manufacturing articles business management businesses Marketing sales Technology Business finance Lean Manufacturing small business Investing articles employee health

Just In Time manufacturing

charttwo30340387.JPGJust In Time manufacturing is one of the types of manufacturing used by many companies today. This article discusses more about Just In Time manufacturing.

What is Just In Time manufacturing?

Just In Time manufacturing is a specific type of manufacturing and can actually be considered a type of strategy. The main objective of Just In Time manufacturing is to save the manufacturer money. A manufacturer who uses Just In Time manufacturing believes that having an inventory of raw materials is a waste. A manufacturer can spend a lot of money purchasing inventory for it to just sit and take up space. And not only does the manufacturer have money in the inventory of raw materials, they are also paying for the space to house the inventory.

How does Just In Time manufacturing work?

In Just In Time manufacturing, suppliers need to bring raw materials more often to the manufacturer. The manufacturer does not store any of these supplies. They use the raw materials they receive to create the specific amount of products they need.

Just In Time manufacturing uses signals. These signals are used to let the machines know that the production needs to continue. Kanban is a type of signaling system that is used in Just In Time manufacturing. There are different kinds of signals that can be considered Kanban. A few examples of Kanban include plastic markers, golf balls, or even empty baskets that are used to transport the parts on the manufacturing floor. Having signals ensures that extra products do not get made before they are needed.

History of Just In Time manufacturing

Just In Time manufacturing was first used by Henry Ford to make automobiles for the Ford Motor Company. Henry Ford would only buy the materials that he needed (and no extra materials) to make the amount of cars that he planned to make.

Benefits to Just In Time manufacturing

One of the many benefits to Just In Time manufacturing is the reduced cost. Parts of the products are not made before they are needed. This means that extra products are not made before they are going to be sold.

Just In Time manufacturing also saves a manufacturer money because if there is not a need for a certain product at a specific time the employees do not have to work. When the employees do not have to work the owner does not have to pay them.

Another benefit to Just In Time manufacturing is the fact that less space is used in the warehouse. Since parts are not ordered unless a specific level is reached there is no need to store extra parts because extras are never ordered.

Since Just In time manufacturing requires a supplier to come more often, the relationship between the supplier and the manufacturer is very important to make sure work continues smoothly. Better business relationships are always very important and are a great benefit for both the supplier and the manufacturer.

Disadvantages of Just In Time manufacturing

To work perfectly, Just In Time manufacturing requires supplier trucks to deliver a certain amount of raw materials at a specific time and bring the manufacturer the exact amount they need for production for the day. And the owner of the manufacturer has to plan and be very organized to know how many products they need to make each day so that they ask only for the raw materials that they need. While many companies can get pretty close to making Just In Time manufacturing run flawlessly, no one will be able to have this manufacturing process run perfectly each day.

There are also some environmental concerns when it comes to using Just In Time manufacturing. These arise because of the increased travel of suppliers to the manufacturer. Suppliers use more fuel and may waste a lot of time stuck in traffic on their way to the manufacturer.

FREE: Get More Leads!
How To Get More LeadsSubscribe to our free newsletter and get our "How To Get More Leads" course free via email. Just enter your first name and email address below to subscribe.
First Name *
Email *

Get More Business Info
Sponsored Links
Recent Articles


Copyright 2003-2020 by - All Rights Reserved
Privacy Policy, Terms of Use