What is the Just In Time method?

The Just In Time method is a production and logistics management strategy that was developed in Japan by Taiichi Ohno. Taiichi Ohno is an engineer and manager, creator of the Toyota Production System and precursor of the Lean Management concept.

The Just In Time (JIT) method was used for the first time in the car company Toyota. The Japanese company has been implementing this solution since 1950s. In 1962 this solution was already functioning in all Toyota branches.

As already mentioned Just In Time is an inventory management strategy – profit is achieved by reducing inventory levels. This allows you to reduce costs throughout the production and warehouse process. Needed resources are not stored, but delivered when they are needed. The effect of proper application of the method is profit, but also an improvement in the quality of the company’s processes and its efficiency. During the implementation of JIT, the problem associated with increased demand that exceeds the expected level is solved.

Key principles of Just In Time

Producing exactly:

• … what is needed.
• … when you need it.
• … as much as is needed.

Just in Time is an efficient system of production organization, which aims to ensure continuous flow, reduce unnecessary inventory, improve process efficiency and reduce manufacturing costs.

Just In Time implementation

Implementation of the Just In Time method should be combined with the introduction of certain rules and standards. Key in this process is to ensure high quality of supply and minimum stock accumulation. This in turn is associated with the need to place frequent orders from suppliers. Not without importance is also the lead time – it should be short. During the implementation of JIT, it is necessary to take care of good organization of purchasing processes and logistics issues. This will require appropriate training of staff who will watch over the timeliness and quality of deliveries.

Another aspect to keep in mind is to cultivate partnerships with suppliers. How? Let’s find out how Toyota implemented this assumption – it was established in the corporation that supplies are to be ordered in small but frequent batches. Suppliers were encouraged to open warehouses near Toyota’s production areas. This solution benefited both suppliers and Toyota.

Auxiliary methods

Other factors important for JIT are the search for the most effective tools, the implementation of standards and minimizing the time spent on changeover of machines. Experts also point out that the full use of the potential of the Just In Time concept is possible only in combination with auxiliary methods. Such methods are, for example: SMED (Single Minute Exchange of Die), TPM (Total Productive Maintenance), the 5S method or Kanban.

Benefits of implementing the Just In Time method:

• Improving the organization of the purchasing and logistics process in the company,
• Increased financial liquidity, due to reduction of inventories,
• More free space in production and storage areas, thanks to eliminating the need to store finished goods, raw materials and work in progress,
• Increased production capacity,
• Reduction of lead time of orders,
• Improved on-time delivery ratio,
• Improved delivery quality ratio,
• Increasing the level of customer satisfaction by improving the timeliness and quality of deliveries,
• Creating lasting partnerships with suppliers.

Just In Time method affects the elimination of waste in the processes, which generates considerable savings. This is the main reason why companies decide to implement JIT in their organization.