Topic > Just In Time - 1976

Just-In-Time (JIT) is a Japanese production management method developed in the 1970s. It was first adopted by Toyota manufacturing plants by Taiichi Ohno. One of the motivating reasons for the development of JIT was the need for a better manufacturing technique after World War II. The Japanese had a strong incentive to develop good manufacturing technique to help them rebuild the economy. They also had a strong work-focused ethnicity that caused continuous improvement. These types of motivations have driven Japanese economies to success. Due to natural constraints and post-World War II economic constraints, Japanese manufacturers sought a way to achieve the most efficient use of limited resources. The Toyota Company implemented this in their plant and changed their management and accounting principles to effectively and efficiently move inventory in and out very quickly while also focusing on the manufacturing aspects of their cars. After the first introduction of JIT by Toyota, many companies followed around the mid-1970s and it gained extensive and widely used support by many companies around the world. Just in Time is an inventory strategy implemented to improve a company's return on investment by reducing work-in-process inventory and related carrying costs. JIT can lead to dramatic improvements in the return on investment, quality and efficiency of a manufacturing organization. Just-in-time means, literally, that an assembler on a line receives his supply of parts "just in time" to use them. The system is based on an ideal situation where a part arrives just in time to be used. The system works even with very small batches of spare parts. This type of system produces only the quantities necessary to satisfy the demands of the next operation. The quantity is taken when it is needed, where it is needed and in the exact quantity needed. The company will also need to ensure that the process has adequate response times to maintain an uninterrupted schedule. Companies can make great strides in JIT by reducing machine installation and changeover times. JIT recognizes that any movement that does not add value to a product increases the non-value-added cost of the product. Reducing installation and changeover times reduces non-value-added costs associated with a product. With Just in Time management, a company can significantly improve product quality.