Just In Time(JIT)
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The Just-in-time is a
management strategy that
aligns raw-material orders
from suppliers directly with
production schedules.
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Companies use this strategy
to increase efficiency and
decrease waste by receiving
goods only as they need them
for the production process,
which reduces inventory
costs.
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JIT method requires
producers to forecast demand
accurately.
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The main objective of JIT
manufacturing is to reduce
manufacturing lead times,
and this is primarily achieved
by drastic reductions in WIP.
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Just-in-time (JIT) is easy to
grasp conceptually;
everything happens just-intime.
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For example consider you
are entering the bus stop
just before the bus arrives,
reaching the training just
before the session start.
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After the training session,
you get on the bus/train just
before the rain started.
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But, in reality, it is not true,
so it can’t happen this way.
So a minimal amount of
buffer has to be kept.
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Minimizing the buffer and
the variation is the key.
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JIT does not come for free – it
requires certain changes to
the factory and the way it is
managed must occur before
the benefits can be realized.
Among these changes are:
- Stabilize production schedules
- Increase production capacities
of manufacturing work centers
- Improve product quality
- Cross-train workers so that they
are multi-skilled and competent
in several job works.
- Reduce equipment breakdowns
through preventive maintenance
- Develop long-term supplier
relations that avoid
interruptions to material flows
Expert's Comment
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The main objective of JIT manufacturing is to reduce manufacturing lead times, and
this is primarily achieved by drastic reductions in WIP.
- Hint: The success of JIT is directly proportional to the effectiveness of Kanban
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Caution: Do not implement at the cost of losing your business. It is ok to have some
inventory & WIP rather than losing the order from a customer