minimum/no wastage

and cost-effective to all parties. Careful production planning, cost-benefit analysis,

adequate outsourcing plans and customer orientation are being praises as the key success

factors of this amazing Just-In-Time concept.


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INDEX

CONTENTS PAGE No.

EXECUTIVE SUMMARY 05

INTRODUCTION TO JIT 07

COMPANY PROFILE 17

PRODUCT PROFIFE 20

OBJECTIVES OF THE STUDY 51

DESIGN OF THE STUDY 52PROJECT ANALYSIS 58

FINDINGS 59

SUGGESTIONS 70

CONCLUSION 71

BIBLIOGRAPHY 73

ANNEXURE 75


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INTRODUCTION


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What is JIT and Introduction

Just-in-time (JIT) is a management philosophy that strives to eliminate sources of

manufacturing waste by producing the right part in the right place at the right time. Waste

results from any activity that adds cost without adding value, such as moving and

storing.JIT (also known as lean production or stockless production) should improve profits

and return on investment by reducing inventory levels (increasing the inventory turnover

rate), reducing variability, improving product quality, reducing production and delivery

lead times, and reducing other costs (such as those associated with machine setup and

equipment breakdown). In a JIT system, underutilized (excess) capacity is used instead of

buffer inventories to hedge against problems that may arise.

JIT applies primarily to repetitive manufacturing processes in which the same products and

components are produced over and over again. The general idea is to establish flow

processes (even when the facility uses a jobbing or batch process layout) by linking work

centers so that there is an even, balanced flow of materials throughout the entire production

process, similar to that found in an assembly line. To accomplish this, an attempt is made

to reach the goals of driving all queues toward zero and achieving the ideal lot size of one

unit. The goal of JIT, therefore, is to minimize the presence of non-value-adding

operations and non-moving inventories in the production line. This will result in shorter

throughput times, better on-time delivery performance, higher equipment utilization, lesser

space requirement, lower costs, and greater profits.

JIT was developed as a means of meeting customer demands with minimum delays. Thus,

in the olden days, JIT is used not to reduce manufacturing wastage, but primarily to

produce goods so that customer orders are met exactly when they need the products.

JIT is also known as lean production or stockless production, since the key behind

a successful implementation of JIT is the reduction of inventory levels at the various

stations of the production line to the absolute minimum. This necessitates goodcoordination between stations such that every station produces only the exact volume that


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the next station needs. On the other hand, a station pulls in only the exact volume that it

needs from the preceding station.

The JIT system consists of defining the production flow and setting up the production

floor such that the flow of materials as they get manufactured through the line is smooth

and unimpeded, thereby reducing material waiting time. This requires that the capacities

of the various workstations that the materials pass through are very evenly matched and

balanced, such that bottlenecks in the production line are eliminated. This set-up ensures

that the materials will undergo manufacturing without queuing or stoppage.

Another important aspect of JIT is the use of a 'pull' system to move

inventories through the production line. Under such a system, the requirements of the next

station are what modulate the production of a particular station. It is therefore necessary

under JIT to define a process by which the pulling of lots from one station to the next is

facilitated.

JIT is most applicable to operations or production flows that do not change, i.e., those

that are simply repeated over and over again. An example of this would be an automobile

assembly line, wherein every car undergoes the same production process as the one before

it.

Some semiconductor companies have likewise practiced JIT successfully. Still, there

are some semiconductor companies that don't practice JIT for the simple reason that their

operations are too complex for JIT application. On the other hand, that's precisely the

challenge of JIT - creation of a production set-up that is simple enough to allow JIT. (find a

semi conductor factory)

Inventory stocks allow production process to continue even when some problem occurs. In

a way, inventory stocks act like a buffers to hide any problem that may occur. But, with

JIT, there are no buffers to hide problems and thus, occurrence of problem can shut down

the entire production process. Thus, JIT philosophy helps organization to prominently


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expose problems and thus, bring a clear focus on removal of it at source, by eliminating

the cause, rather than effects, of problem. With JIT, it is believed that the root causes of

most problems are due to faulty production process design. Hence, with JIT, nothing

is taken for granted, everything is subject to analysis. Each activity is identified

as either Value-Added' or 'Non-Value-Added'. The reduction of 'Non-Value-

Added' activities is achieved mainly through increasing manufacturing flexibility and

improved quality. JIT is an extremely powerful tool to identify where improvements

should be made. It helps you to identify cause (not the effect) of problem and its

elimination. Failures and exceptions are treated as opportunities to improve

the system. In fact, JIT initiates failures due to problems to expose them. It is a system of

trouble-shooting, within a culture of constant analysis and improvement. It is clear, as an

attitude and approach, JIT and TQM are perfectly complimentary to each other, to expose

and correct problems at source, so as to avoid wasting resources on production of defective

products.

Just-in-time manufacturing is a process where suppliers deliver inventory to the

factory only when it's needed for assembly. Companies are beginning to turn to Internet-

based technologies to communicate with their suppliers, making the just-in-time ordering

and delivery process speedier and more flexible.


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History of Just in Time:

Just-In-Time is a Japanese manufacturing management method developed in 1970s. It

was first adopted by Toyota manufacturing plants by Taiichi Ohno. The main concern at

that time was to meet consumer demands. Because of the success of JIT management,

Taiichi Ohno was named the Father of JIT.

After the first introduction of JIT by Toyota, many companies followed up and

around mid 1970s', it gained extended support and widely used by many companies.

One motivated reason for developing JIT and some other better production techniques

was that after World War II, Japanese people had a very strong incentive to develop a

good manufacturing technique to help them rebuilding the economy. They also had a

strong working ethnic which was concentrated on work rather than leisure, seeked

continuous improvement, life commitment to work, group conscious rather than

individualism and achieved common goal. This kind of motivation had driven Japanese

economy to succeed. Because of the natural constraints and the economy constraints

after World War II, Japanese Manufacturers looked for a way to gain the most efficient

use of limited resources. They worked on "optimal cost/quality relationship".

Before the introduction of JIT, there were a lot of manufacturing defects for the

existing system at that time. According to Hirano, this included inventory problem,

product defects, risen cost, large lot production and delivery delays. The inventory

problems included the unused accumulated inventory that was not only unproductive,

but also required a lot of effort in storing and managing them. Other implied problems

such as parts storage, equipment breakdowns, and uneven production levels. For the

product defects, manufacturers knew that only one single product defects can destroy the

producer's credibility. They must create a "defect-free" process. Instead of large lot

production - producing one type of products, they awaked that they should produce

more diversified goods. There was also a problem of rising cost, the existing system

could not reduce cost any further but remember improvement always leads to cost

reduction.


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Lastly, the existing system did not manage well for fast delivery request, so, there was a

need to have a faster and reliable delivery system in order to handle customers' needs.

Thus, JIT manufacturing management was developed based on these problems.

Focus of JIT?

Mainly JIT focuses to eliminate the waste or the non-value added. Thus there are several

types of wastes categorised. JIT usually identifies seven prominent types of waste to be

eliminated:

Waste from Overproduction Transportation Waste Processing WasteWaste from Product Defects

Waste of waiting/idle time

Inventory WasteIntroduction Phase for Just in Time:

According to Hirano, the introductory phases of JIT involve 5 steps.


