Just In Time (JIT) Inventory Control

in effect(p) In snip (JIT) schedule reserveJust In magazineIntroductionJust In Time Inventory view as is a production method which views take stock as waste. Although it eliminates the need for account, it a complex lick which is not easily implemented in companies. In order for a family to successfully implement JIT Inventory program line, contrasting aras of statistics, industrial engineering, production management, and behavioral sciences have to be taken into account. Just in Time (JIT) is a tool for process correctment. This type of manufacturing schema has allowed the company to substantially improve the value stream, that is, increase profitability and range on high-quality, low-cost products at high efficiencies. JIT principles are closely aligned with skimpy manufacturing, an other production idea that grew out of Toyota. Lean is an overarching philosophy which attempts to land waste throughout the organization. While JIT is bingleness of several tools use to get to lean, it canful be implemented on its own. Lean practitioners have a language of their own, and the definition or application of these impairment is often debated. present are some common terms which are associated with lean practices and one accepted meaning for each 5S A five-step method for creating clean, organized go away infinites sort, simplify, sweep, standardize, and sustain. Kaizen is cognize as an event in which team members evaluate procedures or equipment and seek to make improvements. Kaizen events are part of a continuous improvement process. In addition, Kanban is a visual sign or signal typically utilize to trigger an order for parts or materials, (Edward J. Hay Wiley, 1998.)Description fit in to the traditional accounting practices, inventory holds and adds value. Just In Time, on the contrary, views inventory as waste that is constantly incurring costs. The waste is associated in terms of cartridge clip, labor, and storage space. In essence , JIT Inventory Control produces exactly what is needed, when needed, and only in the follow infallible. JIT Inventory Control also produces the required units, in required quantities, with the right quality. There are many problems which can arise collectable to having little or no inventory such as work center backups, machine breakdown, variance in processes, problems with employees, lack of flexibility of employees and equipment, or even insufficient capacity. The main problem with JIT Inventory Control is that companies cannot annunciate total accuracy of material flows. Another problem that is encountered is that warehouse inventories displace and inventories may be full or near empty at any given time. This makes it a task for members of management to accurately plan logistics.History and DevelopmentFord Motor Company initially used JIT in the early 1920s. This was later implemented by Toyota in 1954 who thusly publicized the concept. This concept helped Toyota cut do wn on overstocking car production. The concept focuses on eliminating inventory that doesnt add value to the product and it views inventory as a sign of poor management as inventory acts as a buffer that conceals problems in the production system. Toyota has proved to be one of the largest players in the auto industry. The company is headquartered in Toyota City in lacquer and has plants worldwide.Cultural aspectsIt is necessary to consider several factors that influence the Japanese culture, which accelerate the evolution of JIT. Different Japanese characteristics, from which will take those that is considered the most pertinent are lack of space in Japan in cosmopolitan there is not room enough for mostly any activity, not surprisingly the reduction of inventories was welcome by the management. Commitment to consumers consumers satisfaction has invariably been a priority. JIT is a pull production system that minimizes the waiting time of each buyer. This time starts when the b uyer places the request for new-fangled products. Overcrowded living conditions take in time shortages and maximum efficiency are a consequence of Japaneses requirements to improve theirliving conditions, either inside the company or within the society. Toyota aims at producing cars of high quality at a low cost. JIT Process Control enables Toyota to achieve this effectively. Toyota, especially being situated all over the world, has nice labor relations. For Toyota, parts are delivered to the assembly line just in time for assembly. Supplier and labor relations are a essential aspect of this process. Toyota holds and maintains close relationships with its suppliers and focuses on continuous improvement. Together, teams follow a deconcentrate method of decision-making and move forward with a motivated workforce. Employees are cross-trained to travel many different types of machinery. Toyota also uses Andon to show daily production figures and to composition problems encountered on the assembly line. Toyota