4. About JITs concept
JIT can be defined as producing the necessary units, with the required quality, in
the necessary quantities, at the last safe moment.
5. History of JIT concept
The technique was first used by the Ford Motor Company during
1920s.
1954 Japanese giant Toyota implemented JIT.
6. Philosophy
A whole philosophy that the company must follow.
Different disciplines.
There are views with respect to how inventory is looked upon, what
it says about the management within the company, and the main
principle behind JIT.
7. “the right material, at the right time, at the right
place, and in the exact amount.”
8. Benefits
Reduced set up times in warehouse
Improved flows of goods in/through/out warehouse
Employees who possess multi-skills are utilized more efficiently
Better consistency of scheduling and consistency of employee work hours
Increased emphasis on supplier relationships
Supplies continue around the clock keeping workers productive and
businesses focused on turnover
9. Problems
supplier and downstream consumers open to supply shocks
susceptible to an interruption in the flow
13. Toyota is considered by many to be the poster child for JIT success. The Toyota production
strategy is highlighted by the fact that raw materials are not brought to the production floor
until an order is received and this product is ready to be built. No parts are allowed at a node
unless they are required for the next node, or they are part of an assembly for the next node.
This philosophy has allowed Toyota to keep a minimum amount of inventory which means lower
costs. This also means that Toyota can adapt quickly to changes in demand without having to
worry about disposing of expensive inventory.
15. Dell has also leveraged JIT Principles to make its manufacturing
process a success. Dell’s approach to JIT is different in that
they leverage their suppliers to achieve the JIT goal. They are
also unique in that Dell is able to provide exceptionally short
lead times to their customers, by forcing their suppliers to
carry inventory instead of carrying it themselves and then
demanding (and receiving) short lead times on components so
that products can be simply assembled by Dell quickly and then
shipped to the customer.
16. Important Factors to Dell’s Success:
Dependable suppliers
seamless system
inventory on hand
17. Harley Davidson
Harley Davidson’s use of JIT is mostly characterized by its
transformation in the late World War 2 era from an inefficient
manufacturer that solved all of its problems with extra
inventory to a nimble manufacturer able to meet demand and
provide short lead times.
