Write a brief note on Just-In-Time (JIT) manufacturing . - MBA Assignment Notes

Write a brief note on Just-In-Time (JIT) manufacturing

Answer:
Just-In-Time (JIT) manufacturing is a process by which companies don't keep lots of excess inventory; instead, they manufacture a product as an order comes in. It is a management philosophy of continuous and forced problem solving.

The objective of JIT manufacturing system is to:

•    Eliminate waste that is, minimize the amount of equipment, materials, parts, space, and worker’s time, which adds a great value to the product
•    Increase productivity JIT means making what the market demands when it is in need. It is the most popular systems that incorporate the generic elements of lean systems. Lean production supplies customers with exactly what the customer wants, when the customer wants, without waste, through continuous improvement. Deploying JIT results in decrease of inventories and increases the overall efficiencies. Decreasing inventory allows reducing wastes which in turn results in saving lots of money. 

 

Advantages of Just-In-Time (JIT) manufacturing:

•    Increases the work productivity
•    Reduces operating costs
•    Improves performance and throughput
•    Improves quality
•    Improves deliveries
•    Increases flexibility and innovativeness .For industrial organizations to remain competitive, cost efficiencies have become compulsory.

JIT helps in this process. It is extended to the shop floor and also the inventory systems of the vendors. JIT has been extended to mean continuous improvement. These principles are being applied to the fields of Engineering, Purchasing, Accounting, and Data processing. 

However, for organizations to completely implement JIT manufacturing system, they need to have a proper commitment along with the following basic facilities - proper material, quality, equipment, and people involvement