Just in Time & Toyota Essay Examples & Outline
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Just in Time & Toyota
Just in time is a production system that aims at releasing an exact number of products to the market when the clients need it (Cochran, 1998). This production system requires a detailed production plan with the specific quantity of raw materials and factors of production such as machines and labor. Prior information on the supply must be clear to ensure that the company produces an exact amount to meet the demand.
In such a system, there are rare or no cases of excess or surplus production. This system is advantageous as it reduces wastage of resources and unnecessary expenditure. Another objective is to increase the return on investment through the reduction of manufacturing inventory. This essay is a detailed definition and history of the organization of JIT (just in time) and how Toyota Company has incorporated the philosophy into its production.
Toyota implements a unique production system namely the Kanban system. The idea behind this system arises from the structure and logic of a supermarket that is; a mass merchandise store that uses a product card on which the product's information are defined. At Toyota, this system sends a special signal that retrieves the parts to be used in a particular process as per the details in the product card. The idea was first initiated by former vice president of Toyota, Taiichi Ohno. Through this process, Toyota Company can optimize its production by eliminating unnecessary waste in human and corporate resources (Cochran, 1998).
Looking back at the history of Toyota Company, it is evident that the company's management comprises of intelligent and aggressive leaders who were ready to take the risk in order to improve the production system of the company. Taiichi Ohno took the job of increasing the productivity of Toyota after the Second World War (Liker, 2004). His major achievement was to combine the concepts of just in time and the Jidoka (automation with a human touch). During this time, Ohno toured the United States to study ford's production system (Liker, 2004). Nonetheless, the idea of a supermarket was more inspirational than any other system. After his trip to the Ford Company, he used the idea of a supermarket and came up with the Kanban concept. As a result, Ohno implemented just in time and managed to increase the efficiency of Toyota's production significantly.
Over the years, this process has undergone immense changes as a result of new leadership and transformation of vehicle production. Even so the process, whether in its original form or the newly computerized system, is still applicable to different businesses running in the 21st century.
Apart from efficiency in production, the company has gained significantly from the implementation of a Kanban system. There is a significant improvement in the quality of products from Toyota Company. In addition the company is more reliable as the Kanban system records information on the items on stock enabling the management to check the stock and top up when necessary (Liker, 2004).
The Just in Time (JIT) has also been applied in Spirit Aerosystems
In conclusion, just in time is a production approach that ensures optimum utilization of resources during production. Toyota is one of the companies that have used this strategy for a long time. Through the concepts of the Kanban system, the company has achieved efficiency, reliability as well as production of quality products.
Cochran S. D. (1998).Balanced production;Production System Design Lab, Michigan Institute of Technology.
Liker K.J.(2004).The Toyota way: 14 Management principles from the world's greatest manufacturer.McGraw-Hill.