Just-in-time (JIT) is a management philosophy that devote to avoid sources of manufacturing waste by producing the right part in the right placeat the right time(Hutchins, 1999).The JIT system results in much less inventory, lower cost (including both holding cost and ordering/setup cost to be lower at the same time) and better quality than those traditional approaches. The aim of this paper is to explain how the JIT developed and show some detailed investigation briefly.
2. Background Just In Time is a Japanese manufacturing management method developed in 1970s. It was first adopted by Toyota manufacturing plants by Taiichi Ohno(Hutchins, 1999). The main concern at that time was to meet consumers’ demands. After the first introduction of JIT by Toyota, many companies followed up and around mid 1970s’, it gained extended support and widely used by many companies. The main reason for developing JIT is that the existing system did not manage well for fast delivery request, sothere was a need to have a faster and reliable delivery system in order tohandle customers’needs.
3. Benefits and limitations To make the inventory level to achieve zero-inventories isone of the most obvious benefits of JIT. Meanwhile, the operational efficiency can be improved dramatically in virtue of maximum using the working force(Rene T Domingo, 2003). However, regardless of the great benefits of JIT, it has its limitations. First of all, the culture of various firms is different. There are maybe some cultures become successful by using JIT, but it is difficult for a company to change its culture within a short time. Secondly, some companies which rely on safety stocks may have a problem with the use of JIT. Thirdly, it is maybe different for other countries to implement and the benefits may vary because JIT was originally established in Japan. Finally, due to the shorter cycle times of JIT, it adds pressure and stress on the workers.
4. Management skills It is essential for managers to have some basic qualities in order to motivate workpeople during the process of JIT. Firstly, the loyalty to the company and to their colleagues.Secondly, a wish to be proud of the company’s products. Thirdly, they want security and continuity of employment, and a long-term relationship with their friends and colleagues. In addition, they can get a long-term development not just the narrowly based skills in the company. Finally, they would like to see a future in the company for their own family and friends(Hutchins, 1999).
5. Conclusion In conclusion, astheanalysisabove, the core principle of JIT is to minimum the inventory until achieve zero inventories. Besides, JIT was first originally established in Japan. However, even though JIT has lots of benefits, its shortcomings are still numerous. Finally, as a manager, it is vital to have some skills to manage and motivate workpeople in a process by using JIT. In future, JIT may not just a management philosophy in logistics, it can apply for other aspects of our dailylives(Hutchins, 1999).
6. Reference list: Hutchins, D. C. (1999) Just in time. 2nd edn.Aldershot, Hampshire, England ; Brookfield, Vt., USA: Gower. Rene T Domingo (2003) manufacturing management [online available] http://www.rtdonline.com/BMA/MM/2 html [date accessed: 06 Oct 2013