Jit Benifits and Limitations Essay

3504 Words Aug 7th, 2011 15 Pages
Just-In-Time Inventory Management Strategy & Lean Manufacturing
Overview of Just-in-Time Inventory Management

Just-in-time is a movement and idea that has gained wide acceptance in the business community over the past decade. As companies became more and more competitive and the pressures from Japans continuous improvement culture, other firms were forced to find innovative ways to cut costs and compete. The idea behind JIT, or lean manufacturing, is to have the supplies a firm needs at the exact moment that they are needed. In order to accomplish this goal a firm must constantly be seeking ways to reduce waste and enhance value. A recent survey of senior manufacturing executives showed that 71% used some form of JIT in their
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Examples of these kinds of partnerships are everywhere in today's business world. XYZ-Company allows its key suppliers to work directly at their manufacturing sites and place orders as needed for the parts that that supplier supplies. By example Dell has its suppliers store raw materials directly at the manufacturing plants.

Other concepts of Just In Time also need to be introduced in order to have a discussion about what truly makes Just In Time a worthy endeavor. By the 1980s the Japanese had achieved manufacturing greatness by practicing continuous improvement, in that a firm is constantly working to improve in every facet of its business functions. To do this a firm must always increase quality, look for innovative ways to solve problems and increase focus on the quality of its suppliers. All of these are cornerstones of a modern JIT system. Lastly, getting the workforce to buy into a JIT lean manufacturing system is important because without the dedication of the workforce, any endeavor is sure to fail. There are several ways to achieve workforce commitment. A simple way is to cross train the workforce members outside of their normal business function and help increase an employee's problem solving ability. In doing so a firm is empowering its workforce to think about their function in a new way while looking for ways to

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