How to Implement Just-in-Time JIT Production: A Beginner’s Guide

Not only must all production resources be synchronized, but the entire production timeline must be planned and synchronized as well. True, properly implementing just-in-time production system demands diligence. But the payoffs of cheaper inventory, smoother flows, and better supplier synergy make it hugely alluring.

Advantages and Disadvantages of JIT

A just-in-time (JIT) inventory system is a management strategy that has a company receive goods as close as possible to when they are actually needed. So, if a car assembly plant needs to install airbags, it does not keep a stock of airbags on its shelves but receives them as those cars come onto the assembly line. Transition to a pull system where production is driven by actual demand, not forecasts. This not only reduces overproduction but also highlights issues promptly when they arise, allowing for immediate remediation. As can be seen, both just-in-time and just-in-case production systems have their fair share of advantages and disadvantages. In some industries, the just-in-time method is more suitable, while the just-in-case one is preferred in others.

By designing and managing the cell in this way, maximum labor productivity can be preserved even if customer demand changes over time. Each of these systems limit the total amount of work in process (WIP) in the system and also trigger production activities to occur just in time. At the start of the COVID-19 pandemic and its ripple effect on the economy and supply chain, things like paper surgical masks, toilet paper, and hand sanitizer experienced disruption. This was because inputs from overseas factories and warehouses could not be delivered in time to meet the surge in demand caused by the pandemic.

Close Supplier Relationships with Just-in-Time Production System

A good illustration can be seen in this McKinsey article, written by Deryl Sturdevant, a former President and CEO of Canadian Autoparts Toyota (CAPTIN). He says changing the die needed to make aluminum alloy wheels using conventional methods takes 4-5 hours. Yet, applying TPS in his plant takes less than an hour to complete the same task.

Having a stockpile of your finished products in distribution centers is also a good idea for some products to avoid product shortages. TQM involves every employee taking responsibility for quality, with processes in place for continuous monitoring and improvement. This includes techniques like statistical process control, failure mode and effects analysis (FMEA), and rigorous supplier quality audits. Material requirements planning (MRP) systems help determine precisely how much inventory is needed and when based on the production schedule and lead times. Daniel Croft is an experienced continuous improvement manager with a Lean Six Sigma Black Belt and a Bachelor’s degree in Business Management.

Labor expenses are also reduced since the number of man-hours needed to fulfill orders is likely lower than would be required for full-time production. On-demand production means fewer items sitting on shelves depreciating in value if sales take a downturn, and the risk of losing money if a product becomes obsolete is virtually eliminated. While many companies must invest capital in large warehouses to store products for sale, minimal inventory means almost nonexistent storage expenses. The reduction of these key production and operational expenses means higher gross and operational profits, which directly contribute to a healthier bottom line.

How to Implement a Just-In-Time Manufacturing System

If the system flows well but produces faster or slower than customer demand, you’ll still end up with either massive over production or shortages. Instead, we use pull systems–commonly called kanban–to trigger the movement of material so it is created and delivered just in time and still in small quantities. Even for those processes that cannot reach one-piece flow immediately, reducing the batch size by any degree makes for significant improvement. In traditional batch-and-queue manufacturing, material and information does not flow. In fact, some have come to call it “batch-and-stagnate” manufacturing because of how work in process (WIP) inventory tends to build up in queues and stagnate within the system. Just in time manufacturing is a strategy for eliminating the deadly waste of over production by delivering a product or service just in time.

Continuous Improvement

1. The just-in-time (JIT) production system revolves around a few key principles and practices that allow manufacturers to minimize inventory, reduce waste, and boost efficiency.
2. It calls for throughout approaches like savvier inventory oversight, stringent quality governance, and an attitude of lifelong refinement.
3. Kanban is a Japanese scheduling system that’s often used in conjunction with lean manufacturing and JIT.
4. A good illustration can be seen in this McKinsey article, written by Deryl Sturdevant, a former President and CEO of Canadian Autoparts Toyota (CAPTIN).
5. Develop good relationships with your suppliers, build trust and, if possible, choose to work with suppliers that are physically close to your facility.

Keeping all things constant and a process time of 1 minute, as you reduce the batch size the lead time decreases dramatically. In this way, many traditional batch-and-queue processes can be converted to continuous flow operations and reduce lead times by as much as 95%. By minimizing inventory levels, companies can save on storage costs and reduce the risk of obsolete inventory. With JIT, companies only produce what is needed, when it is needed, eliminating the need for excess stock.

Some dependable delivery tracking software includes 17TRACK, ParcelTrack, and AfterShip. Having a list of backup suppliers on top of your existing suppliers is also recommended. Therefore, when there’s a disruption with one of your existing suppliers, you can immediately replace them with a backup supplier.

The idea is that if a material or component arrives precisely when needed – it can be directly brought to the assembly line – without needing to be stored as an inventory. This means that the manufacturer doesn’t need to build or rent a warehouse, hire workers to manage the warehouse, and spend on other storage-related expenses. In this article, we explore the core ideas of the just-in-time production system, its techniques, its advantages & disadvantages, and examples to illustrate its application in the real world. We will also compare the just-in-time vs just-in-case production systems – as both are equally popular philosophies among manufacturers, yet they possess contrasting methodologies.

It will automatically notify you if your inventory level appears low, prompting you to resupply from your suppliers. It’s crucial to have all of your suppliers’ telephone numbers, as telephone calls are still the fastest method of communication. When you need to adjust the flow of materials and components to your plant with your suppliers, you can immediately do it in a matter of minutes through a phone call. Moving to a JIT system is a what production system is preferred by just in time major cultural change for manufacturers used to traditional batch production.

Finally, maintain vigilance in monitoring your JIT system and be prepared to adapt. Effective JIT implementation is a dynamic process that evolves with market conditions and technological advancements. Regularly analyze performance metrics and make iterative changes to continually enhance the JIT process. An excellent solution to implement just-in-time staffing is by hiring workers temporarily instead of permanently. This model grants your organization a high degree of flexibility in adjusting your workforce size.

There’s no need to store materials and components, as they will all be used in the assembly process – leaving none as inventories. Therefore, your organization doesn’t need to build/rent and manage a warehouse, thus cutting your organization’s operational expenses. At the core, just-in-time production system revolves around crafting the right part, in the right spot, at precisely the right moment. This contrasts traditional approaches often holding lots of raw materials, work underway, and finished products waiting idly.

Remarkably, Next Plus’ MES platform has been engineered to seamlessly align with lean manufacturing frameworks, enhancing your JIT implementation. By leveraging Next Plus, manufacturers can elevate operations, minimize waste, and amplify productivity. Moreover, JIT production encourages continuous improvement and employee involvement. By empowering workers to identify and solve problems, companies create a culture of continuous learning and innovation. This approach fosters a sense of ownership and responsibility among employees, further enhancing efficiency and productivity. Responding to the just-in-time production method’s zero tolerance of unexpected issues, some practitioners adopted the “just-in-case” philosophy.

By eliminating waste, such as excess inventory, unnecessary movement of materials, and overproduction, companies can optimize their production processes. This results in a streamlined workflow, reduced lead times, and increased output. With JIT, companies can produce more with the same or fewer resources, ultimately leading to higher profitability. The just-in-time (JIT) inventory system is a management strategy that aligns raw-material orders from suppliers directly with production schedules. Companies employ this inventory strategy to increase efficiency and decrease waste by receiving goods only as they need them for the production process, which reduces inventory costs. You can create a just-in-time manufacturing system by using kanban boards and other project management tools.