Just-In-Time (JIT) Defined

JIT can be defined as an integrated set of activities designed to

achieve high-volume production using minimal inventories (raw
materials, work in process, and finished goods)
JIT also involves the elimination of waste in production effort
JIT also involves the timing of production resources (i.e., parts
arrive at the next workstation just in time)
JIT operates with very little fat

Comparison of JIT and Traditional

Factor

Traditional

JIT

Inventory

Much to offset forecast

errors, late deliveries

Minimal necessary to operate

Deliveries

Few, large

Many, small

Lot sizes

Large

Small

Setup; runs

Few, long runs

Many, short runs

Vendors

Long-term relationships
are unusual

Partners

Workers

Necessary to do the work Assets

2

Features of JIT Systems

1. Small Work-in-Process Inventories.
Advantages:
1.Decreases Inventory Costs
2. Improves Efficiency
3. Reveals quality problems (see Figure 7-10)
Disadvantages:
1. May result in increased worker idle time
2. May result in decreased throughput rate

Features of JIT Systems (continued)

2. Kanban Information Flow System
Advantages:
1. Efficient tracking of lots
2. Inexpensive implementation of JIT
3. Achieves desired level of WIP
Disadvantages
1. Slow to react to changes in demand
2. Ignores predicted demand patterns

Features of JIT Systems (continued)

3. JIT Purchasing System
Advantages:
1. Inventory reduction
2. Improved coordination
3. Better relationships with vendors
Disadvantages:
1. Decreased opportunity for multiple sourcing
2. Suppliers must react quickly
3. Potential for congestion
4. Suppliers must be reliable.

JIT and Lean Management

JIT can be divided into two terms: Big JIT and Little JIT
Big JIT (also called Lean Management) is a philosophy of operations
management that seeks to eliminate waste in all aspects of a firms
production activities: human relations, vendor relations, technology, and
the management of materials and inventory
Little JIT focuses more narrowly on scheduling goods inventory and
providing service resources where and when needed