Just-In-Time, initially used by the Ford Motor Company but most often associated with Toyota after they had made some process adjustments, is an inventory strategy process. The theory behind Just-In-Time is to have only the necessary inventory on hand at any time and not stockpile inventory where products can expire or face damage and become unusable for production, resulting in financial loss for the company. By implementing Just-In-Time in the operations of an organization, companies can increase their return on investment or the amount of money gained or lost compared to the amount of money invested.

Ways to implement Just-In-Time management successfully include:

1. Gathering information about using Just-In-Time (JIT)

2. Employing the services of a Just-In-Time (JIT) management consultant

3. Utilizing Kanban software

Action Steps
The best contacts and resources to help you get it done

Gather information about Just-In-Time management

Learn about implementing and using Just-In-Time (JIT) in your organization by reading JIT articles and books or by visiting a factory using JIT operations.

I recommend: Toyota is a popular example of a company that successfully utilizes Just-In-Time management. Visit one of their North American plants or read “The Toyota Way” or “Kanban Just-in-Time at Toyota: Management Begins at the WorkPlace”, to learn how they implemented JIT successfully.

Hire the services of JIT management consultants

Employ the services of a Just-In-Time (JIT) operation consultant to help you analyze your needs and plan an appropriate JIT solution.

I recommend: Japan Management Association Consultants, America provides Just-In-Time training that will not only educate your organization on JIT management, but the kaizen (continuous improvement) principles as well. Kent H. Landsberg Company also provides JIT analysis and training to companies in addition to providing a client service that allows companies to contract some of their operations to their JIT operations staff.

Utilize Kanban software as a component of Just-In-Time operations

Kanban is a Japanese word for signal cards, and when applied to factories using Just-In-Time operations, signals the need for inventory (parts and components) to an area so workers have a continuous supply as needed. Simplify the inventory tracking process by utilizing Just-In-Time inventory software.

I recommend: SMC Data Systems allows one to implement automation processes that scan inventory when delivered to the warehouse, produce real time purchase orders and allocate inventory for special orders. Professional Implementation Consulting Services offers kanban software that monitors the supply chain transactions of externally purchased items, internal distribution items and finished goods items.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  One of the most obvious benefits of the Just-In-Time system is the cost savings companies experience by reducing storage costs and storage space by having deliveries scheduled as needed. Because inventory is arriving as needed, it is important to contract with reliable suppliers and pay your bills in a timely manner to remain in good standing. Failure to have your supplies delivered on time due to irresponsible suppliers or late payments will interfere with your work processes and cause a delay in production.
• •  Other factors when using Just-In-Time management that can have a negative impact on your production are inclement weather, traffic delays due to construction or accident and fluctuating fuel costs, which may be passed onto you through delivery fees.

A JIT operation maintains only the required inventory in demand. Previous year's sales statistics dictate how much product to keep on hand, allowing the use of excess capital elsewhere. Just in time is a fully automated system that monitors inventory levels and places orders accordingly. This feature ensures a company sustains the right amount of product on hand.

Information about just-in-time management includes some drawbacks. Generally, single suppliers participate in JIT operations. Therefore, an interruption in supply, costs your company profits and customer goodwill. In addition, company expenses increase when suppliers pass shortage costs on to their clients. Such expenses negate the savings JIT scheduling provides. Avoid these expenses by manufacturing in-house, owning the manufacturer or investigating your supplier's integrity and service record.

Implementing a JIT system provides your company with the following benefits:

1. Just-in-time manufacturing reduces inventory, storage, depreciation and shipping costs.
2. Product quality increases with just-in-time materials. JIT planning eliminates the burden of products becoming obsolete while sitting on the shelf.
3. A JIT solution improves efficiency. It redistributes space, processes and funds previously designated for inventory.
4. JIT management creates a better customer experience. With this system in place, customers receive the highest quality products when they need it.
   

Action Steps
The best contacts and resources to help you get it done

Determine your software and process converting partners for implementing JIT management

Converting your existing inventory process to just-in-time management is not a do-it-yourself project. JIT uses a few software systems to maintain inventory counts. Companies often use Kanban, E-Kanban or material requirements planning (MRP). A Kanban or 'pull' production control system manually controls the movement of materials between work centers using cards for requesting small products. More technologically designed, E-Kanban is an electronic version of Kanban. E-Kanban eliminates the manual pitfalls of its predecessor and determines inventory replenishment times.

I recommend: JIT articles rank Kanban scheduling systems as the most flexible and cost efficient for many types of inventory-based companies. Download Strategos' E-Kanban simulation game to get a feel for how it works. Lean Depot provides E-Kanban demonstrations and consultation from concept development to implementation. Lean Depot assists you in converting your operations area and your operations staff for the smoothest inventory management transition.

Incorporate trustworthy product resources for successful just-in-time management

Dependable product resources build the foundation of any JIT process. Find JIT participating suppliers to pull the operation together. Also, select a product organization system to monitor inventory.

I recommend: No matter what type of business you operate, Mniguide provides you with a searchable database of suppliers and wholesalers. For Kanban users, organize and monitor your inventory with JIT tracking materials from Magnatag. Their products help you keep accurate counts at a glance.

Get information about just-in-time management

Before you adopt this style of inventory management, get the scoop from JIT articles and blogs.

