TOYOTA : A LEADER OF JUST-IN-TIME PRODUCTION

Text      : Muhammad Syahmi Bin Mohd Zaludin
Images : Google Images

In the name of ALLAH, The Most Gracious and The Most Merciful,

For our seventh post, we would like to discuss about Toyota, the leader of Just-In-Time (JIT) production. There are three system that are implemented in Toyota such as the JIT, kaizen and kanban.

We will tell you all through this post.

Toyota Corolla

What is actually JIT?

JIT stands for the Just-In-Time. It is the system that being implemented in order to reduce the cost. It also referred to the lean production.

Through JIT, the right amount of products will be produce at the right time and delivered at the right place according to the customer demand in order to fulfill their requirement.

What is actually the kaizen?

 

The kaizen is the continuous improvement of the company performance in order to fulfill the customer requirement and increase the level of customer satisfaction towards the company services and products.

Kaizen is one of the Toyota core value. Through kaizen, individuals that related in Toyota are trying their best to find the solution to improve their performances. All level of management including the top management, middle management, operational management and assembly line are supporting this kind of continuous improvement process. Nothing is perfect yet as there are always new thing needed to be change and improve.

What is actually kanban?

Kanban card

Kanban is the Japanese word for card. Originally, it is the combination of 'kan" words and the 'ban' words. 'Kan' means visual, meanwhile the 'ban' means as the card or board. Thus, the combination of the 'kan' and 'ban' means the card that be seen visually.

The kanban contains the part number, the part description, the type of container and various workstation information. In the Toyota Production System (TPS), kanban system is implemented in their manufacturing plant in order to 

In a nutshell, through implementing this three system of JIT, kanban and kaizen, Toyota had achieved their goals in the industry to seek for competitive advantages.

THE ADVANTAGES OF JUST-IN-TIME (JIT) PURCHASING

Text     : Muhammad Syahmi Bin Mohd Zaludin
Images : Google Images

In the name of ALLAH, The Most Gracious and The Most Merciful,

Assalamualaikum. For our sixth post, we would like to discuss about the advantages  of Just-In-Time (JIT) purchasing.

Do you know what is exactly JIT?

JIT is the production and inventory control system in which materials are purchased and units are produced only as needed to meet the actual customer demand and fulfill the customer requirements. The example of company that implement Just-In-Time (JIT) are Toyota and Dell Computer Corporation.

Toyota

Dell Computer Corporation

Advantages of JIT purchasing

The first advantages of JIT purchasing is high quality of incoming materials.

High quality

Receiving inspection that being done after the product been delivered to the buying firm is costly to be paid by the buying firm. Thus, in order to eliminate the associated receiving inspection costs, the buying firm always emphasize on the quality of the materials. High-quality of incoming materials will reduce the rework and scrap which eventually reduce the cost of
 
The second advantages is reliable suppliers. 

Reliable suppliers

The reliablity of the suppliers of the raw material and assembly parts to the buying firm is a critical consideration in the selection process of Just-In-Time (JIT) suppliers. A supplier is needed to be reliable in term of quality of the incoming material, quantity, and delivery time as it may affect the production. In case there are problems on the delivery of the material, the production line will be affected.

The buying firm also can contribute to the construction of the suppliers company in term of quality and strategies because the Just-In-Time (JIT) purchasing program involves close technical cooperation with the suppliers.

The third advantages is improved quality and customer satisfaction.

Customer satisfaction

JIT purchasing results in improved quality and customer satisfaction. In order to enable the company to improve their quality of performances, they implement Just-In-Time (JIT) purchasing to reduce the defect rate.

The fourth advantages of JIT purchasing is schedulling flexibility.

Flexible Scheduling

Reduce in the purchasing lead times and setup times lead to the schedulling flexibility. This helps to prevent the confusion in the manufacturing plant and offers unique competitive advantages to the company.

In a nutshell, if the JIT purchasing is manage wisely, the company production can obtain more profitable gains and reduce the cost investment.