Just-in-time production definition
/What is Just-in-Time Production?
Just-in-time production minimizes the time, labor, and materials in a manufacturing process. It does so by only producing goods as they are needed. The desired outcome is a streamlined production system that maintains a minimal amount of on-site raw materials, minimal wait times in the production process, and small batch sizes.
Key Principles of Just-in-Time Production
Several principles underlying the just-in-time production process are as follows:
Frequent deliveries of small quantities of parts from suppliers. Frequent, small deliveries reduce inventory holding costs and ensure that parts are only available when needed. This keeps inventory levels low and minimizes waste from excess stock or obsolescence.
Certification of supplier quality. By relying on trusted suppliers with certified quality, the need for incoming inspections is eliminated. This streamlines operations and reduces delays and labor costs associated with quality control.
Use of kanbans to drive demand. Kanban cards or signals trigger production based on actual demand, preventing overproduction. This pull system ensures that resources are only used when needed, aligning production closely with customer orders.
Flexible work centers. Workstations are organized to be adaptable to various tasks and product types. This enhances responsiveness to product changes and supports efficient flow in mixed-model production environments.
Compression of the production area. Minimizing space between workstations allows for smooth, fast handoffs of materials between processes. It reduces transit time, handling costs, and in-process inventory.
On-site inspections. Immediate inspection at each stage allows flaws to be detected and corrected before moving forward. This maintains product quality and prevents defective units from progressing through the system.
Rapid machine setups. Quick changeovers allow manufacturers to produce smaller batches, even down to a single unit. This enhances flexibility and responsiveness to changing customer demand while reducing inventory.
Cross-training of employees. Versatile workers can be shifted between tasks as needed, improving workforce flexibility and minimizing downtime due to labor constraints. It also enhances job satisfaction and team collaboration.
Production stops when demand is fulfilled. By halting production once the current demand is met, JIT avoids overproduction and excess inventory. This ensures alignment with real-time market needs and promotes lean operations.
Immediate shipment of completed goods. Finished goods are shipped as soon as an order is fulfilled, reducing storage time and enhancing customer satisfaction. It supports a fast, responsive supply chain and improves cash flow.
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Advantages of Just-in-Time Production
There are several benefits of a just-in-time production system, which are as follows:
Working capital decline. There should be a drastic decline in the amount of working capital needed, since inventory levels are quite low.
Reduced waste. There should be a reduction in the amount of waste, since inspections are conducted at every workstation, not allowing defective goods to pile up anywhere in the process.
No obsolescence. There is no finished goods obsolescence, since goods are only produced if they can be immediately sold.
Square footage decline. The square footage needed by the production area is reduced, since the work area is compressed.
Reduced materials handling investment. There is a reduced need for materials handling equipment, since the work centers are positioned so close together that parts can be manually handed off from one workstation to the next.
Disadvantages of Just-in-Time Production
The main flaw with a just-in-time system is that an interruption to the system can quickly shut down the process, since there is no buffer built into the system. For example, when a machine breaks down for which there is no backup machine and no arrangement to outsource work, the downstream operations fed by that machine are immediately starved of inputs, and must stop.