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Using Just-In-Time (JIT)

Using Just-In-Time can save you money and decrease storage space requirements

By Renee Baumgardner
Just-In-Time, initially used by the Ford Motor Company but most often associated with Toyota after they had made some process adjustments, is an inventory strategy process. The theory behind Just-In-Time is to have only the necessary inventory on hand at any time and not stockpile inventory where products can expire or face damage and become unusable for production, resulting in financial loss for the company. By implementing Just-In-Time in the operations of an organization, companies can increase their return on investment or the amount of money gained or lost compared to the amount of money invested.

Ways to implement Just-In-Time management successfully include:

1. Gathering information about using Just-In-Time (JIT)

2. Employing the services of a Just-In-Time (JIT) management consultant

3. Utilizing Kanban software

 

Gather information about Just-In-Time management

Learn about implementing and using Just-In-Time (JIT) in your organization by reading JIT articles and books or by visiting a factory using JIT operations.
Try: Toyota is a popular example of a company that successfully utilizes Just-In-Time management. Visit one of their North American plants or read “The Toyota Way” or “Kanban Just-in-Time at Toyota: Management Begins at the WorkPlace”, to learn how they implemented JIT successfully.

Hire the services of JIT management consultants

Employ the services of a Just-In-Time (JIT) operation consultant to help you analyze your needs and plan an appropriate JIT solution.
Try: Japan Management Association Consultants, America provides Just-In-Time training that will not only educate your organization on JIT management, but the kaizen (continuous improvement) principles as well. Kent H. Landsberg Company also provides JIT analysis and training to companies in addition to providing a client service that allows companies to contract some of their operations to their JIT operations staff.

Utilize Kanban software as a component of Just-In-Time operations

Kanban is a Japanese word for signal cards, and when applied to factories using Just-In-Time operations, signals the need for inventory (parts and components) to an area so workers have a continuous supply as needed. Simplify the inventory tracking process by utilizing Just-In-Time inventory software.
Try: SMC Data Systems allows one to implement automation processes that scan inventory when delivered to the warehouse, produce real time purchase orders and allocate inventory for special orders. Professional Implementation Consulting Services offers kanban software that monitors the supply chain transactions of externally purchased items, internal distribution items and finished goods items.

 

  • One of the most obvious benefits of the Just-In-Time system is the cost savings companies experience by reducing storage costs and storage space by having deliveries scheduled as needed. Because inventory is arriving as needed, it is important to contract with reliable suppliers and pay your bills in a timely manner to remain in good standing. Failure to have your supplies delivered on time due to irresponsible suppliers or late payments will interfere with your work processes and cause a delay in production.
  • Other factors when using Just-In-Time management that can have a negative impact on your production are inclement weather, traffic delays due to construction or accident and fluctuating fuel costs, which may be passed onto you through delivery fees.

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