JIT (Just In Time)

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Just-in-time (JIT) is a operations system that has evolved in many ways throughout the years. When it was first introduced in the late 170's, it was an approach to eliminate waste in manufacturing. Today, JIT is a set of principles that can help an organization successfully operate a competitive business. JIT focuses on reducing inefficiency and unproductive time in processes to improve continuously the process of the products or services that is being produced. The goal of JIT is to produce goods and services as needed and to continuously improve the value-added benefits of operations. It is the belief that by eliminating waste, cutting unnecessary inventory and removing non-value adding activities; an organization can reduce cost and improve quality. This essay will examine three companies (Ford, Toyota and Cessna) and how they have taken the basics of JIT and used them to succeed. This essay will also show how other areas in operations management must be improved upon in order for an organization to successfully implement the JIT system.

In order to manufacture a product or service a process needs to be defined. No product or service can exist without a process, such as no process can exist with a product or service. The process that you select effects many areas and is something that is of extreme importance. It is also something that is going to be implemented over an extended amount of time. Some main areas that are effected by the process chosen are costs, quality and delivery. When Toyota defined their process system, they came up with a concept that has become an example for others to follow.

Toyota Production System (TPS) is one of the most admired lean manufacturing systems in existence. Lean systems require constant improvements to increase efficiency and reduce waste. What Toyota did was take this concept and defined a set of tools and procedures and then built a learning organization for its employees. Toyota created a process system that encourages employees to experiment with their environment by finding alternative solutions whenever things go wrong. Toyota sets up all operations as experiments and teaches employees at all levels how to use the scientific method of problem solving. Working with a teacher is an important factor of the learning organization. Employees learn the scientific method and eventually become teachers themselves. The employees who actually perform the work are involved in making improvements. With given the opportunity to try, various problems become known and able to be solved before they effect the process. With this type of process management, the JIT philosophy is enforced and Toyota is able to continuously improve quality, customer satisfaction, and employee involvement.

The management of technology is another factor that effects JIT. Many people view the success of an organization but the amount of technology it has available to them. This is not necessarily the case. The organization needs to be able to manage the technology in such a way that benefits the organization. To effectively manage technology, management must join together such departments as engineering and R&D and strategically develop a system that can utilize the technological capabilities that exist and carry out corporate and operations strategies. Organizations obtain new technologies to reduce such things as costs, labor involvement and lead-time. New technology also improves quality which results in process improvements-both key factors in JIT. If the technology is not managed in the right manner, it can not deliver the performance that is expected.

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Ford Corporation has an assembly plant that is a fine example of managing new technology. At this plant, an outside supplier manufactures the seats. The supplier assigns a sequence number to each delivery, and assembles the seats for delivery by style and color. The truck also delivers the correct amount needed for one hour's worth of production. The seats are fed from the delivery truck by conveyors to the assembly line in sequence, with no human involvement. A photo sensor determines when the last seat has been unloaded and when it is time to reload the empty pallets back onto the empty truck. While this technology may not be "state of the art", it supports the continuous flow of production and materials throughout the plant and reduces costs and excess inventory. The plant assembles the necessary quantity in needs for a specific amount of time and does not go above or below what is expected. This management of technology has made Ford utilize the technology available to help them implement JIT in a fashion that works best for them.

Total Quality Management (TQM) is most likely the main ingredient of JIT. While there are many other factors that help contribute to a successful JIT process, TQM is the philosophy that stresses three basic principles-customer satisfaction, employee involvement, and continuous improvements in quality. TQM should be at the center of every organization, whether they provide a product or service. Earlier, we pointed out how Toyota encompasses these principles to implement a process that is considered the best in its industry. To show how TQM can be successfully implemented in the service industry, I recall my employment at Amica Insurance Company.

As an underwriter representative, my job was to answer the calls of customers looking for an automobile or home policy, and to answer the questions from our existing policyholders. The philosophy at Amica was based on TQM. Amica had an aggressive training program and continuously provided training to its employees throughout their career there. Every three to six months the employees had to be trained in a specific area in which they did not have experience in, or trained in an area in which they did not exceed. The management was constantly involved with making sure that the employees improved their knowledge of the policies and procedures. This type of training ensured Amica that the customer would be provided with highly trained representatives when they called, thus improving the quality of the customer service they received. This aggressive approach also allowed Amica to continuously improve the service they provided to its customers. Amica incorporates their business on their reputation with such concepts as 'word of mouth" advertising. This type of advertising is largely dependent on customer satisfaction and quality. With Amica being around since 107, we can see that it has certainly paid off.

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