Just in Time - How To Apply JIT Inventory And Production System?
Written By : Bakkah
7 May 2023
Organizations strive to continuously improve the production process that suits their vision and mission; therefore, they began to do research and analysis of their resources and opportunities. However, improvement does not take place overnight.
It is not random or effortless, but rather, it is more than that. Specialists believe that achieving simple continuous improvement is better than achieving instantaneous significant one. Through this article, we will describe the Just in Time (JIT) method and determine how to apply it.
What is Just in Time Or JIT?
The Abbreviation JIT is from the statement "Just in Time" that originated in Japan. Taiichi Ohno, the founder of Toyota Group, is the first to come up with this system when he found that the manufacturers would set up their manufacturing lines to produce a large quantity of one product before stopping and switching to a different product.
Just in Time is the inventory control system that seeks to process improvement, increase efficiency, and reduce waste. It is done by ordering the right quantities of raw materials needed for the production process and providing them to the production department at the right time, with the right quality so that the stock reaches zero.
Apply the Just-in-Time Inventory System:
We cannot put specific steps for implementation, since every organization has different opportunities and challenges, but here are some general tips on how to apply them:
1. Set the Goal
After you have determined your organization’s mission and what strategic plan you will use, divide your goals into a set of simple goals or levels according to the period of time. Remember to maintain the convergence between each level and the other in a way that facilitates passage effortlessly.
2. Get Support from your Workers
Have all organization’s employees' support for the implementation process, from machine workers to top management. Everyone should be aware of the process even if they are not a part of it. Determine the implications and what are the obstacles that may face them in implementation, this will help you to gain support from all workers and help them succeed in the process.
3. Restructure the Production Process
Start by identifying the strategy you will follow to implement the method at the right time. Then, work to restructure it by involving Material Requirement Planning (MRP), scheduling the production inputs, including marketing activities and purchasing operations.
4. Review your Supply Chain
The success of the implementation process depends on the coordination and integration of your supply chain, and any failure in one of the parties will lead to a failure in JIT implementation.
The organization must establish a long-term relationship of cooperation and commitment with suppliers through which the supplier delivers raw materials according to the right quantities, and prices, and on time without any delay or shortage. The absence of this realistic relationship reduces the JIT's effectiveness, resulting in obstacles like price war or one of the competitors getting a lower price for raw materials.
5. Get Advice from outside your Supply Chain
You can hire an expert to review all parts of the supply chain and the production process in general. Get a different view of the internal environment, so that you can evaluate your work and find proper ways to improve your production process.
6. Take Care of Feedback from your Clients
Make sure your customers are interested in reviewing your products. This will give them the opportunity to discover any errors or amendments suggested by them. Besides, it increases their satisfaction while the consumer feels that they have participated in the design or the change of the production process and that the organization is always focused on meeting their needs.
JIT Inventory Control is very effective and efficient. It is based on a clear principle that prevents producing large quantities of the product, keeping it in the warehouse, and bearing the costs of storage. In this case, the supply will be greater than the demand which reduces ROI. It also seeks to continuously improve the production process and solve any problem that may have occurred in the production process so that there's no place for error.
Best Courses For Supply Chain Management:
There are some courses to master the topic of supply chain management to achieve the Just on Time System, I would recommend these supply chain management courses:
Best Of luck!