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FIVE STEPS IN THE INTRODUCTORY PHASE OF JIT

Step 1: Awareness Revolution

It means giving up old concept of managing and adopting JIT way of thinking. There are

10 principles for improvement:

1. Abolish old tradition concepts.2. Assume that new method will work.3. No excuses are accepted.


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4. It is not seeking for perfection, absolutely zero-defect process, few defects isacceptable.

5. Correct mistakes immediately.6. Do not spend money on improvement.7. Use you brain to solve problem.8. Repeat to ask yourself 5 times before any decision.9. Gather information from several people, more is better!10.Remember that improvement has no limits.

The idea of giving up old concept was especially for the large lot production, The lot

production was felt that "having fewer changeover was better", but it was no longer true.

Whereas JIT is a one-piece flow manufacturing. To compare the two, Hirano had this idea:

Lot production: "Unneeded goods...In unneeded quantities...At unneeded times..." JIT:

"Needed goods...In needed quantities...At needed times..."

The main point here is to have an awareness of the need of throwing out old system and

adopting a new one.


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Step 2: 5S's For Workplace Improvement

The 5S's stand for:

Seiri - Proper Arrangement Seiton - Orderliness Seiso - Cleanliness Seiketsu -

Cleanup Shitsuke - Discipline

This 5S's should be implemented company-wide and this should be part of a total

improvement program.


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Seiri - Proper Arrangement means sorting what you have, identifying the needs and

throwing out those unnecessary. One example is using red-tags. This is a little red-

bordered paper saying what the production is, how many are accumulated and then stick

these red tags onto every box of inventory . It enhances the easiness to know the inventory

status and can reduce cost.

Seiton - Orderliness means making thing in order. Examples include keeping shelves in

order, keeping storage areas in order, keeping workplace in order, keeping worktables in

order and keeping the office in order.

Seiso - Cleanliness means having a clean workplace, equipment, etc.

Seiketsu - Cleanup mean maintaining equipment and tools.

Shitsuke - Discipline means following the rules and making them a habit.


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Flow manufacturing means producing one single piece of product at a time but multi-

handling which follows the process sequence.

Step 3: Flow Manufacturing

1. There are several main points concerning flow manufacturing:


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Arrange machines in sequence.

2. U-shaped production line (Cellular Manufacturing).

3. Produce one-piece at a time.4. Train workers to be multi-skilled.5. Follow the cycle time.6. Let the workers standing and walking around while working.

Use small and dedicated machines.

Step 4: Standard Operations

Standard Operation means to produce quality safely and less expensively through efficient

rules and methods of arranging people, products and machines.

The basis of standard operations is:

1. Cycle time It means how long it would take to "carry out part all the waythrough the cell". Following are the equations for calculating cycle time.

Daily Quantity Required = Monthly Quantity Needed / Working Days per month


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Cycle Time = Working Hours per day / Daily Quantity Required

2. Work sequence3. Standard stock-on-hand4. Use operation charts

Step 5: Multi-Process Handling

Multi-process handling means one worker is responsible for several processes in a cell.Some points that should be aware:

Clearly assign jobs to machines and workers.

Make a good use of U-shaped cell manufacturing.

Multi-skilled workers

Operation should be able to perform multi-machine handling and multi

process handling.

Multi-machine handling - a worker should handle several machines at once, this is also

called "horizontal handling".

Multi-process handling - a worker should handle several different processes at once, this is

also called "vertical handling" and this is the basis for JIT production.

Uses casters extensively as author written, "Floor bolts are our enemies! Machines

must be movable."

Elements of Just in Time

According to Cheng, the basic elements of JIT manufacturing are:

People Involvement

Plants


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System People Involvement

Maintaining a good support and agreement from people involved in production. This is not

only reduce the time and effort in implementation of JIT, but also minimize the chance of

creating implementation problem. The attempt to maximize people's involvement may

carry through the introduction of quality circle and total involvement concept.

Manufacturers can gain support from 4 sources.

1. Stockholders and owners of the company - should maintain a good long-term relationship among them.

2. Labor organization - all labors should be well-informed about the goals ofJIT, this is crucial in gaining support from the them.

3. Management support - support from all level of management. The ideas ofcontinuous improvement should spread all over the factory, managers and

all shop-floor labor.

4. Government support - government can show their support by extending taxand other financial help. This can enhance the motivation, and also help in

financing the implementation of JIT.

Plants

Certain requirements are needed to implement JIT, there are:

1. Plant layout - the plant layout is mainly focus on maximizingworking flexibility. It requires the use of "multi-function

workers".

2. Demand pull production - it means to produce when the order isreceived. This can manage the quantity and time more

appropriately.


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3. Kanban - a Japanese term for card or tag. Special inventory andprocess information are written on the card. This helps tying and

linking the process more efficiently.

4. Self-inspection - it is carried out by the workers at catchmistakes immediately.

5. Continuous improvement - this concept should be adopted byevery members in the organization in order to carry out JIT.This is the most important concept of JIT. This can allow an

organization to improve its productivity, service, operation

and even customer satisfaction in an ongoing basis.

System

This refers to the technology and process that combines the different processes and

activities together. Two major types are MRP (Material Requirement Planning) and MRP

II (Manufacturing Resource Planning).

MRP is a computer-based, bottom-up manufacturing approach. This involves two plans,

production plan and master production schedule. Production plan involves the management

and planning of resources through the available capacity. Master production schedule

involves what products to be produced in what time.

MRP II is mainly involved the management or planning of financial resources in order to

carry out the operation.

Goal of Just in Time

According to Cheng in Just-In-Time Manufacturing - An Introduction, he explains the

objectives of JIT. There are three main objectives:


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1. Increasing the organization's ability to compete with others and remain competitiveover the long run. The competitiveness of the firms is increased by the use of JIT

manufacturing process as they can develop a more optimal process for their firms.

2. Increasing efficiency within the production process. Efficiency is obtained through theincrease of productivity and decrease of cost.

Reducing wasted materials, time and effort. It can help to reduce the costs. Other short-

term and long-term objectives are:-

1. Identify and response to consumers needs. Customers' needs and wants seem to bethe major focus for business now, this objective will help the firm on what is demanded

from customers, and what is required of production.

2. Optimal quality/cost relationship. The organization should focus on zero- defectproduction process. Although it seems to be unrealistic, in the long run, it will eliminate a

huge amount of resources and effort in inspecting, reworking and the production of

defected goods.

3. Reduce unwanted wastes. Wastes that do not add value to the products itselfshould be eliminated.

4. Develop a reliable relationship between the suppliers. A good and long- termrelationship between organization and its suppliers helps to manage a more efficient

process in inventory management, material management and delivery system. It will also

assure that the supply is stable and available when needed.

5. Plant design for maximizing efficiency. The design of plant is essential in terms ofmanufacturing efficiency and utility of resources.

