A PROJECT PROPOSAL ON

JUST IN TIME IMPLEMENTATION

AT

MAHA CEMENTS

PRESENTED BY

RIDDHI SHAH

(REG.NO :xxxxxxxx)

UNDER GUIDANCE OF

Mr.Karthik Balaji

Designation

Maha Cements

For the partial fulfillment of MBA from Sikkim

Manipal University
 DECLARATION

I hereby declare that this Project Report titled Just In Time

Implementation at Maha Cements, Hyderabad submitted by me

to the Department of Business Management, Sikkim Manipal

University, Bangalore, is a bonafide work undertaken by me

and it is not submitted to any other University or Institution for

the award of any degree diploma / certificate or published any

time before.

Name and Address of the Student Signature of

the Student
 CERTIFICATION

This is to certify that the Project Report title Just In Time

Process at Maha Cements, Hyderabad submitted in partial

fulfilment for the award of MBA Programme of Department of

Business Management, Sikkim Manipal University, was carried out

by Reddhi Shah under my guidance. This has not been submitted

to any other University or Institution for the award of any

degree/diploma/certificate
Name and address of the Guide Signature of the Guide

List of Contents
1. Introduction
I. JIT in Indian Scenario
II. Lucas TVS
III. Volkswagen India
IV. Industry Profile (Cement Industry)
V. Organizational Introduction (Maha Cements)
2. Rationale of Study
3. Objectives of the Study
4. Limitations of the Study
5. Future Trends and Opportunity
6. Research Methodology
Types of Data Collection
Methods Used
7. Literature Review
8. Data Analysis & Interpretation
9. Findings, Suggestions & Conclusion

Bibliography

Appendix

Chapter 1
Introduction

Just in Time (JIT) is a philosophy from Japan. It involves efficient production of

high quality goods using minimum amount of raw materials, WIP (Work in
progress), and finished products. It aims at eliminating all kinds of waste and

seeks continuous improvement in terms of quality and productivity. The basic

elements of JIT were developed by Toyota in the 1950s, and became known

as the Toyota Production System (TPS). JIT was well-established in many

Japanese factories by the early 1970s. JIT began to be adopted in the U.S.,

India and other countries and now the JIT concepts are widely accepted and

used throughout the world.

Just-in-time manufacturing (colloquially referred to as JIT production

systems), actual orders dictate what should be manufactured, so that the

exact quantity is produced at the exact time that is required.

Just-in-time manufacturing goes hand in hand with concepts such as Kanban,

Standardization, continuous improvement and total quality management

(TQM).

Just-in-time production requires intricate planning in terms of procurement

policies and the manufacturing process if its implementation is to be a

success.

Highly advanced technological support systems provide the necessary back-

up that Just-in-time manufacturing demands with production scheduling

software and electronic data interchange being the most sought after.

According to Mohan and Singh the most challenging area for most

manufacturers in achieving JIT is the purchasing of raw materials and parts.

The supplier system has to be integrated with JIT, which leads gradually to JIT

purchasing. Although organizing for JIT purchasing will certainly remain a

vexing issue, learning from the experience of those who have ventured

successfully into this domain will be of immense help in facilitating the shift

to JIT purchasing. Due to some cultural differences in societies and

transportation, education, technology and area of different countries, JIT

implementation is affected.

JIT has been applied in Indian companies like Lukas TVS, Gontermann-

PeipersInd Ltd, Volkswagen India, Tata Motors and others but there is a scope

for lot more customization to suit the Indian context. JIT has been extensively

applied and proven successful for the automotive and other manufacturing

sectors. There is tremendous scope to apply JIT principles in the other

sectors like banking, agriculture, retail etc.

I. JIT In Indian Scenario

The lifestyle, values and beliefs that are influenced by traditions in societies

have a direct impact on the work culture along with technological forces. The

JIT methodology imposes requisites that are not necessarily aligned with this

work culture. Managerial styles and practices vary from country to country

depending on their cultural norms. Thus, JIT implementation and its success

depend greatly on work culture. Taking this thought forward, the

implementation of JIT in India would be different from its implementation in

its western counterparts. Hence, using a generic implementation strategy

might lead to issues not faced in other parts of the world.

The last decade has witnessed a great deal of growth in the Indian

automobile sector. The Indian Automobile industry is the seventh largest in

the world, the fourth largest exporter in Asia and has produced over 2.6

million units in 2009.

JIT methodology has been widely implemented in the Indian enterprises,

especially in Indian automobile and manufacturing companies. Some of the

Indian companies which are using JIT techniques include Lukas TVS,

Gontermann-PeipersInd Ltd, Volkswagen India, Tata Motors, and IFB etc.

JIT at Lucas TVS

Products are manufactured using State-of-the-Art facilities organised in

Product Units, Modules, Nagare Cells and Assembly Cells and incorporating

Quick Change Tooling, Poka Yoke, Chakku Chakku (Auto Unloading). The

condition of machines is monitored and maintained by TPM techniques and

the schedule adherence is monitored by DRM (Daily Routine Management)

while Process & Product Quality is sustained and improved by ZED-Q (Zero
Defect Quality) activities. The Manufacturing system is competently backed

up by an advanced Tool Room and an inhouse SPM/ Process Plant

manufacturing facility. The entire organisation is firmly entrenched in the

change process and committed to CIP (Continuous Improvement

Programme).

Products are manufactured using State-of-the-Art facilities organised in

Product Units, Modules, Nagare Cells and Assembly Cells and

incorporating Quick Change Tooling, Poka Yoke, Chakku Chakku (Auto

Unloading). The condition of machines is monitored and maintained by

TPM techniques and the schedule adherence is monitored by DRM (Daily

Routine Management) while Process & Product Quality is sustained and

improved by ZED-Q (Zero Defect Quality) activities.

Total Quality Management (TQM)

Lucas-TVS, believes that quality begins and ends with the customer. This

means identifying customer needs and comprehensively meeting them.

For the company, quality is not just conformance to drawings or

specifications but ensuring customer satisfaction. This belief forms the

basis of its approach to Total Quality Management (TQM). Quality

Assurance methods like Advanced Product Quality Planning, Statistical

Process Control Techniques, Effective Tool Management System, Process

Capability Improvements, Preventive Maintenance, Producer Control and

Small Group Activities form the backbone of the system approach

adopted.
In its continuous pursuit of both technological as well as methodological

excellence, Lucas-TVS has scripted yet another new dimension to

manufacturing by not only adopting the Cellular Manufacturing System /

JIT but also extending the same to its Suppliers. By the implementation of

this system components from its suppliers are delivered on a pull basis

with First In First Out concept supported by simple visual controls and

supplied to the line on an hourly basis with KANBAN system.

Implementation of JIT in Volkswagen India

Volkswagen India is headquartered in Pune and recently launched its $700

million manufacturing plant for Polo in Chakkan. Volkswagen acknowledges

India as a important hub for manufacturing and expects India to be in the top

five auto markets by 2016. The challenge in India is the price sensitivity and

the dependent need to keep operational costs low. Using techniques like Just

in Time, the company plans to control quality and technological inflow by

following a global sourcing model in the Indian context.

JIT is beneficial in reducing operational inefficiencies, leveraging on

effectiveness and quality processes in organizations. At the same time, some

of its key elements are difficult to implement in the present Indian production

settings. In order to maximize the usefulness of JIT, Indian enterprises need

to modify their operational procedures accordingly. Before entering into JIT

based manufacturing, companies need to train their employees in order to

establish an organizational culture, set up new procedures for supply chain

management, study of operations in order to identify possible avenues for

standardizing, simplifying, automating and reengineering of processes and

procedures in operations. Failure to meet these prerequisites will lead to

problems with human resources and on the supplier end. Although it has

been proved that JIT has its benefits in the Indian scenario, it still has ample

scope of being customized for the country to reap full dividends.

