Question

In a short paragraph (100-200 words), please read 3 scholarly articles about just-in-time (JIT) and summarize its benefits and limitations in the manufacturing sector. Identify the principal objective in a just-in-time production system. Why JIT is more effective if used in the high-volume manufacturing such as automobile industry?

(Examples of scholarly articles can be found in journal papers, conference papers, report and presentations from academic institutes, governmental webistes, etc.)

Answer 1

Just-in-time (JIT) is an inventory management technique where labour, material and goods (used in manufacturing) are replenished or scheduled to arrive exactly when needed in the manufacturing process.

Benefits and Limitations in the Manufacturing sector

Benefits

1) Less space required - Due to bare minimum stock holding, the inventory cost as well as warehouse cost is greatly reduced.

2) Reduced Wastage - Since inventory is kept to a bare minimum, it results in a lesser expiry and wastage for the organization.

3) Smaller Investments - Since the stocks required are limited, it results in lesser investments especially for smaller production facilities.

Limitations

1) Less Flexibility - Since the stock is kept to a minimum, an unexpected increase in demand might prove detrimental to an organization.

2) Requires greater planning- It is imperative that companies monitor its sales trends in close detail and coordinate accordingly with the suppliers. Any miscalculation may result in delayed production.

3) Unexpected Problems - Unforseen cricumstances like weather disturbances or natural disasters will severly impact an organization's supply chain due to its limited inventory.

Principal objective in a Just-In-Time production system

The Principal objective of Just-In-Time production system is to reduce or eliminate the storage of inventories, which in turn results in increased efficiency, better product quality and reduced production costs.

Effectiveness of JIT in high-volume manufaturing such as Automobile industry

JIT has proved to be extremely beneficial for the Automobile industry. By implementing JIT, an automobile company uses its supply chain in such a way the only the parts that are needed to manufacture the vehicle are ordered, enabling the manufacturing and transportation process to take place simultaneously, thereby minimizing inventory cost. It is highly cost effective technique for high volume manufacturing. It emphasizes work efficiency as JIT leaves minimum margin for error.

Hence JIT has proved to be a useful tool for the Automobile industry in managing functions such as production, purchasing, inventory control, warehousing and transportation. Its potential benefits are endless.