I recommend: LeanBlog, a blog about "lean" business practice, has positive posts about JIT management. The academic paper "Just-in-Time Under Fire: The Five Major Constraints Upon JIT Practices," published in The Journal of American Academy of Business, Cambridge in 2006 by Dr. Polito and Dr. Watson, advocates against its use.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Just-in-time manufacturing provides more benefits than obstacles for maintaining your inventory business. It reduces waste, optimizes efficiency and cuts costs related to storing, managing and shipping inventory.
• •  Having a surplus of products is not the key to greater customer satisfaction. JIT allows your company to provide the most innovative products to your customers when they need them.

Just-In-Time is a type of inventory technique used as a way to increase a company’s overall productivity. In order to achieve maximum productivity, the company must make active attempts to eliminate waste. For the Just-In-Time manufacturing strategy, waste would be from excess inventory, poor production methods or the unnecessary movement of products.

If you are interested in using the Just-In-Time solution method, you’ll need to consider providing your staff with Just-In-Time (JIT) education and training materials. This may include accessing JIT articles, courses and seminars.

1. Check online for articles related to JIT operations. Learning about the process will involve reading about the basic concepts.

2. Get more information on the topic by reading books that have information about Just-In-Time management. Articles are good for getting an overview, but a book will cover the nuts and bolts of the process.

3. Take courses that delve into JIT planning and manufacturing. Management technique classes will likely cover JIT.

Action Steps
The best contacts and resources to help you get it done

Read JIT articles to learn how to implement the process

Training will likely involve a multitude of Just-In-Time materials that explain how the process works. The basic format was implemented by Toyota in the 1950s and variations have been used over the last several decades.

I recommend: Ashland University has a lecture notes page that discusses the history of the JIT system and how companies have used the formula to reduce excess inventory. The Value Based Management website has JIT articles as well that users can access in order to find out how to implement this strategy.

Expand your library with Just-In-Time planning materials

Although articles can give you a brief overview of how to train on the system, you'll need more detailed information in order to reach your productivity goals. Look for materials that give you an in depth look at the methodology of the JIT operation.

I recommend: Amazon.com retails the book “Kanban Just-In-Time at Toyota” is based around seminars given by Taiichi Ohno, the credited founder of the JIT method. You can also go on Google Book Search to view the electronic version of “Advanced Topics in Just-In-Time Management” by Marc J Schniederjans and John R Olson.

Take courses that cover Just-In-Time management topics

If you rather participate in an interactive setting than simply read up on the topic than you might want to take a course that explores JIT and related topics. Many management education classes will incorporate the JIT model into their teachings.

I recommend: Business Basics is a management training company that has different training packages that include course teachings on Just-In-Time strategies. You can train with the company in a virtual setting. SkyMark has a Just-In-Time training course that you can walk through at your own pace online.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Since the Japanese developed the JIT solution, some of the terms used in the theory are in Japanese. For example, kanban means a card that identifies the product within a storage container.

Just-In-Time is a useful concept that has proved to save companies time, money and space while resulting in faster delivery of products and higher customer satisfaction. Especially used in manufacturing, JIT is a management style that focuses on every aspect of production from supply, demand and inventory, to employees and scheduling. To really get the gist of the JIT approach, learn the following key terms: Toyota Production System (TPS), kanban system, lean production, work cell, Just-In-Time inventory software and lean supply chain.

Action Steps
The best contacts and resources to help you get it done

Toyota Production System (TPS)

The JIT approach originally began with Toyota automakers. They started using an approach to manufacture cars that combined a less is more attitude and theme, with various techniques to make cars with exactly the materials they needed and the staff that they needed. This approach saved them time, money and resulted in greater customer satisfaction. It became known as the Toyota Production System or TPS. Since then, much research has been done on this manufacturing system and it has evolved into the JIT approach to manufacturing, management and even lifestyle.

I recommend: Strategos International provides an overview of the Toyota Production System including the themes, disciplines and implementation of TPS.

Kanban system

With Japanese orgins, kanban means 'signal' in the simplest of terms. Kanban systems are used in the manufacturing of products and essentially mean the signal that there is a need for a product, setting off a chain reaction to produce the product. By not making a surplus of a product and only making it when needed, Kanban systems go a long way in limiting inventory in JIT inventory techniques.

I recommend: The Hands-On Group explores the kanban system in great detail, including several kanban techniques, while Strategos International explains the kanban system in several different scenarios.

Lean production

A way to mold your company into a Just-In-Time system is to start a lean production method. Lean production means using less time, money, space, labor and inventory while eliminating overproduction, waste, wait time, and over-processing.

I recommend: To learn more about lean production and how it fits in with the Just-In-Time approach to manufacturing check out Ten3 Business e-Coach.

Work cell

To make the Just-In-Time approach work for your company you really need to focus your system on every work cell. Work cell describes the machinery, tools and employees that work together to produce a particular product. Your JIT approach can be carried out in every work cell throughout your company.

I recommend: For a complete definition of a work cell, look at BusinessDictionary.com.

Just-In-Time inventory software

For the JIT approach, it would benefit you to have Just-In-Time inventory software. Just-In-Time inventory software will enable you to have exactly what you need when you need it without using up warehouse space for storage. Just-In-Time inventory software will help you assign inventory to orders, ship inventory as soon as it is received and place orders on a real time basis.

I recommend: To find out all of the ways Just-In-Time inventory software can help your JIT approach look at SMC Data.

Lean supply chain

A lean supply chain is the process that organizations use to produce their products in a fast and efficient way without producing excess products. A lean supply chain uses product flow, customer demand, information flow and customer supply to keep production streamlined.

I recommend: Value Innovation Partners offers an in depth look at every aspect of a lean supply chain.