CEMENT INDUSTRY

SECTOR ANALYSIS

Indian Economy grew by 5.4 per cent in 2001-02, which is considered to be

one of the highest growth rates in the world for the year. This growth is

supported by a growth rate of 5.7 per cent in agriculture and allied sectors,

3.3 percent in industry and 6.5 per cent in services.

Overall agricultural output is estimated to increase by nearly 7 per cent in

2001-02. Food grains production is expected to rise to 209 million tons

compared with 196 million tons in 2000-01. Prospects of agricultural

production in 2001-02 are considered to be bright as a result of normal

monsoon and relatively favorable distribution of rainfall over time and

regions.

While the Indian industry sector grew by 3.3 per cent, with in industry sector

segments like construction showed a lower growth in 2000-01, there was

marked improvement in the growth rates of manufacturing (from 4.2 per

cent in 1999-00 to 6.7 per cent in 2000-01) and mining and quarrying (from

2 per cent to 3.3 per cent during the same period). The growth rate of

electricity, gas and water supply remained almost invariant at around 6.2 per

cent for both 1999-2000 and 2000-01. During 1993-94 to 1999-2000 the

service sector had achieved consistently high growth rates in the range of

7.1 per cent to 10.5 per cent. But for the first time in 2000-01, the growth

rate of the service sector declined to 4.8 per cent due to poor performance

by financial sector, trade hotels and restaurants, and community and social

services.

Agriculture

The agriculture sector, for so long the mainstay of the Indian Economy, now

accounts for only about 20 per cent of GDP, yet employs over 50 per cent of
the population. For some years after independence, India depended on

foreign aid to meet its food needs, but in the last 35 years, food production

has risen steadily, mainly due to the increase in irrigated areas and

widespread use of high-yield seeds, fertilizers, and pesticides. The Country

has large grain stockpiles (around 45 million tons) and is a net exporter of

food grains.

Cash crops, especially tea and coffee, are the major export earners. India is

the world's largest producer of tea, with annual production of around 470

million tons, of which 200 million tons is exported. India also holds around 30

per cent of the world spice market, with exports around 120,000 tons per

year.

With a view to strengthening the sector, building infrastructure for handling,

transportation, and storage of food grains has been granted "infrastructure

status" and will be eligible for a tax holiday. Further, processors of food and

vegetables are exempt from excise duty.

Manufacturing Sector

After a decade of reforms, the manufacturing sector is now gearing up to

meet challenges for the new millennium. Investment in Indian companies

reached record levels by 1994 and many multinationals decided to set up

shop in India to take advantage of the improved financial climate. In an effort

to provide a further boost to the industrial manufacturing sector, Foreign

Direct Investment (FDI) has been permitted through the automatic route for

almost all the industries with certain restrictions. Structural reforms have

been undertaken in the excise duty regime with a view to introduce a single

rate and simplify the procedures and rules. Indian subsidiaries of

multinationals have been permitted to pay royalty to the parent company for

license of international brands, etc. Over the period 1992-93 to 1999-2000,

the manufacturing sector has recorded an average annual growth rate of 6.3

per cent and in 2001-02; it recorded a growth of 2.8 per cent.

Companies in the manufacturing sector have consolidated around their area

of core competence by tying up with foreign companies to acquire new

technologies, management expertise, and access to foreign markets. The

cost benefits associated with manufacturing in India, has positioned India as

a preferred destination for manufacturing and sourcing for global markets.

Financial Sector

An extensive financial and banking sector supports the rapidly expanding

Indian Economy. India boasts of a wide and sophisticated banking network.

The sector also has a number of national and state level financial

institutions. These include foreign and institutional investors, investment

funds, equipment leasing companies, venture capital funds, etc. Further, the

Country has a well-established stock market, comprising 23 stock exchanges,

with over 9,000 listed companies. Total market capitalization, on the two
dominant stock exchanges, the Bombay Stock Exchange (BSE) and the

National Stock Exchange (NSE), stood at Rs. 6,926 billion and Rs. 7,604

billion respectively, at the end of December 2000. The Indian capital markets

are rapidly moving towards a market that is modern in terms of

infrastructure as well as international best practices such as derivative

trading with stock index futures, addition to the list of compulsory Demat

trading and rolling settlement in certain specified shares, commencement of

internet based trading, etc.

The last year witnessed several Indian companies, mobilizing resources by

tapping the world market through the ADR/GDR route. So as to improve the

liquidity in the ADR/GDR market and to give opportunity to Indian

shareholders to divest their shareholding in the ADR/GDR market abroad,

measures such as two-way fungibility in ADR/GDR issues of Indian companies

has been introduced and sponsorship of ADR/ GDR offerings against existing

shareholding. In addition to the above, 26 per cent foreign equity has been

allowed in the insurance sector and investment and divestment by venture

capital funds and companies registered with SEBI has been simplified.

FII inflows were USD 2.34 billion (January 2001 to June 2001) compared to

USD 1.5 billion for 2000, showing an upward trend despite depressed stock

market indices. Net cumulative FII inflows crossed USD 14 billion (June 2001).

Services Sector
The main thrust to industrial growth has come from the services sector.

Services contribute to 41 per cent of the GDP. Rapidly, the quality and

complexity of the type of services being marketed is on the rise to match

worldwide standards. Whether it is financial services, software services or

accounting services, this sector is highly professional and provides a major

impetus to the Economy . Interestingly, this sector is populated with a range

of players who cater to a niche market.

India is fast becoming a major force in the Information Technology sector.

According to the National Association of Software and Service Companies

(NASSCOM), over 185 Fortune 500 companies use Indian software services.

The world's software giants such as Microsoft, Hughes and Computer

Associates who have made substantial investments in India are increasingly

tapping this potential. A number of multi-nationals have leveraged the

relative cost advantage and highly skilled manpower base available in India,

and have established shared services and call centers in India to cater to

their worldwide needs.

The software industry was one of the fastest growing sectors in the last

decade with a compound annual growth rate exceeding 50 per cent.

Software service exports increased from US$ 4.02 billion in 1999-2000 to

US$ 6.3 billion in 2000-01, thereby registering a growth of 57 per cent.

India's success in the software sector can be largely attributed to the

industry's ability to cultivate superior knowledge through intensive R&D

efforts and the expertise in applying the knowledge in commercially viable

technologies.

1.2 Contribution of Manufacturing Sector towards the Indian

Economy

An estimated 100.9 million people were employed in 41.8 million

establishments in India, growing at 2.78 percent and 4.69 percent,

respectively from 1998-2005, shows the official Economic Census for 2005.

Non-farm sector continued to be the principal source of employment,

employing 90 million people, compared to 10.9 million in agriculture sector,

said the census released here Thursday.

Retail and manufacturing establishments continue to be the key

employment providers in India, said S.K. Nath, director general of the

Central Statistical Organisation (CSO), which compiled the census.

It is a significant pointer that India has a great deal of potential for growth in

these two sectors, he said.

Manufacturing sector employed 25.5 million people or 25.25 percent of the

total workforce, followed by 25.1 million or 24.91 percent, respectively for

retail trade sector, showed the survey.

This was the fifth in the series of the economic censuses conducted by CSO,

an agency under the ministry of statistics and programme implementation.

The first census of its kind was launched in 1977.

This census gives us a complete picture of Indias economic situation. We

must interpret the data intelligently. There has been a rapid growth in small-

scale industries, said Statistics and Programme Implementation Secretary

Pranob Sen.

Following are some of the key census findings:

100.90 million People employed in 41.83 establishments in India.

41.83 million Establishments, 25.54 million in rural and 16.29 million in

urban areas, operated in 2005.

39.61 million Establishments under private ownership.
26.96 million Units were own establishments, without hired workers.
35.75 million Non-agricultural establishments engaged 89.99 million

workers, while agriculture sectors 6.08 million units had 10.91 million

workers.
Employment growth rate at 2.78 percent between 1998 and 2005.
Males accounted for 78.3 million of the workforce; women accounted

for 20.2 million, children 2.4 million.

