Just in Time (JIT) is one of the Lean Tools used in modern supply chains to reduce cost, by cutting the amount of material and goods a company have in stock
It means “only what is needed, and when it is needed”, and looks at the following.
- Materials arrive just in time to be made into parts.
- Parts arrive just in time to make the Sub-assemblies
- Sub-assemblies are made just in time for when finished product needs to be assembled.
Just in Time is originally from Japan, and was developed within Toyota by Taiichi Ohno to eliminate waste like overproduction, waiting time and inventory.
Principle Behind Just in Time
The principle behind Just in Time is that everything is pulled rather than pulled through a manufacturing area, supply chain etc. For this to be possible, there need to be a costumer for every function who place an order to start the process.
Like from the examples above, then the function making the subassembly would place an order for the parts to arrive at the time they are needed.
Benefits of Just in Time
- Enables a company to produce only what is required, in the correct quantity and at the correct time.
- Stock levels of raw materials, components, work in progress and finished goods can be kept to a minimum
- There is less chance of stock becoming too old.
- Avoid huge amount of stored products that can’t be sold due to changes in demand
Disadvantages of Just in Time
- Production become very reliant on suppliers, any delay in supply would affect the entire production schedule.
- There is not much room for mistakes due to small amount of stock available
Just in Time and Supplier Relationship
As Just in Time relies heavily on suppliers in order to have the correct amount of material at the right place and at the right time, strong ties with your supply chain is essential for it to work.
If a new technology becomes available that your customers want in your products, then you can make this change easy, as you do not have a lot of money tied up in excess stock you need to use up.
Again all this is only possible if you can rely on your suppliers, which is why your relationship with them is crucial for your success with Just in Time.
Alternatively you can continue to our quality training page to see some of the training we offer.Go to Quality Training