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Just-In-Time Production

Just-in-time (JIT) production is a manufacturing philosophy aimed at eliminating waste by receiving goods only as they are needed in the production process. The Toyota Motor Company first successfully implemented JIT in the 1970s. JIT reduces costs by eliminating overproduction, waiting times, unnecessary transportation and inventory levels. While JIT lowers costs, it also increases dependency on suppliers and reduces time for quality control. Companies must ensure their focus on reducing inventory does not undermine other factors like ensuring supply.

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44 views

Just-In-Time Production

Just-in-time (JIT) production is a manufacturing philosophy aimed at eliminating waste by receiving goods only as they are needed in the production process. The Toyota Motor Company first successfully implemented JIT in the 1970s. JIT reduces costs by eliminating overproduction, waiting times, unnecessary transportation and inventory levels. While JIT lowers costs, it also increases dependency on suppliers and reduces time for quality control. Companies must ensure their focus on reducing inventory does not undermine other factors like ensuring supply.

Uploaded by

mery doll
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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(JIT)

Just-In-Time Production
DEFINITION

A Highly coordinated
processing system in
which processing and
movement of materials
and goods occur just as
they are needed.

A philosophy of
manufacturing based on
planned elimination of
waste and continuous
improvement of
productivity.
HISTORY OF JIT

Evolved in Japan after world war II, as a result of


their diminishing market share in the auto
industry.

Toyota Motor Company first to implement fully


functioning and successful JIT system, in 1970’s

Japanese Manufacturers looked for a way to


gain the most efficient use of limited resources.
They worked on “optimal cost/quality
relationship.”
Why JIT system is necessary for an
organization
Eliminates waste
Achieves streamlined production
Eliminates disruptions in production,
caused by poor quality, schedule changes,
late deliveries
Makes the manufacturing delivery system
flexible by allowing it to handle a variety of
products and changes in the level of output
Reduces setup and delivery times.
SOURCES OF WASTE

Overproduction
Waiting time
Unnecessary
transportation
Processing waste
Inefficient work
methods
Products defects
TYPES OF WASTES

1) Overproduction
2) Inappropriate processing
3) Waiting
4) Transportation
5) Motion
6) Inventory
7) Defects
8) Underutilization of employees
Applications of JIT

 TOYOTA:
Firstly implemented
JIT effectively in
1970’s
Small quantities of
material are kept
Accurate forecasting
Minimizing waste
Mcdonald’s

On time
Reduction in wastage
Food preparation
Customer service
Profitability
Cost reduction
Improve quality
Sophisticated
technology
APPLE

Apple’s approach to JIT


is different in that they
leveraged their suppliers
to achieve JIT goals.
A willingness of
suppliers to keep
inventory on hand
allowing Apple to be free
of this responsibility
Holding inventory at
retail stores
Drop shipping
arrangements for
online purchases
ADVANTAGES OF JIT

Improve productivity
Improve quality
Reduce paperwork
Improve storage space used
Reduce costs associated with storage
Reduce manufacturing time
Lower production cost
DISADVANTAGES OF JIT

Danger of lost sales


High dependence on supplier
Less time for quality control on arrival of
materials
Increased ordering and admin costs
May lose bulk-laying discounts
Assumption:
One assumption is that JUST IN TIME will
always be cheaper than keeping parts on hand. But
companies need to be sure their supply chain
models are not so fixated on reducing inventory that
they fail to account for other factors.
Implementation :
Increase performance by lower level of
inventory, reduce operations and inventory costs
was reduced eliminates wastage from the
processes and reduced unnecessary production
which is a big challenge for manufacturer who are
trying to maintain the continuous flow processes.
CONCLUSION

Concluding this topic, if the company wants to


have a JIT concepts it doesn't mean that everything
must be done very fast. The most important thing
for the company is to have good organized resource
allocation. Also, management and employees must
have their mind that this concept can help the
organization to solve many problems in logistics.
It is true that implementation and development of
JIT is the long lasting and expensive process, but if
the company can manage with these difficulties it is
possible to achieve high levels of workflow.

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