Question

Just-in-time (JIT) processing gained popularity in Japan. While it is being used successfully by many US businesses, its use by domestic enterprises may never achieve the level of implementation and degree of integration found in Japan. What obstacles do US organizations face that make it more difficult for them to implement JIT than their counterparts in Japan?

Answer 1

The primary disadvantage of JIT is its relative complexity. The management must think its entire process of operations from intake of materials to the final delivery of the output.

Supply-chain relationships require retooling that involves multiple suppliers, closer locations, or companies that can supply materials with little advance notice.

Companies ordering smaller amounts of goods may encounter difficulty meeting minimum orders, requiring a different contract or a way to break up a large order over time or among several smaller manufacturers

All the goods must met quality requirements to avoid the shutdown due to defects

Staff must understand more of the process more closely and deeply so that they can contribute to the success of the system.

Japan’s auto industry meant JIT to operate within a culture of continuous improvement, as one way to eliminate waste. JIT may be a good way to introduce continuous improvement or quality management, but it is very difficult to implement as a stand-alone process. These may be the reasons that the Japana companies are more efficient in implementing the JIT System than the US companies.