Manufacturing sector was the largest employer (25.5 million people);

the retail sector came next (25.1 million people); farming was third (9.2

million people).
95 percent establishments had 1-5 workers; 3.42 percent had 6-9

workers; only 1.51 percent employed 10 or more workers.

2.1 INDUSTRY BACKGROUND

Pre Independence

The first endeavor to manufacture cement dates back to 1889 when a

Calcutta based company endeavored to manufacture cement from

Argillaceous (kankar).

But the first endeavor to manufacture cement in an organized way

commenced in Madras. South India Industries Limited began manufacture of

Portland cement in 1904.But the effort did not succeed and the company had

to halt production.

Finally it was in 1914 that the first licensed cement manufacturing unit was

set up by India Cement Company Ltd at Porbandar, Gujarat with an available

capacity of 10,000 tons and production of 1000 installed. The First World War

gave the impetus to the cement industry still in its initial stages. The

following decade saw tremendous progress in terms of manufacturing units,

installed capacity and production. This phase is also referred to as the

Nascent Stage of Indian Cement Industry.

During the earlier years, production of cement exceeded the demand.

Society had a biased opinion against the cement manufactured in India,

which further led to reduction in demand. The government intervened by

giving protection to the Industry and by encouraging cooperation among the

manufacturers.
In 1927, the Concrete Association of India was formed with the twin goals of

creating a positive awareness among the public of the utility of cement and

to propagate cement consumption.

Post Independence

The growth rate of cement was slow around the period after independence

due to various factors like low prices, slow growth in additional capacity and

rising cost. The government intervened several times to boost the industry,

by increasing prices and providing financial incentives. But it had little

impact on the industry.

In 1956, the price and distribution control system was set up to ensure fair

prices for both the manufacturers and consumers across the country and to

reduce regional imbalances and reach self sufficiency.

Period of Restriction (1969-1982)

The cement industry in India was severely restrained by the government

during this period. Government hold over the industry was through both

direct and indirect means. Government intervened directly by exercising

authority over production, capacity and distribution of cement and it

intervened indirectly through price control.

In 1977 the government authorized higher prices for cement manufactured

by new units or through capacity increase in existing units. But still the

growth rate was below par.

In 1979 the government introduced a three tier price system. Prices were

different for cement produced in low, medium and high cost plants.

However the price control did not have the desired effect. Rise in input cost,

reduced profit margins meant the manufacturers could not allocate funds for

increase in capacity.

Partial Control (1982-1989)

To give impetus to the cement industry, the Government of India introduced

a quota system in 1982.A quota of 66.60% was imposed for sales to

Government and small real estate developers. For new units and sick units a

lower quota at 50% was affected. The remaining 33.40% was allowed to be

sold in the open market.

These changes had a desired effect on the industry. Profitability of the

manufacturers increased substantially, but the rising input cost was a cause

for concern.

Post Liberalization
In 1989 the cement industry was given complete freedom, to gear it up to

meet the challenges of free market competition due to the impending policy

of liberalization. In 1991 the industry was de licensed.

This resulted in an accelerated growth for the industry and availability of

state of the art technology for modernization. Most of the major players

invested heavily for capacity expansion.

To maximize the opportunity available in the form of global markets, the

industry laid greater focus on exports. The role of the government has been

extremely crucial in the growth of the industry.

Cement is one of the core industries which plays a vital role in the growth

and expansion of a nation. It is basically a mixture of compounds, consisting

mainly of silicates and aluminates of calcium, formed out of calcium oxide,

silica, aluminium oxide and iron oxide. The demand for cement depends

primarily on the pace of activities in the business, financial, real estate and

infrastructure sectors of the economy. Cement is considered preferred

building material and is used worldwide for all construction works such as

housing and industrial construction, as well as for creation of infrastructures

like ports, roads, power plants, etc. Indian cement industry is globally

competitive because the industry has witnessed healthy trends such as cost

control and continuous technology up gradation.

2.2 CURRENT SCENARIO

The Indian cement industry is the second largest producer of quality cement.

Indian Cement Industry is engaged in the production of several varieties of

cement such as Ordinary Portland Cement (OPC), Portland Pozzolana Cement

(PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, Rapid

Hardening Portland Cement, Sulphate Resisting Portland Cement, White

Cement, etc. They are produced strictly as per the Bureau of Indian

Standards (BIS) specifications and their quality is comparable with the best in

the world.

The Indian cement industry is the second largest in the world. It comprises of

140 large and more than 365 mini cement plants. The industry's capacity at

the beginning of the year 2009-10 was 217.80 million tonnes. During 2008-

09, total cement consumption in India stood at 178 million tonnes while

exports of cement and clinker amounted to around 3 million tonnes. The

industry occupies an important place in the national economy because of its

strong linkages to other sectors such as construction, transportation, coal

and power. The cement industry is also one of the major contributors to the

exchequer by way of indirect taxes.

Cement production during April to January 2009-10 was 130.67 million

tonnes as compared to 115.52 million tonnes during the same period for the

year 2008-09. Despatches were estimated at 129.97 million tonnes during

April to January 2009-10 whereas during the same period for the year 2008-

09, it stood at 115.07 million tonnes.

Over the last few years, the Indian cement industry witnessed strong growth,

with demand reporting a compounded annual growth rate (CAGR) of 9.3%

and capacity addition a CAGR of 5.6% between 2004-05 and 2008-09. The

main factors prompting this growth in demand include the real estate boom

during 2004-08, increased investments in infrastructure by both the private

sector and Government, and higher Governmental spending under various

social programmes. With demand growth being buoyant and capacity

addition limited, the industry posted capacity utilisation levels of around 93%

during the last five years. Improved prices in conjunction with volume growth

led to the domestic cement industry reporting robust growth in turnover and

profitability during the period 2005-09.

2.3 Consumption Growth during 2009-10

Even during the economic slowdown in 2009-10, growth in cement demand

remained at a healthy 8.4%. In the current fiscal (2009-10) cement

consumption has shot up, reporting, on an average, 12.5% growth in

consumption during the first eight months with the growth being aided by

strong infrastructure spending, especially from the govt sector. The trends in

all-India consumption and the growth in consumption in the major cement-

consuming States over the last five years are presented in below table:

Growth in Cement Demand

Figures in Million Tonnes

2009-10 Apr-Nov 10

Domestic Consumption 178 100

Year-on-Year Growth (%) 8.4 12.5

Source: Cement Manufacturers Association (CMA), ICRA Research

TABLE 2.1

2.4 Key Drivers of Cement Industry

Buoyant real estate market

Increase in infrastructure spending

Various governmental programmes like National Rural Employment

Guarantee

Low-cost housing in urban and rural areas under schemes like

Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and Indira

Aawas Yojana

2.5 Globalization of Indian Cement Industry

The Globalization of Indian Cement Industry has helped the industry to

restructure itself to cope up with the alterations in the global economic and

trading system. The Indian cement industry is one of the oldest industries. It

has been catering to India's cement requirements since its emergence during

the British Raj in India. Though the majority of the players in the Indian
cement industry were private sector organizations, the industry was highly

regulated.

With the rapid growth rate of the Indian economy after the 1990s, the

infrastructural developments within the country has been tremendous. The

increase in the construction activities has led to the increase in the demand

for updated quality building materials and other allied products. Cement

being one of the major elements in the construction work, there is a growth

in the cement industry in India. The consumption of cement has increased in

India by nearly 7.5%. With the globalization of Indian cement industry many

foreign cement manufacturers are engaging themselves in agreements and

deals with their India counter parts to have a share of the growth.

