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What is Just in Time (JIT): Smartest Production System in The World.

Just-in-time (JIT) is a production system developed by Toyota that focuses on reducing waste and improving efficiency by only producing and delivering products when they are needed. The goal of JIT is to minimize inventory levels and to avoid overproduction, which can lead to excess inventory and higher costs.

There are a few key principles that underlie the JIT production system:

  1. Continuous improvement: JIT is based on the principle of continuous improvement, which involves constantly seeking ways to improve efficiency and reduce waste.
  2. Lean production: JIT is often associated with lean production, which is a philosophy that focuses on maximizing value and minimizing waste. Lean production emphasizes the importance of reducing inventory levels and maximizing the flow of materials and information through the production process.
  3. Kanban: JIT relies on a system called kanban, which is a visual signaling system that is used to trigger the production and delivery of products. Kanban cards or other visual signals are used to indicate when a product is needed and to trigger the production of that product.
  4. Employee empowerment: JIT also emphasizes the importance of empowering employees to identify and solve problems, and to suggest improvements to the production process. This helps to create a culture of continuous improvement within the organization.

Overall, JIT is a production system that focuses on reducing waste and improving efficiency by only producing and delivering products when they are needed, and by relying on principles such as continuous improvement, lean production, kanban, and employee empowerment.

Pros and Cons of JIT

Pros of Just-in-Time (JIT) manufacturing:

  1. Reduced inventory costs: JIT manufacturing reduces the need for large inventory holdings, which can result in significant cost savings.
  2. Improved efficiency: JIT manufacturing can increase the efficiency of production by reducing the time and resources spent on managing and storing inventory.
  3. Increased flexibility: JIT manufacturing allows for the production of a wider range of products, as it allows for the quick adaptation to changing customer demand.
  4. Improved quality: JIT manufacturing can improve the quality of products by reducing the potential for defects caused by inventory holding issues.
  5. Enhanced customer service: JIT manufacturing can improve customer service levels by reducing lead times and increasing the responsiveness to customer demand.

Cons of Just-in-Time (JIT) manufacturing:

  1. Increased dependency on suppliers: JIT manufacturing increases dependency on suppliers to deliver goods on time, which can be risky if suppliers are unreliable.
  2. Limited inventory buffer: JIT manufacturing reduces the inventory buffer, which can result in stockouts and production downtime in case of unexpected demand or supplier delays.
  3. Limited flexibility in case of unexpected demand or production issues: JIT manufacturing can be less flexible in case of unexpected demand or production issues, as it relies on a steady flow of materials and goods.
  4. Increased pressure on suppliers: JIT manufacturing can put pressure on suppliers to meet the tight delivery schedules and can lead to increased costs.
  5. Requires a large investment: JIT manufacturing often requires a large investment in technology and equipment to support the lean manufacturing process.

Cost Savings: JIT

The cost savings for Just-in-Time (JIT) inventory can include:

  1. Reduced inventory holding costs: JIT inventory reduces the need for large inventory holdings, which can result in significant cost savings on warehouse space, inventory management, and insurance.
  2. Reduced carrying costs: JIT inventory reduces the amount of money invested in inventory, resulting in lower carrying costs such as interest on loans used to purchase inventory.
  3. Reduced obsolescence costs: JIT inventory reduces the chances of products becoming obsolete before they can be sold, resulting in cost savings.
  4. Reduced inventory shrinkage: JIT inventory reduces the chances of inventory shrinkage due to damage, loss, or theft, which can result in cost savings.
  5. Increased cash flow: JIT inventory can increase cash flow by reducing the amount of money tied up in inventory, allowing it to be used for other purposes.
  6. Reduced Costs due to delay in production: JIT inventory can reduce costs caused by delays in production due to lack of materials.

It’s worth noting that JIT inventory can also have costs such as increased dependency on suppliers and Limited inventory buffer, which can result in stockouts and production downtime in case of unexpected demand or supplier delays.

Just-in-Time (JIT) | Supply Chain Management | From A Business Professor

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Lean and Toyota Quotes

  • “If you are going to do TPS (Toyota Production System) you must do it all the way.  You also need to change the way you think.  You need to change how you look at things.” ~Taiichi Ohno
  • “Practice isn’t the thing you do once you’re good. It’s the thing you do that makes you good.” ~Malcolm Gladwell
  • “A bad system will beat a good person every time.” ~W. Edwards Deming
  • “Time waste differs from material waste in that there can be no salvage. The easiest of all wastes and the hardest to correct is the waste of time, because wasted time does not litter the floor like wasted material.” ~Henry Ford
  • “For much of Toyota’s history, we have ensured the quality and reliability of our vehicles by placing a device called an andon cord on every production line – and empowering any team member to halt production if there’s an assembly problem. Only when the problem is resolved does the line begin to move again.”  ~Akio Toyoda.
  • “Nature does constant value stream mapping — it’s called evolution.” ~Carrie Latet
  • “Continuous improvement is not about the things you do well — that’s work. Continuous improvement is about removing the things that get in the way of your work. The headaches, the things that slow you down, that’s what continuous improvement is all about.” ~Bruce Hamilton
  • “When solving problems, dig at the roots instead of just hacking at the leaves.” ~Anthony J. D’Angelo
  • “Waste is worse than loss. The time is coming when every person who lays claim to ability will keep the question of waste before him constantly. The scope of thrift is limitless.” ~Thomas A. Edison
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