6. Adopt the work ethnic of Japanese workers for continuous improvement.


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Commit a long-term continuous improvement throughout the organization. It will help the

organization to remain competitive in the long run.

Other Similar Ideas

1.Reduction of Inventory. JIT reduces inventory at all level of the organization.2.Reduction of Lead Time. Lead time such as setup time and move time and waiting timeis reduced.

3. Quality Control. JIT improves the quality control by increasing its efficiency ofmanaging shop floor production and increasing its commitment to its suppliers.

4. Improvement for Performance. In JIT manufacturing, the organization can obtain agreater impact/control over its suppliers. With fewer suppliers, organizations have larger

control because the amount purchased is usually large. And, organizations can obtain a

tighter requirement on products from their suppliers.

5.Total Preventive Maintenance. JIT provides preventive maintenance to lessen the riskof machine breakdowns.

6.Continuous Improvement. JIT is a never-ending method in operation management.7. Strategic Gain. JIT helps organization to remain competitive in the market place.8.Reduction of Wastes. JIT helps significantly in reducing wastes.

JIT can help organization remains competitive by offering consumers higher

quality of products than their competitors, it is very important in the survival in the market

place.


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These major objectives are suitable for all organizations. But each organization is unique

in some way, adjustments of JIT objectives for each form should be made in order to

complement the overall production process.

Limitation of Just in Time

Regardless of the great benefits of JIT, it has its limitations, the following are the major

limitations.

Culture Differences The organizational cultures vary from firm to firm. There aresome cultures that tie to JIT success but it is difficult for an organization to change

its cultures within a short time.

Traditional Approach The traditional approach in manufacturing is to store up alarge amount of inventory in the means of backing up during bad time. Those

companies rely on safety stocks may have a problem with the use of JIT.

Difference in implementation of JIT Because JIT was originally establishedin Japanese, it is somehow different for implementing in western countries. The

benefits may vary.

Loss of individual autonomy. This is mainly due to the shorter cycle timeswhich adds pressures and stress on the workers.

Loss of team autonomy. This is the result of decreasing buffer inventories whichlead to a lower flexibility of the workers to solve problem individually.

Loss of method autonomy. It means the workers must act some way whenproblems occur, this does not allow them to have their own method to solve a

problem.


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JIT success is varied from industry to industry. Some industries are benefit morefrom JIT while others do not.

Resistance to change JIT involves a change throughout the whole organization,but human nature resists to changes. The most common resistances are

emotional resistance and rational resistance. Emotional resistance are those

psychological feeling which hinder performance such as anxiety. Rational

resistance is the deficient of the needed information for the workers to perform

the job well.Some other limitations:-

Relationship between management and employees is important .A mutual trust must

be built between management and employees in order to have effective decision

making.

Employee commitment Employees must commit to JIT, to enhance the qualityas their ultimate goal, and to see JIT as a way to compete rather than method

used by managers to increase their workload.

Production level JIT works best for medium to high range of productionvolume.

Employee skill JIT requires workers to be multi-skilled and flexible to change.

Compensation should be set on time-based wages. This allows the workers toconcentrate on building what the customers wants.


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JIT - Philosophy or Technique

Just In Time is a philosophy and not the technique for elimination of wastes. The JIT

strategy is to have "the right product at the right place at the right time."

The Just-in-time philosophy that emerged, is a management logic based on simplicity and

continuous improvement. It may be applied to any process where it will aim to make

improvements through elimination of excess, waste and unevenness.

The Just-in-Time concept comprises methods and techniques that aim to increase the

potential for short times to delivery.

Production system in which both the movement of goods during production and deliveries

from suppliers are carefully timed so that at each step of the process the next (usually

small) batch arrives for processing just as the proceeding batch is completed

The "Just in time" (JIT.) inventory concept, also called Kanban, asserts that just enough

inventories, arriving just in time to replace that which was just used, is all the inventory

that is necessary at any given time. Excessive inventory unnecessarily ties up money, adds

warehousing costs, increases risk of damage and risks obsolescence, and most of all, can

possibly obscure opportunities for operational improvements.

Storing inventory is still the basics of warehousing, but in today's business it constitutes

only part of the total. A modern thought on warehousing is that large inventories are really

not as necessary as once believed.

To some companies storing large quantities of inventory is detrimental to business because

it ties up capital and can also disguise poor management practices. The JIT philosophy

emphasizes flow flexibility and developing supply chains to reduce all excess and waste


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COMPANYPROFILE


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HISTORY

Moser Baer India was founded in New Delhi in 1983 as a Time Recorder unit in technical

collaboration with Maruzen Corporation, Japan and Moser Baer Sumiswald, Switzerland.

In 1988, Moser Baer India moved into the data storage industry by commencing

manufacturing of 5.25-inch Floppy Diskettes. By 1993, it graduated to manufacturing 3.5-

inch Micro Floppy Diskettes (MFD).

In 1999, Moser Baer India set up a 150-million unit capacity plant to manufacture

Recordable Compact Disks (CD-Rs) and Recordable Digital Versatile Disks (DVD-Rs).

The strategy for the optical media project was identical to what had successfully been

implemented in the diskette business - creating a facility that matched global standards in

terms of size, technology, quality, product flexibility and process integration. The company

is today the only large Indian manufacturer of magnetic and optical media data storage

products, exporting approximately 85 percent of its production.

Since inception, Moser Baer has always endeavored to create its space in the international

market. Aiding the company in its efforts has been a carefully-planned and sustainable

business model - low costs, high margins, high profits, reinvestment and capacity growth.

Along the way, deep relationships have been forged with leading OEMs, with the result

that today there are hardly any global technology brands in the optical media segment that

Moser Baer is not associated with.

In 2006, the company announced its foray into the Photovoltaic and Home Entertainment

businesses. In 2007, the IT Peripherals and Consumer Electronics division was formed.

Milestones


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1983 Established

1985

Production of 8.0"/5.25" Disks

1987 Production of 3.5" Disks

1998 ISO 9002 Certification

1999 Production of CD-R

2000 Production of CD-RW

2002 Completely Integrated Manufacturing

2003 Production of DVD-R Production of DVD-RW ISO Certification for all Facilities Launch of 'Moserbaer' Brand in Indian Market Signed one of Largest Outsourcing Deals in Indian Manufacturing

2004 'Lightscribe' Deal with HP HP Deal for India and SAARC Region Contributing Member of Blu-Ray Disk Association

2005 ISO 14001 & OHSAS 18001 certification for Moser Baer plants. Commencement of Phase III of Greater Noida Plant Announced Moser Baer Photovoltaic Ltd as it's wholly owned subsidiary Received status of SEZ developer from Govt. of India Announced a wholly owned subsidiary-Moser Baer SEZ Signed MoU with IIT, Delhi

2006 The first company in the world to start volume shipments of HD DVD-R Signed Technology MoU with IT BHU


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Patented technology approved by the Blu-ray Disc Association In-house R&D Centre approved by Ministry of Science and Technology Launched USB Flash drives Forayed into entertainment space, enters Home Video market

2007 Acquired OM&T BV - a Philips' optical technology and R&D subsidiary Announced start of trial run of solar photovoltaic cell production facility Set up the world's largest Thin Film Solar Fab Launched US$150 mn FCCBs Moser Baer Photo Voltaic announced commercial shipment of solar

photovoltaic cells

Moser Baer Photo Voltaic announced US$880 million strategic sourcingtie-up with REC Group

Forayed into PC peripherals market: Launches Optical Disk Drives(ODDs), Headphones, Keyboards, Optical Mouse etc.

