Importance of Just-In-Time Inventory System

In today's competitive world shorter product life cycles, customers rapid demands and quickly changing business environment is putting lot of pressures on manufacturers for quicker response and shorter cycle times. Now the manufacturers put pressures on their suppliers. One way to ensure quick turnaround is by holding inventory, but inventory costs can easily become prohibitive. A wiser approach is to make your production agile, able to adapt to changing customer demands. This can only be done by JUST IN TIME (JIT) philosophy.

Taiichi Ohno, a former shop manager and eventually vice president of Toyota Motor Company, is the individual credited most for the with the development of just-in-time. It is a term used to describe the Toyota production system, is widely recognized today as the one of the most efficient manufacturing system in the world. In simple words we can explain JIT only required necessary units be provided in necessary quantities at necessary times. Producing one unit extra is as bad is being one unit short. Completing one day early is as bad as finishing one day late. Items are supplied "just-in-time". Ohno describes the development of JIT as

*By actually trying, various problems become known. As much problems become gradually clear, they taught me the direction of the next move. I think that we can only understand how all of these pieces fit together in hindsight.

The concept is very simple, if you produce only what you need when you need it, then there is no room of error. JIT has truly changed the face of manufacturing and transformed the global economy. JIT is both a philosophy and collection of management methods and techniques used to eliminate waste (particularly inventory). In JIT workers are multifunctional and are required to perform different tasks. Machines are also multifunction and are arranged in small U-shaped work cells that enable parts to processed in a continuous flow through the cell. Workers produce pars one at a time within cells and transport those parts between cells in small lots. Environment is kept clean and free of waste so that any unusual occurrence are visible. Schedules are prepared only for the final assembly line, in which several different models are assembled at the same line. Requirements for the component parts and subassemblies are then pulled through the system. The "PULL" element of JIT will not work unless production is uniform and lot sizes are low. Pull system is also used to order material from suppliers (fewer in numbers usually). They make be requested to make multiple deliveries of the same item in the same day, so the manufacturing system must be flexible.

Just-in-time inventory is viewed as the waste of resources and considered as obstacle in improvement. As there is little buffer inventory between the workstations, so the quality must be high and efforts are made to prevent machine breakdowns. When all these things are taken into consideration, system produces high-quality goods, quickly and at low cost. This system is also being able to respond to changes in customer demands. These elements of JIT can also be applied to the almost any operation, including service operations.*K.Suzuki, The Manufacturing Challenge(New York: Free Press, 1985), p250

Ali Abbas, Student of Operations Management, Currently doing BBA form Mohammad Ali Jinnah University one of the leading institute in Business Administration & Computer Sciences of Pakistan

---

Google News Updated : Mon, 13 Oct 2008 05:51:32 GMT Jennifer Lopez, Marc Anthony renew vows along with Carlos Beltran ... - New York Daily News New York Daily News Jennifer Lopez, Marc Anthony renew vows along with Carlos Beltran ... New York Daily News - 1 hour ago BY DAVE GOLDINER Just four years after saying "I do," Jennifer Lopez and Marc Anthony reportedly secretly renewed their vows in Las Vegas Sunday - and they had company at the altar. Inside Jennifer Lopez & Marc Anthony's Renewal Ceremony People Magazine J.Lo’s vows not staying in Vegas Boston Herald Singersroom News - AceShowbiz - United Press International - Actress Archives all 37 news articles Publ.Date : Mon, 13 Oct 2008 04:39:55 GMT Doubling of Vitamin D for Children Is Urged - New York Times The Plain Dealer - cleveland.com Doubling of Vitamin D for Children Is Urged New York Times - 3 hours ago By AP CHICAGO (AP) - The country’s leading group of pediatricians is recommending that children receive double the usually suggested amount of vitamin D because of evidence that it might help prevent serious diseases. Pediatricians double vitamin D recommendations The Associated Press Pediatricians double vitamin D recommendations WLOS The Plain Dealer - cleveland.com - Examiner.com all 90 news articles Publ.Date : Mon, 13 Oct 2008 02:45:16 GMT Television Review | 'My Own Worst Enemy' - New York Times New York Times Television Review | 'My Own Worst Enemy' New York Times - 56 minutes ago By ALESSANDRA STANLEY Most people sometimes wake up on the wrong side of bed. The hero of “My Own Worst Enemy” on NBC wakes up on the wrong side of his brain. 'Worst Enemy' Just Isn't Bourne-Again Bond Washington Post Spy-vs.-normal-guy premise of 'Worst Enemy' doesn't work USA Today San Francisco Chronicle - Los Angeles Times - Boston Herald - Fort Worth Star Telegram all 101 news articles Publ.Date : Mon, 13 Oct 2008 04:54:37 GMT Manatee dies before reaching Florida - South Coast Today WHDH-TV Manatee dies before reaching Florida South Coast Today - 36 minutes ago By AARON GOUVEIA and KC MYERS EAST DENNIS - After a dramatic rescue Saturday morning, a wayward manatee known affectionately as Dennis died Sunday with just one hour before he reached SeaWorld in Florida. Manatee almost gave them the slip Boston Globe Cape Cod Manatee Dies on Way Back to Florida WLNE-TV (ABC6) My Fox Boston - The Associated Press - Cape Cod Times - SouthCoastToday.com all 542 news articles Publ.Date : Mon, 13 Oct 2008 05:14:57 GMT UPDATE 1-Tropical Storm Nana forms in Atlantic - Reuters Javno.hr UPDATE 1-Tropical Storm Nana forms in Atlantic Reuters - 8 hours ago MIAMI, Oct 12 (Reuters) - Tropical Storm Nana, the 14th of the Atlantic hurricane season, formed on Sunday in the Atlantic Ocean east of the Caribbean islands, the US National Hurricane Center said. Tropical Storm Nana forms in Atlantic eTaiwan News Tropical Storm Nana Forms Over Eastern Atlantic RTT News CNN - The Associated Press - eFluxMedia - Central Florida News 13| all 199 news articles Publ.Date : Sun, 12 Oct 2008 21:29:57 GMT Alaska ethics probe says Palin abused her power - Reuters BBC News Alaska ethics probe says Palin abused her power Reuters - 40 minutes ago By Caren Bohan CHILLICOTHE, Ohio (Reuters) - An Alaska ethics inquiry found on Friday that Gov. Sarah Palin, the US Republican vice presidential candidate, abused her authority by pressuring subordinates to fire a state trooper involved in a feud with ... Palin: Bad Guys vs. Good Guys FOXNews Palin talks economic worries in Appalachian Ohio The Associated Press International Herald Tribune - CNN Political Ticker - Columbus Dispatch all 1,431 news articles Publ.Date : Mon, 13 Oct 2008 05:10:53 GMT Worth the trouble - Boston Herald Worth the trouble Boston Herald - 39 minutes ago By Dan Duggan As Red Sox [team stats] fans shook out the cobwebs yesterday morning after yet another marathon postseason game, it would have been easy to forget some of the positive developments from the Sox’ 9-8, 11-inning loss to Tampa Bay in Game 2 ... Video: Tampa Bay Wins Slugfest on Sacrifice Fly AssociatedPress Rays win respect, too Washington Times USA Today - Sarasota Herald-Tribune - Wilkes Barre Times-Leader - SouthCoastToday.com all 3,671 news articles Publ.Date : Mon, 13 Oct 2008 05:12:18 GMT RSS For Web Pages More Web Site Traffic

