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• W239641010 abstract "ABSTRACT The Just-In-Time production system is examined. Small businesses have been reluctant to install JIT because of its seeming complexity. The authors argue that JIT does not have to be implemented into all operations simultaneously, but rather can be phased in gradually. Different levels of JIT are described, and practical suggestions for implementation are made. INTRODUCTION Just-in-time (JIT) inventory control is a procedure and a tool that offers potential benefits to all businesses whether large or small. The idea of instituting JIT to all operations of a company simultaneously would frighten many managers, especially they know little about JIT. Fortunately, JIT can be instituted on a phased-in basis. The specifics on how to do this will differ for each operation to each company. This article is concerned with the general concepts of JIT and the where-to phase in JIT for entrepreneurs of today and tomorrow. Many small businesses are not yet in the same phase of specialization of men or machines as larger businesses. This lack of specialization of personnel and equipment should provide small businesses and entrepreneurs with considerable advantage in phasing-in JIT. BACKGROUND Under current United States inventory systems, inventory contains the hidden residuals of everybody's mistakes. Michael Evans, consulting economist for the American Production and Inventory Control Society (APICS), estimates that up to 40 percent of all industries' business assets are tied up to inventory (8). Just-in-Time is a philosophy, currently associated with Japan, that may be applied to all aspects of business including production, purchasing, and delivery. Central to the JIT philosophy, is the view that all inventories are undesirable and should be minimized or eliminated. It is a system driven by final product demand so that the right product is produced at the right time in the right quantities. The system is based on belief in a rule of reliability under which orders will be delivered on time with no. (or a very low but acceptable level) of flawed parts. A corollary to the Japanese JIT system is that small batch production can be economical and efficient. In contrast, the traditional U.S. policy has produced a system of mass production in which products are available in case, so that an unexpected demand for a product can be met. This system is based, at least in part, on Murphy's Law that if anything can go wrong, it will. The system attempts to minimize costs by using large-batch production runs and economic-order-quantity (EOQ) to balance ordering costs and carrying costs: then a stock is added. Any reduction to this tremendous Inventory cost would increase earnings for American industry. If JIT were concerned only with who carries the inventory until it is needed, it would Impact only the stock decisions of the users. However, JIT relates all manufacturing activities to the physical processes of production. The goal of JIT is to produce and deliver finished goods just to time to be sold, subassemblies just in time to be assembled, fabricated parts just in time to go into subassemblies, and purchased materials just in time to be converted into fabricated parts (10). Removing the safety net of excess inventory will lead to better planning, improvement to management techniques, improved quality, and thereby, increased productivity. JIT draws upon existing technology: industrial engineering, storage technology, capacity planning, and quality control. As these technologies are implemented, the entire organization should experience a change in philosophy and attitude. The new attitude will foster a continuing process of improvement and be rooted to the idea of manufacturing excellence. James Cook has estimated that the benefits to U.S. manufacturers will be to inventory and lead time by something like 90 percent, cut labor work 10 to 30 percent, reduce set-up time by 75 percent, manufacturing and storage space by 50 percent and improve the quality of manufacturing by 75 to 90 percent. …" @default.
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• W239641010 date "1989-10-01" @default.
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• W239641010 title "The Phasing-In Approach to JIT" @default.
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