Globalization of Indian Cement Industry includes several foreign companies

engaging in mergers and acquisitions of Indian cement companies, like

Heidelberg Cement - Indorama Cement Ltd. Heidelberg Cement

Company entered into an agreement for a 50% joint venture with the

Indorama Cement Ltd., situated in Mumbai, originally possessed by the

Indorama S P Lohia Group. Heidelberg Cement Company is the leading

German cement manufacturing company. The Heidelberg Cement was

set up in 1873 and has a long and prosperous history. Being one of the

best in the world the Heidelberg Cement Company has its bases in

different countries. The Heidelberg Cement Company has two

manufacturing units in India. A grinding plant in Mumbai and a cement

 terminal near Mumbai harbor. A clinker plant is coming up in the state

on Gujarat

Holcim Cement - Gujarat Ambuja Cements (GACL) Holcim Cement

signed an agreement of 14.8% take over with the Gujarat Ambuja

Cements (GACL). With new products, skilled personnel, superb

management, and a outstanding market strategy gives this tie up good

edge over the other competitors. Holcim Cement Company is among

the leading cement manufacturing and supplying companies in the

world. It is one of the major employers in the world; having a work

force of 90,000.The Holcim Cement Company has units in excess of 70

countries all over the world.

Italcementi cement - Zuari Cement Limited Italcementi Cement

Company with the help of the Ciments Franais, a subsidiary for its

global activities, has acquired shares of the famous Indian cement

manufacturer - Zuari Cement Limited. The acquisition was of 50%

shareholding and the deal was of about 100 million Euros. Italcementi

Cement is the 5th largest cement manufacturing company in the

world. The production capacity of the Italcementi cement company is

about 70 million tons in a year. With the construction boom in India the

company looks for a stable future. In 2001 the Italcementi cement

entered the Indian market scenario. It took over the plant of the Zuari

Cement Limited in Andhra Pradesh in southern India. The joint venture

 earned revenues of around 100 million Euros and an operating profit of

4 million Euros.

Lafarge India is the subsidiary of the Lafarge Cement Company of

France. It was established in 1999 in India with the acquisition of the

Tisco and the Raymond cement plants. Lafarge Cement presently has

three cement manufacturing units in India. One of them is in Jharkhand

which is used for the purpose of grinding and the other two are in

Chhattisgarh used for manufacturing. The Lafarge Cement Company

was set up in the year 1833 by Leon Pavin. Lafarge Cement Company

situated in France is the leading cement producing company in the

world. It has plans for increasing the cement production through

technological innovations and maximization of the capacity of the

plant. It has a large network of distributors in the eastern part of India.

The Lafarge Cement Company is presently producing nearly 5.5 million

tons of cement for the Indian cement market.

2.6 STRUCTURE OF THE INDIAN CEMENT INDUSTRY

It is a fragmented industry. There are 56 cement companies in India,

operating 124 large and 300 mini plants, where majority of the

production of cement (94%) in the country is by large plants.

One of the other defining features of the Indian cement industry is that

the location of limestone reserves in select states has resulted in its

evolving in the form of clusters.

 Since cement is a high bulk and low value commodity, competition is

also localized because the cost of transportation of cement to distant

markets often results in the product being uncompetitive in those

markets.
Another distinguishing characteristic comes from it being cyclical in

nature as the market and consumption is closely linked to the

economic and climatic cycles. In India, cement production is normally

at its peak in the month of March while it is at its lowest in the month

of August and September. The cyclical nature of this industry has

meant that only large players are able to withstand the downturn in

demand due to their economies of scale, operational efficiencies,

centrally controlled distribution systems and geographical

diversification.
 Cement Industries in ANDHRA PRADESH with Production Capacity

16.70 CAPACITY

NAME OF CEMENT LOCATION ANNUAL INSTALLED

COMPANY / PLANT CAPACITY (MILLION

TONNES)

ACC Ltd. Macherial 0.34

Orient Cement Rechni Road 1.18

Maha Cement Nalgonda 3.32

Andhra Cement (G) Vijaywada 0.24

Kistna Cement Kistna 0.21

Zuari Cement Tadipatri 1.70

India Cement Yerraguntla 0.40

India Cement Chilamkur 1.00

Madras Cements Jayantipuram 1.10

Rassi Cement Wadapally 1.80

Priyadarshini Ramapuram 0.60

Cement

Shri Vishnu Cement Sitapuram 1.00

CCI Ltd. Tandur 1.00

Andhra Cement (G) Visakapatnam 0.50

CCI Ltd. Adilabad 0.40

Andhra Cement Nadikude 0.50

KCP Ltd. Macherla 0.40

Panyam Cements Bugganipalle 0.53

L & T A.P. Tadipatri 2.00

India Cement Tandur 0.90

Visaka

STATE NUMBER OF CAPACITY

PLANTS
(MILLION TONNES)

Madhya Pradesh 20 26.03

Andhra Pradesh 16 18.03

Rajasthan 12 15.07

Gujarat 6 12.59

Maharashtra 8 6.41

Karnataka 10 6.92

Tamil Nadu 7 7.59

Bihar 3 4.62

Himachal Pradesh 6 3.47

Uttar Pradesh 3 4.05

Orissa 1 2.66

Punjab 2 1.04

West Bengal 1 1.13

Delhi 1 0.50

Haryana 1 0.17

Kerala 1 0.42

Jammu & Kashmir 1 0.20

Assam 1 0.20

Meghalaya 1 0.20

120 111.03
TOTAL
Introduction about Company

History

My Home Industries limited (MHIL) is a private limited company

originally incorporated as Devi Cements limited under the companies act

1956 with the main objectives manufacturing and selling of cement and

cement related products.

In the year 1998 Dr.J .Rameshwar Rao, one of the promoters has acquired the

share holding intrest of other promoters. consequent to the change in the

management, the name of the company was changed to My home Cement

industries limited and since then there was substantial growth in the

operations of the company. The company is an ISO 9001 : 2000 certified

company.

Units & Capacity :

The company has three units located at Mellacheruvu village, ,Kodhada

Taluka, Nalgonda District . A.P. Unit I was set up in the year 1998 with a

capacity of 1.98 lakhs MT per annum.Over a period of time the capacity was

increased to 8.25 lakhs MT per annum.Unit=II was established in 2002 with a

capacity of 6.60lakh MT per annum and the same was increased to 10.15

lakhs MT per annum by modifications and additions to plant & machinery

and other assets and also by production of blended cement. Unit III with a

capacity to manufacture 13.60 lakhs MTs of cement per annum was set up
during March 200.Thus, the total capacity of 3 units works out to 32.00 lakh

MTs per annum

Types of Cement

The company manufactures the products :

1.Ordinary Portland Cement(OPC)

43 grade & 53 grade

2.Portland Pozzolana Cement(PPC)

Maha cement offers a product line to suit for every need.

Maha Gold 53 grade high strength cement

Maha Shakthi- Quality blended cement (PPC)

Maha Cement-43 grade High strength cement

My Home Cement Industry Ltd In India use Thermoteknix

High Temperature Infrared Cameras

My Home Cement Ind. Ltd have just commissioned Thermoteknixs WinCem

3D Graphic Kiln Shell Scanning System at their Mellacheruvu Village

Nalgonda Dist Plant. The newly installed system comprises the Thermoteknix

Centurion Kiln Linescanner working alongside WinCem 3D Graphic Software.

 Centurion Kiln Shell Scanner Scanner Installed at My Home Cement

Click to Enlarge / Visit Picture Gallery Click to Enlarge / Visit Picture Gallery

WinCem is established throughout the industry as the leading kiln scanning

system. It provides three dimensional live displays of kiln shell temperatures,

brick work and coating with virtual reality graphics presenting the kiln from

any angle, position or distance. My Home Cement presented a greater

challenge in that that the companys Head Office in Hyderabad needed to be

able to view the scan, live, with the data being transmitted on-line from the

kiln some 200km away from the plant in Nalgonda District.

The commissioning, which was carried out by Thermoteknix Indian agents SB

Engineers at the beginning of September, involved the system being made

available via an internet connection based in the

Hyderabad Office. Real time kiln shell scan data is now being relayed live

from the plant to My Home Cement HQ, meaning that at HQ, information can

be viewed, monitored and assessed at any time.

