- Smaller deliveries based on immediate needs
- Production floors made to be very flexible
- Rapid machine setups to streamline production runs
- Receiving inspections eliminated with supplier certification of quality
- Halting of production as soon as OTD is completed
A More In-Depth Look at JIT ProductionAlthough Ford was one of the first companies to suggest using just-in-time manufacturing, it was another automobile company that made it famous. That company is Toyota, and they achieved it in the 1970s. They set in motion a plan to produce automobiles by strictly adhered to demand. This meant doing away with unnecessary inventory that takes up space and cost; therefore, minimizing waste. Seeing Toyota’s success, it was only a matter of time before other companies followed suit. There are three basic principles that JIT rests on, they are:
- Management of production
- Management of quality
- Management of employees
Management of ProductionProduction efficiency is not a one-time process. It requires constant tweaking. The idea is to keep an eye on minimizing waste until value-added manufacturing is achieved.
Management of QualityThe name says it all. Managing high-quality standards require frequent checks and feedbacks. It is imperative for those who are responsible to constantly seek ways to improve quality to stay ahead of the competition.
Management of EmployeesEmployee management can be the trickiest one to achieve and it falls under the responsibility, of the human resources department. The goal of the HR department in the context of JIT is to ensure that employees are grouped according to their skill level and minimize competition among the employees. A frictionless atmosphere between employees is vital for just-in-time to work well.
The Nuances of On-Time-DeliveryEven though the term on-time-delivery may sound self-explanatory, there is more to it than that, as the following points show.
- Dictated by commodity class
- Usually follows calendar date
- Following promised date
- Synchronizing supplier and purchaser data