JIT Today: Nissan and Ford-company analysis

Just-In-Time Inventory Systems

1.1. The Concept and Its Practices

Just-In-Time (henceforth as JIT) is an integrated manufacturing process genuine to attain high-volume production by utilizing the lowest possible levels of inventory. A JIT dust sustains parts flow in order that inventories do not build up at any signalise of the manufacturing process, enabling rapid completion and demanding active management involvement. Further, JIT struggles for food of minimal levels of all(prenominal) types of inventories: raw materials, works-in-progress, and finished goods (Lieberman and Demeester, 1999).

According to Giunipero et al. (2005), the JIT inventory system - the Kanban concept - was for the first time developed in Toyota labour Corp. Additional details on the history of JIT atomic number 18 functional in Appendix.

Even though the JIT manufacturing is presented and glorified by the literature as a highly beneficial and world-wide accepted concept, still for its no-hit implementation various organizational sacrifices and huge managerial lying-in atomic number 18 required.

As Pan and Yang (2004) claim, confidence and commitment in JIT are considered to be one of the most important elements. By mighty blending and integrating these components into the JIT manufacturing, partnerships with suppliers are developed, and the required material controls are reduced to minimum.

Akintoye (1995) points out that organizational flexibility can be achieved by establishment of long-term and high quality customer-supplier relationships, which are considered to be potential source of competitive advantage. Additionally, intra-organizational commitment is demanded, where all of departments are cooperatively working on achieving common and pre-determined goals back up by the motivation from the management.

Each company has different JIT system, which is developed in such way to fit the organizational needs. Nevertheless, all JIT systems endure two characteristics in common: the utilization of processes that systematically ferret out any operational inefficiency, and the exercise of apparatus for quick result to the recognized...

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