Just in time is a strategy in economics that requires an organization produce what has been requested by the customer, in the right quantity and delivered in the required time without delay. Just in time is considered as the central theme in the lean production system as pioneered by Ohno of the Japanese Toyota Company. The just in time philosophy requires that the company take into account what the customer wants and when they want it when acquiring inventory, machines, and workforce (Bay 2013). The company should avoid producing what they think the customer wants and concentrate on what the client has requested. The strategy requires that the company work on what it is being paid for by the customer. However, the just in time philosophy contributes to the lead production system, and this can be witnessed in the Toyota Manufacturing Company based in Japan.
The just in time strategy has a contributing factor to the lean production strategy in many aspects which are essential to the overall lean production goal. The overall production goal of lean production is to reduce wastes in production, inventory, time, and workforce and therefore maximizing production. For instance, it is intended to reduce wastes resulting from overproduction, unproductive idle time, excess inventory, unnecessary workforce, as well as the defected products. Incorporating the just in time philosophy to the lean production system ensures the reduction of wastage in the production of goods as requested by the client, in the required time, and delivered to the right place (Bay 2013). This ensures the production waste associated with the production of goods not requested by clients using excess inventory is reduced and therefore increase the returns on capital.
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Toyota Manufacturing Company of Japan is One of the companies that have managed to implement the just in time philosophy integrated with the lean production strategy. It is a company that is associated with the large-scale production of automobiles. The company's production takes into consideration the customer request, acquires the required inventory to meet the customers' demands, produces the exact customer request as requested, and delivers the automobile in the required time without delay. This has been basic in ensuring that the company avoids excessive wastage in inventories, avoids making unnecessary operations that lead to wastes as well as prevent the production of defective parts and therefore maximizing returns on capital (Bay 2013).
The incorporation of the Just in Time philosophy with the lean production system in many companies has long-term benefits for the production. For instance, the philosophy increases the organization's competitiveness in the long run by ensuring customer trust and satisfaction. Furthermore, the philosophy improves the organization's effectiveness and efficiency in the production process by ensuring that the highest profits possible are incurred using the available resources (Bay 2013). Besides, there is the reduction in the wastage of materials in the production process, time and efforts in the company's pursuit of its goals. The philosophy is also responsible for ensuring that the quality of production is achieved which would maintain and increase the customer base.
The Just in Time strategy is essential to a company since it contributes to the lead production system which ensures the improvement in production and the return on capital with the available resources. It reduces wastage in the aspects of inventory, operations process, workforce, and the efforts. The just in time philosophy has been incorporated into the lean production system in the automobile manufacturing in the Toyota Automobile Company in Japan. The company was able to maximize profits, reduce wastage as well as to increase the return on capital through the production of automobiles only at the customers' request. This has ensured the improvement in the organizational competitive advantage, production efficiency as well as the reduction in wastage.
References
Bay, M. (2013). JUST-IN-TIME INLAID WITH LEAN PRODUCTION PERSPECTIVE . Retrieved May 17, 2017, from http://www.academia.edu/9968996/JUST-IN-TIME_INLAID_WITH_LEAN_PRODUCTION_PERSPECTIVE
