Toyota and JIT management

Just-in-time (JIT)

The ideology of JIT is 'producing the necessary item in the necessary quantity at the necessary time is an eternal diver of production and operations management’

History of the Toyota Production System

• The TPS was not devised to revolutionize the manufacturing world - it was born out of necessity
• In post war Japan resources were scarce and the auto industry faced a number of problems.
• Toyota needed a system that would be flexible and scalable
• Hence was born the notion of:
• single minute exchange of dies
• heijunka

Let's see how it all works:

Report Structure

The Toyota Production System (TPS)

The Aim of Implementing JIT:

Executive Summary

Table of Contents

1. Introduction

2. Background: History of Toyota

3. Theoretical Framework

3.1. The Toyota Production System (TPS)

• Kaizen - Continuous Improvement
• Just-in-time (JIT) System - 'Kanban'
• Jidoka

4. Case Analysis - TOYOTA

4.1. Reasons for adopting JIT - How and Why?

4.2. Pre-implementation and Implementation of JIT

4.3. Benefits and Costs

4.4. Issues and Challenges

5. Recommendations

6. Conclusion

References

Appendices

JIT Implementation

What is it YOU think about or look for in a product when purchasing it?

How is it implemented?

Managers must show they are fully committed to implementing the Just-in-time system and relay their commitment down the chain of command

Creating both a policy and procedure manual for the implementation of JIT is a significant step for management.

Policy is the wider framework within an organization, creates framework for employee actions and legitimizes managements directions.

JIT system requires continuous training of staff, to create and find multi-skilled workers who understand how the JIT system operates.

A full plan for a redesign of the companies operations must be written up and implemented by management

One such system is an ERP, or Enterprise Resources Planning system.

Time is the absolute most important factor of the JIT system. Without complete control of the timing of projects the system would not work.

Because time is so essential to the JIT system, the speed in which information flows between customers, suppliers and manufacturers is imperative.

An ERP system is an integrated software module that covers accounting, distribution, manufacturing, purchasing, human resources amongst other functions.

That said, why would you want to implement JIT?

A practical expression of Toyota's people and customer-orientated philosophy

Toyota's philosophy is simple:

Toyota's Philosophy:

"Just-in-Time" means making "only what is needed, when it is needed, and in the amount needed."

Supplying "what is needed, when it is needed, and in the amount needed" can eliminate waste, inconsistencies, and unreasonable requirements, resulting in improved productivity.

Advantages of JIT:

Just-in-time keeps stock holding costs to a bare minimum

And most importantly, satisfies customers needs with timely delivery (if all processes are executed effectively)

Decreases unnecessary expenditure on unused and idle inventory

Eliminates waste and the burden of out of date or expired inventory

Allows companies to develop close relationships with suppliers

Toyota's JIT Revolution: A legendary Production System

Where did Toyota go wrong?

Supply Chains issues

Each process is reliant on the last

Question Time!

• 1.7 m to 2.9m cars
• 18 dif. models to 30
• Decreasing Manufacturing rating
• 7 M product recall
• Failure to properly evaluate and approve new suppliers