> ... > Intelligence hub Operations management Just in time

Just-in-Time (JIT)

Reduce flow times and costs within your organisation with Just-in-Time

What is Just-in-Time (JIT)?

The Just-in-Time (JIT) concept is a manufacturing workflow method. It’s used to reduce flow times and costs within production systems and the distribution of materials.

The concept was popularised by the productivity of the Japanese industry in the early 1970s, specifically within the Toyota manufacturing plants. They would meet consumer demands with minimum delays, using an approach focused on people, plants, and systems. The system was so successful in Japan it was then copied by many US companies, such as Hewlett-Packard.

The prime goal of JIT is for zero inventories across the organisation, but also across the whole supply chain. This completely utilises the organisational capabilities and maximises ROI.

 

How can Just-in-Time (JIT) be applied successfully?

The Just-in-Time concepts success is dependent on creating a business wide initiative. For a successful outcome, here are a few suggestions to guide you to success.

  • Create a stable work schedule
  • Establish a long-term supplier-customer relationship
  • Create a procurement philosophy to support frequent small transactions
  • Encourage and ensure employee discipline
  • Identify value-added and non-value-added items in shop floor activities
  • Ensure top management commitment for effectiveness and successful implementation
  • Ensure employees at all levels are experimenting as frequently as possible to keep learning
  • Coach employees to solve their own problems, rather than fixing their mistakes
 

Can a Just-in-Time manufacturing process prove effective?

Many manufacturing businesses have adopted the concepts of a Lean and Agile approach, which both incorporate a Just-in-Time approach. Though distinctly different, they can be combined to create a successful total supply chain.

The Lean approach is used to develop a value stream to eliminate all waste activity, including time, to enable a level schedule. This enables organisations to operate as efficiently as possible. Waste is defined as any activity which does not add value but becomes integral to production.

  1. Specify what creates value from the customer perspective
  2. Identify all steps across the value stream
  3. Only make what is required
  4. Strive for continuous improvements

Taking an Agile approach means using market knowledge to exploit profitable opportunities in a volatile marketplace and respond quickly to meet new market opportunities. The focus with this approach is on customer responsiveness and time-based competition. An Agile manufacturing facility looks like this:

  1. Produces to order
  2. Meets the customer’s specific needs
  3. Achieves speed and flexibility
  4. Mobilises and manages all forms of knowledge
  5. Adopts to new ways of working
  6. Creates virtual project and ad hoc organisations to add capabilities as and when are needed

The Agile approach differs from the Lean approach. The lean approach is concerned with eliminating waste from the supply chain, whereas the Agile approach is focused on instantly meeting the demands of the customer. Agile wants to create flexible relationships with suppliers, whereas the Lean approach wants to build long term, stable relationships instead.

 

What is operations management?

Operations management is a key area within any organisation. It plays a key role in keeping supply chains operational in today’s challenging environment. Discover the key to success when thinking about operations management. Find out more about Operations Management

Operations management key themes

Inventory Types & Costs Advantages disadvantages SCOR Model Obsolesence Lean manufacturing
Vendor managed inventory Warehousing Warehousing management Inventory management

Become a CIPS member

Achieve your potential by becoming a member today. Whether you want to become a studying member or want to upgrade your membership to MCIPS, you’ll receive support and guidance whatever career level you’re at.

Access the latest research, whitepapers and tools across a range of key procurement and supply topics.

Pareto analysis and supply chain management

The content in this paper offers an overview of Pareto analysis and how this then works with ABC classification as a method to classify your inventory.

Demand planning guide

This knowledge paper is supportive of Procurement professionals operating at professional level of the CIPS Global Standard

Just-in-Time guide

This paper will give you an understanding of the origins of the just-in-time (JIT) system, its history and examples of its successful application.

Lean and agile guide

The CIPS' practice documents are written as a statement in time. They are a collection of views on good practice within a particular subject area and are intended to provide direction on good practice with some guidance for context and interest.

Expand your value creation skills

Illustration of a gear with a dollar sign at its center, encircled by rotating arrows, set against a blue gradient background with abstract circular and dotted elements. Symbolizes value creation, economic efficiency, and the cyclical nature of skills development and financial growth.

Procurement Skills Training

Accelerate your learning and keep your knowledge and expertise up to date with our Value Creation training courses.

VALUE CREATION TRAINING

On this page