Just-In-Time (JIT) is a management philosophy that calls for the production of what the customer wants, when he wants it, in the exact quantity requested, where he wants it, and without adding inventory delays.
However, today many manufacturing businesses overstock their warehouses with resources just in case a customer demand appears.
They build large stocks of what they think a customer might want and store them. Of course, this activity leads to huge inventory waste.
This deadly waste of lean can result in product damage, extra cost, and a high probability of stock becoming obsolete. It also means high shipping costs and dissatisfied customers.
Just-In-Time refers to the production of goods to meet customer demand in terms of time, quantity, and quality.
After World War II, Japanese manufacturers faced several issues, such as lack of money and natural resources, and space to build large warehouses.
These challenges dramatically hit Japanese manufacturing businesses. So, they had to overcome all these troubles to find their way to industrial success.
And then, Toyota came with a simple solution that made its processes lean.
Invented by Taiichi Ohno of Toyota, the JIT principle has become the central pillar of Toyota Production System: focusing on producing if there is customer demand only.
However, this simple philosophy took years to perfect. Now, it is widespread across several industries and applied by some of the most successful companies like McDonald’s, Dell, and Apple, among others.
Implementing the Just-In-Time philosophy leads to several benefits, as it plays a crucial role in optimizing the usability of resources, that gives the following advantages:
The JIT philosophy helps to set an explicit WIP value to your processes. It creates a pull system that applies to your current processes. This way, only the work that needs to be done will be in progress.
Reduce and eliminate waste
Just-In-Time identifies waste quickly by doing what customers request only. It reduces or eliminates different kinds of waste from your processes.
Widely known as Kaizen, JIT encourages employees to analyze their current processes and offer suggestions for improvement.
In fact, it is a never-ending cycle that allows any manufacturing business to enhance its performance continually.
Simplicity and Flexibility
Doing what a customer only request allows a business to deliver small batches of tasks.
It means that it is possible to find simple solutions for existing issues and be much more flexible.
How to implement Just-In-Time with ISC
As seen above, Just-In-Time provides several benefits that will dramatically improve the overall efficiency of any manufacturing business.
By producing at takt time, JIT allows you to automatically reduce inventory waste, as there is no longer a need to store excess products. Of course, it also reduces other types of waste.
ISC comes in place with applications that facilitate the move from push to pull system by deeply examining every process.
DGI and DGM are our critical time and motion study software to successfully identifying and eliminating waste quickly and securely.
DGL, our line balancing software, provides advanced and customizable simulations that allow you to set an explicit WIP value and move to a pull system in the very short term.