JIT Defined, JIT has been
defined in several ways, including the following:
- As a production strategy, JIT works to reduce manufacturing costs and to
improve quality markedly by waste elimination and more effective use of
existing company resources.
- A philosophy based on the principle of getting the right materials to the
right place at the right time.
- A program that seeks to eliminate nonvalue – added activities from any
operation with the objectives of producing high – quality produce, high
productivity levels, and lower f inventory, and developing long – term
relationships with channel members.
JIT has numerous
implications for logistics executives.
- Proper implementation of JIT requires that the firm fully integrate all
logistics activities. Many trade – offs are required, but without the
coordination provided by integrated logistics management, JIT systems cannot
be fully implemented.
- Transportation becomes an even more vital component of logistics under a
JIT system. In such an environment, the demands placed on the firm’s
transportation network are significant and include a need for shorter, more
consistent transit times ; more sophisticated communications ; the use of
fewer carriers with long – term relationships ; a need for efficiently
designed transportation and materials handling equipment ; and better
decision – making strategies relative to when private, common, or contract
carriage should be used.
- Warehousing assumes an expanded role as it assumes the role of a
consolidation facility instead of a storage facility. Since many products
come into the manufacturing operation at shorter intervals, less space is
required for storage, but there must be an increased capability for handling
and consolidating items. Different forms of materials handling equipment may
be needed to facilitate the movement of many products in smaller quantities.
The location decision for warehouses serving inbound materials needs may
change because suppliers are often located closer to the manufacturing
facility in a JIT system.
Problems Associated with
implementing JIT.
- Production scheduling.
- Supplier production schedules.
- Supplier locations.
Update 16 August 2000.