What is Just In Time?
Just in time abbreviated as JIT is a strategic system used to manage production rate without wasting any material. JIT works on saving the revenue that you spend on purchasing extra raw material.
In other words, the Just in time system basically deals to deliver the raw good only when production is in action. It means raw material is neither arrived before nor after production. It encourages dropshipping and stops the over-stocking of raw material.
However, this smart production strategy needs smart check-balance. It works on an estimate of previous and on-going market demand. Hence, it is essential to avoid any runout or breakage in the supply chain of a particular product.
For this purpose, the company uses Kanban as a critical tool to support JIT. Kanban is an active strategy to classify work into three phases, to-do, doing, and done. This strategy uses the visual and reachable approach to reduce errors.
Why practice Just In Time?
Just in time is a savage for the company’s revenue. This technique promises you to cut off the expenses required to store materials. For example, if there is a company dealing with making pottery, it needs a box also for packing. It prevents the company from buying boxes before any confirm purchasing order from the market. It promotes had-to- hand purchases of raw material (boxes). Hence, it enables to save massive revenues to stock such raw materials.
Moreover, it saves space to stock material, and workload of employees to maintain it. Besides this, JIT will benefit you if your company is multi-production based.
The calculated production of specific products will help you to switch to other product manufacturing if required rapidly. Therefore, Just in time also proves to be a time and energy-saving strategy.
Potential Benefits and Risks of Just In Time
Like every other production strategy, JIT also holds some risks with benefits. Let’s look into the crucial benefits of JIT inventory strategy.
Benefits of Just In Time
It helps your business in saving the stock oriented revenue. Also, it gives you the pathway to spend it on effective approaches and requirements.
- Additionally, JIT helps you in cutting off the dead stock of raw material and limits the risk of production more than retailing.
- JIT waves your cash flow that is necessary for the survival of any business. Apart from this, it also helps to raise your profit earned from the business.
- The Just in time strategy promotes rapid innovation in the output according to the market and consumer demand. It minimizes the risk of decay in products and services. Therefore, it helps industries to avoid dabbling in financial loss.
Potential Risks Of Just In Time
Where Just in time offers so many benefits, it has its own risks. If not managed properly, can put your business on stake and deter you from achieving goals. Here are the triplet risks of Just in time.
- There is no backup in the case of suppliers suffering from a breakdown. Hence, it can result in prolonging delay of production as the company remains hand to hand with raw materials.
- Secondly, strong forecasting of market requirements is needed.
In case of any loss loop, it can freeze the production system. Eventually, this delay can cause consumer disappointment and maybe a chance of losing potential customers.
- There is no fixed amount of expenditure on raw materials. In other words, the expenses for purchasing raw material can fluctuate with the variation in economic conditions. And there is no possibility to avoid the rising rate of raw materials.
Just In Time and Lean Manufacturing
Lean manufacturing and JIT are interconnected due to sharing the same pathways for the company’s progress. You can consider JIT as one component of Lean manufacturing. Where Lean manufacturing is a bigger picture of quick and sustainable production.
Just in time is the supporting pillar of Lean manufacturing enables production to fill up the plates of customers with fresh products and services. However, Lean, along with JIT, has more to do. It needs more pillars to expand communication out of the production circle to evaluate and develop the value of the market.
As Lean manufacturing has a lot to do with revenues, JIT supports it by limiting the inventory costs and gives Lean a chance to use it for other constructive purposes.
Five leading books on Just In Time
Below are five books that will make you a master of Just in time technique.
1. Lean Thinking: Banish Waste and Create Wealth in Your Corporation by James P. Womack and Daniel T. Jones
Lean Thinking is a fantastic book covering all necessary aspects of Lean management to flourish the business. Though written in 1996, this book is still functional to open up your business fate. It helps in embracing lean management in the advanced 21st century.
By The Hands of Expert Analysts:
Two intellectual business management analysts craft Lean Thinking. James P. Womack is the founder of a non-profitable educational and research center, ‘Lean Enterprise Institute’. The institute is based in Brookline in Massachusetts.
Whereas, Daniel T. Jones is the co-author who merged his experience and philosophies to craft this book at its best. He also serves a non-profitable educational and research center, Lean Enterprise Academy in the United Kingdom.
Explains The Perks Of Lean Thinking
Lean Thinking is a book that will reveal all the essential lean marketing strategies. It explains how Lean Thinking can be crucial to extend business. It teaches ways to improve through a value-based strategy.
The main key focus of this book is to encourage an approach in collecting the feedback of consumers. And to convert product according to the consumer’s demand through it. This value strategy is user-friendly. Hence, it is the primary core secret to remain first in the preference list of clients.
Moreover, it helps to remain actively operational within comparatively less time and effort.
Once the consumer’s perception is collected, it becomes easy for workers to scheme the requirement into the technical cast for a less error-free product or services.
Lean Eliminates Waste
Lean Strategies emphasizes and encourages the methodology that brings the wastage to the zero of scale. Therefore, it stresses to apply a Just in time strategy where a product is only being manufactured or produced when it has confirmation of sell. This ultimately saves from unnecessary financial expenses by purchasing raw material and then storing it in warehouses.
Provides Various Action Plan With Real Life Example
Lean Thinking book is not only based on theoretical stuff, but it also refers to the successful practical life examples. This book comprises of almost fifty companies that practice lean strategy and is ruling the industrial world. And therefore, you can discover thousands of new lean strategies to extend your business irrespective of its domain.
