Evolution in Japan

The exact reasons for JIT evolution in Japan are unclear. Plenert offers four reasons, paraphrased
here. During Japan's post-World War II rebuilding of industry:
1. Japan's lack of cash made it difficult for industry to finance the big-batch, large inventory
production methods common elsewhere.
2. Japan lacked space to build big factories loaded with inventory.
3. The Japanese islands were (and are) lacking in natural resources with which to build products.
4. Japan had high unemployment, which meant that labor efficiency methods were not an
obvious pathway to industrial success.
Thus the Japanese "leaned out" their processes. "They built smaller factories . . . in which the
only materials housed in the factory were those on which work was currently being done. In this
way, inventory levels were kept low, investment in in-process inventories was at a minimum, and
the investment in purchased natural resources was quickly turned around so that additional
materials were purchased." Plenart goes on to explain Toyota's key role in developing this lean or
JIT production methodology.

JIT - Background and History

JIT is a Japanese management philosophy which has been applied in practice since the early 1970s in
many Japanese manufacturing organisations. It was first developed and perfected within the Toyota
manufacturing plants by Taiichi Ohno as a means of meeting consumer demands with minimum delays
. Taiichi Ohno is frequently referred to as the father of JIT.
Toyota was able to meet the increasing challenges for survival through an approach that focused on
people, plants and systems. Toyota realised that JIT would only be successful if every individual within
the organisation was involved and committed to it, if the plant and processes were arranged for
maximum output and efficiency, and if quality and production programs were scheduled to meet
demands exactly.

JIT manufacturing has the capacity, when properly adapted to the organisation, to strengthen the
organisation's competitiveness in the marketplace substantially by reducing wastes and improving
product quality and efficiency of production.