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The Concept of Just in Time Inventory System and its objectives

The Concept of Just in Time Inventory System and its objectives

Sep, 04th 18

JIT (an acronym for Just In Time) is an inventory management system used to increase the efficiency of the production process. Reduced waste, flow time and response time are some of the major benefits of this system. It is also called as Toyota Production System and was first introduced in Japan; sometime between the 1960s and 1970s.

Quiz Question

 

The JIT system's focus on quality involves?

 

  1. Conformance to product or service specifications
  2. Control quality at the source
  3. Elimination of scrap and rework
  4. All of the above ( Answer)

Objectives of JIT Manufacturing are,

 

  • Elimination of waste

 

  • Better quality

 

  • To have better communication between departments and suppliers,

 

  • Improved flexibility

 

  • Reduced product cost

 

Starting off with one of the major focuses of the JIT system — conformance to product or service specifications. It ensures that the products adhere to the terms of Total Quality Management (TQM). In order to do that, raising awareness about high quality and importance of sticking to the product specifications is done. Employees at all levels are trained and encouraged to indulge in group activities to understand the process better.

Above mentioned activities bring us to another major concern of JIT system i.e. maintaining high quality by controlling/modifying activities at the source. Workers who are thoroughly aware of their duties will be able to make instant modifications to the process in case of emergencies. A better understanding of roles and responsibilities enable employees to combat crisis with ease. Plus, as phases of the production process are closely related, even the slightest of change in one phase tends to affect the rest of the process in various ways. To avoid this, controlling of quality right from phase 1 and combating issues that arise at the source is crucial. Elimination of defects at the earliest and resolving the root cause of them in the shortest period of time is the aim of the JIT system.

JIT allows elimination of all types of waste in a process; majorly in inventories and manufacturing. It provides benefits like zero defects, nil breakdowns and elimination of non-value added steps in a process. With this, organizations tend to reap high profits whilst delivering products on time. Furthermore, reduced waste helps businesses set better pricing. Products can be sold at a price lower than that of their competitor’s. Apart from the elimination of scarp/waste, JIT also focuses on the rework part. By reorganizing processes based on similarities i.e. grouping of products with similar specifications that undergo an almost similar process of production, one can reduce material handling costs. Plus, conversion time is reduced giving a faster rate of delivery. Another benefit of rework is that work in process inventories and defects are eliminated.

 

Apart from these, JIT also acts as a control technique which includes methods like uniform loading, pull system and synchronized production. At every stage of a process, JIT aims to reduce lead time in order to deliver high-quality products swiftly. After all, the speed of delivery has become one of the major deciding factors among customers whilst buying any product.

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