Just-in-Time (JIT) Inventory Systems
“Just-in-Time” means that raw materials are received just- in- time to go into production, manufactured parts are completed just- in- time to be assembled into products, and products are completed just- in- time to be shipped to customers.
KEY ELEMENTS IN A JIT SYSTEM
A company must learn to rely on a few suppliers who are bound under long-term contracts.
∙ The layout of a plant is different when JIT is in use. Machines are arranged in small “cells” for “islands” where several tasks can be performed in relation to a product. (Think class example). This is called a focused factory.
∙ Workers assigned to a cell are expected to operate all of the equipment it contains.
∙ Workers are expected to perform all maintenance work on the cell’s equipment. Thus, no separate maintenance crew is maintained.
5.JIT plant layout emphasizes a product approach. All machines needed to produce particular product are grouped together. A traditional plant is often based on a functional layout where all machines of the same type are grouped together.
Benefits of JIT
Working capital is increased by the recovery of funds previously tied up in inventory.
b. Storage areas might be put to more productive use.
c. Throughput time reduced.
d. Defects reduced, resulting in less waste and greater customer satisfaction.
Focused Factory
-where workers work in cells for islands.