6 Apr 2012

The Origins and Implementation of Just In Time Method

Just-In-Time (JIT)

Just In Time (JIT) manufacturing has been a process by which companies don’t keep lots of excess inventory; instead, they manufacture a product as an order comes in. It is a management philosophy of continuous and forced problem solving. Just in Time (JIT) is a management philosophy aimed at eliminating waste and continuously improving quality. Credit for developing JIT as a management strategy goes to Toyota. Toyota JIT manufacturing started in the aftermath of World War II.

Although the history of JIT traces back to Henry Ford who applied Just in Time principles to manage inventory in the Ford Automobile Company during the early part of the 20th Century, the origins of the JIT as a management strategy traces to Taiichi Onho of the Toyota Manufacturing Company. He developed Just in Time strategy as a means of competitive advantage during the post World War II period in Japan.

The post-World War II Japanese automobile industry faced a crisis of existence, and companies such as Toyota looked to benchmark their thriving American counterparts. The productivity of an American car worker was nine times that of a Japanese car worker at that time, and Taiichi Onho sought ways to reach such levels.

The objective of JIT manufacturing system is to: 
  • Eliminate waste that is, minimize the amount of equipment, materials, parts, space, and worker’s time, which adds a great value to the product.
  • Increase productivity 
JIT means making what the market demands when it is in need. It is the most popular systems that incorporate the generic elements of lean systems. Lean production supplies customers with exactly what the customer wants, when the customer wants, without waste, through continuous improvement.

Deploying JIT results in decrease of inventories and increases the overall efficiencies. Decreasing inventory allows reducing wastes which in turn results in saving lots of money. There are many advantages of JIT.

Just In Time:

  • Increases the work productivity;
  • Reduces operating costs;
  • Improves performance and throughput;
  • Improves quality;
  • Improves deliveries;
  • Increases flexibility and innovativeness.
For industrial organizations to remain competitive, cost efficiencies have become compulsory. JIT helps in this process. It is extended to the shop floor and also the inventory systems of the vendors. JIT has been extended to mean continuous improvement. These principles are being applied to the fields of Engineering, Purchasing, Accounting, and Data Processing.

However, for organizations to completely implement JIT manufacturing system, they need to have a proper commitment along with the following basic facilities – proper material, quality, equipment, and people involvement.

Implementation of JIT JIT, Total Quality Management (TQM) and other developmental measures, are possible only with top management commitment and a learning culture in the organization. The main handicap in any program is the resistance of the organizational members, even at the top, to make changes. This resistance may take the form of non-cooperation and may enlarge to become sabotage. These usually show up at the implementation stage. So, communication of the goals is to be realized and the objectives of each team are to be framed effectively. Initially, a milestone chart helps in establishing various steps to be taken and correcting the activities as the process is on. This is the best way of ensuring success. It is well to remind you at this stage that JIT is not a destination, but an ongoing continuous improvement program in the process of achieving TQM.

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