Just In Time Manufacturing

Benefits Of JIT Manufacturing

JIT manufacturing has various business benefits, including:

• Cost-efficient operations due to reduced, sometimes zero wastage.
• Focuses on quality improvement due to reduced processing time.
• Optimized storage space and costs since there is no surplus.
• Fosters good business relationships because you can meet supply needs “just in time”.
• Greater customer satisfaction, thanks to quality products.

Disadvantages of Just In Time Manufacturing

Like any industrial process, just in time technique has its drawbacks too. For instance, you might not have surplus stock to meet unexpected demands, something that can taint your relationship with suppliers. At the same time, your whole operational schedule relies on suppliers that can hinder rapid scaling.

Just In Time Manufacturing Examples

The JIT approach is a go-to option for many manufacturers who want to cut inventory costs. Prevalent examples include:

• Car Assembly at Toyota Motor Corporation — the plant receives car parts only when it’s ready to assemble them after a client places an order.
• Food processing at Burger King — the food retailer has all the ingredients at hand but only prepares the burger after customers place their orders.
• Mobile phone assembly at Apple Inc. — Apple has JIT relationships with independent manufacturers all over the world to reduce its warehouse costs.

How JIT Production Differs From Traditional Manufacturing

Both the JIT approach and traditional processes focus on sustainable supply chains. However, traditional processing focuses more on cutting the costs of creating a particular product, by creating it in voluminous numbers.

On the other hand, the just in time technique is aimed at optimizing the intermediate production process with regard to the prevailing market demand. In other words, this process relies on the current customer needs to reflect them in the final product design.