Just in Time Manufacturing
Just-In-Time Manufacturing
Just-In-Time manufacturing, commonly referred to as JIT, is a company wide philosophy aimed at eliminating a company 's waste. Waste can be found in many forms. For example it can be defined in the material form such as plastic or metal scrap, or it can be defined in the administrative form as excessive overhead that slows production or adds an unnecessary expense. The basic theory behind JIT is a pull system that is driven by a demand of supplies. This results in a near zero inventory which reduces the normal cost of storing inventory. The end result of JIT is a company that runs on reduced costs, continuously improving quality and performance, faster delivery times as well as greater flexibility.
Throughout history, JIT manufacturing has been implemented on the largest of scales, such as automotive suppliers and assembly plants. This is due to the fact that only the larger companies have the funding to get past the typical high initial cost of setting up the JIT system. Also, JIT systems work best in a high volume, repetitive process which are both very common attributes of automotive assembly plants. The automotive companies also have the muscle to make the demands on their suppliers that are necessary to keep a JIT system running. If the suppliers are not dependable and dedicated to the process failure is inevitable. Customers place great trust and responsibility in the hands of their suppliers in a JIT situation. Any delays or shortages that a supplier comes across will almost always shut down the customers operations, causing backups and order delays. Any problems in a JIT system are felt like a domino effect from the bottom supplier all the way up to the final customer. While the JIT system has many advantages that can be offered to companies there can be problems with the system as well. In recent history, Goodyear Tire & Rubber Company saw a large spike in the number of tires ordered from its customers. Unable
Just-In-Time manufacturing, commonly referred to as JIT, is a company wide philosophy aimed at eliminating a company 's waste. Waste can be found in many forms. For example it can be defined in the material form such as plastic or metal scrap, or it can be defined in the administrative form as excessive overhead that slows production or adds an unnecessary expense. The basic theory behind JIT is a pull system that is driven by a demand of supplies. This results in a near zero inventory which reduces the normal cost of storing inventory. The end result of JIT is a company that runs on reduced costs, continuously improving quality and performance, faster delivery times as well as greater flexibility.
Throughout history, JIT manufacturing has been implemented on the largest of scales, such as automotive suppliers and assembly plants. This is due to the fact that only the larger companies have the funding to get past the typical high initial cost of setting up the JIT system. Also, JIT systems work best in a high volume, repetitive process which are both very common attributes of automotive assembly plants. The automotive companies also have the muscle to make the demands on their suppliers that are necessary to keep a JIT system running. If the suppliers are not dependable and dedicated to the process failure is inevitable. Customers place great trust and responsibility in the hands of their suppliers in a JIT situation. Any delays or shortages that a supplier comes across will almost always shut down the customers operations, causing backups and order delays. Any problems in a JIT system are felt like a domino effect from the bottom supplier all the way up to the final customer. While the JIT system has many advantages that can be offered to companies there can be problems with the system as well. In recent history, Goodyear Tire & Rubber Company saw a large spike in the number of tires ordered from its customers. Unable
References: Galuszka, P. (1999). Just-In-Time Manufacturing is Workign Overtime. Retrieved February 23, 2005, from http://www.businessweek.com/1999/99_45/b3654139.htm Jergen, A. (2002). Lean Manufacturing and Just-In-Time Concepts Reap Significant Cost Savings - Michigan Study Finds. Retrieved February 12, 2005, from http://www.finarticles.com/p/ Makely, W. (1998). Revlon Replaces on Hand Inventory with Just-In-Time Manufacturing and Packaging. Retrieved March 3, 2005, from http://www.finarticles.com/h/ Roseburg, J. (2004). Portable Kitted Parts Can be a Crucial Part of Smart Suplpy Chain Management to Support Just-In-Time Processes. Retrieved March 8, 2005, from http://www.glogalkitting.com/JIT.shtml Songini, M. (2000). Just-In-Time Manufacturing in the Computer World. Retrieved February 14, 2005, from http://www.computerworld.com/printthis/2000/4814.html