What is JIT?
For this purpose, the JIT system, which stands for Just In Time, is used, which is specific to warehousing. JIT means that the system can respond to the demand of the production line to supply raw materials, parts in the expected time. On the other hand, the just-in-time production system is one of the most advanced planning systems, which has been called the most powerful new production control planning system.
Production inventory control with JUST IN TIME
In other words, JIT is a comprehensive system for controlling production inventories. In this system, no inventory of raw materials is purchased and no products are made unless necessary. This system primarily focuses on reducing costs by eliminating inventory. In other words, just-in-time production system is a new thinking and attitude in the management of industrial organizations that, with special principles, techniques and methods, seeks to completely eliminate waste and increase productivity in all activities inside and outside the organization.
Warehousing and production with JIT
JIT warehousing and production first emerged in Japan and dates back to the 1960s, and it is said that the reason for its emergence was the lack of space to store raw materials. It was first used by Naiji Ono in 1972 in the Toyota company and was quickly welcomed by Japanese companies. JIT warehousing in its perfect and ideal state means zero inventory of goods and raw materials to supply the production line, and this means reducing the cost of warehousing parts and raw materials and finally reducing the finished price of the product.
This method has many advantages in the way that it creates new capacities by freeing up organizational resources related to the maintenance of raw materials and parts. It opens up space for storing manufactured goods. It not only reduces the cost of goods, but also increases consumer satisfaction.
Objectives and benefits of JIT
Of course, since one of the main and important goals of Just In Time is to eliminate all redundancies and it does not have any added value, then it cannot be said that this system is only for production, that is, it can be used for all parts of organizations and even life. Personal also used. Businesses in the field of production usually face economic limitations, available resources, time and complexity of the market and competitors, so they must achieve the highest profit and efficiency in the shortest possible time and eliminate additional activities. In this JIT warehousing system, quality is very important, although it also has other goals. This system increases the level of productivity and effectiveness in processes. It increases business capabilities and increases the capacity and power of the organization to compete with competitors. This system guides the consumption of raw materials correctly and reduces excessive consumption of materials, time and work process. It does not allow redundant work to be done and reduces the risks of doing work again.
Other benefits of this system include significant reduction of work in progress, product delivery time to the customer, required space, waste, scrap and rework, increase in productivity, improvement of relations with suppliers who are better and more successful. Motivated, satisfied and more cheerful workforce pointed out.
This post is written by amir_2mi