What is Just-in-Time?
Just-in-Time Production was developed by Taiichi Ohno, Vice President of Toyota Motor Company.
Just-in-Time Manufacturing is the regulation of the inventory process when companies produce a product.
In traditional production methods, businesses often try to meet demand by keeping large amounts of inventory. However, in this case, inventory costs increase, the need for storage space grows, and the risk of waste increases.
The Just-in-Time Production strategy, it is aimed to reduce this inventory cost and save this cost.
The materials required for the produced thing are only provided when needed and included in the production process. Thus, inventory costs are reduced, the need for storage space is reduced and the amount of waste is minimized.
Basic Principles of Just-in-Time Production
- It is aimed to reduce waste by regulating inventory costs.
- The materials required for the product are managed as needed.
- It is an inventory management with the principle of the right place at the right time.
- Just-in-Time Production cares about applying quality control at every stage of the production process.
Advantages of Just-in-Time Production
One of the biggest advantages is that the inventory system can be analyzed according to the need and waste is prevented, so this inventory cost is even less.
Since the materials required for the produced product are supplied only when needed, the waste is even less.
Transition to new product variations will be easier. Because less inventory is kept, the transition to new products or changes is faster.
Just-in-time availability of materials results in reduced production delays and shorter lead times.
Challenges and Risks of Just-In-Time Production
In Just-in-Time Production, we emphasized the principle of “Right place at the right time”. However, this principle may be disrupted as a result of problems such as disruption of raw materials or supplied products or quality problems. For this, communicating with several different supply chains can be a logical step.
Does the product quantity meet the demand?
It is an important issue that the product is produced according to demand. If the product is above the demand, the products are retained and a great expense is incurred.
On the other hand, if the product is low but the demand is high, there may be a problem in terms of time. Because the production also takes place in a certain time. And during this time, the potential customer may substitute the product.
Methods such as market research, customer feedback and data analysis can be used to improve demand forecasts.
We explained that production flexibility is high. However, this requires managing changes in the manufacturing process and adapting the supply chain to it.
Finally, the Just-in-Time inventory system is a collaborative process of people working in different departments. Therefore, interdepartmental information exchange also occupies an important place.
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