The Just-In-Time (JIT) principle is to eliminate sources of manufacturing waste by getting the right quantity of raw materials, producing the right quantities

Introduction

The Just-In-Time (JIT) principle is to eliminate sources of manufacturing waste by getting the right quantity of raw materials, producing the right quantities of product and getting it to the right place at the right time. JIT is a production system where the movements of goods during production and delivery are so well timed that at each step in the process, the next batch arrives for processing as the last one is being completed. Even though the Toyota Motor Corporation is given most of the credit when it comes to the creation and refinement of the JIT method during the 1970’s, in the 1930’s Henry Ford’s assembly line showed elements of the JIT system. The aim of the Japanese was to increase product reliability and quality. The Japanese decided to focus their attention on the production process, instead of funneling large amounts of money into just research and development. Through the implementation of JIT, Tai-ichi Ohno; who many regard as the father of JIT, helped turn Toyota Motor Corporation into one of the industry leaders in reliability, quality and delivery time.
Implementing JIT
The first and perhaps most important part of JIT is the commitment to it. JIT as a system usually requires an emphasis on production smoothing, capacity buffers, setup reduction, cross training, plant layout and Total Quality Management.

The commitment for JIT must start at the top and trickle down. Everyone in the company from the CEO on down, must believe in the system. Sometimes the changing of the organizational culture is the hardest part. Change is a given in life, but human nature resists change. This resistance is grouped into two common forms, emotional and rational resistance. In emotional resistance, there are psychological feelings that hinder the performance of the employee in the production process. Rational resistance is the lack of the needed information for the workers to perform the job well. Companies, which for decades have relied on safety stock to get them through bad times, must now change and admit that they have problems somewhere in their process, which they need to find and fix these problems, as JIT significantly reduces inventory.
The relationship between management and labor must also be changed. JIT requires a mutual trust to exist between these two forces. Management must trust employees to do the job that they have been trained to do and in turn, employees must work to their full potential and perform their work with the best interest of the company and its customers in mind. Respect for people is one of the two main philosophies of JIT; with the other one being the elimination of waste.
One of the strengths of the just-in-time system is the kanaban system. The kanaban is a system that uses a card which is attached to a storage and transport container that identifies the information of the part being produced and the container capacity. A kanaban system is a pull-system, in which it is used to pull parts to the next production stage when they are needed. In this system there is an efficient workflow from the containers to the workers. The containers are only replenished, when the storage capacity container is empty. Replenishment is ordered lot-for-lot, which means, only the amount that is needed to fill the container is ordered. Each worker has a specific task in the production process. A worker does not start on a task until the previous task has been completed. These workers have to be multi-skilled and flexible in order to meet the demands of the consumers.
As efficient and controlled as a JIT system can be, it is not perfect. Problems usually arise when companies try to implement JIT. These problems include, but are not limited to, repetitive production, standard products, short set-up times, bad management and sloppy work. Another potential problem with the JIT system is the need for employees to be multi-skilled and flexible enough to change during the production process. This often involves extensive and expensive retraining. Although the majority of managers have claimed reduced inventory and cost with the

JIT system, the cost of retraining employees should be seen by management as an investment and not as an expenditure with no return.
One of the more overlooked aspects of JIT is the discipline that the system requires from its labor force. There can be no variation from the plan; jobs must be done according to the schedule and on time. The success of JIT revolves around the precision, with which it works, and this process can easily be disrupted if one or two employees decide that they want to do things their way for even just a few minutes. Management ...

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Benefits of JIT
The benefits derived from the JIT system are as follows: reduced inventory, improved quality, lower cost, reduced space requirements, shorter lead times, increased productivity, increased flexibility, close relations with suppliers, simplicity of scheduling and control activities, increases in capacity, more efficient human resources and more variations of a product.
A lot of these benefits are intertwined. For example, the reduction of inventory also allows for the reduction of space requirements. Less space required for storage could lead to the former storage space being used to increase capacity. It could also mean an expensive warehouse will no longer be needed, with funds once marked for the payment of these facilities now being used to add to the bottom line.
The resulting increased flexibility can also be a benefit whose effect could be limitless. With its new found flexibility, a company could manufacture another product that potentially could become a best seller and a market leader. Sometimes only the slightest changes are needed to make a good product a “must have” product.
JIT systems can have a major impact on a company’s “numbers”. However, the biggest impact of JIT might not be in the numbers at all. JIT emphasizes a team environment among its employees. It encourages employees to get involved in solving problems that arise. This enrichment can only lead to positive things. Enriched employees have a larger sense of pride and responsibility in their work. With this added power, they are more willing to go the extra mile in order to make sure that the job is done and done right. With this type of attitude, everyone; including labor, management and consumers, will come out a winner.
JIT In Action
As some companies venture into the age of the just-in-time arena, they look for ways that will set them apart from the competition. A company must look for ways to service the customer in a timely manner, while delivering quality service and/or products to the customer. One such company that uses the JIT system is Dell Computers. Dell is one of the world's leading computer systems company. They pride themselves on building computer products that meet the needs of their individual customers. Dell has a commitment to understanding the needs of there customers with no confusion. This is addressed by the people at Dell, who help tailor a customized solution for each consumer. The synergy between the employees at Dell, promotes an effective and efficient company that provides a joyous experience for the customer and establishes value to the customer in order to promote return business. Dell has gone global with facilities and sales offices throughout North America, South America, Europe, and Asia. Their commitment to the JIT system has made them a premier provider of computer products and services; because of their direct relationship with each individual customer, Dell is able to meet the individualistic needs of the consumer.
In the aspect of JIT, Dell uses what they call a direct model to bring about a value-added dimension to their company. Dell’s belief is that good business starts with the customer and ends with that customer. With their JIT system in place, Dell can provide customers with superb value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use. Dell’s product is encompassed in computer technology (CPUs, monitors, printers, etc.) and they want to provide a system that adds focus to the customer. Dell’s JIT system is made up of five basic views to the direct model. The five views to the direct model consist of: most efficient path to the customer, single point of accountability, build-to-order, a low-cost leader, and standards based technology.