Keyur Shah of SB Engineers views Kiln 200km away in Hyderabad, My Home

Shell Data Live at the plant in Technical Director Mr. V.S. Narang

Nalgonda District views the data

Click to Enlarge / Visit Picture Gallery Click to Enlarge / Visit Picture Gallery

It is now possible for decisions to be made and discussed between sites and

HQ based on up-to-date live data, as and when necessary, saving time and

money for My Home Cement. WinCem 3D Graphics alarms and outputs give

a configurable, flexible user interface ensuring continuous coating

monitoring for all kiln conditions and improved control via client-server fully

networked software with multiple screen display capabilities. WinCem is the

only scanning system on the market to provide data as it is scanned from the

kiln during each revolution of the kiln. Other systems update at the end of

every revolution.
 Keyur Shah of SB Engineers with My
Centurion Kiln Scanner Installation
Home Cement Ind. Ltd staff at
(Scanner circled in Red)
Nalgonda District Plant
Click to Enlarge / Visit Picture Gallery
Click to Enlarge / Visit Picture Gallery

My Home Cement Industries Ltd manufactures MAHA cement and is headed

by Chairman Dr. J. Rameswar Rao, a well known industrialist who attended

the commissioning and was delighted with the capabilities of the system.

SB Engineers was established by Mr Subodh Bhatt in 1991. The company

represents manufacturers both from within India and overseas and markets a

range of industrial products and services. They have a strong established

presence in the Indian Cement Industry and their technical expertise and

after sales service are second to none.

 Rationale of Study

Globalization draws most of the big companies into the market, since the big

multinational companies are well established financially, popularly,

technologically, high expertise by Implementation of Just In Time

techniques and quality standards. They tend to put tremendous pressure on

small and medium sized Indian Industries. Since small and medium sized

Industries lack the financial, technological, and expertise backing they tend

to suffer in the market and they survival becomes very thin. And further

more with globalization the market has become very vast and hence most of

the companies are somehow looking to operate beyond their boundaries and

which is being achieved as well. Hence even many Indian medium sized

Industries have moved some parts of their operations to other countries. In

doing so the threat to the business intensifies, but at the same time the

scopes increase as well. A larger market is always good for any business,

lower amount of competition counts as well, price of product is also

necessary, the price of Product offered by Indian company abroad would be

relatively cheap and would be a good boost to the sales, but at the same

time the medium sized industry challenges can arise, such as lower amount

of financial backing, lack of technology transfer, lack of regular innovation

and lack of brand name as well. The medium sized Industries facing a do or

die scenario and with technology trends changing every day the medium

sized company has to be updated with this changing trend as well, which is

another challenge that cannot be ignored by firms that need to survive.

In this project I am trying to help small and medium enterprises to

implement JIT and the methods to overcome the challenges at the time of

implementation.

Most of the work on a JIT is concerned with arithmetic, numeric type

conversion, memory loads/stores, looping, performing data flow

analysis, assigning registers, and generating the executable machine

code. Only a very small proportion of the work is concerned with

language specifics.
The goal of the Project is to provide an extensive set of routines that

takes care of the bulk of the JIT process.

This study describes how to implement the JIT Process and the systems

in a Manufacturing Industry.
I start with a list of features and some simple tutorials. Finally, I can

provide a complete reference guide for all of the JIT functions

Implementation strategies in Manufacturing Industries.

Objectives of the Study

The challenges in Implementing JIT in Small or medium scale Indian

Manufacturing Industries.

How JIT helps organizations in growth and profitability.

How JIT helps in maximum utilization of resources with less wastage.

 To have an understanding on Just in time origin, global scenario and

Indian scenario.

Limitation of the study

Possibility of error in data collection because many of investors may

have not given actual answers of my questionnaire.

Sample size is limited to 200 visitors of company , Hyderabad

The research is confined to a certain part of Hyderabad.

Some respondents were reluctant to divulge personal information

which can affect the validity of all responses.

Expected Contribution from the Study

The challenge faced by the most of the companies today is to get the

visibility of the type of work which is coming down the pike, so that they can

keep their internal resources trained and prepare for the work so that they

are the experts when they do show up.

They best way to manage and automate the intellectuals who support the

professional services lifecycle is JIT methodology to keep the skills in balance

with the innumerable project requirements and obligations. With this we can,

at that right moment, bring on a new employee, go to a third-party

contractor to fulfill that demand, or we give ourselves enough advanced

notice to cross-train our existing resources on new technologies, new

products, so that we can work across our portfolio and not just focus on one

particular area.

JIT techniques have migrated to non-manufacturing environments. It has

successfully moved from factory floor to other environments. We can

increase the adoption of JIT techniques within the service sector. This can be

done by modifying the JIT terminologies to encompass service processes

more naturally, by emphasizing the applicability of JIT techniques to service

operations in operations management courses, by developing a framework

for the study of JIT in services, by applying manufacturing oriented studies to

services and by developing appropriate models for analyzing cost and

benefits to service operations for JIT implementation.

Agriculture: Agriculture industry needs a new mode of thinking. Traditional

methods have created a lot of wastes and are not so efficient. More than 20-
25% of agricultural products are thrown away before it reaches the end

consumer in few countries, say the survey. This leads to a good opportunity

to look at the possibilities of implementing the JIT concepts in this area. By

reducing the waste to half, we can reduce the number of people dying due to

hunger and starvation.

JIT does not look so viable in the field of agriculture. But the methods of

distribution and handling the intermediary and final products etc can be

enhanced with the techniques like JIT and kaizen. By making people more

aware of and by means of simple technology, waste can be decreased

dramatically. The manufacturers, wholesalers, retailers and distributors up to

the customer can be linked efficiently to increase the usefulness of the

process.

Banking Industry: Banks can use JIT to get rid of lots of unnecessary files,

forms, supplies, and filing cabinets.

Retail Industry: Also, JIT can be used in retail industry by monitoring the

sales pattern weekly and order garments just before the stores are likely to

need them. This way they can avoid the excess inventory. Also, giant players

can reduce costs by developing supply chain infrastructure to increase cost

leadership in the market. Distribution centers, Warehouses and

transportation will renew in the form of Just in Time (JIT), Enterprise Resource

Planning (ERP) and IT automation.

Complete Understanding the tools & Techniques of JIT

The Just In Time Implementation challenges in Indian Manufacturing

Industry

Future trends of JIT in Indian Manufacturing Industries

How to coordinate between Men, Machine and Mechanism in effective

Implementation of JIT

Contribution of JIT to Indian economy by its Implementation in

Industries.

Planning, Organizing, Coordinating, Implementing & Controlling JIT

RESEARCH METHODOLOGY

RESEARCH MEANING
 Research is an art of scientific investigation. According to Redmen and

Mary defines research as a systematic effort to gain knowledge.

Research methodology is way to systematically solve the research

problem. It is a plan of action for a research project and explains in detail

how data are collected and analyzed. This research study is a descriptive

research study.

RESEARCH DESIGN

A research design is a plan that specifies the objectives of the study,

method to be adopted in the data collection, tools in data analysis and

hypothesis to be framed.

A research design is an arrangement of condition for collection and analysis

of data in a manner that aims to combine relevance to research purpose with

economy in procedure.

NATURE OF DATA

Primary data : The primary data are collected from the employees of Maha

Cements., through a direct structured questionnaire.

Secondary data :Company profiles, Company registers, websites,

magazines, articles were used widely as a support to primary data.

SAMPLING SIZE AND TECHNIQUE

Size of the sample

It refers to the number of items to be selected from the universe to

constitute as a sample. In this study 100 employees of Maha Cements., was

selected as size of sample.

Sample design

The sampling technique used in this study is simple random sampling

method. This method is also called as the method of chance selection. Each

and every item of population has equal chance to be included in the sample.

Questionnaire

The questions are arranged logical sequence. The questionnaire

consists of a variety of questions presented to the employees for the

response. Dichotomous questions, multiple choice questions, rating scale

questions were used in constructing questionnaire.

