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Jit (just in Time) System

Autor:   •  April 5, 2011  •  Essay  •  503 Words (3 Pages)  •  1,121 Views

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The Just-in-time system put simply is a system where every part or component arrives just in time for it to be used in production. This system is mostly used by car manufacturing companies such as Toyota and General Motors. By using this system inventories are reduced drastically where stock is almost non-existent. JIT approach can be used in both manufacturing and merchandising companies.

For a company to successfully implement this JIT there are six other objectives that crucial to reach their objective. The first is to make each step of the manufacturing system as efficient as can be. Second is to make a product with extreme care to avoid mistakes and defects. This will help each part of the production line will go as planned. Third is to reduce the manufacturing cost, the cheaper it is to make the product the larger the profit for the company. Fourth is to create a suitable product to meet consumer demand. Without the demand for their products then there is no point. Fifth there needs to be flexibility in the system. Things will not always go as planned and there needs to be a flexible enough system so that it can be modified easily. Sixth, there needs to be a strong and reliable relationship between customers and suppliers. The risks of falling behind with JIT system is high, therefore there should be a high amount of dedication and professionalism between customers and suppliers. If a company is considering using JIT then these steps are mandatory for successful implementation.

If a business such as Craver Company took up JIT and implemented it successfully there will be many advantages it will enjoy over its competitors.

These advantages are:-

1. Areas that were previously used as warehouses and stores can be used for production purposes.

2. Funding used in regards to inventory can be invested elsewhere.

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