Importance of JIT in Modern Organisation

Topics: Supply chain management, Kanban, Supply chain Pages: 11 (2951 words) Published: June 9, 2009
EXECUTIVE SUMMARY

The philosophy of just-in-time (JIT) originated in Japan 50 years ago at Toyota Motor Co. The goal is to create a production environment driven by demand that holds only a small amount of inventory and products at any given time. Organizations in the manufacturing, service and public sectors are implementing a wide variety of innovative managerial tools and JIT philosophy to help them deal with the highly competitive, customer-driven environments in which they must operate. External relationships, for example with vendors and transportation carriers, become critical for effective support of JIT systems. Co-ordinate such relationships and interactions introduces additional complexity into the system. Many companies now operate in a global environment that offers both threats and opportunities to their very survival. This global environment changes at an ever increasing rate and manufacturing organisations need to be able to adapt to those changes very quickly or they will succumb to their competitors. This paper clarifies the basic features of JIT and their benefits to organizations. The paper illustrates some advantages of using JIT system in order to emphasis the importance of adopt this system. Therefore, the purpose of this article is to advocate the JIT systems through analyse the current problems in most organizations.

INTRODUCTION

JIT manufacturing has the capacity, when properly adapted to the organisation, to strengthen the organisation's competitiveness in the marketplace substantially by reducing wastes and improving product quality and efficiency of production.

"JIT manufacturing is a philosophy by which an organization seeks continually to improve its products and processes by eliminating waste" (Ptak, 1997). It is a systems approach to reduce stock and eliminate waste, thus to produces only necessary items in necessary quantities at necessary times. It has been widely implemented in manufacturing industries as a survival strategy against global market competition. JIT offers various benefits, such as greater throughput, higher productivity and better quality. In this paper, the author will start from the basic elements of JIT, and batch size discussion will be followed in section 2. Section 3 will clarify two basic methods of JIT which can be used to overcome the "local versus company-wide" dilemma. The relationship of ERP and JIT will be mentioned in Section 4. Section 5 will illustrate outcomes of JIT to a supply chain of company.

1. FUNDAMENTAL FEATURES OF JIT

JIT composes of ten basic elements which are:

Flexible resources

Cellular layouts

Pull production system

Kanban production control

Small-lot production

Quick setups

Uniform production levels

Quality at the source

Total productive maintenance

Supplier network

The author will illustrate each of these elements and their outcomes for JIT system.

_Flexible Resources_

It is recognized as a key element of JIT which requires workers with the ability to perform more than one job and general-purpose machines with the ability to perform several basic functions. With single workers operating multiple machines, the machines themselves also required some adjustments. Extra tools and fixtures were purchased and placed at their point of use so that operators did not have to leave their stations to retrieve them when needed. The company uses of JIT system can reduce the waste of movement to other machines, setting up other machines and waiting at other machines can also be eliminated.

_Cellular layouts_

It creates manufacturing cells that comprise of dissimilar machines brought together to manufacture a family of parts. The layout of machines within the cell resembles a small assembly line and is usually U-shaped. Work is moved within the cell which in normally in one direction and experiences little waiting. In a one-person cell, the cycle time of the cell is determined by the time it...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Jit Benefits Essay
  • Jit Manufacturing Essay
  • Functions of Managers in a Modern Organisation Essay
  • JIT in Honda Essay
  • The Importance of Accounting to the Stakeholders of an Organisation Essay
  • Essay about Marketing Audits and Its Importance to an Organisation
  • Importance Od Communication in Organisation Essay
  • JIT service Essay

Become a StudyMode Member

Sign Up - It's Free