Just-in-time (JIT) may be a production model during which items are created to satisfy demand, not created in surplus or beforehand of need. the aim of JIT production is to avoid the waste related to overproduction, waiting and excess inventory, three of the seven waste categories defined within the Toyota Production System (known in North America because the lean production model).
JIT was firstly developed within Toyota manufacturing plants by Taiichi Ohno, during the start of the 70s. The oil embargo probably triggered his theory, the program was intended to avoid wastes, reduce inventories and increase production efficiency so as to take care of Toyota’s competitive edge. Besides he believed that customers should be satisfied with maximum quality within the shortest time.
We have found in buying materials that it's not worthwhile to shop for for aside from immediate needs. We buy merely enough to suit into the plan of production, taking into consideration the state of transportation at the time. If transportation were perfect and a good flow of materials might be assured, it might not be necessary to hold any stock whatsoever. The carloads of raw materials would arrive on schedule and within the planned order and amounts, and go from the railway cars into production. that might save an excellent deal of cash , for it might provides a very rapid turnover and thus decrease the quantity of cash engaged in materials.
If we highlight JIT then….
IT philosophy means getting the proper quantity of products at the proper place and therefore the right time.
JIT exceeds the concept of inventory reduction.
JIT is an all-encompassing philosophy found on eliminating waste.
Waste is anything that doesn't add value.
A broad JIT view is one that encompasses the whole organization
Objective of JIT:
Produce only the products the customer wants.
Produce products only at the speed that the customer wants them.
Produce with perfect quality.
Produce with minimum time interval .
Produce products with only those features the customer wants.
Produce with no waste of labor, material or equipment –every movement must have a purpose in order that there's zero idle inventory.
Produce with methods that leave the event of individuals .
Benefits touted as results of JIT implementation include:
Reductions in down time.
Reductions in inventory.
Reductions in scrap and re-work.
Reductions in workspace.
Increased inventory turns.
Increased labor utilization.
Increased equipment utilization.
Improved service to customers.
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