Encourages Pull Than Push
The lean strategy focuses on the running flow of products and serves that consumers get compelled to pull it. The pulling technique is far efficient than the pushing of producers. This is because pushing has an attitude of selling and selling has inflexibility to understand consumer needs and demands. It just focuses on pointing out the benefits only they are aware of.
Besides this pulling technique opens you up to understand consumer needs and open gates for improvement and innovation. Therefore, the company has no worries to consume time for marketing instead of using time and energy in other productive things.
Availability Of ‘Lean Thinking’
2. How To Implement Lean Manufacturing by Lonnie Wilson
Lonnie Wilson has concisely listed down the smart, lean strategies including Just in time to leap forward for a successful business. This book has addressed all possible problems and solutions to it that can hinder in the way of lean manufacturing.
Lonnie Wilson can be considered the father of lean techniques as he has been teaching it for more than thirty-nine years. Later in 1991, he founded Quality Consultants. Through these consultants, 500 thick firms and many ground-root level interpreters got a new road to success.
Covers All Dimensions Of Lean Techniques
How to implement Lean Manufacturing give detail description of:
- How to concise the variations in production to reduce inventory revenues.
- How and which experiments to apply to evaluate the graph of production and services.
- Ways to predict wastage within the process of manufacturing.
- Approaches that can help in the parallel running of production and supply.
- Tools that accelerates the process of lean manufacturing.
- It also addresses all potential risks and approaches to minimize those risks.
- Drives keen concentration on Kaizen actions.
- Works on low-cost, high quality with the speedy process.
Easy To Go and Get:
This book is all you need if you want to shift the strategy of your settled business or even if you are starting from scratch. The author has successfully felt the pain points of every kind of entrepreneur. Conversely, he has given all vital blueprints of lean strategies for a successful business every person dreams for.
Click on Amazon and get this for $69 to $127 not much to purchase a wealth secret!
3. JIT Implementation Manual by Hiroyuki Hirano
JIT Implementation Manual_ The complete guide to Just in time Manufacturing is written by the author Hiroyuki Hirano. It is a complete guide to develop your business and production by adapting JIT manufacturing strategies.
Covers Practical Subject
The book talks about the all-important practical subject involved in establishing a business. This book deals with the Economical and Finance aspects of the Business Industry. Moreover, it also gives in-depth knowledge and appropriate implementation of Engineering and advances Technology.
SIX Volume Set
The second of the book justifies the main cover heading of the book by categorizing it into six volumes. Each volume carries an in-depth description and tips for practical implementation. The first volume is about Just in time Production System, whereas the second volume discusses the elements to reduce waste and its five principles to follow.
However, Volume 3 gives you in-depth details about Flow Manufacturing how Multi-Process Operations and Kanban can be implemented, making the manufacturing process more effective. Whereas, Volume 4 is about leveling and Volume 5 deals with the implementation of standardized operations in terms of safety and maintenance. The 6th volume works as the heart of the book as it gives all illustrative forms and charts of JIT implementation.
In Japan, HOW TO IMPLEMENT LEAN MANUFACTURING is considered a JIT bible. You can also grab the second edition of this JIT bible from Amazon for just $ 49 to $ 290. Spending your bucks on it will surely pay you back in miraculous ways!
4. Non-Stock Production by Shigeo Shingo
The book written by Shigeo Shingo was initially published in 1988. Though still no other book of its domain has beaten up Non-Stock Production even with decades gap. Shigeo Shingo is the legendary man behind the Toyota Production System. Moreover, he was the first to introduce the concept of Single-Minute Exchange of Die (SMED).
Key to Just in time
This book explains all the elements vital to JIT, along with poka-yoke and SMED. Under the main header of Non-Stock Production it comes:
- Concepts for the improvement in production.
- Indicates back draws of production in American and European philosophies.
- Introduces a new approach to enhance scientific learning.
- Targets the variation of the production system and its importance.
Complete Package Available
This complete handy guide package of JIT is conveniently available on Amazon. You can get the secret of non-stock production with the variation in price from $6 to $ 77. 95.
5. Zero Inventories by Robert W.Hall
Zero inventories are the masterpiece of Robert W. Hall. It arranges all Just in time facts, figures, and practices in one book within almost 250 pages.
Fits on all Designations:
Zero inventories are a must-read for all those people who are strung to any business organization. It is a complete guide from the primary entrepreneur to the manager to engineer to staff members of a particular business organization.
Deals with all mandatory requirements for JIT
This book is a solution to all problems and challenges that hinders the achievement of JIT.
It deals with logistics, forecasting, material gaining planning, and for reaching the standard benchmark of operational procedure.
Additionally, it helps you adapt unique approaches to make your production stock free.
Zero Inventories with Zero Wait
You can get your JIT gem on Amazon at the most reasonable price. The prices range from $ 7 to $ 60.09.
Just in time is a production strategy to inflate business with zero wastage of inventory costs. However, to apply JIT, you need robust forecasting and Kanban practice to avoid any risking breakage of production flow.
The best and inexpensive way to avoid any unnegotiable mishandling is to purchase a book related to JIT. This simple traditional trend of carrying method works miraculously to remain in touch with JIT values!
Experience exploring more into the world of JIT by carrying your own books in any way you like. Therefore, we recommend you to light your pocket to get books to make thick your bank accounts.