What is Just in Time manufacturing (JIT)?

What is Just in Time manufacturing (JIT)? JIT or Just-In-Time manufacturing, is a management philosophy that focuses on eliminating production costs by producing only the right quantity and combining components in place at the right time. This is based on the fact that losses result from any activity that increases costs without adding value to the product, such as the shift of inventory from one place to another or even just the act of storing inventory.

What is JIT?

JIT originated in Japan, where it has been practiced since the early 1970s. It was developed and perfected by Toyota’s Ohno Taiichi, who is now seen as the father of JIT. Taiichi Ohno developed these philosophies as a means to satisfy customer requirements in the fastest time. Thus, in the past, JIT was used not only to reduce the cost of production, but also mainly to produce goods so that the goods reach customers exactly when they need it.

JIT is also known as a lean or non-inventory production method, because the key factor behind the successful application of JIT is to reduce inventory at various stages of production lines to a minimum. This requires a good coordination between the stages so that each stage only produces the exact amount necessary for the next stage. In other words, a stage only receives the exact amount needed from the previous stage.

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The JIT system includes the definition of the production flow and establishes the production area so that the raw material flow when put into production is smooth and without any stoppage, thereby reducing material waiting times. This requires the ability of the different workstations to pass material respectively and balance correctly, and as such the “bottleneck” points in the production line will be excluded. This structure ensures that raw materials are processed without queuing or stopping.

Another important aspect of JIT is the use of a “pull” system to move inventory through the production line. With such a system, the requirements of the next stage will adjust the output of the previous stage. Therefore, for JIT it is necessary to define a process to facilitate the “pulling” of batches from one stage to the next.

What is the purpose of JIT?

The purpose of the JIT is to minimize activities that do not add value and do not move inventory in the production line area. This will lead to faster production and shorter delivery times, more efficient equipment usage, smaller space requirements, lower product error rates, lower costs, and higher profits.

Just in time inventory examples

The Just-In-Time (JIT) strategy is encapsulated in one sentence: “the right product in the right quantity at the right time.” In production or service, each stage of the production process produces a quantity exactly the amount that the next production stage needs. Processes that do not generate added value must be abandoned. This is also true of the final stage of the production process, i.e. the system only produces what the customer wants.

In other words, JIT is a production system in which the flows of materials, goods and products transported during production and distribution are planned in detail step by step so that the next process can be carried out as soon as the current process is terminated.

Ford’s assembly lines have been adopting JIT since the 1930s. It should be added that Ford is at the fore in imposing production lines. However, it was not until the 1970s that the production process under the JIT model was completed and applied by Toyota Motors. In the industrialization after World War II, Japan implemented a technology import strategy to avoid the cost burden of research and development (R&D) and focused on improving production processes (kaizen). The goal of this strategy is to improve the quality and reliability of the products. Eiji Toyoda and Taiichi Ohno of Toyota Motor developed a new production system concept, which is now known as the Toyota SX System. Many researchers believe that Japan has today comes from a production platform based on that great system.

Toyota Production System

To try and learn JIT in Toyota production system, first of all, it is necessary to distinguish two traditional production concepts as craft and mass. Sophisticated manufacturing often uses extremely skilled workers along with simple but flexible tools (especially in crafts) to create each product at the customer’s will. The quality of this form of production probably does not need to be discussed, but the price leading to very high selling prices is a factor that narrows the market. As a result, mass production was born, marking a development in early 20th century production.

Mass production uses middle-class skilled workers to operate single-function industrial machines, creating standardized products in very large quantities. Because the value of machinery as well as the cost of redesign is very expensive, mass manufacturers always try to keep product design standards as long as possible. As a result, the price entails a decrease in the selling price. However, industrial style makes workers boring and lose motivation to work.

Toyota Motor has combined 2 sophisticated and mass production methods, eliminating weaknesses in price and industrial tightness, launching a new production method with a team of skilled workers equipped with flexible, versatile machinery system, capable of producing with many levels of capacity. This method is considered to use less manpower, less area, produce less waste, and produce more types of products than mass production.

The foundation of Toyota production system is based on the ability to continuously maintain the product line in factories in order to flexibly adapt to the changes of the market, which is the concept of JIT later. Excess inventory and labor are minimized, thereby increasing productivity and reducing costs. In addition, although cost mitigation is the top requirement of the system, Toyota has set 3 sub-objectives to achieve that key goal:

– Quality control: helps the system adapt monthly or even daily to the change of the market in quantity and variety.

– Quality assurance: ensure each process only creates good product units for the next processes.

– Respect for people: because human resources are under a lot of pressure under efforts to reduce costs.

In the automotive assembly process, components must be supplied in time by other processes in the right quantity. From there, inventories will be significantly reduced, leading to a decrease in the inventory area. As a result, the cost of warehousing is eliminated, increasing the payback rate. However, in a complex industry such as the automotive industry, the application of JIT to all processes is very braised. Toyota Motor has taken the opposite direction, i.e. workers of the following process will automatically take the necessary components with the necessary quantity at each previous process. Thus, what the previous process workers had to do was produce enough components that were taken away.

Kanban

Kanban is an information system that controls the number of components or products in each production process. Meaning a label or a sign, each kanban is attached to each ingredient box through each assembly stage. Each worker of this stage receiving components from the previous stage must leave a kanban marking the transfer of a specific number of components. After being fully filled in from all stages in the production line, a similar kanban will be sent back both to save the completed work record, as well as to request new components. Kanban thereby combining the flow of components with the composition of the assembly line, minimizing the length of the process.

Kanban is applied in 2 forms:

–Withdrawal kanban: details about the type and quantity of products that the following process will withdraw from the previous process.

–Production-ordering card: details about the type and quantity of products that the following process must produce.

After Japan, JIT was developed in North America by two TQM (Total Quality Manufacturing) experts La Deming and Juran. Since then the JIT model has spread all over the world. JIT is a production philosophy with the goal of eliminating all sources of waste, including unnecessary inventory and production scrap. In short, JIT creates the following advantages:

– Reduce the levels of inventory of semi-finished products, finished products and goods.

– Reduce space to use

– Increase product quality, reduce scrap and faulty products

– Reduce total production time

– More flexibility in changing production complexes

– Take advantage of the participation of workers in problem solving

– Pressure on relationships with customers

– Increase productivity and use of equipment

– Reduce the demand for indirect labor

By putting into practice the processes of Just in time, in a correct and well planned way in any area of the company, the Just in time system will help eliminate waste and losses that will be well used by the company, because the use will bring benefits and positive results. The Just in time tool consists of delivering products and services, at the right time for immediate use with quality, because the goal is to continuously seek to improve the production process, reducing losses and obtaining satisfaction.

Finally, the Just in time tool should be oriented in an educational and training way, as a support, to avoid doubts and unknown questions about the system implemented in the company, explaining its objectives and what the company’s goals are. This will bring the trust of the people involved and avoid complications in the organization.

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What is Just in Time manufacturing (JIT)?