Just In Time

Just in Time

Just-In-Time (JIT) manufacturing has been implemented successfully in Japan for the past 20 years. It is a philosophy as well as a technique that guides a manufacturing company in organizing and managing its business more effectively, and in planning and controlling its operations more efficiently. It is a way to achieve high velocity manufacturing. 

Just In Time (JIT) is a production system that is designed to get quality, reduce costs, and achieve delivery time as efficiently as possible by removing all types of waste present in the production process so that companies are able to deliver their products (both goods and services) in accordance with the will of the consumer right time.

Basic Principles of Just In Time

To apply the method JIT then there are eight basic principles that should be considered in determining the production system strategies, namely:

1. Production in accordance with the Master Production Schedule orders

New manufacturing system will be operated to produce ascertained wait after a certain amount of incoming orders. The ultimate goal to produce finished goods on time and to the extent the amount you want to be consumed alone (Just in Time), for it would result in the production process as many times as needed and immediately sent to customers who need to avoid the stock and to reduce the cost of storage (holding cost ).

2. Production in small quantities

Production is carried out in a number of lots (Lot Size) are small to avoid planning and lead time are complex as well as in the production of large quantities. Flexibility of production activities will be done, because it is easier to make adjustments in the production plan especially against changes in market demand.

3. Reduce waste

Waste (waste) must be eliminated in every area of its existing operations. All use of input resources (materials, energy, machinery or working hours, etc.) should not exceed the minimum necessary to achieve the production target.

4. Improvement of product flow continuously.

The main aim is to eliminate processes that cause bottlenecks and unproductive all conditions (idle, delay, material handling, etc.) that can hinder the smooth flow of production.

5. Improvement of the quality of the product

Product quality is the goal of the application Just in Time production system. Here has always strived to achieve a state of “Zero Defect” by way of total control in every step of the process. All forms of deviation must be identified and corrected as early as possible.

6. Respect for all people / employees

With the method of Just in Time production system every worker will be given a full opportunity and authority to govern and make decisions whether a stream operation should be continued or terminated because of serious problems encountered in a particular workstation.

7. Reduce all forms of uncertainty

Inventories are expected to anticipate the basic idea that fluctuating demand and any unexpected conditions, it will turn into waste if not used immediately. Similarly, recruitment of labor in large numbers in an uncontrolled manner as commonly encountered in the project activity will lead to waste if not used in time. Therefore, in planning and scheduling of production must be carefully designed and controlled. Any form that gives the impression of uncertainty must be eliminated and should be included in the consideration and formulation peramalannya models.

8. Attention in the long run

The seven principles of the implementation of Just in Time production system above is not a firm commitment that is applied in the short term, but it must be built on an ongoing basis and the commitment of all parties in the long run. In the short term, there is the possibility of application of Just in Time production system will only add to the cost of production following the consequences of the process of formation of a learning curve.

Objective of JIT 

JIT Manufacturing tries to smooth the flow of materials from the suppliers to the customers, thereby increasing the speed of the manufacturing process. The objectives of JIT is to change the manufacturing system gradually rather than drastically: 

1. To be more responsive to customers

2. To have better communication among departments and suppliers

3. To be more flexible

4. To achieve better quality

5. To reduce product cost. 

Advantages of JIT

1. JIT aims at keeping the stock holding to bare minimum leading to much lower inventory cost and much lower storage and warehouse cost.

2. Minimum inventory at all stages of supply chain means lesser expiry and lesser wastage for the organization

3. Lower inventory means lower investment for the same level of production. This reduces working capital investment to a greater extent. This in turn leads to better ROI and profitability for the organization

4. JIT manufacturing aims at producing items based on the demand. Hence all items produced will be sold. So no obsolete items in the finished goods section. It helps the organization to adapt well to any changes in product specification from the market without the fear of having any kind of waste and obsolete stocks.

5. To achieve JIT production, there is a need for very close communication between all the parties involved in the entire supply chain. This communication technique is often referred as “Kanban”. 

6. In JIT, immense focus is on quality of the final product and companies work to achieve “first time right” for all goods.

Disadvantages of JIT

1. JIT production can be very sensitive to any kind of error. Since bare minimum inventory levels are maintained, there is no room for any kind of error.

2. JIT production will not be able to adapt well to sudden increase in volume of demand from the market, since the inventory levels are maintained at much lower level.

3. Just in time manufacturing is a philosophy which is achieved only when all the parties involved in the whole supply chain will work in great tandem and coordination. JIT may fail sometime if any of the suppliers will fail to fulfil their obligations and respond to the requirements in a timely manner.

4. JIT focuses on lean inventory; hence there is not much buffer in stock levels. For any reason, if there is any kind of failure that happens in the supply chain, that can lead to sudden down time in production leading to huge losses for the organization.