Just in Time Production Flashcards

Just-in-Time (JIT) Inventory System

• JIT is a management strategy that synchronizes raw material orders with production schedules.
• Aims to increase efficiency and decrease waste by receiving goods only when needed, minimizing inventory costs.
• Requires accurate demand forecasting for optimal performance.

JIT Manufacturing and Toyota Production System

• JIT manufacturing is synonymous with the Toyota Production System (TPS), developed by Toyota in the 1970s.
• This system emphasizes reducing inventory costs by eliminating the need for storage and managing orders based on customer demand.
• Enhancements in the production process hinge on dependable suppliers and effective assembly methods.

Advantages of JIT Inventory Systems

• Short production runs allow manufacturers to switch quickly between products.
• Reduces costs associated with excessive warehousing and excess raw material purchases.
• Encourages minimal inventory levels, reducing capital tied up in unsold goods.

Disadvantages of JIT Inventory Systems

• Vulnerable to supply chain disruptions; delays from suppliers can halt production entirely.
• Unexpected orders can delay the fulfillment of customer requests, affecting service levels.

Key Components of Toyota's JIT Implementation

• Steady production and high-quality processes are critical for JIT success.
• Dependable suppliers and non-disruptive operations are essential for maintaining workflow.
• Continuous refinement of the JIT system took approximately 15 years for Toyota to perfect.

Lean Management

• Lean management promotes continuous improvement, emphasizing small, incremental changes to enhance efficiency and quality.
• Focused on minimizing waste in various forms, such as overproduction or excess waiting times.

Important Terms

• Raw Material: Basic material from which products are made.
• Inventory Costs: Expenses associated with storing unsold goods.
• Supply Chain: System connecting production to the consumer.
• Disruption: Interruption in the supply chain impacting production flow.
• Production Run: A batch of products produced in a single manufacturing cycle.

Goals of JIT Production

• Aims to minimize waste related to overproduction, excess inventory, and waiting periods in the production process.
• Strives for a production system that operates efficiently with minimal raw materials and short wait times.