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The History of Just-in-Time (JIT) Manufacturing
Transcript of The History of Just-in-Time (JIT) Manufacturing
What is Just-in-Time Manufacturing?
JIT Manufacturing is an inventory manufacturing strategy that is used to improve profit, by reducing the amount of inventory and it's associated costs (like delivery and carrying costs). It is also known at the Toyota Production System (TPS). JIT Manufacturing can be helpful to companies in regions where there are a limited amount of natural resources.
Who Created JIT Manufacturing?
Just in Time Manufacturing was created by a Japanese man named Taiichi Ohno, former vice-president of the Toyota car company. Taiichi modeled this manufacturing process after American processes of manufacturing, but made it so there was less waste because Japan has a limited amount of natural resources.
The History of JIT Manufacturing
1940: -Taiichi Ohno comes up with the idea of JIT Manufacturing for the Toyota company.
-The Kanban system is introduced to the JIT Manufacturing system
1949-1970: -"Quality Circles" are used in factories to gain workers input and work to improve the company.
-American businessmen travel to Japan to learn about JIT Manufacturing and bring ideas back to the US to use in their own factories.
-Norman Bodek publishes a book about Ohno's ideas and Just in Time Manufacturing
1980's: -Companies start to integrate the JIT ideas into their own companies like General Electric and Kawasaki become successful using this process. (They would eventually use different names to describe their manufacturing but got their root from JIT.)
1990- James Womack writes a book about car manufacturing and the processes used in it. In it he uses the name "Lean Manufacturing" which would later become a very popular manufacturing process. Lean Manufacturing has the same key principals of JIT, but may be carried out differently.
How has it changed?
JIT manufacturing is pretty much the same today, as it was when it was created. Parts are still made as they are needed to make the manufacturing more efficient, and signals are still used to alert when parts need to be made or ordered. Although more technology may have been integrated into the process it still has it basic fundamentals.
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The Kanban System
The Kanban system (also referred to as the "supermarket method") is a vital part of JIT Manufacturing. Kanban is called the "supermarket method" because the idea was based on supermarket stocking. In a supermarket the customer buys what they need, and nothing more. The customer does not buy a surplus because they know the supermarket will be restocked. The supermarket supplies just enough to fulfill the customers needs over a given period of time (until they need to restock). This results in virtually no waste or surplus, and both parties involved are satisfied. Kanban works in the same way. The manufacturer makes what is needed based on demand, and the customers buys it, after a given period of time this process is repeated and quantities are changed based on demand. This works the same in the manufacturing process.
Kanban focuses on the actual demand of customer need, and acts quickly and efficiently to produce the correct amount of products needed, with no surplus. In Kanban, when a product is needed, the suppliers are quickly alerted, so the manufacturing process can begin.
One of the major changes made in JIT manufacturing was the use of technology to alert the manufacturer what needs to be made and how much of it needs to be made. Other helpful changes such as the Quality Circles and the Kanban System helped the JIT Manufacturing system become more efficient and faster.
The JIT method has mostly stayed true to its original goal, making products with as little waste as possible. Now many major companies have become successful with it.
Influential People in JIT Manufacturing
What is it like today?
: Toyoda backed Ohno in his idea of JIT manufacturing, and helped make the JIT method more efficient productive. His input helped Toyota become a bigger competitor in the car market, though JIT.
Kiichiro helped implement flow production using assembly lines and conveyor belts, also making JIT more efficient and productive.
During the 1970's and the 1980 companies finally began using the JIT method of manufacturing. Now major companies are using it, companies such as Dell, Harley Davidson, General Electric, Kawasaki and Acco all use JIT Manufacturing.