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Just In Time

Just In Time (JIT) is one of the two pillars of Toyota Manufacturing System.

Just In Time is, in fact, an inventory strategy aimed at reducing the inventory of work-in process (WIP) therefore increasing the profit.

The process uses Kanban signals that “tell” the process when to make the next part or lot of parts.

Just In Time also promotes production leveling by using the Heijunka box to do so.

SMED is another element of JIT created with the purpose of minimizing the waiting time due to setup delay.

As you can find information about the other elements on their respective pages, let’s focus our attention on the Material Logistics component of Just In Time.

Material Logistics – Steps of Just In Time Implementation

  1. Plan and Implement Logistics
  2. Schedule Component Production
  3. Manage External Logistics
  4. Manage Internal Logistics
    1. Plan and Implement Just In Time Logistics
      • The planning process begins at the workstation and works through the supply chain to the supplier
      • It looks at:
        1. Packaging- Light weights and no more than 2 hours of parts in a pack
        2. Workstation design
          • Minimize walk time,
          • Presents the part for easy access
          • Stores all parts needed at the workstation
        3. In-plant replenishment
          • Market areas optimally located to reduce the time required to replenish the line side
          • Plans that pull material to the line side in a timely manner while minimizing waste
          • Established material handling routes that will be marked
          • Optimize material replenishment in the plant
        4. Supply chain
          • Optimize material movement from supplier to the plant
    2. Schedule Component Production
      • Production is properly coordinated to support customer requirements- Inventory is maintained at minimum levels
      • Material ordered to support production
      • Plan Production – 6 months in advance Impact of calendar, PM’s, shift patterns, resource constraints
      • Schedule Production – 1 month in advance Automatically generates workstation schedules to support customer demand
      • Execute Production – Day to Day Pull process that schedules upstream process based on demand of downstream processes
    3. Manage External Logistics
      • Develop an optimal logistics network that will result in the shipment of materials more frequently in smaller quantities and deliver materials at specified times
      • Key elements:
        • Lead Logistics Provider to manage all inbound transportation of materials
        • Real-time information system to electronically communicate the fixed, leveled schedule and forecast
        • Material picked up and delivered at scheduled windows
        • Shipments are validated at the supplier’s dock
        • Live unloading/loading
        • Returnable containers require the same shipping documents as production parts
    4. Manage Internal Logistics
      • A disciplined in-plant material handling process used to pull material to the point of use
      • Use of Visual Management techniques (every part has a place and that place is labeled)