Professional Documents
Culture Documents
z and Lean
System
Module No. 5
z
The origin of the "just-in-time" (JIT)
philosophy
History of JIT?
- Evolve in Japan after World War II in 1970s
- Toyota Motor Company
• The Just in Time or JIT, inventory ordering process has been around since
the 1970s, but much newer examples show how much more efficiently a
business can run when it adopts the practice of ordering what is needed
only when it is needed. Companies that are successful in using just-in-time
methods minimize inventory, maximize efficiency, and increase
profitability.
• The JIT inventory system is popular with small businesses and major
corporations because it provides more efficient use of working capital and
enhances cash flow. The JIT system can be especially helpful to small
businesses that are just starting out. It can reduce the amount of capital
required to get the business up and running. Companies tie up less money
in unused inventory and need less storage space.
What is the Basic Principle behind Just in Time
Manufacturing?
• [ Lean control involves the non-financial aspects of a business's operations and focuses on
improving quality and decreasing waste.]
• [ This process was originally used only in manufacturing and used for all product and service
development and related process.
• What are the characteristics of a lean system, and how can managers benefit from this
system?
• [managers must first understand what they are seeking to accomplish. ]
• [ Identify the specific tools and techniques that will be effective for achieving their business
goals, and which tools are not appropriate.]
• What are the five core principles of lean?
1. Always look at the value being provided from the viewpoint of the
customer. Managers must understand how a product meets customer
needs and seek to meet those needs by providing value at a price the
customer is willing to pay.
2. Describe the activities required to bring a product to the customer.
This is known as the value stream and includes both manufacturing
processes, as well as other activities such as purchasing and materials
management. A manager's responsibility includes ensuring that only
activities that provide value are performed.
3. Ensure that the process moves smoothly from one stage to another. This is referred to
as "flow" in each value stream, and seeks to increase flexibility and lower costs.
4. Requires that production takes place at the demand of the customer, known as a
"pull" strategy. This help to reduce lead times, increases flexibility, and seeks to meet
customer demand rather than to predict it in advance.
5. Lean process seeks continuous improvement, known by the Japanese work Kaizen.
This is a mindset that accepts that improvement is always possible, with companies
launching kaizen events from time to time to improve specific activities or processes.
Kaizen is a Japanese term meaning "change for the better" or "continuous
improvement." It is a Japanese business philosophy regarding the processes that
continuously improve operations and involve all employees. Kaizen sees improvement in
productivity as a gradual and methodical process.
The Kaizen approach consists of 5 founding elements: teamwork, personal discipline,
improved morale, quality circles, suggestions for improvement.