TQM Additional Notes
TQM Additional Notes
Known for being a quality management, collaboration, and continuous improvement tool, the
Kaizen approach advocates progressive change management in a business, while limiting risks.
● Quality
● Cost
● Delivery
made by a series of processes, LAST CONCEPT, CAUTIOUS into HIGH QUALITY products
and services.
Just-In-Time or JIT
The just-in-time (JIT) inventory system minimizes inventory and increases efficiency. JIT
production systems cut inventory costs because manufacturers receive materials and parts as
needed for production and do not have to pay storage costs. Manufacturers are also not left with
unwanted inventory if an order is canceled or not fulfilled.
One example of a JIT inventory system is a car manufacturer that operates with low inventory
levels but heavily relies on its supply chain to deliver the parts it requires to build cars on an
as-needed basis. Consequently, the manufacturer orders the parts required to assemble the
vehicles only after an order is received.
Example of JIT
Famous for its JIT inventory system, Toyota Motor Corporation orders parts only when it
receives new car orders. Although the company installed this method in the 1970s, it took 20
years to perfect it.
Advantages of JIT
JIT inventory systems have several advantages over traditional models. Production runs are
short, which means that manufacturers can quickly move from one product to another. Also, this
method reduces costs by minimizing warehouse needs. Companies also spend less money on raw
materials because they buy just enough resources to make the ordered products and no more.
Disadvantages of JIT
The disadvantages of JIT inventory systems involve potential disruptions in the supply chain. If a
raw-materials supplier has a breakdown and cannot deliver the goods promptly, this could
conceivably stall the entire production line. A sudden unexpected order for goods may delay the
delivery of finished products to end clients.
Kanban
Fast Fact
The JIT inventory system contrasts with just-in-case strategies, where producers hold
sufficient inventories to have enough products to absorb maximum market demand.
References:
https://www.appvizer.com/magazine/operations/bpm/kaizen-approach
https://www.creativesafetypublishing.com/the-concepts-of-kaizen/
https://www.scribd.com/presentation/450589047/Total-Quality-Management
Banton, C. (2024, March 12). Just-in-Time (JIT): Definition, Example, and Pros & Cons.
Investopedia. https://www.investopedia.com/terms/j/jit.asp
https://www.investopedia.com/terms/k/kanban.asp