Automaker Toyota)
Basic idea behind JIT is to produce only what you need, when you need it.
Bicheno (1991) states that 'JIT aims to meet demand instantaneously, with perfect quality
and no waste'.
Harrison (1992) identified three key issues as the core of JIT philosophy :
- Eliminate waste
- Involve everyone
- Continuous improvement
Seven types of waste identified by Ohno (1988):
- Waste from over-production
- Waste of waiting time
- Transport waste
- Processing waste
- Inventory waste
- Waste of motion
- Waste from product defects
The benefits of JIT are:
- Better quality products
- Reduce cost for production
- Improve production flow
- Improve relationships with suppliers
- Develop high quality of workforce
- Improve customer satisfaction
Read More: [Book Name] p.349-351
Additional:
The main benefits of JIT:
(1) Reduce costs - The major benefits of JIT system is the elimination of raw material,
inventory and product storage costs. Thus, it reduce the manufacturing
cost for the product.
(2) Improve supplier relationships - JIT develops a system of effective communication with
the supplier, specifying the exact product required in exact
quantity and the specific time of delivery. This eliminates
all scope of misunderstandings or miscommunication.
(3) Develop human resources - JIT highly focused on targets, deadlines, quality and so on,
the workers will be train to be flexible and to be able
to undertake duties that may be in areas other than their
workstation.
(4) Increase customer satisfaction - The elimination of product cost will lead lower cost of
product for end user. The high quality of workforce will
influence to produce better quality of product. Thus,
it increase the customer satisfaction.
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