Launched Branded DVD Player

2008 Moser Baer plans 600 MW Thin Film PV capacity with an estimatedinvestment of over $ 1.5 bn

Moser Baer Photo Voltaic announces strategic sourcing tie-up with LDKSolar

Moser Baer announces successful trials of first Gen 8.5 Thin Film plant Moser Baer gets the coveted blu-ray product verification Moser Baer signs exclusive home video licensing deal with UTV Motion

Pictures

Moser Baer launches a digital video processing facility in Chennai Moser Baer secures customer sales orders of $500 million for solar

modules

Global investors inject Rs. 411 crore into Moser Baer's solar photovoltaicbusiness

Moser Baer announces successful trials of first Gen 8.5 Thin Film plant Moser Baer Photo Voltaic announces strategic sourcing tie-up with LDK

Solar


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Moser Baer plans 600 MW Thin Film PV capacity with an estimatedinvestment of over $ 1.5 bn

2009 Moser Baer launches sleek and stylish MP3 players Moser Baers thin film solar modules are now IEC certified Moser Baer to set up one of Indias largest rooftop solar PV installations

in Surat

Slim and Elegant Moser Baer TFT Monitor Moser Baers thin film line ready for production of ultra-large solar

modules


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ProductSTORAGE MEDIA

The company manufactures the entire spectrum of optical storage media products including

Recordable Compact Discs (CD-R), Rewritable Compact Discs (CD-RW), Pre-

recorded CD/DVD, Digital Versatile Disks (DVD-R) and Rewritable Digital Versatile

Disks (DVD-RW) and Blue Laser Discs in the optical storage media segment. In the

Magnetic Data Storage category Moser Baer manufactures Compact Cassettes, Micro

Floppy Disks (MFD) and Digital Audio Tapes (DAT).

Moser Baer started the production of CDRs in the year 1999. At that time it came out withonly Pro CDRs. Currently Moser Baer is producing two kinds of CDRs viz. Moser Baer

Pro CDRs and Moser Baer Mini CDRs. Moser Baer products can meet any recording

requirement. Whether it is archiving important files, distributing corporate information or

duplicating small volume production runs. CD-R demand has witnessed explosive growth

over the last few years (1998-2002 CAGR 109 per cent). One of the principal drivers of this

growth has been the increasing attach rate of CD-R drives in PCs and the widespread

usage of CD-R media for information storage and data interchange. It would be important

to note that the CD format is well entrenched in hundreds of millions of homes and offices

and is the only medium virtually guaranteeing information interchange. Importantly, the

latest DVD drives are also backward compatible to CD-R media.

CD-R Demand Drivers

A high PC penetration: As more PCs are sold with Recordable CD and DVD drives,consumption of recordable media is expected to substantially increase and usage is

expected to become broader based.

Lengthened PC life: As there has been a perceptible extension in the life cycle of the PCduring the global economic slowdown, the life cycle of CD-R should get elongated.

Price of drives: As prices of recordable CD drives have reached levels almost that ofRead only, drive popularity

Backward compatibility: Virtually all DVD drives being currently sold, can playbackCD disks, also most DVD recorders, can also record CD-R disks.

Due to the differences in applications, and large storage capacity (700MB), RecordableCD disks should be in use well into this decade.


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Legacy installed bases: There are over 1.5 billion drives installed worldwide, which canread CD disks, including the installed base of DVD drives, the number increases to over

2.0 billion and growing.

Varieties of CD-Rs

Moser Baer Super: Ideal for all general Data, Audio, Video recording applications. Moser Baer Premium: Ideal for critical archival applications and increased security. Moser Baer Extra: 700 MB/80 min, for enhanced storage capacity. Moser Baer Printable: 650 MB/75 min with unique printable layer. Moser Baer Thermal: For thermal printing surface applications. Moser Baer Audio: For optimum recording of music in real-time applications.

Specifications

Format Orange Book (Part II) and ISO 9660Recording Capacity 650 MB ( 700 MB also available )Recording Time 74 minutes ( 80 minutes also available )UnrecordedGroove reflectivity > 70%Radial Contrast (typ.) 0.08Push Pull Amplitude 0.090RecordedBLER average < 10 cpsJitter < 35 nsReflectivity (Rtop) > 65%I11 / Itop > 0.65


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Moser Baer Pro CD-Rs

Moser Baer Pro CD-Rs are an advanced creation for high-speed recording

and compatible with most conventional recording drives. Being the first and

only 52x CD-R to be launched in India, they also provide excellent thermal

sensitivity to the laser ray and maintain data integrity without degradation in

any way.

Pro CD Recordable Moser Baer Pro CD-Rs are

highly advanced discs that enable high-speed

recording and storing of not just data, but also

audio and video files. The first 52x CD-Rs to be

launched in India, they provide excellent thermal

sensitivity to the laser ray and maintain data integrity without degradation in any way.Moser Baer Pro CD-Rs are compatible with most conventional recording drives.

Capacity : 700 MB / 80 min

Speed : 2x-52x

Disc Diameter : 120 mm 0.3 mm

Thickness : 1.14 + 0.06 / -0.01 mm

Centre Hole Dia : 15 mm 0.05 mmRecording Layer : Pthalocyanine Dye

Reflector Layer : Silver

Protective Layer : UV Lacquer

A CD-R is a blank media that can be used to record data on it. Once the data has been

recorded or written on the CD-R, it cannot be erased. Its storage capacity today can vary

from 650MB to 800 MB. CD-R speeds have reached 52x today.


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But to write data onto a CD-R, one needs a CD Writer. Like a regular CD-ROM drive, a

CD Writer not only reads data, it can also write data on the disc. Music sharing has been

one application that has been a trigger as far as the popularity of CD- R is concerned.


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Moser Baer Pro Mini CD-Rs

With hard disks shrinking to the size of 'Thumb-drives', to some, CD-Rs too have come to

be seen as physically bulky and unnecessarily large in terms of data storage space. Moser

Baer introduces Mini-CD-Rs just for that. They provide you with better portability while

maintaining their superior recording/playback characteristics and compatibility.

With a diameter of 8 cm, this medium is ideal for presentations and credentials or for that

matter, quite a few mp3 songs! They come in an attractive box to ensure that even these

small CD-Rs are safe. Best of all, these Minis CD-Rs can be used in any CD-ROM drive,

CD Writer or CD Player. In fact, this media redefines 'Compact' Discs.


