JUST IN-TIME (JIT)

DEFINED

JIT can be defined as an integrated set of activities designed to achieve high-volume production using minimal inventories (raw materials, work in process, and finished goods). JIT also involves the elimination of waste in production effort. JIT also involves the timing of production resources (i.e., parts arrive at the next workstation “just in time”).

LOOKING BACK

      JIT originated in Japan.

      Driven by a need survive after the devastation caused by the war.

      JIT gained worldwide prominence in the 1970s.

      Toyota Motor Co. developed JIT .

THREE ELEMENTS OF JIT 

JIT AND LEAN MANAGEMENT

JIT can be divided into two terms: “Big JIT” and “Little JIT”

      Big JIT (also called Lean Management) is a philosophy of operations management that seeks to eliminate waste in all aspects of a firm’s production activities: human relations, vendor relations, technology, and the management of materials and inventory.

      Little JIT focuses more narrowly on scheduling goods inventory and providing service resources where and when needed.

JIT PARTNERSHIPS  

1) JIT partnerships exist when a supplier and purchaser work together to remove waste and drive down costs

2) Four goals of JIT partnerships are:

      Removal of unnecessary activities.

      Removal of in-plant inventory.

      Removal of in-transit inventory.

      Improved quality and reliability.

JIT LAYOUT

1) Reduces another kind of waste -“Movement”.

2) Places material directly where needed.

3) Example Toyota.

JIT LAYOUT TACTICS

      Build work cells for families of products.

      Include a large number operation in a small area.

      Minimize distance.

      Design little space for inventory.

      Improve employee communication.

      Use poka-yoke (fail safe) devices.

      Build flexible or movable equipment.

      Cross-train workers to add flexibility.

CONCERNS OF SUPPLIER

      Diversification – ties to only one customer increases risk.

      Scheduling – don’t believe customers can create a smooth schedule.

      Changes – short lead times mean engineering or specification changes can create problems.

      Quality – limited by capital budgets, processes, or technology.

      Lot sizes – small lot sizes may transfer costs to suppliers.

JIT SCHEDULING

      Better scheduling.

JIT SCHEDULING: EXAMPLE FORD MOTOR COMPANY