STATISTICAL TOOLS USED

To analyze and interpret collected data the following statistical tools

were used.

1 Percentage method

2 Weighted average method

3 Chi-square analysis
Percentage method:

The percentage is used for making comparison between two or

more series of data. It can be generally calculated as

Percentage of respondent = No. of respondents favorable x 100

Total no of respondents

Limitation:

Some of the persons were not so responsive, they are not

interested .

Possibility of error in data collection because many of

investors may have not given actual answers of my

questionnaire

Sample size is limited to 100 employees of Maha Cements,

Hyderabad.

Some respondents were reluctant to divulge personal

information which can affect the validity of all responses.

The research is confined to a certain part of Hyderabad.

 Current and Future trends in JIT

The 1990 census reported that seven-out-of-ten US workers were

employed by service sector firms and that continued growth in service

employment is expected. Academicians and researchers cannot

continue to ignore the evidence from practitioner publications

suggesting that service industries could benefit significantly from the

introduction of JIT.

Productivity improvements in nonmanufacturing environments offer the

greatest potential for improved productivity and competitive growth of

US firms. We suggest the following actions for increasing the speed of

adoption of JIT techniques within the service sector:

modify JIT terminology;

include service sector examples in operations management courses;

develop a framework for research;

 apply current JIT research to service operations;

develop models for evaluating JIT success

JIT terminology should be modified, where appropriate, to reflect service

operations. As previously discussed, Billesbach and Schniederjans

(1989) initiated this process by comparing targets for wasteful activities

in manufacturing with corresponding processes in an administrative

setting.

Broader definitions of such manufacturing terminology as work-in-

progress, inventory, waste, group technology, and cellular

manufacturing need to be developed to adapt JIT techniques to service

operations. Continuing the work of Silvestro et al. (1993), JIT

terminology should be modified to include these service processes.

Further, the distinct differences between various service sector firms

should be considered with regard to JIT techniques. Silvestro et al.

(1993) recognized major differences between service sector firms along

six different measures of service activities. Because service activities

vary widely between service firms, so too may the applicability of

various JIT techniques. While developing this common terminology,

techniques currently used in JIT operations must be analysed and

compared with other service techniques. For example, quick response

techniques used in retailing and distribution could be considered

analogous to quick set-up techniques in JIT manufacturing firms.

Chase and Stewart (1994) started this process with their discussion of

the use of poka-yokes (fail-safe devices to assure quality). They

developed a framework for considering where poka-yokes may be used

in service operations. Many failsafe devices are in use throughout the

service sector; however, the terminology gap may inhibit recognition of

the tool. For example, the development of an input screen (or template)

used in an information system is essentially the development of a poka-

yoke for data entry. Systems design textbooks or information systems

literature do not refer to it as such.

As a starting point, it is suggested that surveys which address the following:

issues be administered to service operations managers:

What kinds of firm are most active in implementing JIT practices?

What are the benefits expected from implementation?

What types of JIT practice are most widely adopted by service firms?

What impact does the adoption of JIT practices have on existing systems?

How have service firms reorganized their processes to implement JIT?

 What methods are used to implement JIT methods in service firms?

Research is also needed to study the performance differences between

service firms that have implemented JIT techniques and those that have not.

A study of those that have been successful will shed new light on the

effectiveness of their respective methods. Cross-sectional studies are needed

which will examine JIT issues in a wider variety of service firms and

industries.

Research must be conducted which examines the most appropriate way to

compensate service firm employees as the performance emphasis changes

towards teamwork in a JIT environment. Employee involvement is essential in

a JIT operation. Employees become responsible for service improvements

and must be rewarded for initiative, leadership skills, communication skills

and

improved problem-solving skills. In addition to compensation systems, all

performance measurement systems in JIT service environments must be

evaluated to determine the performance criteria that should be selected.

Changes in employee responsibility in a JIT environment include measuring

and controlling quality at the source. Research is required which will identify

how those concepts can be implemented in service operations. The entire

corporate culture of the organization may require changes to implement JIT

successfully.
These issues must be investigated if service firms are to reap the same

benefits as have manufacturing firms from the implementation of JIT

practices.

Finally, emphasis on business re-engineering and time as competitive

weapons should support publication of research focusing on JIT techniques

for process improvement and reducing time delays. This will build on

operations management research on facilities layout, set-up time reductions,

batch size issues and process planning.

Literature Review

Just in time (JIT) is a production strategy that strives to improve a

business' return on investment by reducing in-process inventory and

associated carrying costs. Just in time is a type of operations management

approach which originated in Japan in the 1950s. It was adopted by Toyota

and other Japanese manufacturing firms, with excellent results: Toyota and

other companies that adopted the approach ended up raising productivity

(through the elimination of waste) significantly. To meet JIT objectives, the

process relies on signals or Kanban (Kanban) between different points, which

are involved in the process, which tell production when to make the next

part. Kanban are usually 'tickets' but can be simple visual signals, such as

the presence or absence of a part on a shelf. Implemented correctly, JIT

focuses on continuous improvement and can improve a manufacturing

organization's return on investment, quality, and efficiency. To achieve

continuous improvement key areas of focus could be flow, employee

involvement and quality.

JIT relies on other elements in the inventory chain as well. For instance, its

effective application cannot be independent of other key components of

a lean manufacturing system or it can "end up with the opposite of the

desired result." In recent years manufacturers have continued to try to hone

forecasting methods such as applying a trailing 13-week average as a better

predictor for JIT planning; however, some research demonstrates that basing

JIT on the presumption of stability is inherently flawed.

Philosophy
The philosophy of JIT is simple: the storage of unused inventory is a waste of

resources. JIT inventory systems expose hidden cost of keeping inventory,

and are therefore not a simple solution for a company to adopt it. The

company must follow an array of new methods to manage the consequences

of the change. The ideas in this way of working come from many different

disciplines including statistics, industrial engineering, production

management, and behavioral science. The JIT inventory philosophy defines

how inventory is viewed and how it relates to management.

Inventory is seen as incurring costs, or waste, instead of adding and storing

value, contrary to traditional accounting. This does not mean to say JIT is

implemented without an awareness that removing inventory exposes pre-

existing manufacturing issues. This way of working encourages businesses to

eliminate inventory that does not compensate for manufacturing process

issues, and to constantly improve those processes to require less inventory.

Secondly, allowing any stock habituates management to stock keeping.

Management may be tempted to keep stock to hide production problems.

These problems include backups at work centers, machine reliability, process

variability, lack of flexibility of employees and equipment, and inadequate

capacity.

In short, the Just-in-Time inventory system focus in having the right

material, at the right time, at the right place, and in the exact amount,
without the safety net of inventory. The JIT system has broad implications for

implementers.

Transactional Approach

JIT helps in keeping inventory to minimum in a firm. However, a firm may

simply be outsourcing their input inventory to suppliers, even if those

suppliers don't use Just-in-Time (Naj 1993). Newman (1994) investigated this

effect and found that suppliers in Japan charged JIT customers, on average, a

5% price premium.

Environmental Concerns

During the birth of JIT, multiple daily deliveries were often made by bicycle.

Increased scale has required a move to vans and trucks (lorries). Cusumano

(1994) highlighted the potential and actual problems this causes with regard

to gridlock and burning of fossil fuels. This violates three JIT waste guidelines:

1. Timewasted in traffic jams

2. Inventoryspecifically pipeline (in transport) inventory

3. Scrapfuel burned while not physically moving.

Price Change
Because Just-In-Time manufacturers do not store raw materials, they can be

affected more drastically by the effects of changing prices.

Quality volatility

JIT implicitly assumes that input parts quality remains constant over time. If

not, firms may hoard high-quality inputs. As with price volatility, a solution is

to work with selected suppliers to help them improve their processes to

reduce variation and costs. Longer term price agreements can then be

negotiated and agreed-on quality standards made the responsibility of the

supplier. Fixing up of standards for volatility of quality according to the

quality circle

Karmarker (1989) highlights the importance of relatively stable demand,

which helps ensure efficient capital utilization rates. Karmarker cost

production.