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Capacity : 185 MB / 21 min

Speed : 24x(Drive dependent)

Disc Diameter : 80 mm 0.3 mm

Thickness : 1.14 + 0.06 / -0.01 mm

Centre Hole Dia : 15 mm 0.05 mm

Disc Material : Polycarbonate

Recording Layer : Pthalocyanine

Reflector Layer : Silver

Protective Layer : UV Lacquer


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Blu-ray Discs

Visit BDA Website

Moser Baer India Ltd., the 2nd largest Optical media manufacturer in the world, brings to you the

highest quality Blu-ray discs, guaranteed by the technology & process expertise provided by one of the

format originatorsPhilips.

The discs are manufactured at its subsidiaryOM&T(formerly Philips R&D) based in Europe and at its

factory in Greater Noida (near Delhi) in India. The Greater Noida facility is the worlds largest single

location optical media factory producing all types of formats.

OM&Tis one of the founding members of the Blu-ray disc association (BDA) & a pioneer in

developing the Blu-ray format. Our technological prowess is verified by the fact that Philips has

transferred its entire supply ofCD, DVD & BDR calibration and test discs to OM&T.

Blu-ray Technology at Moser Baer

Moser Baer is worlds first company (outside Japan)

First to ship next-generation formats like Blu-ray discs. Supplier to leading OEM brands State of the art manufacturing facility in Europe. Verified by the Blu-ray disc association:BDR 1x-2x, 1x-4x, 1x-6x and BDRE 1x-2x Fully integrated & equipped R&D facilities in Netherlands and India. Calibration & Test discs supply for Philips entirely managed by OM&T LTHdye based BDR 1x-4x at GN*

* under development

Technology at its best

Scratch Protect best in the class surface protection for everyday handling Print Max Full surface printable Inkjet & Thermal* discs Works with leadingdrives & CE recorders
http://www.blu-raydisc.com/http://www.blu-raydisc.com/http://www.om-t.net/http://www.om-t.net/http://www.om-t.net/http://www.om-t.net/http://www.om-t.net/http://om-t.net/products-philips-blu-ray-test-disc.asphttp://om-t.net/products-philips-blu-ray-test-disc.asphttp://om-t.net/products-philips-blu-ray-test-disc.asphttp://www.moserbaer.com/blu-ray-discs-compatibility.asphttp://www.moserbaer.com/blu-ray-discs-compatibility.asphttp://www.moserbaer.com/blu-ray-discs-compatibility.asphttp://www.blu-raydisc.com/http://www.moserbaer.com/blu-ray-discs-compatibility.asphttp://om-t.net/products-philips-blu-ray-test-disc.asphttp://www.om-t.net/http://www.om-t.net/http://www.blu-raydisc.com/


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Ideally suited for data archiving, hi definition Audio-video recording & distribution etc. Lifetime in excess of 50 years

* under development

Meets all your needs

1. BDR 1x-4x, 1x-6x, 25GB2. BD RE 1x-2x, 25GB3. Full Surface Inkjet Printable4. Full Surface Thermal Printable


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PHOTO VOLTAIC

Moser Baer provide customised energy solutions using different technologies to suit

customer specific requirements.

Crystalline Silicon Cells and Modules

80 MW fully automated, horizontal, in-line cell

manufacturing facility with throughput of 3,000

wafers/hour 80 MW flexible module line capable

of delivering modules in multiple cell

configurations Certifications - IEC 61215

(Edition II), IEC 61730 (Safety Class II), CE, UL

1703

Thin Film Modules

40 MW capacity with products available in

quarter size, half size and full size Use of non-

toxic materials in manufacturing of products

Certifications - IEC 61646, IEC 61730, CE

Concentrator

Strategic Investments in SolFocus for High Concentrators,

Solaria for Low Concentrators and Skyline for Mid

Concentrators

\


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Consumer Electronics Products

Moser Baer has entered into IT Peripherals and Consumer Electronics. In IT Peripherals theproduct range comprises of USB drives, Memory Cards, DVD writers, PC Peripherals, TFT

Monitors, UPS and External Hard Drives. In the Consumer Electronics arena, the company has

come up with a product range with medium to hi-end positioning comprising of Ultra Advanced

LCD TVs, DVD Players, Portable DVD Players, Digital Photo Frames, Media Players and

Multimedia Speakers.

MP3 Players

MP 565-2G

High Contrast LCD Display with 7 colourBacklit

Integrated Flash memory Random (shuffle) Music Playback Hold feature prevents accidental key presses Plays MP3 and WMA digital music files USB 2.0 Hi speed for fast file transfers

MP 582-2G

Clip your music anywhere Plays MP3 and WMA digital music files Random (shuffle) Music Playback Hold feature prevents accidental key presses Mobile Data storage function USB 2.0 for fast file transfers
http://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-582.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asphttp://www.moserbaerconsumerproducts.com/mp3-players-mp-565.asp


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History

MoserBaer was set up in 1983 by Deepak Puri to manufacture magnetic media products. It

started with manufacturing the 8 inch floppy disc. As formats moved, the company has

built across formats and moved from manufacturing 8 inch to the 5.25 inch to 3.5 inch

floppy diskettes. Over the last five years, revenues have grown at a compounded annual

growth rate of 36 per cent and profits at 60 per cent. The company has an 11% share of the

global recordable optical media market, making it the largest player in India and third

largest in the world. Over 80 per cent of Moser Baer's production is exported to 82

countries across six continents and the company has strong tie-ups with all the major

technology brands in the world. Today, the company is the fifth largest manufacturer of

optical and magnetic storage media globally.

Moser Baer India is among the worlds largest manufacturers of optical media products.

Since it was set up 24 years ago Moser Baer has established itself as a dynamic Indian

transnational with a strong focus on research and development, has successfully developed

cutting edge technologies for recordable optical media, constantly innovating and

introducing new products and processes.

Its goal has been simple and straightforward to be a dominant player in the global storage

media arena. An emphasis on high quality products and services has enabled Moser

Baer to emerge as one of India's leading technology companies.


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Vision and Mission

Vision"Touching every life across the globe through high technology

products and services"

MissionWe will drive growth through our excellence in mass manufacturing.

We will move up the value chain through rapid development of technology,products and services.

We will leverage our relationships, distribution, cost leadership and "can do"

attitude to become a global market leader in every business.

Values

Teamwork

Thinking and working together across functional silos, hierarchies, businesses

and geographies. Cooperating and supporting each other towards common

goals.

IntegrityConsistently behaving and taking decisions in an ethical, trustworthy and fair

manner in all spheres of life.

Passion

Missionary zeal coming out of one's heart to drive to the goal which gives one

a feeling of "do it with pride" and "love to be there". A feeling that

encourages one to dream & realise the dreams. Self commitment to give more

than 100% & create value.

Speed

Meeting and exceeding customer's expressed or implied expectations by a "do

it" attitude and by doing right, first time, on time and every time.


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KEY MANAGEMENT

Deepak Puri

Chairman & Managing Director, Moser Baer India LimitedAs Chairman and Managing Director of Moser Baer India Ltd, Deepak Puri provides strategic

leadership and direction to the organization. He steers the company with his vision of making Moser

Baer one of the most respected technology companies globally.

Ratul Puri

Executive Director

Ratul Puri has been the Executive Director of Moser Baer India Ltd since 2001. Ratul is responsible for

the overall corporate management and financial control of the organization.

