Jit and Toc
JIT benefits, as framed by Garrison and Noreen (2000), include the bolster of working capital by reducing capital in inventories; the optimization of space for more productive works; the increase of productivity; and the reduction of defect rates.
Similarly, Younies, Barhem, and Hsu (2007) found that:
The implementation of JIT can provide many advantages to a company. The usage of JIT techniques can improve a company's problem solving capabilities by exposing problems in the production process as they occur. JIT reduces lead times and increases equipment utilization because of smaller lot sizes and delivery order sizes. Product quality is increased because quality is centered on the individual workers, and the workers are considered part of the team. Input from workers is encouraged. Adoption of JIT usually reduces paper work, and requires only simple planning systems. A reduction in inventory is always achieved as the JIT philosophy aims to eliminate non-value-added time or wasted time. (p. 43)
Though JIT system has many advantages, it is vulnerable to unexpected disruptions in supply. A production line can quickly come to a halt if essential parts are unavailable (Garrison and Noreen, 2000). The authors used Toyota case as an example: “One Saturday, a fire at Aisin Seiki Company’s plant in Aichi Prefecture stopped the delivery of all brake parts to Toyota. By Tuesday, Toyota has to close down all of its Japanese assembly lines. By the time the supply of brake parts had been restored, Toyota had lost an estimated $15 billion in Sales.” (p. 17)
Younies, Barhem, and Hsu (2007) also pointed out some disadvantages associated with the implementation of JIT: “It may be difficult for JIT to be effective in certain types of environments. JIT requires an atmosphere of close cooperation and mutual trust between the workforce and management. It is usually not as effective when labor is unionized. The use of JIT production or purchasing requires a large number of
Similarly, Younies, Barhem, and Hsu (2007) found that:
The implementation of JIT can provide many advantages to a company. The usage of JIT techniques can improve a company's problem solving capabilities by exposing problems in the production process as they occur. JIT reduces lead times and increases equipment utilization because of smaller lot sizes and delivery order sizes. Product quality is increased because quality is centered on the individual workers, and the workers are considered part of the team. Input from workers is encouraged. Adoption of JIT usually reduces paper work, and requires only simple planning systems. A reduction in inventory is always achieved as the JIT philosophy aims to eliminate non-value-added time or wasted time. (p. 43)
Though JIT system has many advantages, it is vulnerable to unexpected disruptions in supply. A production line can quickly come to a halt if essential parts are unavailable (Garrison and Noreen, 2000). The authors used Toyota case as an example: “One Saturday, a fire at Aisin Seiki Company’s plant in Aichi Prefecture stopped the delivery of all brake parts to Toyota. By Tuesday, Toyota has to close down all of its Japanese assembly lines. By the time the supply of brake parts had been restored, Toyota had lost an estimated $15 billion in Sales.” (p. 17)
Younies, Barhem, and Hsu (2007) also pointed out some disadvantages associated with the implementation of JIT: “It may be difficult for JIT to be effective in certain types of environments. JIT requires an atmosphere of close cooperation and mutual trust between the workforce and management. It is usually not as effective when labor is unionized. The use of JIT production or purchasing requires a large number of