Just-in-time (JIT)
Just in Time in production may also be referred to as the Toyota production system or Just in time production. This is a method whose primary objectives is to decrease flow periods within manufacturing as well as response time from customers and suppliers. It originated in Japan in the 1960s at a Toyota factory. It was mitigated to the western industries in the 1980s where many manufacturing industries practiced it. Just In time manufacturing strategy struggles to advance organization returns on a business venture by decreasing the procedure inventory and the linked costs. This just in time in production process depends on signs and Kanban amid points in the method and process to meet its objectives. These signals and Kanban tells when to make the production share. This Kanban’s are permits which could be simple visual signs. According to Monden (2011) the Kanban relationship is used in the description of relationships between suppliers in respect to the quantities delivered. This could either be absence or presence of share of a shelf. Just in time in production emphasizes on continuous development when implemented adequately and correctly. It can improve and progress returns of production organizations investments, efficiency, and excellence.
Practicality of JIT
The mechanism for JIT is often misunderstood. For example, active application of JIT is never independent of another important part of a production strategy, or it can terminate with opposite and negative results. Recently, manufacturers and producers have tried predicting techniques including application of a trailing thirteen-week average which is the best predictor for JIT systems. Some researchers have argued that JIT based on the assumption of steadiness is a flawed philosophy. Just in time production philosophy is a simple inventory strategy which exposes hidden costs of maintaining inventory. This does not make it a simple resolution for an organization to accept. The organization should trail a collection of new techniques to control and manage the results of alteration.
The inventory is observed as experiencing expenses rather than adding or installing value, which is against past accounts. This motivates organizations to remove the inventory that does not recompense for production matters and continuously develops the system to require less inventory and also to allow stock management to maintain stock keeping. Management keeps an inventory record to hide production issues which includes backups at work centers, the reliability of the machine, and variability of processes, inflexibility of workers and equipment including inadequacy of capacity. JIT focuses on having the correct material, at the proper time and place and the exact quantity. As shown by Monden (2011) there are far reaching impacts on the applicability and use of the JIT system on an organisation as it affects the industry in different perspectives.
JIT involves making only what is desired when it is desirable, and the quantity required. For example, it is efficient to manufacture thousands of vehicles at minimal costs. It is also advantageous to come up with a detailed manufacturing strategy which involves parts of procurement. Supply what is wanted, when wanted and the quantity wanted according to the production plan to eliminate waste and unwanted requirements resulting in improved productivity.
Analysis of JIT.
Transaction cost method-Just In Time decreases inventory in an organization. However, an organization may just be subcontracting their inventory inputs to suppliers regardless of whether they have JIT or not. Based on research done in Japan where providers were found to be charging JIT customers a five-percent price on their products.
Environmental concerns- Numerous daily deliveries were usually made by bicycle before the introductory of JIT, with increased quantity requiring vans and Lorries. The potential land problems were concerning burning of fossils fuels which violated just in time waste strategies. Management of wastes inclusive of employee’s efforts are critical in the production process. According to Javadian et. al (2013) removal of materials that do not aid in the improvements and inhibit performance is a necessary element in the JIT process
Price instability JIT discreetly assumed an input level cost steadiness that removes the wants to buy shares in advance of cost increases. Wherever there is predictable growth in input prices, it is desired to restore inventory.
JIT quality volatility implicitly takes up data parts making quality remain constant with time. An organization or business may come up with high-quality products. A solution is to function with the selected suppliers to assist the company to improve the JIT processes to reduce costs and variations. Long term price agreement are discussed and agreed on the quality levels of products to be made the responsibility of the supplier. This involves the fixing of volatile quality based on a quality circle. Demand stability. It is argued that the benefits of comparatively stable market, which aids to guarantee well-organized capital consumption rates. Without significant steady demand, just in time becomes unmanageable in extraordinary investment cost manufacture. As indicated by Mark (2012) Just in Time assists in the improvement of sharing through a communication forum that checks on the customers’ demands.
The supply stability. For example, the railway strikes in the US in 1992 resulted in failure to of a worker plant since there was no supply of materials. Implementation design of JIT and strategy process flow Process – Redesign and relay out for flow process, Decrease lot extents – Connection methods – Equilibrium workplace volume.
Some of JIT benefits and objectives includes;
There are less investments on inventories as the levels of inventories are reduced as indicated by Javadian et. al (2013)
There is an improvement inflow of goods from warehouse to shelves. Individual and small part ration scopes minimize portion delay inventories simplifying inventory movement and organization.
Efficient use of employees with several skills. Workers who can work on diverse parts of the progression permits the organization to move workforces where they are desirable.
Manufacture planning and work hour steadiness coordinated and harmonized with demand. Products are made only when there is demand. This enables the company to save money for not paying workers overtime or allowing employees to concentrate on extra works or take part in teaching.
The amplified relationship emphasizes on the supply. Companies with no inventory do not have source system problems to come up with the shortage part making supplier relationship that is critical to consider.
Purchases arise at intervals which are regular and even through the manufacturing period. The resource is coordinated with manufacture demand and the maximum inventory quantity.
Just in time production minimizes storing space desirable in a warehouse.
There is a lesser chance of inventory contravention or perishing.
Conclusion and Recommendations.
In conclusion, the potential relationship between organization learning and just in time production is detected. Concepts, process and issues of the business education including just in time production should be reviewed in any organization. The critical success parameters and the path to just in time production progress should be discussed and implemented correctly in any organization. Analysis and discussion of how these concepts are interconnected from both theoretical and practical considerations are of great importance. JIT processes require the use of constant coordination and flow of information for effective implementation as indicated by Mark (2012). It is argued that the tool focused and efficient based just in time production is similar to business looping as it concentrates mainly on relationship improvement and piece learning using a limited just in time production tools and resources.
References
Monden, Y. (2011). Toyota production system: an integrated approach to just-in-time. CRC Press.
Droge, C., Vickery, S. K., & Jacobs, M. A. (2012). Does supply chain integration mediate the relationships between product/process strategy and service performance? An empirical study. International Journal of Production Economics, 137(2), 250-262.
Javadian Kootanaee, A., Babu, K. N., & Talari, H. F. (2013). Just-in-time manufacturing system: from introduction to implement. Nagendra and Talari, Hamid Foladi, Just-In-Time Manufacturing System: From Introduction to Implement (March 1, 2013).