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Strategies for Planning and Conducting Effective Meetings

Did you know that business executives spend about half their... Read More

Bolster Credibility with Investors--Avoid These Phrases in Your Business Plan

Remember Papa John's commercial on TV with the slogan "Better... Read More

Are you NICE or do you CARE?

Are you NICE or do you CARE? ... Read More

Follow Up: It Makes A Difference

A while back the headlight switch on our minivan quit... Read More

Lone Rangers Suffer without Tonto

A lone ranger is someone who prefers working in solitude... Read More

Turning a Negative Employee Into a Positive Asset

Several years ago, I took over the supervision of a... Read More

Focus Leads To Nonprofit Success: Is Your Organization Rowing or Drifting

Picture yourself standing on the bank of a river watching... Read More

Christmas and Business Gifts for Your Clients and Employees!

Tis' the season for business and corporate gift-giving! If you... Read More

Are You in Control of Your Practice or Does it Control You?

One of the most common complaints that business owners have... Read More

Problem-Solving Success Tip: Use Your Time for Problems that are Truly Important

Use your time for problems that are truly important.Hard as... Read More

Service Level Agreement (SLA) Boot Camp

Service Level Agreements, or "SLA's" are tricky but useful mechanisms... Read More

Print Buying Consultant

Ten Money Saving Tips for Print ManagersDespite their stated desire... Read More

Conquering the Number One Problem in Business--Poor Communication

The Number One problem in business is poor communication: between... Read More

Micromanagement and Delegation

Micro-Management and Delegation ... Read More

Have You Always Thought That The Best Ideas Come From Research Or Management? Think Again

Many entrepreneurs and chief executive officers are unaware that there... Read More

Well-Defined Processes ? How to Create

Interested in learning how to reduce development time, save money... Read More

How To Decrease Downtime and Increase Productivity

All maintenance activities of the workforce must be documented, this... Read More

You Didnt Use Brainstorming to Select Your Measures, Did You?

IntroductionWhen Alex Osborn invented the creativity technique called brainstorming, I... Read More

Collaboration: 3 Keys to Keeping Your Documents from Getting Lost in the Shuffle

Often, collaborating documents in a team or in a business... Read More

Executive ESP: A Pathway to Success!

We all have psychic abilities that we use daily, although... Read More

Communicate To The Four Main Personality Types

You probably know this already, but there are generally held... Read More

Truth or Consequences: How to Give Employee Feedback

In the bestseller, Good to Great, Jim Collins discovered that,... Read More

Is Your Employee Newsletter Management Propaganda?

It should not be. If it is an effective newsletter,... Read More

Performance Management Made Easy

Performance Management is a process that both employer and employee... Read More

Rules for Running a Meeting

As an experienced manager, I can announce without a doubt... Read More