Just in Time (jit) - Japanese Manufacturing Management Method

PURPOSE

The purpose of this report is to gather information on Just In Time (JIT) practices; how it originated and what it involves, from goals and objectives. Secondarily, the report will present an investigation of implementation of a Just in Time system at Wabush Mines. The information gathered in this report will be of immediate assistance to the employees working in purchasing and the warehouse departments, as well the general manager of Wabush Mines.

BACKGROUND INFORMATION

Just-In-Time is a Japanese manufacturing management method developed in 1970s. It was first adopted by Toyota manufacturing plants by Taiichi Ohno. Just-In-time manufacturing is a management philosophy aimed at eliminating industrialized wastes by producing only the correct amount and combination of parts at the right place at the right time. This is based on the fact that wastes result from any activity that adds cost without adding value to the product, such as transferring of inventories from one place to another or even the mere act of storing them.

Many manufacturers are considering the just-in-time (JIT) philosophy in order to become more competitive in global markets. An important element of the JIT strategy is the purchasing function. The procurement of parts and materials plays a key role in the successful implementation of a JIT strategy because it has a direct impact on increased productivity, reduced costs and improved quality.

SCOPE

This report will primarily focus on gaining insight about the Just in Time system, how it works, advantages and disadvantages and the importance of the system. The report will also focus on, but not primarily, how Wabush Mines would implement and benefit from a Just in Time system. The report will not particularly focus on other organizations which have JIT systems;