Just in Time: Origin, Definition, Objectives, Advantages and MORE

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The method Just in time It is of great importance for all companies since it will allow an improvement and a competitive advantage, it will allow the reduction of costs. In this way, it will also allow the materials to arrive in the time stipulated for their production.

In this article we will explain everything about the Methodology Just in time, what is it, what are its advantages and disadvantages, what is its origin and much more. Remember to share this information with your co-workers! Read on, here we have all the information.

Origin of the Just-in-Time Methodology

The methodology of “Just in time”Originated in Japan. This term was first applied at the Toyota automobile company. This technique began to be used in the early 1950s. The objective that really pursued this system from its origins was to reduce until eliminating all the elements that were not needed in the production area.

It is used to reduce all expenses never imagined and meeting the time needs of clients at the most competitive costs possible. Due to the limited size in terms of territory that Japan has, the physical space is one of the most valued.

One of the fundamental pillars of this new technique was the use or saving of space, the elimination of waste and in conclusion, the elimination of the load that leads to the existence of a new inventory. In the 1950s, technological and industrial development was the exclusive property of the United States of America.

Due to his victory in World War II, which greatly harmed the Japanese nation. In the decade of the 80s, this trend was reversed to his great enemy in the war, that is, Japan. The continuous advancement of technology and electronics and other industrial sectors settled in that country.

This, due in large part to the favorable economic and labor conditions in Japanese companies. It should be noted that a new method had to be found to be able to continue innovating, but increasing the margin of income and profits.

The companies that managed to implement it managed to solve the problems, the lack of physical space and the achievement of the maximum benefit. One of the first companies to implement this production chain was Toyota. This quickly rose to the world leaders in its sector.

The effectiveness of Just in Time quickly led them to change their philosophy, which began to affect all areas of the company and not just production. One of the reasons that this method has not taken root in the West may be due to the different lifestyles of both continents.

What is the Just-in-Time Method?

The method Just in time, is known as an industrial philosophy that can be summarized in the manufacture of strictly necessary products at the right time and in the proper quantities. In other words, you have to buy or produce only what is needed and when it is needed.

Just in time means the production of the minimum number of units in the smallest possible quantities and at the last possible moment. This, in order to eliminate the need to use inventories. In a philosophy it is defined as the way in which the production system should be managed.

This is an industrial philosophy of eliminating everything that implies waste or waste in the production process, from purchasing to distribution. Understanding by “waste” everything that is not added to the value of the product.

It is a methodology used to achieve excellence in a manufacturing company. Based on the continuous elimination of waste such as inspections, transport between machines, storage, or preparations. Precisely the name of this production method indicates its work philosophy.

The “Just In Time” production system Just in time, is a system for adapting production to demand. This will allow the diversification of products increased to the number of models of its units. As we have been talking about, this is done mainly to decide “stocks”.

This in order to maintain exactly what is necessary. What is supposed to be a change in the mentality of the production process, distribution and marketing of products. Seeking to achieve synergistic advantages in the production and consumption chain.

As we already know, this concept started shortly after World War II as the Toyota Production System. Until the late 1970s the system was restricted to Toyota and its family of key suppliers.

Elements

The method Just in time It is a system that is aimed at eliminating any activity that does not add value to the production process. Currently, this method has seven elements, six internal and one external. Next, we will explain what they are:

  • Internal
  1. The Just-in-Time philosophy itself.
  2. The quality of the source.
  3. Load factory uniform.
  4. Coincident operations.
  5. Minimum setup time for machines.
  6. Kanban.
  • External.
  1. Shopping Just in time.

The “expense” is considered as any activity that does not add value to the product or service. Hence, its application requires the total commitment of management and employees at all levels, particularly the operator of the production line.

In the system of Just in time Three subsystems are included: the Manufacturing JIT, the Information Processing JIT, and the Transportation JIT. Likewise, the integration in the logistics chains of merchandise exchange, of the subsystems corresponding to:

  • The industry.
  • Trade.
  • Transport.

All these elements turn out to be very important when wanting to use the method of Just in time. It is also used for the purpose of continuous improvement for maximum efficiency while eliminating overspending.

It is important to note that the foundation of this philosophy is to design the necessary strategies to maintain inventories only when they are needed, which leads to a careful analysis of purchases, production and sales. Therefore, it will always be important to consider all these elements.

Advantages of the Just-in-Time Methodology

As we already know, this methodology of Just in time It is used in companies that want to obtain a total quality model. As well as, look for the correct procedure to be able to manage and reduce the time in the elaboration of your finished products. Among its advantages are:

  • Allow the reduction of inventory levels in each phase of the production process.
  • Cipher an increase in productivity of direct and indirect labor of between 20 and 50%.
  • Verify the costs for errors in the material are reduced between 40 and 50%.
  • Allow to reduce inventory between 50 and 90%.
  • Provide flexibility to the system and facilitate quick changes.
  • Verifying the relationship with suppliers is much closer and more profitable.

Likewise, the methodology of Just in time It will be a fully productive management and handling procedure that will be used in any type of company, both industrial and service. Any process may be examined in order to determine the operations.

Many authors consider JIT only as an inventory management technique, but it goes beyond physical handling since it is not merely a technique but rather a management tool.

Objectives of the Methodology

This methodology aims at a totally continuous procedure, without interruptions in production. Achieving this objective means minimizing the total time required from the start of manufacturing to the invoicing of the product.

Likewise, another of the main objectives of this methodology is to eliminate all possible waste that occurs in a production process. Among other things, this amounts to suppressing activities that are going to be unnecessary or redundant. The activities that cause the appearance of waste and that, therefore, Therefore, we must delete the following:

  • Overproduction.
  • Store more material than necessary.
  • Operations not necessary.
  • Displacement of personnel or transport of materials.
  • Inventories.
  • Faults.

The results of Just In Time have been measured in figures in recent years. Thanks to that, some benefits can be quantified, for example:

  • Decrease investments to maintain inventory.
  • Increase inventory turnover.
  • Reduce material losses.
  • Improve overall productivity.
  • Lower financial costs.
  • Save on production costs.
  • Less storage space.
  • Avoid quality problems, coordination problems, unreliable suppliers, among others.
  • Rationalize production costs.
  • Get little waste.
  • Have effective awareness of deviations.
  • Make decisions at the right time.
  • That each operation produces only what is necessary to satisfy the demand.
  • That there are no random or messy processes.
  • The components that take part in the production arrive at the moment of being used.

Disadvantages

As in any system, the “Just In Time” Just in time, it can also cause some inconveniences, especially if there is lack of coordination when implementing it. Next, we will briefly explain what are some disadvantages of this system.

  • Possible problems of delays in stocks if there are errors in the supply planning.
  • By purchasing fewer materials in each order, prices may increase.
  • The cost of changing providers is also becoming more expensive.
  • Risk of delays or suspensions due to lack of supplies. This can lead to stoppages on the production line.

You already know everything about the Just-in-Time Methodology!

Thanks for reading us.

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