Just in Time
Table of Contents
Introduction
Just-in-time is a new system created by Taiichi Ohno in Japan in the early 1970s at a Toyota car assembly plant. It was created to reduce cost and eliminate inventory. Basically the idea of JIT is to produce necessary items at the necessary time in the necessary quantity needed. It is a management philosophy and not a technique, which is associated with the management process and not the end-result. In other words, the idea is to supply materials only when needed for production to eliminate storage costs and waste.
This report is to understand the processes in JIT as well as to identify the reason behind employing JIT system within a company and its usage to eliminate cost and improve efficiency.
This report also identifies the advantages and disadvantages of implementation JIT to address the problem faced by most manufacturing companies.
Literature Review
The case study that we would like to review was a study on the JIT system in a Chinese automotive industry – Company X. (Hou, Hing Kai, & Xiaojun, 2011). In this study, the research concluded that the system is successful and led to many advantages for the company.
This research addresses five main concerns in implementation JIT and that these key research themes are important in making the system a flawless one. First theme was on information system. Good information system supports JIT by using the Internet to connect and have clear communication between the suppliers, company and customers. There is a clearer picture and supply and resources can be delivered smoothly.
The second research theme is production planning. In Company X, a three-lamp signal of the Kanban system was implemented to facilitate production planning and control. This signals help workers understand the stages or production that is going on, as well as helping them identify if there are any errors faced during production. This facilitates damage control in order to facilitate
Introduction
Just-in-time is a new system created by Taiichi Ohno in Japan in the early 1970s at a Toyota car assembly plant. It was created to reduce cost and eliminate inventory. Basically the idea of JIT is to produce necessary items at the necessary time in the necessary quantity needed. It is a management philosophy and not a technique, which is associated with the management process and not the end-result. In other words, the idea is to supply materials only when needed for production to eliminate storage costs and waste.
This report is to understand the processes in JIT as well as to identify the reason behind employing JIT system within a company and its usage to eliminate cost and improve efficiency.
This report also identifies the advantages and disadvantages of implementation JIT to address the problem faced by most manufacturing companies.
Literature Review
The case study that we would like to review was a study on the JIT system in a Chinese automotive industry – Company X. (Hou, Hing Kai, & Xiaojun, 2011). In this study, the research concluded that the system is successful and led to many advantages for the company.
This research addresses five main concerns in implementation JIT and that these key research themes are important in making the system a flawless one. First theme was on information system. Good information system supports JIT by using the Internet to connect and have clear communication between the suppliers, company and customers. There is a clearer picture and supply and resources can be delivered smoothly.
The second research theme is production planning. In Company X, a three-lamp signal of the Kanban system was implemented to facilitate production planning and control. This signals help workers understand the stages or production that is going on, as well as helping them identify if there are any errors faced during production. This facilitates damage control in order to facilitate
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