In manufacturing, speed to market and costs of production can make or break a company. Just in time [JIT] manufacturing is a workflow methodology aimed at reducing flow times within production systems, as well as response times from suppliers and to customers.Table of contents
Implementing the JIT methodology
The JIT methodology requires that manufacturers establish strong relationships with suppliers and supply chain visibility to ensure that materials are delivered reliably and without interruption. Manufacturers must also implement standardized internal processes, with an emphasis on efficiency and effective communications. In addition, they must continuously look for ways to improve business processes and operations, no matter how well they currently work.
Through the careful implementation of JIT methodologies, manufacturers can reduce inventory levels, lower ongoing costs, increase product quality and achieve greater overall efficiency. However, even if a company does everything right, JIT manufacturing is not without risks. As the COVID-19 pandemic showed, JIT processes are highly susceptible to disruptions in the supply chain. If a manufacturer cannot get the material it needs to carry out production, its entire operation can be brought to a standstill.
Because of these risks, some companies have adopted -- or have stuck with -- just-in-case manufacturing [JIC manufacturing]. With this system, they maintain large inventories to insure against supply chain disruptions or unexpected increases in demand for the product. However, this approach comes with significant costs for purchasing and maintaining that inventory. Going forward, manufacturers will likely need to find a balance between JIT and JIC manufacturing to effectively control overhead, while minimizing supply chain risks.
See also: supply chain planning, demand signal repository, demand shaping and Lean production.
This was last updated in October 2022
Continue Reading About just-in-time manufacturing [JIT manufacturing]
- What is material requirements planning [MRP]?
- What is kanban?
- What is total quality management [TQM]?
- What are Muda, Mura and Muri?
- Predictions for the manufacturing industry in 2022 and beyond