The Role of the Just in Time Method in Cost Efficiency in the Provision of Raw Materials in PT Suzuki Indomobil Motor Division Die Casting

Abstract

As a of continuous improvement Just In Time (JIT) concentrates on eliminating the vanity and variability that gives rise to that vanity. Variability is any deviation from the optimal process that delivers the perfect product on time at all times. Inventory saves variability, the more variability in the the smaller the vanity that occurs. Although there are several causes for variability, it is often revealed and seen when there is an inventory, because inventory hides the problem. Just In Time's philosophy of continuous improvement eliminates variability, eliminating this variability makes it possible to move good and regular raw materials when they are needed without having to be stored in inventory. JIT decreases raw materials during production as long as the ordered supply arrives so that vanity decreases and the value of the product at each stage improves. With the concept of pull system that produces one unit and then pulled to the place that needs it when needed. This concept is used in the scope of the production process which will soon be carried out with its suppliers. By pulling raw materials through this in small lot sizes in accordance with the required amount, the pile of inventory is erased which conceals the problem. With the elimination of supplies, investment in inventory and manufacturing cycles decreases or the time between when raw materials are received and when finished goods leave the production facility.