Just‐in‐time Manufacturing

Abstract

Just‐in‐time manufacturing is a Western adaptation of an influential Japanese idea: the existence of inventory is a way of covering up inefficiencies of procurement, production and marketing. JIT in a western context will often be an extension of the advanced manufacturing techniques introduced in recent years, including computer‐based management methodologies, such as MRP‐II. The steps necessary to establish a JIT environment are indicated, with emphasis on the strategies which overcome the four classic problems of manufacturing management: excessive supplier lead times, inflexible production planning, large batch sizes and long queue times. The article provides an in‐depth discussion on the development of closer customer‐supplier relationships, one of the major bases of JIT. For JIT to function effectively, production planning must be accurate, timely and flexible and the best way of achieving that is with a closed‐loop MRP‐II computerised management system.