One main focus of Dell is to have the most efficient path to the customer. This standard is established through a direct relationship with the customer that is involved in the purchasing decision of a Dell product. The company provides flexible workstations to meet the needs of consumers with similar taste. By following this method of direct relationship, Dell can cut out the use of intermediaries and reduce cost. Also, this shows the flexibility that needs to be established in a JIT system.
Another aspect, which shows the JIT system at work in the Dell business community, is the single point of accountability. Dell wants to be the single point of accountability, so that resources necessary to meet customer needs can be easily obtained in support of complex challenges. This gives Dell the ability to have a streamlined workstation that provides resources readily to the consumer. The single point of accountability provides a sense of user friendliness for the consumer.
At the heart of the Dell system is the dedication to the fundamental of build-to-order. The central theme of this process is to only make a product when the customer places an order. Build-to-order in the Dell culture is reduction of inventory in the work environment. This aspect reduces the amount of wasted space in a facility and reduces the amount of cost that is associated with inventory cost. This is the norm of the Dell culture, to provide their customers with the best pricing and latest technology for features the customer really wants.
Being a low-cost leader is another level that Dell tries to achieve through their use of the JIT system. Dell wants to provide their customers with a quality product at a low cost. The company strives to use the best resources in giving back to the customer what they truly desire. With a highly efficient supply chain and manufacturing organization, a concentration on standards-based technology developed collaboratively with their industry partners, and a dedication to reducing costs through business process improvements, Dell has become one of the top companies in their market. In a market that is filled with customers that have different needs, Dell must have strong long-term commitments from its suppliers to best fulfill the needs of the ultimate consumer. Dell uses a system that has the work teams working together to meet the customer’s demands and each of these groups are multi-skilled and flexible. By running a very efficient and effective system, Dell is able to provide added-value to their customer at a reduced cost using the JIT system.
To bring about flexibility to the customer, Dell has incorporated the use of standard-based technology. Through the use of standard-based technology, the customer is given the freedom and flexibility in their decision making process. Standard based technology provides superior products and services that are tangible and intangible to the satisfaction of the ultimate consumer. This has an impact on the consumer, because they are gaining the benefits from research and development that comes from the entire industry as a whole.
The Dell direct model shows many of the aspects of the JIT system that a company must incorporate in order to be successful. Dell shows that there is a commitment from management and from operational personnel to focus on a commitment to the consumer. There is a strong, understanding relationship with the suppliers that provide the resources in a timely manner to adhere to the commitment of quality and timeliness to the consumer. This model presented by Dell, shows the flexibility that must be incorporated in the JIT system in order for it to run effectively and efficiently. One of the main aspects of Dell is they do not provide a standardized product for every customer. In the true essence of JIT, Dell has a multi-skilled labor force and operational team that is highly flexible to meet the different desires of their target market. Also, the culture at Dell is a team effort and there is a reduction in sub-optimization. The Dell culture works together; in order to provide a very superior quality product at a low cost for the ultimate consumer.

Conclusion
The implementation of a JIT system can be very challenging. At first, the idea sounds great. Then soon afterwards, you find out how much work is really needed to make it work. But as with anything, JIT takes time and a commitment in order for it to become what it was envisioned to be. Often in life, it is those things that are truly challenging, but also are the most rewarding.
JIT started decades ago as the hope of a Japanese company. Today, through the dedication and patience of its creators, it has become the premiere manufacturing method across the globe. This is not simply because of hype, this is because JIT works and works well. When properly done, JIT reduces inventory, which reduces demand for space and cost, and JIT can also improve quality and employee morale. With all this going for it, there is no wonder JIT has become as popular and successful as it is.

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