Just In Time Inventory

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Just in Time Inventory Origins of the Just in Time Concept The concept of JIT was originally devised a couple of decades ago within the Toyota Factory by Taiici Ohno in Japan. In those days, Toyota like other Manufacturers were encountering issues concerning major defects in their products, high cost and delivery delays, as well as outsized lot production. Nevertheless, only a single product defect had the ability to destroy the reputation of the producer. Therefore, the need to develop a completely defect free manufacturing system was overwhelming. By initiating JIT, a very strong and solid manufacturing system was established that was not only defect free from the existing defects of that time, but also supplied a faster and reliable delivery system in regards to satisfying the needs and demands of the customer. The Process The need that initiated Taiici Ohno to develop JIT in its early days is still a relevant concern for companies today. However, its process should be fully explored before a company seeks to implement this highly effective inventory management system. JIT is a production process that connects suppliers, manufacturers, as well as the customers to each other for the successful completion of the JIT manufacturing. The process of JIT does not work on the basis of independence in regards to the stages of the manufacturing process. Instead, the process of the JIT manufacturing is dependent on connectivity. Before initiating a JIT manufacturing system, a company needs to fully define its plan and objectives. In addition, proper control of current business processes must be accomplished. JIT will not repair errors if they are already causing issues. These “errors” will need to be corrected and disciplined before a company should advance into the world of JIT. Therefore, planning for JIT is the most critical step for setting up a JIT

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