In general, JIT major problem is that it leaves the supplier and downstream consumers open to supply shocks and large supply or demand changes. Toyota is especially susceptible to an interruption with very low stock levels, shipments of the same part coming in sometimes several times per day. When faced it, Toyota is careful to use two suppliers for most assemblies. Long-term relationship with a few suppliers if preferred to short-term by Toyota and the suppliers as well as lower final customer costs and a more reliable supply chain. Thus, Toyota encourages their suppliers to duplicate this work with their own suppliers.
- Kanban System
The idea of Kanban System came from supermarkets, it has also been called the “supermarket method”. It is a unique production control method in Toyota’s production system. The system use product control cards on which product related information, such as product name, product code, and storage location to signal the need for items. Because Toyota employed Kanban System signs in place of the cards for use in production process, the method came to be called the “Kanban System”. Kanban System is part of a pull system that determines the supply, or production, according to the actual demand of the customers. It is used as a demand sifnal which immediately propagates through the supply chain. This can be used to ensure that intermediate stocks held in the supply chain are better managed, usually smaller.
Kanban is a concept related to lean and JIT production. The Japanese word Kanban is a common everyday term meaning “signboard” or “billboard” and utterly lacks the specialized meaning that this loanword has acquired in English. According to Taiichi Ohno, Kanban is a means through which JIT is achieved. Actually, Kanban System is directly related to JIT production to improve communication about production. It is a tool that can form part of more encompassing JIT system. Kanban System is usually ‘tickets’ but can be simple visual signals, such as the presence or absence of a part on a shelf. When implemented correctly, JIT can lead to dramatic improvements in a manufacturing organization’s return on investment, quality, and efficiency.
- Green Logistics
The Toyota Environmental Activities Grant Program was inaugurated in 2000, commemorating TOYOTA’s receipt of the prestigious Global 500 Award, to further demonstrate TOYOTA’s responsibility for the environment and sustainable development. Since then, as part of its corporate philanthropic activities, TOYOTA has been conducting the Grant Program to support environmental activities implemented by NPOs and other non-profit private groups under the theme of “Environmental Technology and Human Resource Development Contributing to Environmental Revitalization and Conservation”.
Traditional logistics seeks to organize forward distribution transport, warehousing, packaging and inventory management from the producer to the consumer, environmental considerations opened up markets for recycling and disposal, and led to an entire new section. For a typical product this supply chain extends from a raw material source through the production and distribution system to the point of consumption and the associated reverse logistics. The logistical activities include freight transport, storage, inventory management, materials handling and all the related information processing. The main objective of logistics is to co-ordinate these activities in a way that meets customer requirements at minimum cost. In the past this cost has been defined in purely monetary terms. As concern for the environment rises, companies must take more account of the external costs of logistics associated mainly with climate change, air pollution, noise, vibration and accidents. This research project is examining ways of reducing these externalities and achieving a more sustainable balance between economic, environmental and social objectives.
JIT was subsequently adopted and publicized by Toyota Motor Corporation of Japan as part of its Toyota Production System. Toyota implemented Kanban System correctly, so JIT can lead to effective improvements in a manufacturing organization's return on investment, quality, and efficiency. Green Logistics get a lot support from many organizations, it makes environment friendly while saving cost. Theses technologies are used by another companies.
