a.

The JIT production system was one of the most significant production management
approaches of the port World War II era. Using JIT, Taiichi Ohno revolutionized the production
system at Toyota. Discuss in detail the concept of JIT and its advantages with reference to
Toyota.

Just-In-Time (JIT) is a Japanese manufacturing management philosophy that was developed in
the 1970s. It is referred to the cost-effective production and to the delivery of necessary quality
parts, in the right quantity, at the right time and place, while using a minimum number of
facilities, equipment, materials and human resources. The basic ideas behind the JIT production
system are to produce only necessary units through elimination of waste such as overproduction,
waiting/idle time, transportation/motion time, processing delay, excess inventory, product
defects etc.

JIT system maintains inventory with small lot sizes to reduce cycle inventory, lead time and
achieve uniform workload such as assembling the same type and number of products each day
and creating a uniform daily demand at all workstations. This necessitates good coordination
between stations such that every station produced only the exact volume that the next station
needs. On the other hand, a station pulls in only the exact volume that it needs from the
preceding station.

JIT Manufacturing consists of smooth flow of materials as they got manufactured through the
line, thereby increasing the speed of the manufacturing process. A lot size of one makes it
possible to adapt to the changing customer demand. Low set-up time initiates a shorter
production time/cycle and less inventories that include work-in-progress, finished goods and
subassemblies. Just-in-time has simplified the production and lowered the costs, giving JIT
companies a competitive edge. Toyota emphasizes more on developing flexible, fast operations
and processes that enable quick response to changing market conditions.

JIT is an extremely powerful tool to identify where improvements shall be made. Each activity
can be treated as either Valued or Non-Valued. The reduction of Non-Valued activities is
achieved mainly through increasing manufacturing flexibility and continuous improvement. It
helps to identify the cause of problem and its elimination. Failures are treated as opportunities to
improve the system. With the introduction of JIT, the defect reduces further and therefore all
products meet the customer expectations.
Advantages of JIT
(a) Cost savings due to reduced inventory levels.

(b) Improved quality due to close monitoring.

(c) Space saving due to lower inventories.

(d) Reduced lead time due to better integration.

(e) Quick response to customer demand due to streamlined production.

(f) Increased productivity and better flexibility.

(g) Early detection of quality problems and its elimination.

(h) Avoids grow-up of unsold finished product that can occur with sudden changes in
demands.

(j) Low cost for consumer due to standardization of process.

(k) Increased customer satisfaction.