Rakesh Govil

Executive Vice-President - Corporate Strategy & Business Development

Rakesh Govil has been associated with Moser Baer India Ltd since August 1999, and is currently

designated Executive Vice-President: Corporate Strategy & Business Development for the Group.

Yogesh B Mathur

Group Chief Financial Officer

Mr Yogesh B Mathur joined Moser Baer India Ltd as Group Chief Financial Officer in July, 2005. In

his current capacity, he is responsible for steering the functioning of the Finance, Treasury, Accounts,

Audit and IT departments and provides strategic vision and leadership to the company.

VC Agerwal

COO - Blank Optical Media

Mr. VC Agerwal is the COO - Blank Optical Media at Moser Baer India Ltd. He has been associated

with the company since 2002. He heads the operations of all the 4 plants at Moser Baer, located in

Noida and Greater Noida.

Ravi Khanna

CE - Moser Baer Photovoltaic Ltd.

Ravi Khanna is the Chief Executive of Moser Baer Photo Voltaic Ltd, a fully owned subsidiary of

Moser Baer India Ltd.


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Under his dynamic and open management style, MBPV is implementing a state of art 80 MW Silicon

wafer cell and module making plant and upto 600 MW of Thin Film capacity by 2010.

Harish Dayani

CE - Entertainment Division

Harish Dayani is the Chief Executive, Entertainment Divison, Moser Baer and is responsible for

providing direction and market leadership for the company in India and will also be responsible for

taking this new initiative to greater heights.

Ram Nomula

CE - Moser Baer Entertainment Services

Mr. Ram Nomula is the Chief Executive of Media & Entertainment Services at Moser Baer. In this

position, he provides strategic leadership to the division's media mastering, authoring, replication and

packaging services.

Bhaskar Sharma

EVP, IT Peripherals & Consumer Electronics

Mr. Bhaskar Sharma is Executive Vice President in Moser Baer India Limited. He is a post graduate in

Business Administration and has an overall professional experience of 32 years.

GirishBaluja

ChiefOperatingOfficer-Corporate

Mr. Girish Baluja is the COO - Corporate at Moser Baer India Ltd. He has been associated with the

company since 2005. He oversees Corporate HR, Corporate R&D, Corporate Supply chain & Six sigma

initiatives. His responsibilities also include OM&T business (MBIL acquired this specialized Optical

Technology and R&D subsidiary of Phillips).


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BRAND ARCHITECHTURE

Moser

The Brand

Desired Brand PersonalityTrustworthy, Caring, Friendly,Futuristic, Smart, Confident,

Exciting, Youthful

Brand UtilityThe most reliable storage

media with which your data

is safe and sound

Core Brand Value

Dependable(rest assured with Moser)Innovative

Brand Attitude

The Expert(the technologyleader)

The Achiever

Moser

Therefore the brand positioning is:

Moser Baer The most reliable data storage media with whichyour data is safe and sound.


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OBJECTIVES


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Objectives

Following are the primary objective of my study

1. To understand how JIT is effective for effective production2. To study implementation of JIT at MoserbearSecondary objective of my study is as follows

1. To Study business of Mosetbear2. To SWOT Analyses Moserbear3. To study the JIT and its History


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RESEARCHMETHODOLOGY


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RESEARCH METHODOLOGY

Meaning of Research

Redman and Mory define research as a systemized effort to gain new knowledge.

Some people consider research as a movement, a movement from the known to unknown.

Research is an academic activity and as such the term should be used in a technical sense.

According to Clifford Woody, research comprises defining and redefining problems,

formulating hypothesis or suggested solutions, collecting, organizing and evaluating data

making deductions and reaching conclusions; and at last carefully testing the conclusions to

determine whether they fit the formulating hypothesis.

Objectives of research

The purpose of research is to discover answers to questions through the application of

scientific procedure. The main aim of research is to find out the truth which is hidden and

which has not been discovered yet. Though each research study has its own specific

purposes but the research objectives can be listed into a number of broad activities, as

following :-

1. To gain familiarity with a phenomenon or to achieve new insights into it. Studies with

this object in view are termed as exploratory or formulative research studies.

2. To portray accurately the characteristics of a particular individual, situation or group

.studies with this object in view are known as descriptive research studies.

3.To determine the frequency with which something occurs or with which it is associatedwith something else. Studies with this object in view are known as diagnostic research

studies.

4.To test hypothesis of a casual relationship between variables. Such studies are known as

hypothesis-testing research studies.

Significance of research

All process is born of in enquiry . Doubt is often better than over confidence , for it leads

to in enquiry and in enquiry leads to invention. Is a famous Hudson maxim in context of

which the significance of research can well be understood. Increased amounts of research


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make progress possible. Research inculcates scientific and inductive thinking and it

promotes the development of logical habits of thinking and organization .

The role of research in several fields of applied economics, whether related to as a business

or to the economy as a whole, has a greatly increased in modern times. The increasing

complex nature of business and government has focused attention on the use of research in

solving operational problems. Research , as an aid to economic policy , has gained added

importance , both for government and business.


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Research Methodology

Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. In it we study the

various steps that are generally adopted by a researcher in studying his research problem

along with the logic behind them. It is necessary for the researcher to know not only the

research methods or techniques but also methodology.

Data Source

The data can be collected from two sources, i.e. primary and secondary. I have collected

entire data of this project on Moserbaer Pvt. Ltd. from SECONDRY SOURCES like

websites, books, newspapers .


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DATA ANALYSIS


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LIMITATIONS

Although the project has been worked out at its best yet there are some

limitations , which cannot be overlooked. Had these limitations been overcome,

the findings would be accurate.Some of the limitations are :

1.Time constraint :

Time was really a limiting factor for the project . Its really difficult to work out

such a large project between two months time.

2. Data constraint :

All the data that has been collected for this project, has been taken from

secondary sources like websites, books and newspapers.


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Our near term strategy is to leverage our manufacturing base, customer relationship and the

explosive growth expected in the optical media segment to significantly enhance our global

share and retain and improve our leadership position within the industry. We believe, the

optical media industry in the medium term offers us sufficient growth opportunity with 53

52 capacity of 40MW, to ensure quality, low cost and uninterrupted power supply.

Integrated on a plant wide basis, diverse production machinery together to make available

output, yield, quality and other information available on a real time basis to better manage

the complex production process.

Expansion

During the year, the company completed its expansion in capacity form 0.8 Billion units to1.1 billion units, post the favourable outcome of the anti-dumping inquiry by the EC

(European Commission). Additionally, the company built manufacturing facilities, to house

the next phase of expansion, along with the required utilities and clean rooms. This will

enable the company to significantly reduce its time to market, and during FY04 capitalize

quickly on the growing DVD-R opportunity.

The investments already made, in the facilities, and infrastructure, along with

improvements in process technology, will enable the company to establish incrementalcapacity at an investment 25-30% lower than current capital costs. The capacity expansion

and technology progression initiatives are being conducted at the companys newest plant

in Greater Noida. The plant is equipped to produce all formats of optical media CD / DVD

(recordable, re-writeable and pre-recorded), Research and development In 2005-06 (FY03),

we invested Rs 176 Million (1.62 per cent of its sales) in research and development and

created an 80-member team of research professionals. A first-mover advantage, higher

realization and enhanced margins are likely to accrue form this investment in the long term.

