Essay on Jit Strategy

1219 Words Dec 3rd, 2012 5 Pages
Just in time strategy

Introduction

the objectives of this presentation is to introduce the concept of “JIT” and its efficiency in cost-effective operation in both product and service manufacturing. This strategy is widely used nowadays due to its ontime delivering of the right product/service at the time of its demand. This is a system that is highly used in many industries. In this essay we will see the example of the most common industry using JIT manufacturing, the automobile industries and explain why this method is so effective and widely accepted.
Definition/ General Description

Just-in-time method is based on the total elimination of waste, producing goods and services only when needed withought having to store inventory
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At that time, the American auto manufacturers had used the traditional way of batch production. To do this they had ordered enough parts to complete the batch, and then stocked cars and materials. After many failures, Toyota had come up with a system that would better fit Japan's capabilities. The whole idea is based on the elimination of waste principle. Limiting setup time had become a key factor in the Toyota Production System, since setup time is also down time in which production lines stops and employees get paid for waiting. To decrease the setup time, Toyota had reengineered machines so that optimal setup time could be achieved. Toyota has always been one of the most successful companies because of applying the JIT principles.

Characteristics/Objectives of “JIT”
The Implementation of JIT takes time and commitment from all levels in the company and must be carefully planned in big companies such as Toyota. An overall objective of JIT is to limit resources used in the manufacturing system in order to improve efficiency. Some of the specific areas that could be corrected to improve efficiency of producing cars are:
*Overproduction (waste from producing more cars than is needed)
*Transportation (waste such as that associated with moving items around a factory)
*Processing time (waste

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