Supply Stability

In the U.S., the 1992 railway strikes caused General Motors to idle a 75,000-

worker plant because they had no supply. Consistent Quality is one of the
major issue. Product recall or Recall for spare replacement is one of the

major hidden cost and draw back of JIT.

Problems : Within a JIT system

Just-in-time operation leaves suppliers and downstream consumers open

to supply shocks and large supply or demand changes. For internal reasons,

Ohno saw this as an intended feature rather than a problem. He used an

analogy of lowering the water level in a river to expose the rocks to explain

how removing inventory showed where production flow was interrupted.

Once barriers were exposed, they could be removed. Since one of the main

barriers was rework, lowering inventory forced each shop to improve its own

quality or cause a holdup downstream. A key tool to manage this weakness

is production levelling to remove these variations. Just-in-time is a means to

improving performance of the system, not an end.

Very low stock levels means shipments of the same part can come in several

times per day. This means Toyota is especially susceptible to flow

interruption. For that reason, Toyota uses two suppliers for most assemblies.

As noted in Liker (2003), there was an exception to this rule that put the

entire company at risk because of the 1997 Aisin fire. However, since Toyota

also makes a point of maintaining high quality relations with its entire

supplier network, several other suppliers immediately took up production of

the Aisin-built parts by using existing capability and documentation.

JIT Implementation Design
Based on a diagram modeled after the one used by Hewlett-Packards Boise

plant to accomplish its JIT program.

1. F. Design Flow Process

F. Redesign/relayout for flow

L. Reduce lot sizes

O. Link operations

W. Balance workstation capacity

M. Preventive maintenance

S. Reduce setup Times

2. Q. Total Quality Control

C. worker compliance

I. Automatic inspection

M. quality measures

M. fail-safe methods
 W. Worker participation

3. S. Stabilize Schedule

S. Level schedule

W. Establish freeze windows

UC. Underutilize Capacity

4. K. Kanban Pull System

D. Demand pull

B. Backflush

L. Reduce lot sizes

5. V. Work with Vendors

L. Reduce lead time

D. Frequent deliveries

U. Project usage requirements

Q. Quality expectations

6. I. Further Reduce Inventory in Other Areas

 S. Stores

T. Transit

C. Implement carrousel to reduce motion waste

C. Implement conveyor belts to reduce motion waste

7. P. Improve Product Design

P. Standard production configuration

P. Standardize and reduce the number of parts

P. Process design with product design

Q. Quality expectations

Effects

A surprising effect of JIT was that car factory response time fell to about a

day. This improved customer satisfaction by providing vehicles within a day

or two of the minimum economic shipping delay.

Also, the factory began building many vehicles to order, eliminating the risk

they would not be sold. This improved the company's return on equity.

Since assemblers no longer had a choice of which part to use, every part had

to fit perfectly. This caused a quality assurance crisis, which led to a dramatic
improvement in product quality. Eventually, Toyota redesigned every part of

its vehicles to widen tolerances, while simultaneously implementing

careful statistical controls for quality control. Toyota had to test and train

parts suppliers to assure quality and delivery. In some cases, the company

eliminated multiple suppliers.

When a process or parts quality problem surfaced on the production line, the

entire production line had to be slowed or even stopped. No inventory meant

a line could not operate from in-process inventory while a production

problem was fixed. Many people in Toyota predicted that the initiative would

be abandoned for this reason. In the first week,line stops occurred almost

hourly. But by the end of the first month, the rate had fallen to a few line

stops per day. After six months, line stops had so little economic effect that

Toyota installed an overhead pull-line, similar to a bus bell-pull, that let any

worker on the line order a line stop for a process or quality problem. Even

with this, line stops fell to a few per week.

The result was a factory that has been studied worldwide. It has been widely

emulated, but not always with the expected results, as many firms fail to

adopt the full system.

The just-in-time philosophy was also applied to other segments of the supply

chain in several types of industries. In the commercial sector, it meant

eliminating one or all of the warehouses in the link between a factory and a

retail establishment. Examples in sales, marketing, and customer service

involve applying information systems and mobile hardware to deliver

customer information as needed, and reducing waste by video conferencing

to cut travel time.

Benefits

Main benefits of JIT include:

Reduced setup time. Cutting setup time allows the company to reduce

or eliminate inventory for "changeover" time. The tool used here

is SMED (single-minute exchange of dies).

The flow of goods from warehouse to shelves improves. Small or

individual piece lot sizes reduce lot delay inventories, which simplifies

inventory flow and its management.

Employees with multiple skills are used more efficiently. Having

employees trained to work on different parts of the process allows

companies to move workers where they are needed.

Production scheduling and work hour consistency synchronized with

demand. If there is no demand for a product at the time, it is not made.

This saves the company money, either by not having to pay workers

overtime or by having them focus on other work or participate in training.

 Increased emphasis on supplier relationships. A company without

inventory does not want a supply system problem that creates a part

shortage. This makes supplier relationships extremely important.

Supplies come in at regular intervals throughout the production

day. Supply is synchronized with production demand and the optimal

amount of inventory is on hand at any time. When parts move directly

from the truck to the point of assembly, the need for storage facilities is

reduced.

Minimizes storage space needed.

Smaller chance of inventory breaking/expiring.

Waste Elimination Supports Continuous Quality and Productivity

Improvement

Problems

Just-in-time operation leaves suppliers and downstream consumers open

to supply shocks and large supply or demand changes. For internal reasons,

Ohno saw this as an intended feature rather than a problem. He used an

analogy of lowering the water level in a river to expose the rocks to explain

how removing inventory showed where production flow was interrupted.

Once barriers were exposed, they could be removed. Since one of the main

barriers was rework, lowering inventory forced each shop to improve its own
quality or cause a holdup downstream. A key tool to manage this weakness

is production levelling to remove these variations. Just-in-time is a means to

improving performance of the system, not an end.

Very low stock levels means shipments of the same part can come in several

times per day. This means Toyota is especially susceptible to flow

interruption. For that reason, Toyota uses two suppliers for most assemblies.

As noted in Liker (2003), there was an exception to this rule that put the

entire company at risk because of the 1997 Aisin fire. However, since Toyota

also makes a point of maintaining high quality relations with its entire

supplier network, several other suppliers immediately took up production of

the Aisin-built parts by using existing capability and documentation.

Within a raw material stream

As noted by Liker (2003) and Womack and Jones (2003), it ultimately would

be desirable to introduce synchronised flow and link JIT through the entire

supply stream. However, none followed this in detail all the way back

through the processes to the raw materials. With present technology, for

example, an ear of corn cannot be grown and delivered to order. The same is

true of most raw materials, which must be discovered and/or grown through

natural processes that require time and must account for natural variability

in weather and discovery. The part of this currently viewed as impossible is

the synchronised part of flow and the linked part of JIT. It is for the reasons
stated raw materials companies decouple their supply chain from their

clients' demand by carrying large 'finished goods' stocks. Both flow and JIT

can be implemented in isolated process islands within the raw materials

stream. The challenge becomes to achieve that isolation by some means

other than carrying huge stocks, as most do today.

Because of this, almost all value chains are split into a part made-to-forecast

and a part that could, by using JIT, become make-to-order. Historically, the

make-to-order part has often been within the retailer portion of the value

chain. Toyota took Piggly Wiggly's supermarket replenishment system and

drove it at least halfway through their automobile factories. Their challenge

today is to drive it all the way back to their goods-inwards dock. Of course,

the mining of iron and making of steel is still not connected to an order for a

particular car. Recognising JIT could be driven back up the supply chain has

reaped Toyota huge benefits and a dominant position in the auto industry.

Note that the advent of the mini mill steelmaking facility is starting to

challenge how far back JIT can be implemented, as the electric arc furnaces

at the heart of many mini-mills can be started and stopped quickly, and steel

grades changed rapidly.

