The just-in-time production also referred to as JIT is a management philosophy that refers to the production of goods needed to meet the customer demand in timing, quantity, and quality. However, should this practice be abolished? Plus, why should manufacturers avoid just-in-time production?
The model which is a manufacturing one was created to help in meeting the demand avoiding any waste that was associated with overproduction. Just-In-time is a Japanese management philosophy which has been into practice since the early 70’s in the Japanese manufacturing organizations. The model was first developed and used within Toyota manufacturing plants as a means of meeting consumer demands without minimum delays. Many Toyota production plants were the first ones to use the JIT model making it gain extended support hence having lots of other manufacturing companies adopting the model in their industries.
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The main purpose of using the Just-In-time method is avoiding the waste connected to overproduction and excess inventory. It is a strategy employed to help increase a manufacturers efficiency and reduce waste by receiving parts and material only as they are needed in the production process thus helping reduce inventory costs. Manufacturers are, therefore, required to forecast most of the demands accurately for the method to apply fully and well.
Some of the advantages that JIT provides is that it allows manufacturing company to meet most of their consumer demand regardless of the level of demand which is possible using a pull system of production that involves and places more emphasis on satisfying a person’s needs efficiently and quickly.
Manufacturers that tend to use the JIT system greatly minimize the time lapse between processing, the arrival of materials and assembling the final product which immensely minimizes how production occurs in a manufacturing company. The just-in-time production also helps manufacturing companies use less raw materials thus freeing up more amount of space and time between operations within the manufacturing industries.
The other advantage associated with manufacturing companies that employ just-in-time manufacturing model find that doing purchases under JIT requires a significantly shorter delivery lead time which is greatly improved and reduced hence increasing reliability which contributes to a significant reduction in the safety-stock requirements.
It is known that reduced lead times help increase the manufacturer's flexibility where production within planning is reduced. It is understood that JIT improves the quality levels of many companies whenever the order quantity is minimal and there are no identifiable problems then the solution can be traced quickly and immediately.
The just-in-time model helps improve the costs that are related to purchasing materials as manufacturing companies can lower their investments by increasing their inventories and decrease the number of risks that are associated with it.
For manufacturing companies to use the Just-in-time model in production, they need to put their reliance on suppliers of raw materials to make timely deliveries greatly reducing a customer’s goods. It has led to many companies forecasting their sales trends and data needed in understanding how business is turning out.
The benefits of one using the Just-in-time are many, however, there exist problems that many manufacturers face. One of the first disadvantages of this model is that manufacturing companies cannot produce any good unless it is ordered by their customers. It becomes a costly affair because companies need to notify suppliers whenever orders are received from their customers.
The Just-In-time production model is not suitable for many manufacturing companies because it is often associated with existing orders and thus cannot be entirely used for dealing with unexpected demands. Many manufacturing companies that lack a backup inventory often must let their customers wait for the manufacturing company to take orders from the suppliers to some of the raw materials required before they can begin manufacturing the product which often leaves the company with many dissatisfied customers.
Just-In-time has many benefits but with the inability of many manufacturing companies to fulfill most of their orders in larger quantities, it often makes the business become a costly affair since there are other hidden charges that the manufacturing company incurs.
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