Just In Time is a manufacturing technique used to eradicate wastage of resources like time, work force, storage space, money on inventory etc. JIT focuses on continuous enhancement in production and looking for system development to cater the market need. An organization has to manufacture products based on definite order and satisfy the customer requirement in terms of quality and quantity. JIT can also be defined as a system that produces essential goods to meet the desired quality and quantity at the preceding safe moment.
An organization can utilize their resources effectively and distributes resources to their customer. JIT inventory system needs a serious approach to follow to get best out of it. An organization that adapts/follows JIT inventory system need to develop or manufacture products as per the market requirement. The ideas that drive JIT are collectively obtained from various fields like production management, behavioral science, manufacturing systems, scientific management, industrial engineering and statistics.
Principles of Just In Time Manufacturing
- Total quality Management
- Production Management
- Supplier Management
- Inventory Management
- Human Resource Management
Factors involved in JIT implementation
Factors that are responsible for the implementation of JIT in the modern manufacturing process are given below.
- Customer satisfaction.
- Threats from perfect competition, raise of raw material, and energy costs.
- The attitude and work culture in the organization
- Product quality and cost
- Breakdown to be maintained to the minimum.
- Waste reduction.
- Maintaining minimum inventory and minimum lead time
- Effective utilization of resources like material, man and machine.
These factors help the organization to attain the highest level of performance and to compete in the global market.
Building Blocks of Just In Time Manufacturing
The building blocks of JIT manufacturing are categorized as below.
- Product design
- Process design
- Personnel/organizational design
- Elements of manufacturing sectors
- Planning and control
Goals of Just In Time System
The goals of JIT system helps the organization to define the problem, identifying the suitable solution by effective allocation and utilization of resources and prepare the inventory for implementation. Short term and long term goals are to be established within the organization that include the following.
Identifying and satisfying the customer needs
As the demand increases the production need to be increased that helps the organization to reach the global level. The objective of the organization is to manufacture products to satisfy the customer needs by expanding the manufacturing process which is capable of producing quality products. This will ensure the organization’s existence.
Aspiring to achieving the best quality/cost relationship
The aim of the organization is to produce products with improved quality by the effective utilization of limited resources. The importance of organization is to develop a manufacturing process that is aimed at zero defects. In the long run, the organization can achieve zero defect products as it eradicates surplus functions such as the 100% inspection, alteration and the production of defective products.
Removal of wastes
Some of the wastes that do not add value to the product. Diverse categories of wastes can be identified and are eliminated in the waste elimination processes.
Developing relationships between the vendors
Close and trustful relationships with vendors should be focused upon in developing a quality product and timely delivery. JIT system will help to create a more efficient control in terms of inventory and materials, and material support when required.
Devise the plant for ease of manufacturing and maximum efficiency
Effective utilization of machinery and labour is essential to the manufacturing process to achieve maximum efficiency. JIT is a long term process and system implementation cannot be adopted in a short period.
Merits of Just-In-Time Systems
The merits of implementing Just-In-Time manufacturing system are described as follows.
- Minimum stock holding cost and better utilization of storage space and provide a positive impact on insurance premiums and rent paid by the organisation.
- Just in time system eradicates wastage.
- Essential stocks and minimum working capital are required for financial assistance. Fresh stocks and set the minimum re-order level in order to boom the inventory management.
- In order to maintain the low level of stocks, then the return on investment should be highly maintained.
- A demand-pull approach is to be followed for manufacturing process in which all goods are sold, and it will increase the demand of the products.
- Just-in-time manufacturing supports the concept of ‘right first time’, in which inspection costs and rework cost is minimized.
- Just-in-time production system achieves higher efficiency and helps in producing better quality products.
- The production chain concept derived from a just-in-time manufacturing system will establish a close relationship among employees.
- Improved customer satisfaction is obtained from good communication with the customers.
- Elimination of excess production of goods and just-in-time manufacturing system was implemented in the manufacturing sectors.
Limitations of Just-In-Time System
The demerits of implementing Just-In-Time manufacturing systems are described as follows.
- Zero tolerance given by the Just-in-time manufacturing system for making mistakes and therefore alteration or reworking is very difficult for the minimum level of inventory.
- The organisation is having high trust on suppliers and the manufacturer performance will increase or decrease based on the supplier’s behaviour.
- Production delay time, machine downtime and ideal line production will cause negative effect on finance and stability of the production process.
- Organization should not meet a sudden increase in orders because there are no surplus finish goods.
- Frequent transactions are possible for order delivery and therefore higher transaction cost occur in JIT system.
- Environmental effects can occur in Just-in-time manufacturing system due to frequent deliveries and automatic increase in the transportation usage would result in the consumption of more fossil fuels.
The following precautions are helpful for the organisation in implementing a Just-In-Time manufacturing system.
- Just-in-time manufacturing system is successfully implemented in organizations based on buying of management and hold up at all levels of the organization
- Allocation of sufficient resources and advanced software technology update is required for successful implementation of just-in-time system.
- Maintain a secure and trusting relationship with regular and new suppliers will reduce the unforeseen delays in the receiving of inventory.
- Just-in-time manufacturing system requires sufficient time and corporate culture adjustments for successful implementation and improving production processes.
- Just-in-time manufacturing system will alter the layouts of organisation and changes in the design flow process.
- Just-in-time manufacturing system should minimize the size of the lot.
- Just-in-time manufacturing system should balance the workstation capacity.
- Just-in-time manufacturing system should be carried out for the preventive maintenance, in order to reduce machine breakdowns.
- JIT system should reduce the set-up times, lead times and frequent deliveries.
- JIT system should be implemented for the quality improvement programs and total quality control practices.
Successful implementation of JIT system can focus on solving the organization’s problems, in order to improve production rates, maximum utilization of employers, purchasing, and time delivery of finished goods. JIT system is considered as novel management practice for all kinds of organisations. Nowadays, JIT implementation in various organizations created momentous improvements in business. In a highly competitive environment, JIT policies can be successfully adopted to improve the manufacturing performance in the organisation. Implementation of JIT system makes the organization to compete with other organizations in the highly competitive market scenario.
JIT system is an efficient global strategy by which firms can improve their organizational performance and these firms are able to attain competencies in competitive market structures. New levels of achievements can be possible by using the JIT system in the manufacturing organisations. The better implementation of a JIT system makes the distinction between success and failure of the organisation.
- Just-in-time Inventory: https://www.orderhive.com/knowledge-center/just-in-time