JIT Systems

JIT Systems







Just-in Time Systems




Just-in Time Manufacturing Systems
Introduction
In modern-day competitive markets, Just-in-Time (JIT) systems represent one of the main approaches to manufacturing a production model with which products are developed and manufactured specifically to meet urgent demand. The distinct difference between JIT and traditional logistics is that the products are not created in surplus. The entire point of JIT production is to avoid waste affiliated with the surplus production, excess inventory, and delayed launch times. These are three of the seven primary waste categories recognized by Toyota Production System and now identified in North America as “lean production” (Tersine, 2004). Companies are motivated to implement JIT due the fact that it helps them establish and sustain a competitive advantage over firms using traditional logistics and manufacturing methods. The primary viewpoint promoted within Just-in-Time (JIT) philosophy is to eliminate waste by cutting unnecessary inventory which in turn ultimately reduces delays in operations and provides more time and funding for improving quality (Tersine, 2004). The objective of using JIT becomes the production of quality goods and services that can satisfy high demand or an immediate need while the company simultaneously implements a more aggressive standard of continuous improvement. In this way, JIT improves the value-added benefits of operations. A JIT system represents the organization and function of resources, decision rules, and information flows which can best assist organizations to realize the benefits of the JIT view point. An example of the type of challenge for which JIT systems are best utilized is when a company needs to restructure their business model due to the possibility of going out if business. JIT provides a way for companies to reevaluate how they do business and free up capital to operate on a less wasteful scale. Management can be stimulated...

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