Just in Time



JIT (Just in Time) is an inventory strategy that companies especially those that need a huge capital like Toyota use to save on money that can be used for other purposes at a time. Besides reducing inventory costs, it is also perfect to save extra cash for raw materials and no storage costs will be needed as the assembling of vehicle parts is done only when it is needed. It can have disadvantages as well if one production chain encounters a problem, it may shut down the whole process.

A case study of Toyota is often invoked to show the losses that could occur if the chain is cut at some point. One fire at a Toyota provider for P-valve resulted in a 15 billion dollar revenue loss and the cancellation of 70,000 orders.

Both Lean Manufacturing and Six Sigma have histories. The two cannot work independently to deliver a sufficient break through but put together, they can work wonders. Lean is efficient in the identification of waste and managing it and is also efficient in creating profit with the least amount of resources, product repair, standardized manufacture and low price production. Shigeo Shingo of the Toyota production system continued to make advancements to the original Lean model. Six sigma is known for its effective strategy of products.

In my opinion the process helps employees to understand the work flow and minimizes time wasting. Production problems are easily identified and effectively dealt with. Output is increased without necessarily increasing the raw materials. The work is balanced and speed is greatly improved to ensure that the product is delivered on time. Lean Six Sigma has greatly helped the Toyota group to run its JIT inventory by ensuring that the delivery system is intact and excellent customer satisfaction levels are achieved successfully.


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/

Sixsigma, S. (2017). Article: Benefits of Toyota Production System (TPS). SixSigma.us. Retrieved 28 October 2017, from https://www.6sigma.us/six-sigma-articles/benefits-of-toyota-production-system-tps/

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