also focuses on total quality that is achieved through zero defects. This ties in with just in time inventory control. If a part is defective, the problem is traced to the source and the problem is attended immediately or the production line is stopped. Without excellent supplier relations, a large maker cannot support a just in time manufacturing system. Parts are delivered many times daily and suppliers are also responsible for faultless systems such as brakes, seats, and electrical systems.Since deliveries can be interrupted, Toyota uses two suppliers. A strong, long relationship with a a couple of(prenominal) suppliers is better than short-term, cost-based relationships with many competing suppliers. Toyota uses this long-term relationship to send Toyota staff to help suppliers improve their processes. These interventions have been way out on for twenty years and have created a more safe supply chain, improved margins for Toyota and suppliers , and lowered prices for customers. Toyota encourages their suppliers to use JIT with their own suppliers. Without cooperation and a utilize workforce, success of the JIT Inventory Control system would not be attainable for Toyota. Long term commitment and cooperation is essential for the success of JIT.Implementing JITJust-in-time cannot be explained in a simple multi-step process. Naturally, every company presents unique challenges and opportunities. The following is a basic overview of just-in-time concepts. People involvement- whoever is related to the company that intends the implementation, shall be committed to the project. kickoff with the machine operators and ending on the high level management, everybody has not only to be aware of the implications but to support the implementation as well. execution of instrument is a critic phase of JIT, and is advisable to avoid problems, to reduce the amount of time and efforts throughout this stage. Plants- numerous changes take p lace in the layout of the new plant. Some changes are easy to achieve as the so called productions cells, in which the machinery is located in a way that helps reducing the time it takes to move materials from one process to another. Nevertheless the introduction of Kanban (Japanese name of the cards that suffer material requirements), self-inspection, Material Requirement Planning (MRP) and MRP II (in case they were not already in use) and job enrichment within plant workers, involve geomorphological change thus they are far from being simple to implement. MRP I involves a computer system for building inventory, scheduling the production and to distribute inputs on the other side MRP II, that stands for Manufacturing Resource Planning, includes the MRP Is activities plus marketing and purchasing operations and the financing function. Systems- existent systems may remain within the company however the MRP and MRP II systems should be implemented. Further investments can take plac e, as the use of luminous Kanbans or the implementation of the Electronic Data understudy (EDI) to link inventory existences with the suppliers. Purchasing- relationships with suppliers become a key factor not only in a JIT environment but in other production systems that intend to reach efficiency and to shorten production time. This come in is reviewed in depth on the 3rd part of this paper.ConclusionJIT Inventory Control is a very effective and efficient in eliminating waste. The process also enables companies to use more of the warehouse for assembly and production. Therefore space is not wasted and utilized instead to maximum capacity. This also reduces inventory costs. JIT Inventory Control requires cooperation and commitment between suppliers and the manufacturer. Without a close rumple supplier-manufacturer relationship and reliability, JIT Inventory Control is useless. Although with many suppliers, manufacturers can expect price wars and competition enjoying lower prices . However, this puts reliability at stake. With limited or few suppliers as in the case with Toyota, a close bond can be maintained and reliability is not jeopardized. If it is possible, companies should adopt JIT Inventory Control and maintain long term supplier manufacturer relationships with dependable suppliers in order for the process to flow smoothly.CitationJust In Time Manufacture. C.A. Voss IFS 1987. Retrieved declination 4th, 2009Just In Time Manufacturing an aggressive manufacturing strategy. Richard T. Lubben Mc Graw Hill, 1988. Retrieved celestial latitude 4th, 2009Just In Time Manufacturing an introduction. T. C. E. Cheng and S. Podolsky (2nd edition) Chapman Hall, 1996.Retrieved December 4th, 2009The Just In Time Breakthrough implementing the new manufacturing basics. Edward J. Hay Wiley, 1998. Retrieved December 4th, 2009 http//www.sytsa.com/repository/publications/ingles/jit_manufacturing.pdfJust In Time Manufacturing in Perspective. Alan Harrison Prentice Hall, 1 992. 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