Just-In-Time Inventory Management
Table of Contents
Executive Summary 3
Just in Time Inventory Management 4
Advantages of JIT 4
Disadvantages of JIT 5
History of JIT 5
Just-in-time Techniques/Elements: 7
Inventory 8
Layout 9
Scheduling 10
Preventive Maintenance 11
Employee Empowerment 12
Quality Production 12
Real Life Examples 13
Toyota 13
Dell 14
Harley Davidson 15
Wal-Mart 15
References 17
Executive Summary
Just in Time Inventory Management (JIT) is a method practiced by businesses today who have a goal of holding the smallest amount of inventory to maintain a smooth business flow. Toyota is credited with the invention of the JIT system, as they began this practice in the 1970’s to revolutionize the car manufacturing industry. Many businesses follow their lead in similar practices to keep a low inventory number and focus on the efficiency of the supply chain between suppliers and retailers. JIT inventory management is made up of a number of elements which all work together to produce this system of efficiency. Partnerships with suppliers are critical as the two sides work together with supplies making sure material is on time and in good condition all the time. Variability is reduced in this system through the amount of inventory on hand, as JIT requires a lower amount of on hand inventory than other inventory management systems. Layout of people and materials, scheduling, and quality production all contribute to improved efficiency in a businesses output, production of more quality products, and a reduction in waste; waste in terms of anything that does not increase value to a product. Increased employee involvement and preventative maintenance in JIT give employees a sense of ownership in their work to do their best everyday. JIT inventory management is being practiced by many companies today as its methods emphasized make fit for a well-managed business model.
Just in Time Inventory Management...