Just In Time

Just In Time system are design to achieve a smart flow of production using minimal inventory.

JIT refers to both production and control system in which work flows are scheduled so precisely that only the smallest quality of work in progress will be kept in the stages of production.


Key elements of Just In Time system:

1. There is a need for close and harmonious relations with the suppliers.
2. With minimal stocks it is necessary to achieve high quality.
3. Quality must be everyone's priority.
4. The production process needs to be shortened and simplified. It needs to be flexible.
5. Flexibility of process has implications for the layout of the factory.
6. The manufacture of components and assemblies need to be synchronised.
7. It requires a flexible, multi skilled and cooperative work force.
8. A cooperative spirit. 
9. Equipment and machinery must be flexible.
10. Accurate demand forecast will make JIT to be more successful.
11. Production smoothing.
12. Small size batch.
13. Quick and low cost system.
14. Efficient layout.
15. Problem solving approach.
16. Continuous improvement.

Advantages of Just in Time system:

1. Reduce capital invested in stocks and reduces the opportunity cost of stock holding.
2. Reduces cost of storage and stock-holding.
3. Space released can be used for more productive purpose.
4. Less chance for stock to become out of date. Reduce risk of damage and wastage.
5. Can adapt to changes in demand.
6. Increase job satisfaction since workers have to be multi-skilled. 
7. Increase in product quality and reduce scrap.
8. Reduce manufacturer lead time.
9. Smoother production flow.
10. Increase productivity.
11. Workers participate in problem solving.

Disadvantages of Just in Time system:

1. It can lead to expensive production delays if suppliers do not reach on time. (e.g Due to strike)
2. Delivery costs will increase as frequent small orders will be required.
3. Administration costs may rise due to small orders being placed.
4. Loss in discount due to small orders.
5. The reputation of the firm depends on the reliability of the supplying firm.

University of Mauritius past papers Question and Answer

May  2014 Q.2

(a) What do you understand by the term JIT system? 

1. Just In Time system are design to achieve a smart flow of production using minimal inventory.
2. JIT refers to both production and control system in which work flows are scheduled so precisely that only the smallest quality of work in progress will be kept in the stages of production.
3. JIT is a stock control method aims to avoid holding stocks by requiring supplies to arrive just as they needed in production and completed products are produced to order.

(b) Discuss the key benefits of a JIT system.

1. Reduce capital invested in stocks and reduces the opportunity cost of stock holding.
2. Reduces cost of storage and stock-holding.
3. Space released can be used for more productive purpose.
4. Less chance for stock to become out of date. Reduce risk of damage and wastage.
5. Can adapt to changes in demand.
6. Increase job satisfaction since workers have to be multi-skilled. 
7. Increase in product quality and reduce scrap.
8. Reduce manufacturer lead time.
9. Smoother production flow.
10. Increase productivity.
11. Workers participate in problem solving.

May 2013 Q.2

Electronics Accessories manufactures personal computers for the local market. Over the last three months, late deliveries have increased by 30%, resulting in a major customer threatening to cancel all new orders and move to a new supplier who has a better ‘on-time’ delivery schedule. The CEO, of Electronics Accessories has requested you, the Operations Manager, to provide a proposal to improve delivery schedules. Having benchmarked your organization, you have decided to use a Just in Time (JIT) approach to rectify this problem.   

Discuss the key elements of a JIT system and how you could implement at Electronics Accessories. 

1. There is a need for close and harmonious relations with the suppliers.
2. With minimal stocks it is necessary to achieve high quality.
3. Quality must be everyone's priority.
4. The production process needs to be shortened and simplified. It needs to be flexible.
5. Flexibility of process has implications for the layout of the factory.
6. The manufacture of components and assemblies need to be synchronised.
7. It requires a flexible, multi skilled and cooperative work force.
8. A cooperative spirit. 
9. Equipment and machinery must be flexible.
10. Accurate demand forecast will make JIT to be more successful.
11. Production smoothing.
12. Small size batch.
13. Quick and low cost system.
14. Efficient layout.
15. Problem solving approach.
16. Continuous improvement.