Some of the benefits of our R&D program are enumerated below.

Introduced nine new products during the past 12 months.

One of the only two companies in the world to get a certification from Philips for

48x write media.

Developed 2x DVD R media

Developed high speed CD R/W media

Developed 2.4x DVD R/W


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Quality

Moser Baers quality commitment is enshrined in its Quality Policy:

We are committed to Excellence and Total Customer Satisfaction through Team Work,Ceaseless Innovation, and Timely Delivery of Quality Products ofInternational Standards.

Moser Baer has continuously created quality products through the intelligent use of

technology, committed human resources, and the extensive use of advanced statistical

techniques to monitor and control product quality. As a result of this we have surpassed

world-class quality standards, with defect ratio for some of our products approaching six

sigma levels. We moved closer to our vision to make the Made in India mark respected by

customers and a testimony of world-class manufacturing standard.Marketing

Moser Baer marketed a growing variety of products with a visible branding differentiation

in 2004-07. We gained the goodwill of existing and new customers by servicing them with

speed and sensitivity. Strict confidentiality of proprietary processes and delivery of

promised standards helped build strong customer loyalties. In house developed and

patented, packaging variations, enabled us to offer a visibly differentiated product offering

to customers.

Our share of the global market has grown from a mere 1% in 1999, to over 11 per cent in

FY02-03.

Marketing highlights, 2006-07

2 new major OEMs added to our list of customers.

Eleven of the worlds top twelve global brands sourcing from us.

We entrenched our presence in 36 new countries; balanced our large presence in Europe

with an increasing US and emerging market focus.

Value-added features/packaging were provided to

We shrank new product development time from 22 months to ten months Alliances

During the year, the company entered into a global alliance with Imation Corp, USA,

resulting in Imation sourcing a substantial part of their requirements of optical media from

Moser Baer. This sourcing deal estimated to be worth in excess of US$100 Million per

annum, is the single largest outsourcing deal ever entered into with an Indian company.


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Implementation Of JIT

Although the just-in-time (JIT) concept is very young, perhaps 10 to 15 years old in thiscountry, it is so widespread in American manufacturing and service. Perhaps this is

because the idea is so simple and so appealing. In short, the JIT strategy is to have "the

right product at the right place at the right time." It implies that in manufacturing or

service, each stages of the process produces exactly the amount that is required for the next

step in the process. This notion holds true for all steps within the system.

Suppose, for example, that all products pass through a drilling operation and then a milling

operation. With JIT, the drill produces only what the mill will need next. It also holds for

the last step that is, the system produces only what the customer desires.

Implementation of a JIT system typically includes emphasis on the following aspects of the

production process:

Production Smoothing Capacity Buffers Set-up Reduction Cross Training and

Plant Layout Total Quality Management Most of the companies today seek

this method of implementation: Form a top-level team:

This team's responsibilities include deciding upon an organizational structure and

developing a plan to implement JIT within the company. This plan should include the

company's goals concerning production, as well as how to establish this plan among all

employees (i.e. motivation & discipline) This plan then be used to establish the overall

philosophy of the company concerning JIT

To train the top management in the basic concepts of JIT:

This is the first step of the implementation process. It is very important to educate and train

the top-level management, as they are the ones who frame policies and get things moving.


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Benefits of JIT

Perhaps, the most significant benefit of JIT is to improve the responsiveness of the firms to

the market place thereby affording it an overwhelming advantage in competition. Specific

benefits will depend upon size of the market, technology of processes etc. Therefore, they

vary from organizations to organization.

One of the benefits of JIT is that with raw materials and WIP being processed in smaller

batches, errors can be easily identified and corrected quickly, during each stage of the

production process. This in turn has the 'knock-on'effects of reducing non-value added

costs

Conceptually, the JIT benefits could be grouped into the following categories;

Product Cost: This is greatly reduced of manufacturing cycle time, reduction of scraps,

inventories, space requirement, and material handling and eliminations of non-value

adding operations.

Quality: It has greatly improved due to fast detection and correction of defects, use of

automatic stop devices, higher quality of purchased parts,worker centered quality control

and statistical process control. Total preventive maintenance an d lower inventory levels

also help in quality improvements.

Design: Due to fast response to engineering change, alternative designs can be quickly

brought on the shop floor.

Productivity: Order magnitude productivity improvements are obtained due to the use

of flexible workforce, reduced rework, reduced inspection, reduced part delay and reduced

throughout time. Workers acquire multiple skills and become highly productive.

JIT systems have a number of other important benefits also, which are attracting the

attention of various companies. The main benefits are:

Reduced levels of in-process inventories, purchased goods, and finished goods.


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Reduced space requirements. Increased product quality and reduced scrap and rework. Reduced manufacturing lead times. Greater flexibility in changing the production mix. Smoother production flow with fewer disruptions. Worker participation in problem solving. Pressure to build good relationships with

vendors.

Increased productivity levels and utilization of equipment Reduction in the need for certain indirect labour.Just In Time (JIT) Manufacturing

Just in Time manufacturing is a systems approach to developing and operating a

manufacturing system. It is based on the total elimination of waste. JIT is not a new

concept. It has been part and parcel of the Japanese manufacturing industry adopted

approach for quite some time. It requires that equipment, resources and labor are made

available only in the amount required and at the time required to do the job. It is based on

producing only the necessary units in the necessary quantities at the necessary time by

bringing production rates exactly in line with market demand. In short, JIT means making

what the market wants, when it wants it. JIT has been found to be so effective that it

increases productivity, work performance and product quality, while saving costs.

JIT AND COSTS

JIT can affect the bottom line in a variety of ways. Improvement in quality and delivery

times can increase demand and, thus, revenue. Costs are also affected; the JIT philosophy


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contends that inventory reduction and increased quality reduce costs. Traditional cost

accounting Systems often makes it difficult to measure the effects of changes except in

very aggregate terms. One of the tenets of JIT is to account for these effects more

accurately.

Cost Accounting Systems

Costs are a major factor in PIM decisions. Unfortunately, traditional cost accounting

Systems often do not tell the decision maker how much a specific decision wilt affect

actual expenditures. This is due to overhead costs being hidden by the allocation methods.

For example, overhead costs usually are allocated to departments (cost centres) rather

than to activities, such as set-up, and inspection and maintenance operations. In addition,

allocation based on the material or directs labour required to manufacture an item ignores

the fact that different items are in different stages of their life cycles.

Thus, different items may have different manufacturing, engineering, and tooting costs,

may have quite different quality and inspection requirements, and may require different

marketing and distribution expenditures. When these costs are aggregated and allocated on

the basis of the average direct labour cost of a part-as is the case with most traditional cost

accounting systems-some products are allocated costs considerably below the actual

expenditures required for their manufacture and distribution and others are allocated more

than their true cost. Thus, decisions often are based on inaccurate information.

