JIT – Background and History

JIT is a manufacturing management process. It was first developed and applied in the Toyota
manufacturing plants in order to meet consumer demands with minimum delays.

Taiichi Ohno of Japan is referred to as the father of Just In Time. Toyota met the increasing
challenges for survival through a management approach that was entirely focused on people,
systems and plants.

Toyota realised the Just In Time approach would only be successful if every person within the
Toyota was committed and involved in it, and if plant and processes were properly arranged for
maximum efficiency and output, and if the quality of the goods produced and production
programs were scheduled to meet demands exactly.

Significance of JIT Concept

The main focus of JIT is to identify and correct the obstacles in the production process. It shows
the hidden problems of inventory. The prime objective of JIT is to increase the inventory
turnover and reduce the holding and all connected cost.

Just In Time method prevents a company from using excessive inventory and smoothens
production operations if a specific task takes longer than expected or a defective part is
discovered in the system. This is also one of the main reason why the companies (which are
opted for JIT) invest in preventive maintenance; when a part/equipment breaks down, the entire
production process stops.

This concept was made applicable again by the Japanese firms, placing an order for the material,
the same day of the production of the product. The Just In Time approach eliminates the
requirement to carry voluminous inventories and incur heavy carrying other related costs to the
manufacturer.