1.Introduction

2.Philosophy of Just-in-time

3.Supply Chain

4.Supply Chain Design -- A Strategic Issue

5.Some positive impacts of JIT in Supply chain management

6. Some setbacks of JIT Philosophy in Supply chain Management

7. Conclusion

 

Supply Chain is one of the most visible sets of activities performed by a business

Just-in-time(JIT) method of production was introduced in 1970s

Successful application of JIT reduces inventory and waste that often resulting in high stock levels

The Objective is to ensure that all necessary resources are available in the location whenever they are needed

The basic elements of JIT were developed by Toyota in the 1950's, and became known as the Toyota Production System (TPS). 

JIT was well-established in many Japanese factories by the early 1970's. 

JIT began to be adopted in the U.S. in the 1980's (General Electric was an early adopter)

The JIT/lean concepts are now widely accepted and used.

SUPPLIER MANUFACTURING ASSEMBLY LINE DISTRIBUTION

PRODUCTION

CUSTOMERS DISTRIBUTION FINISHED/SEMI-FINISHED PRODUCTS

To achieve effective Supply Chain management, we need to have

Accurate and updated information

Excellent communication not only within corporate level but it extends to company and customers as well

Cooperation and trust

In summary, supply chain management is part of strategic planning.

Strategic plans are implemented by superior sourcing - selecting suppliers based on high performance goals, or

Management of the procurement, or purchasing, process.

Stabilize and level the MPS with uniform plant loading Reduce or eliminate setup times: Reduce lot sizes (manufacturing and purchase) Reduce lead times (production and delivery) Preventive maintenance-Use machine and worker idle

time to maintain equipment and prevent breakdowns Require supplier quality assurance and implement a

zero defects quality program Small‑lot (single unit) conveyance - Use a control

system such as a card system to convey parts between work stations in small quantities

o There is little room for mistakes as minimal stock is kept for re-working faulty product

o Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed

o There is no spare finished product available to meet unexpected orders, because all products are made to meet actual orders

o Loss of individual autonomy. This is mainly due to the shorter cycle time which adds pressures and stress on the workers

Loss of team autonomy. This is the result of decreasing buffer inventories which lead to a lower flexibility of the workers to solve problem individually.

In this age of Information Technology, it is important that ones get ahead of the pack by reducing her production cost to its lowest possible value but without reduction in quality. We should do our best to reduce our tannery cost and also to widen our manufacture ability. As to modern industrialized technology has brought down the prices of computers, cameras, videos, etc, all this is the result of modern volume production and competition in the market place In this age of Information Technology, it is important that ones get ahead of the pack by reducing her production cost to its lowest possible value but without reduction in quality. We should do our best to reduce our tannery cost and also to widen our manufacture ability. As to modern industrialized technology has brought down the prices of computers, cameras, videos, etc, all this is the result of modern volume.