In order to manage costs and base decisions on accurate information, the causes (source) of

the expenditures must be identified. Various expenditure causes; such as set-up times, shop

and purchase order processing, receiving, and material handling deserve more discussion.

These basic causes of indirect costs are called cost drivers. The cost accounting system

must report the cost of these activities to accurately determine the costs of individual

products. Such reporting enables manufacturing management to treat set-up, inspection,

receiving, and transaction costs as direct costs, to base decisions on accurate information,


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and to focus on reducing high cost elements. An ABC analysis can be used to select the

activities that are appropriate for cost reduction studies.

Think of a company as a pipeline with raw materials entering at one end and products

emerging at the other.( the pipe can be extended conceptually with customer needs or

orders going in at one end and products arriving to customers at the other.)

The goal is to minimize the through put time, that is to move the materials as quickly as

possible Shorter throughput time is better But the pipeline varies in size and has

obstructions through out. Output is determined by the narrowest part of the pipeline and

the biggest obstruction.

These must be identified and then eliminated to achieve the goal. As each obstruction is

eliminated the flow speeds up but only by as much as allowed by the next biggest

obstruction elsewhere in the pipeline.

Identification and location of these obstructions, understanding them, and finding ways to

eliminate them are the purposes of JIT and TQM. The pipeline analogy may give an

impression those barriers to flow / production, once removed is gone forever. This is not

true. To identify the obstruction and its precise location in itself is difficult and time

consuming

Inventory as a way of avoiding problems

Sources of obstructions keep changing and it could be any one of the factors of production

and /or in any combination of the factors. One gets eliminated and another one crops up

and therefore it has got to be continuously attended to.

The pipeline itself and the things that floe through are changing always. The diameter of

the pipeline may have to be changed. But only the extent required. Over size is waste,while undersize would not meet the required throughput.


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The BEST flow rate would be that which matches the required output rate.

At times the pipeline itself may have to be modified or even replaced. As changingprocesses and products introduce whole new set of obstructions.

In short the work on the pipeline is CONTINUOUS. JIT and TQM continuously enable

tinkering the pipeline so that the material coming out of the pipeline is the best possible in

all respects.

JIT / TQM Difference in Organizations

JIT /TQM greatly increase the number of people who are involved in identifying and

eliminating obstructions. Every one does it Level of authority of workers to make and

carry out decisions is much higher Emphasis is on measure, diagnose, and improve it.

Second difference is in the process employed to identify and prioritise problems and

sources of waste

In JIT the primary process is reduction of inventory, mainly to reveal the obstructions

(which were earlier hidden or ameliorated by the inventory) and prioritise them.

Just in Time Summary

Efficient Techniques Reduce Leeway (Maintaining Continuity)

1. Prepare a disaster plan, e.g. firing protection or backing-up data. He believes thatthe better the disaster plan, the larger chance the companies will survive after

disaster.

2. Cost -reduction strategies.3. Develop long-term continuity plan.4. Identify critical functions and estimate the time, the company can afford without

such function.

5. Identify potential alternative suppliers.


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6. avoid too complicated continuity plan.7. Evaluate risk before any decision.8. Conducting continuity tests.

Just in Time --------- Manufacturing

(1) Introduction

Just in Time---manufacturing is a systems method to develop and operate a factory

system. It is mainly basis on the total Decrease of waste. As you know, many people

think JIT is not a new knowledge field. As a matter of fact, it has been part and plays an

important role of the Japanese manufacturing industry adopted method for a long time.

It requires all the materials such as equipment, human resources, and management skills

are made available only in the amount required and at the time required to do the job. It

is based on producing only the necessary units in the necessary quantities at thenecessary time by bringing production rates exactly in line with market demand.

Generally speaking, JIT means making what the market wants. JIT has been found to be

so effective that it increases productivity, work performance and product quality. What's

even more, it plays a vital role to increase productivity and decrease the total cost of

manufacturing production.

(2)Planning for JITSince each manufacturing process is different, it is up to the individual company to

determine the degree of appropriateness and the final application of JIT. However, it is

very important to define the plan and objectives before setting up a JIT manufacturing

system. It is impossible to establish a new JIT system that can be used successfully without

change. Therefore, we should take serious consideration to make a plan for Just-In- Time,

which will benefit to our factory performance.


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(3) Defining the PlanningJIT manufacturing system requires an understanding of the objectives of JIT, and

objectives of the JIT system. After the objectives are set up for the manufacturing, the

process of planning becomes one of determining what is required to meet those objectives.

The goal of a JIT approach is to develop a system that allows a factory to have only the

materials equipment and people by hand required doing the some plan. T o achieve this

goal, we should have equipped with at least five fundamental plan:

Integrating and optimizing every step of the manufacturing process Reducing

manufacturing cost Producing product on demand Developing manufacturing flexibility

Produce quality product to maintain commitments and links made between Customers

and Suppliers

We also should keep in mind that achieving these obtaining targets does not automatically

make a company a JIT manufacturer. On the contrary, it will lead to achieve even one of

these objectives will prevent a manufacturer from establishing a successful JIT system.

According to Common Wealth on May, 1996 report, it said that "A company cannot decide

to implement JIT; they must earn the right to use JIT by revising their quality for system."

(4)Reducing Manufacturing CostIf we can design products that it will speed up and decrease manufacturing processes.Gradually, it will help us to reduce the cost of manufacturing and building the product to

specifications benefit. One aspect in designing products for manufacture ability is the need

to set up a good boss and employee relationship. At least, this is to cultivate and procure

the resources of the production experts, and the line employees to develop cost saving

solutions. Participatory quality programs utilize employee knowledge about their job

functions and review the department performance. It will, finally, encourage with rewards

for suggested total cost saving.


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(5)Manufacturing FlexibilityAccording to China time report on August 1996. "Manufacturing flexibility is the ability to

start new projects or the rate at which the production mix can be adjusted to meet customer

demand." Planning for manufacturing flexibility requires the understanding of the elements

in the manufacturing process and understanding elements in the process that restrict

flexibility and improving on these areas. The unique feature of Just-In-Time is the

modification from between pull and push systems. The main idea behind these approaches

is that "work should not be pushed on to the next worker until that worker is ready for it."

(Hauser, J.R.) As a result, manufacturing flexibility requires production managers to

consider the some important factors, such as supplier lead time, production process time,

process setup time and so forth.

(6) Keep in touch between customers and suppliers

For factory main commitment to achieving the internal structures, both customer and

supplier are also playing a vital role to support JIT manufacturing. Because it is the

primary requirement for developing the JIT system, each other can establish trust and

honest between the supplier and the customer which is a must, since every Just-in-Time

operation depends on it. Supposed, finally, it leads to failure to keep the commitments each

other. Finally, it will be result to a serious form of breakdown manufacturing systems.

Therefore, we should pay attention to this kind of serious call. Never be ignorant of this

commitment. If we can make use of Just-In-Time (manufacturing approaches), it,

eventually, will attain those goal, which are the fundamental concept of producing product

only as needed or on demand.


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BIBLIOGRAPHY

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