JIT in Production and Operation Management

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JIT in Production and Operation Management

The Just in Time (JIT) philosophy refers to a manufacturing approach that concentrates on lowering the amount of waste as well as the constant development in production. JIT focuses on developing the right services and products that meet the demands of the customers. In contrast, all aspects that fail to add value to the organization’s products or services are consequently eliminated. By continuously improving the state of the business, JIT can improve the quality, return on investment and efficiency. The principle behind JIT is that unused resources are a waste to the business (Cimorelli 56). Rather than storing them with no immediate function at hand, it is prudent to expose the hidden costs in inventory keeping. Therefore, JIT works to influence the perceptions held by organizations concerning inventories. Using JIT, managers are able to make the necessary decisions concerning the volume and frequency of supplies (Louis 39).

JIT operation management offers the benefit of faster response to lower inventory levels. JIT has the ability of balancing between excess stocks and running out of stock in the organization. JIT also assists in managing inventory costs by reducing the amounting of storage space and employees needed to manage the inventory. Significant savings in the inventory department prove beneficial to the organization. However, JIT requires a high level of coordination between suppliers and retailers to be effective (Kedslie 187). This is because JIT works on a very expensive technological platform that can be difficult to maintain. JIT also exposes the organization to several risks. JIT is highly volatile and requires a dynamic business in order to work effectively. Failure to adjust quickly enough may result in loss of customer and supplier confidence (Sun 89). JIT was developed to manage inventory issues within the organization and has turned out to be a useful tool in making savings in the expenditure. However, it requires proper implementation for it to be successful.

Work Cited

Cimorelli, Stephen C. Kanban for the Supply Chain: Fundamental Practices for Manufacturing Management. New York: Productivity Press, 2006. Print.

Kedslie, M. “Introducing Just-in-Time Inventory Systems – a Malaysian Experience.” International Journal of Applied Management. 3.3 (2002): 42-54. Print.

Louis, Raymond S. Integrating Kanban with MRP II: Automating a Pull System for Enhanced JIT Inventory Management. Productivity Pr, 2005. Print.

Sun, W. “Setting Up an Inventory Control Kanban System for Small Businesses.” Technical Paper – Society of Manufacturing Engineers. (2008): 1-13. Print.