JIT

• Just in Time (JIT)


  A renowned management philosophy originating in Japan, particularly associated with Toyota Motor Corporation, that emphasizes the elimination of waste in all aspects of production, from inventory management to process efficiency
• JIT


  • Emerged in the 1970s and gained prominence in the 1980s
  • Developed by Taiichi Ohno, a Toyota executive, as a response to the limitations of traditional mass production systems
  • Aims to create a more flexible and efficient approach to manufacturing
• Key principles of JIT


  • Waste elimination
  • Continuous improvement (Kaizen)
  • Pull system
  • Flexibility
  • Supplier relationships
• Waste elimination 


  
  

  1. Minimize or eliminate various forms of waste

  • overproduction
  • excess inventory
  • waiting times
  • unnecessary transportation
  • over-processing
  • defects
  • underutilized talent
• Pull system


  • Production is based on actual customer demand rather than forecasted demand.
  • Often facilitated through a pull system where production is initiated only when an order is received.
• Flexibility


  • Prioritize flexibility to quickly respond to changes in customer demand or production requirements.
• Key practices in JIT


  • Kanban
  • Single-piece flow
  • Jidoka
  • Just-in-Time inventory
• Benefits of JIT


  1. Cost reduction: lead to significant cost savings; minimizing inventory holding costs, reducing waste, & optimizing production processes.
  2. Improved quality: focusing on waste reduction and early defect detection; can improve product quality & customer satisfaction.
  3. Increased efficiency: promotes streamlined processes, shorter lead times, & better resource utilization, leading to increased efficiency & productivity.
  4. Enhanced flexibility: more adaptable to changes in customer demand or market conditions, allowing companies to respond more effectively to fluctuations.
• Challenges and risks of JIT


  1. Dependency on suppliers: rely heavily on timely deliveries from suppliers. ^Any disruptions in the supply chain; significant impact on production.
  2. Vulnerability to disruptions: Since JIT systems operate with minimal inventory buffers, they are more vulnerable to disruptions such as machine breakdowns, quality issues, or unexpected demand fluctuations.
  3. Complex implementation: Implementing JIT requires significant changes to organizational culture, processes, and relationships with suppliers, which can be challenging and time-consuming.
• Supplier relationships


  • Strong partnership with suppliers are essential to ensure timely delivery of high-quality components and materials.
• Kanban 


  • A visual scheduling system
  • Use of cards or signals to indicate when production should occur and when materials should be replenished.
• Single-piece flow 


  • items move through the production process one at a time, reducing inventory and waiting times.
• Jidoka 


  • Automation with a human touch; another important aspect.
  • Involves designing equipment to automatically stop when defects are detected, empowering workers to address quality issues promptly.
• Just-in-Time inventory 


  • Inventory is minimized to reduce carrying costs and the risk of obsolescence.
  • Suppliers often deliver materials directly to the production line as needed.