Just in Time

BUS 320 - Group Research Project

"JUST IN TIME"

Just-in-time (or JIT) manufacturing is a way of managing manufacturing systems that could reduce waste, and lower cost, thus increasing profit. Just-in-time can also be defined as a philosophy of manufacturing based on planned elimination of all waste and on continuous improvement of productivity. It has been described as an approach with the objective of producing the right part in the right place at the right time, hence the phrase Just-in-time. JIT should improve profits and return on investment by reducing inventory levels, reducing variability, improving product quality, reducing production and delivery lead times, and reducing other costs, such as those associated with machine setup and equipment breakdown.

Just-in-time applies to repetitive manufacturing processes in which the same products and components are produced over and over again. The general idea is to establish flow processes by linking work centers so that there is an even, balanced flow of materials throughout the entire production process, similar to that of an assembly line.

JIT can be traced back to the late 1700's. Eli Whitney contributed his concept of interchangeable parts to the idea of JIT manufacturing in 1799. The basic elements of JIT were developed by a Toyota motor company in Japan in the 1950's. In order to begin use of JIT manufacturing in Japan, they first researched American production methods focusing on Ford's practices. In Japan Just-in-time manufacturing is referred to as the Toyota Production System. This concept came after World War II when the Japanese automotive manufactures realized they were behind the American mother companies. Toyota realized they could not follow the same manufacturing technique as American manufacturing because of their relatively low space, resources, and demand. The entire system is based on the elimination of waste principle. Time, resources, and materials were all areas where waste could be found. Toyota was able to increase efficiency and keep up with American auto manufacturing by assessing and solving these problems. Several years later after the first introduction of the new production system Toyota successfully implemented this technique across the company. Just-in-time began to be adopted in the United States in the 1980's with General Electric being an early adopter.

To meet Just-in-time objectives, the process relies on signals or Kanban between different points in the process, which tell production when to make the next part. Kanban can be defined as a "signboard" or "visible record". As implemented in the Toyota Production System, a kanban is a card that is attached to a storage and transport container. A kanban system is also referred to as a "pull" system. This system uses simple, visual signals to control the movement of materials between work centers as well as the production of new materials to replenish those send to the next work center. Toyota used the kanban to control the flow of inputs and output in the production system.

Toyota Motor Corporation is known as the "master and pioneer" of just in time and are currently entering the market to provide customized vehicles to customer with a minimal wait. Toyota has spent years revamping its ordering, manufacturing and distribution to make it easier for dealers and customers to make changes right before production. Toyota has adjusted their distribution process to effectively provide customized vehicles in a just in time process. Toyota now sends