By Karla Que-Sanchez
Ever since Toyota pioneered the concept of just-in-time (JIT) manufacturing, Ja
panese companies and large Western companies have followed suit with considerab
le success. The original practice of JIT involves a demand-pull system, which m
eans customer orders prompt production so the company does not produce inventor
ies for stock. Raw materials arrive at the factory floor just in time for produ
ction. Needless to say, JIT involves minimal to virtually zero inventories.
Smaller enterprises are put off by the idea of JIT because it seems to entail h
uge costs and process modifications. With the rising costs of transportation, i
t is not always feasible for most companies to require their suppliers to deliv
er just in time since this would mean more frequent deliveries of smaller volum
e purchases. The company's suppliers may compensate for the additional transpo
rtation expenses by a corresponding increase in prices that the company may eit
her absorb or pass on to consumers. The bottom line is that businesses do not a
lways benefit from mirroring JIT systems adopted by larger enterprises.
What many fail to understand is that more than anything, JIT is a philosophy ra
ther than a procedureâa philosophy rather than a procedureâa philosophy guided
by key principles even the smallest companies can adopt to improve operations.
Read the full article in the November-December issue of SME Insight Magazin
e
Simplifying Just In Time
By Karla Que-Sanchez
Ever since Toyota pioneered the concept of just-in-time (JIT) manufacturing, Ja
panese companies and large Western companies have followed suit with considerab
le success. The original practice of JIT involves a demand-pull system, which m
eans customer orders prompt production so the company does not produce inventor
ies for stock. Raw materials arrive at the factory floor just in time for produ
ction. Needless to say, JIT involves minimal to virtually zero inventories.
Smaller enterprises are put off by the idea of JIT because it seems to entail h
uge costs and process modifications. With the rising costs of transportation, i
t is not always feasible for most companies to require their suppliers to deliv
er just in time since this would mean more frequent deliveries of smaller volum
e purchases. The company's suppliers may compensate for the additional transpo
rtation expenses by a corresponding increase in prices that the company may eit
her absorb or pass on to consumers. The bottom line is that businesses do not a
lways benefit from mirroring JIT systems adopted by larger enterprises.
What many fail to understand is that more than anything, JIT is a philosophy ra
ther than a procedureâa philosophy rather than a procedureâa philosophy guided
by key principles even the smallest companies can adopt to improve operations.
Read the full article in the November-December issue of SME Insight Magazin
e
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It's wrong for me to said that JIT system was useless in the production world.
Many manufacturer was fenzy about the Lean, Six-Sigma and bla bla bla. And this
kind of quality tools directly or indirectly engaged with the JIT practice. No
doubt it's save alot and maximized the efficiency of the production processing
. But one things everyone should bear in mind that before going into this quali
ty tools please ensure that you prepare to invest on it. Do you have the human
talents ? Do your current manpower have the mentality ability for the implement
ation ? Do you have enough capital to support the implementation ? How do you
r current production functioning and what would it be in the future after the i
mplementation ? How do your supplier performing - interm of delivery, quality a
nd accuracy ?
The above is the most simple and basic questioning which need you to answer bef
ore you implement it on your production flow. Do you have it ? If yes and confi
dence about it then go ahead (pls be honest to yourself for the answer). If no,
go for improvement based on benchmarking month to month, quarter to quarter or
year to year. Just suck some of the useful point from the useful quality tools
and create your company manufacturing book. Do not follow what it's mean good
in the globe and then used it in your production flow. It's not totally useful
to you if you do not have various combinations which take this system into succ
ess.
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