Just in Time

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Description

Just in Time (JIT) is an inventory strategy that high production companies use to increase efficiency and decrease waste. This method is advantageous in that it reduces inventory costs, storage costs and reduces the time taken for raw materials to move from point A to point B. It can however be costly if for any reason the supply chain breaks down and should therefore take in measurements to reduce such costs.

Imagine a 70,000 cancellation of cars ordered or a $15 billion loss over just two days. This is the fate that befell Toyota when it least expected and when it was least prepared for such a loss. A fire at one of its supplier in the chain (Aisin) caused the company to shut down as then as the only provider of P-valve car parts nothing could be done by the company to continue its assembly of cars.

Six sigma and Lean work together to produce excellence. Six sigma is known for its effectiveness while Lean is known for its efficiency in identifying problems such as waste management and deal with it. A combination of these two production systems help to deal with the problems of production such as over processing and overproduction that lead to waste production, time wasting produced by idle time and unnecessary movement of cargo to places it is not urgently needed. Creativity is a big part of production and ensures that new products are made or existing ones are greatly improved, in my opinion, a production process without lean six sigma wastes that opportunity.

The combination of these two helps an organization to work better and smarter not harder. It also incorporates machines and robots that are aimed at making production more efficient by supporting the human work load and not necessarily replacing their jobs.

References

QImacros, Q. (2017). Lean Six Sigma and the Toyota Production System. Qimacros.com. Retrieved 28 October 2017, from https://www.qimacros.com/lean-six-sigma-articles/lean-six-sigma/

Staff, I. (2017). Just In Time – JIT. Investopedia. Retrieved 28 October 2017, from http://www.investopedia.com/terms/j/jit.asp

Whatissixsigma, W. (2017). Toyota Production System (TPS). Whatissixsigma.net. Retrieved 28 October 2017, from http://www.whatissixsigma.net/toyota-production-system/