JUST IN TIME MANUFACTURING SYSTEM

What is Just in Time Manufacturing or JIT? A corporate system designed to produce output within the minimum lead time and at the lowest total cost by continuously identifying and eliminating all forms of corporate waste and variance. It is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand A corporate strategy and a philosophy The focus of JIT is to eliminate variance & waste

Objectives of JIT Produce only the products the customer wants. Produce products only at the rate that the customer wants them. Produce with perfect quality Produce with minimum lead time. Produce products with only those features the customer wants. Produce with no waste of labor, material or equipment -- every movement must have a purpose so that there is zero idle inventory. Produce with methods that allow for the development of people

Philosophy of JIT JIT means getting the right quantity of goods at the right place and right time All waste must be eliminated- non value items Broad view: that entire organization must focus on serving customers JIT is built on simplicity- the simpler the better Focuses on improving every operation- Kaizen Install simple visible control systems Flexibility to produce different models/features

The main benefits of just in time manufacturing system are the following: 1. Funds that were tied up in inventories can be used elsewhere. 2. Areas previously used, to store inventories can be used for other more productive uses.

3. Throughput time is reduced, resulting in greater potential output and quicker response to customers. 4. Defect rates are reduced, resulting in less waste and greater customer satisfaction. Disadvantages of using the just in time system: 1. Implementing thorough JIT procedures can involve a major overhaul of your business systems- it may be difficult and expensive to introduce. 2. JIT manufacturing also opens businesses to a number of risks, notably those associated with your supply chain. With no stocks to fall back on, a minor disruption in supplies to your business from just one supplier could force production to cease at very short notice.