Vendor-managed inventor

Vendor-managed inventory (VMI) employs the same principles as those of JIT

inventory, however, the responsibilities of managing inventory is placed with

the vendor in a vendor/customer relationship. Whether its a manufacturer

managing inventory for a distributor, or a distributor managing inventory for

their customers, the management role goes to the vendor. An advantage of

this business model is that the vendor may have industry experience and

expertise that lets them better anticipate demand and inventory needs. The

inventory planning and controlling is facilitated by applications that allow

vendors access to their customer's inventory data.

Another advantage to the customer is that inventory cost usually remains on

the vendor's books until used by the customer, even if parts or materials are

on the customer's site.

Customer-managed inventory

With customer-managed inventory (CMI), the customer, as opposed to the

vendor in a VMI model, has responsibility for all inventory decisions. This is

similar to JIT inventory concepts. With a clear picture of their inventory and

that of their suppliers, the customer can anticipate fluctuations in demand

and make inventory replenishment decisions accordingly.

Operation
In JIC, manufacturers need to maintain large inventories of supplies,

parts, warehousing resources, and extra workers to meet production

contingencies. These contingencies, more common in less industrialized

countries, can be poor transportation, poor quality control, other suppliers'

production problems, and environmental factors. This can lead to

inefficiencies because a manufacturer has to have excess inventory and

backups of "fragile" stages of production which can get out of sync and

cause delays for other manufacturers.

Data Analysis & Interpretation

1. Do you think the organization is conscious on effective utilization of

resources towards Human Resources (employees)?

Response Respondents Percentage

Yes 147 73.5

No 53 26.5

Total 200 100

 Respondents
147

53

yes no

Interpretation:-the above analysis is showing organization is quality

conscious toward employees are 147 are yes and 53 employees say no.
 2. Does the organization have the certification of ISO 9000?

Response Respondents Percentage

yes 18 9

no 182 91

Total 200 100

Respondents
182

18

yes no

Interpretation :- the above analyses about the organization have the

certification of ISO 9000 9% are say positive and 91% are say negative.
 3. Is the organization providing Just In Time and quality assurance system

& operation?

Response Respondents Percentage

YES 168 84

NO 32 16

Total 200 100

persantage

NO; 16%

YES; 84%

Interpretation :- the above analyses about the organization providing

quality assurance system & operation 84% are say yes and 16% are say no.
 4. Does the organization have quality circle (reduction of wastage)?

Response Respondents Percentage

YES 125 62.5

NO 75 37.5

Total 200 100

Percentage
62.5

37.5

YES NO

Interpretation:- the above analysis are showing organization have quality

circle 62% are aware of that ,37% are not aware of that .
 5. How many people are involved in quality circle(reduction of wastage)?

Response Respondents Percentage

Below 10 83 41.5

above 10 15 7.5

above 15 11 5.5

cant say 91 45.5

Total 200 100

Respondents
100
90
80
70
60 Respondents
50
40
30
20
10
0
Below 10 above 10 above 15 cant say

Interpretation:-the above chart showing 41% are maintain below 10

employees are in quality circle . 45% are cant say any thing
 6. How frequently the organizations have the meeting of quality

circle(reduction of wastage)?

Response Respondents Percentage

Weekly 14 7

biweekly 25 12.5

monthly 79 39.5

yearly 82 41

Total 200 100

Percentage
41
39.5

12.5

Weekly biweekly monthly yearly

Interpretation:- the employees are frequently the organizations have the

meeting of quality circle 75 are weekly , 12.5% are biweekly ,39% are

monthly, 41% are yearly in the total 200 members.

7. Do you know about the agenda of information or any

other information?

Response Respondents Percentage

Yes 138 69

No 62 31

Total 200 100

Respondents
138

62

Yes No
Interpretation:-the above chart showing 69% are says yes know about the

agenda of information or any other information 31% no idea about the

information

8. Are the organization is going for the Just In Time audit?

Response Respondents Percentage

YES 155 77.5

NO 45 22.5

cant say 68 34

Total 200 100

Percentage
77.5

34

22.5

YES NO cant say

Interpretation:-77% no idea about the organization is going for the quality

audit, 22% no idea about JIT audit 34% are cant say anything.
 9. Does your organization have quality information system?

Response Respondents Percentage

YES 116 58

NO 72 36

cant say 12 6

Total 200 100

Percentage

cant say; 6%

NO; 36%
YES; 58%

Interpretation:-that above survey about the organization has quality

information system 58% told yes 36% say no 6% are not say anything about

the quality information system.

 10. Are the information system is regularly updated?

Response Respondents Percentage

YES 82 41

NO 73 36.5

cant say 45 22.5

Total 200 100

Percentage
Percentage
41
36.5

22.5

YES NO cant say

Interpretation:- the above analysis about the information system is regularly

updated 41% say yes 36% are say no about the pupation about he

information.
 11. Do you think the organization used bench marking?

YES NO Cant say

e
Option %
s

p
1 7

5 5

Yes 0 %
1

2 0

No 0 %
1

3 5

Can't Say 0 %
1

2 0

0 0

Total 0 %
 160 75%

140

120

100

80
150
60

40 15%
10%
20 20 30
0
Yes No Can't Say

75% of the respondents shared their view that

CONCLUSIONS AND RECOMMENDATIONS

1. JIT plays important role for focusing improvement of quality system

and involvement of all people in the organization on continual ba`sis

2. It is the basis for improve the quality characteristics both internal and

external customers. By implementing the JIT customer satisfaction has

been improved and paying way for implementation of ISO 9000 System

in the organization.
3. Business process improved four fold after implementation of JIT
4. Rejection level is reduced by 40 to 60 % after implementing JIT
5. By forming the JIT quality circles, employees are delighted for the ideas

they are generated and satisfaction of recognisation of the employees

in decision making process for improving the quality

6. Customers complaints has been reduced by 40%
7. Implementation of statistical tools in the shop floor quality has been

improved by 60 to 70% and rework is reduced

8. Company has improved the exports orders after implementing the JIT
9. Shop floor utilization has improved substantially
bibliography

1. Anderson J., Rungtusanatham M., Schroeder, R., 1994. A Theory of

Quality Management underlying the Deming Management Method. The

Academy of Management Review. Vol. 19, No. 3,

2. Business Week, 1992. Quality: Small and midsize companies seize the

challenge - not a moment too soon. November, 66-75

3. Crosby P., 1979. Quality is Free: The Art of Making Quality Certain.

McGraw-Hill.
4. Deming, E.W., 1986. Out of crisis. Cambridge University Press.

MGrant, R.M., Shani R., Krishnan R. 1994. TQM's challenge to

management theory and practice. Sloan Management Review. Vol. 35,

No. 2, 25-35assachusetts, USA.

5. ISO 9000:2000: SFS-EN ISO 9000 collection of quality management

standards (Fundamentals and vocabulary, Requirements and

Guidelines for performance improvements). Finnish standards

Association. Helsinki
6. Juran J.M., 1974. The Quality Control Handbook, 3rd edition. McGraw-

Hill. New York.

7. Powell, T., 1995. Total Quality Management as Competitive

Advantage: a Review and empirical study. Strategic Management

Journal, Vol. 16, 15-37.

Questionnaire:

1. Do you think the organization is quality conscious toward employees?

YES NO
2. Does the organization have the certification of ISO 9000?

YES NO

3. Is the organization providing quality assurance system & operation?

YES NO

4. Does the organization have quality circle?

YES NO

5. How many people are involved in quality circle?

Below 10 above 10 above 15 cant say

6. How frequently the organizations have the meeting of quality circle?

Weekly biweekly monthly yearly

7. Do you about the agenda of information or any other information?

YES NO

8. Are the organization is going for the quality audit?

YES NO Cant say

9. Does your organization have quality information system?

YES NO cant say

10. Are the information system is regularly updated?

YES NO cant say

11. Do you think the organization used bench marking ?

YES NO cant say