RCG University

Just-in-Time

Definition

Just-in-time is a company wide philosophy oriented toward eliminating waste throughout all operational
functions and improving materials throughput. The goal of JIT is to eliminate any function in the
manufacturing system that causes overhead, slows productivity, or adds unnecessary expense. It is
mostly characterized by a pull production system, which supplies a component only on demand without
the intervention of inventory. Thus JIT is characterized by "zero" inventory philosphies.

To implement the philosophy in manufacturing, JIT techniques provide "the cost effective production and
delivery of only the necessary quality parts in the right quantity, at the right time and place, while using a
minimum of facilities, equipment, materials, and human resources."

Just-in-time techniques can be applied to the full cycle of procurement, manufacturing, and delivery.
Characteristics of Just-in-time techniques are as follows: improved work place organization, visibility of
operations and outcomes, Kanban production control, steady-rate timing, flexibility, and development of
simple manufacturing processes.

Material related costs are reduced by reducing the number of suppliers a company deals with and
developing long-term contracts, eliminating the need to count individual parts, reducing order scheduling,
eliminating expediting, simplifying receiving systems, eliminating receiving inspection, eliminating most
unpacking, eliminating the stocking of inventory, and eliminating excess material spoilage.

Manufacturing related costs are reduced by design for manufacture and design for assembly techniques
where unnecessary parts or processes are eliminated. They are also reduced through the elimination of
excess material handling, inspections, and storage of parts. The primary thrust is to eliminate nonvalue
adding tasks. Quick change over techniques replace long set-up times, and cells replace traditional
assembly lines.

Visual controls are often used to schedule the production of parts in place of virtual systems such as
MRP. Statistical process control is used to assure that the outcome of production is consistently met with
desired results.

The Issues

JIT is often viewed in direct conflict with Material Requirements Planning (MRP) since JIT uses pull
scheduling and MRP uses a push methodology. JIT is best suited for repetitive production environments.
Some consulting firms in the past have recommended replacing MRP and information systems with JIT,
and "pulling the plug from the computer." This is nonsense and an overdose of a manufacturing
philosophy. Just like anything else, Just-in-time is no panacea, nor should it be embraced as a religion. It
is an operational strategy that, if implemented properly, will provide a new dimension to competing:
quickly introducing new customerized high quality products and delivering them with unprecedented lead
times, swift decisions, and manufacturing products with high velocity.

Pragmatic Applications
Just-in-Time works very well in reducing overhead and inventory. It is also an excellent execution system
in that scheduling can be vastly simplified with physical controls. When used in conjunction with MRP
systems, MRP should be confined to forecasting long term supply needs and production planning, thus
"cutting the belt" between planning and execution.

Our Approach: Tools from a Toolchest

Rockford Consulting Group applies concepts and technologies as the situation warrants, that will result in
the ultimate benefit to our clients. We treat strategies, technologies, and methodologies as tools in a
toolchest, and use them when they offer practical solutions and achievable results. We believe that each
client situation is unique, with its own unique set of solutions. (Please see our lean manufacturing
consulting services Lean Manufacturing Consulting Services )

Why Us?

Rockford Consulting Group can provide long-term assistance to many companies in a variety of
industries. The firm has a cadre of the best supply chain consultants in the world today, providing high
quality professionalism through the use of experience and innovation.

We subscribe to the Institute of Management Consultants Code of Professional Conduct. All consultants
engaged on projects adhere to its principles. Whenever possible we will use consultants certified in their
particular specialty area. Certification assures that consultants have substantial prior experience in their
specialty, and their competencies have been tested by the IMC, and verified by a number of clients. This
assures our clients that we are assigning the highest qualified consultants in the profession.

We provide technical expertise, team facilitation, leadership, and direction in deciding how you will meet
the challenge. We refer you to our Qualification Statement for further details on our background, areas of
specialization, concepts and technologies applied, staffing, operating policy, approach, companies and
industries served, case studies and references. Equally as important, we train our clients to sustain new
methods of manufacturing and the consequential benefits over time. Your company will benefit directly
from this training.

We have achieved an efficiency in our approach to assignments that allows us to provide high quality
technical and managerial advice in a much shorter amount of time than could be accomplished years ago.
We are able to do this because of the extensive consulting experience that each of our specialists has.

©1999 Rockford Consulting Group, Ltd.

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