Logistic concept "JUST-IN-TIME" (just in time)

The most widely used logistics concept in the world is the concept of "just in time" (just-in-time, JIT). It appeared in the late 1950s, when the Japanese company Toyota Motors, and then other automotive companies in Japan, began to actively implement the KANBAN micrologistics system. The name of this concept was given a little later by the Americans, who also tried to use this approach in the automotive industry. The original slogan of the concept of "just in time" was the potential elimination of stocks of materials, components and semi-finished products in the production process of assembling cars and their main units. The main idea of ​​the JIT concept is as follows: if the production schedule is set (abstracting from demand or orders for the time being), then it is possible to organize the movement of material flows in such a way that all materials, components and semi-finished products will arrive in the required quantity, to the right place (on the assembly line - conveyor) and just in time for the production or assembly of the finished product. At the same time, insurance reserves that immobilize the company's funds are not needed.

The ELA terminology dictionary defines the concept of "just in time" as an approach to success based on the gradual elimination of waste (waste refers to any action that does not add value to the product). It is also the delivery of materials at the right time and the right place.

The concept of "just in time" served as the basis for the subsequent introduction of logistics concepts/technologies such as "flat" or "lean" production and "value-added logistics".

From a logistical standpoint, the concept of "just in time" implies that the flows of material resources are carefully synchronized with the need for them, given by the production schedule for the release of finished products. Such synchronization is nothing more than the coordination of two basic logistics functions: supply and production management. This concept has been successfully applied in distribution, marketing systems for finished products and in macrologistics systems. With this in mind, the following definition can be given.

The concept of "just in time" is a modern concept / technology for building a logistics system in production (operational management), supply and distribution, based on the synchronization of the processes of delivering material resources and finished products in the required quantities by the time the links of the logistics system need them , in order to minimize the costs associated with the creation of stocks.

The concept of "just in time" is closely related to the components of the logistics cycle. Ideally, material resources or finished products should be delivered to a certain point in the logistics chain (channel) at the exact moment when they are needed, which eliminates excess stocks, both in production and distribution. Many modern logistics systems based on this approach are focused on short components of logistics cycles, and this requires an adequate response of the logistics system links to changes in demand and, accordingly, the production program.

The logistics concept "just in time" is characterized by the following main features:

• * minimum (zero) stocks of material resources, work in progress, finished products;
• * short production (logistics) cycles;
• * small volumes of production of finished products and replenishment of stocks (supplies);
• * relationships for the purchase of material resources with a small number of reliable suppliers and carriers;
• * effective information support;
• * high quality of finished products and logistics service.

The introduction and spread of the concept of "just in time" in the world has led to a change in the traditional management approach to inventory management.

The widespread use of the concept of "just in time" in logistics practice is explained by the low level of stocks of material resources, work in progress and finished products; reduction of production areas; improving the quality of products and reducing marriage; reduction of production time; increased flexibility when changing the range of products; high productivity and efficiency of equipment use; active participation of workers in solving production and technological problems; good relations with suppliers, etc.

Just-in-time goals are similar to the goals of a material requirements planning system - to provide the right part of the product at the right time in the right place, but the methods of achieving these goals and the results are completely different. While the material requirements planning system is built on calculations, the continuity system is built on industrial engineering. There are many distinctive features of the "just in time" system, which are manifested in practice in any kind of activity, in a company of any form of ownership, in the manufacturing or non-manufacturing sector of the economy.

Just-in-time implementation starts with how the product will be sold and whether it can be easily manufactured. If these questions are answered in the affirmative, attention switches to the development of the process itself.

The work of the logistics system, built on the principles of the "just in time" concept, can be represented as a two-bin inventory management system. One bunker is used to meet the demand in production or marketing, respectively, for material resources or finished products, the other is replenished as the first one is spent. Emphasis is placed on the placement of equipment in such a way as to ensure a continuous production process. Where possible, automation of both the production process and the processing of raw materials is being introduced. Often the equipment is placed in the shape of the letter U, which contributes to teamwork, flexibility of work, cyclical processing of raw materials and products. At the same time, product developers strive to standardize time cycles and the production of a constant set of products based on a monthly production plan throughout the system. This practice turns the production process into a cycle of at least a month.

Thus, the production of finished products in small batches for relatively short production cycles determines the duration of the supply cycles of material resources.

Theoretically, the ideal order size for a basic just-in-time system is one unit, however, this is typically not realized due to high marketing and processing costs per order.

Logistics systems that use the principles of the concept of "just in time" are "pull" systems (pull systems), in which the placement of orders for the replenishment of stocks of material resources or finished products occurs when their number in certain links of the logistics system reaches a critical level . At the same time, stocks are "pulled" through distribution channels from suppliers of material resources or logistics intermediaries in the distribution system.

In the "just in time" concept, demand plays a significant role, which determines the further movement of raw materials, materials, components, semi-finished products and finished products. Short components of logistics cycles in systems using this approach contribute to the concentration of the main suppliers of material resources near the company that carries out the process of production or assembly of finished products. The firm tries to select a small number of suppliers with a high degree of supply reliability, as any disruption in supply can disrupt the production schedule.

In the practical implementation of the "just in time" concept, product quality plays a key role. Japanese automotive companies, initially introducing the principles of this concept and the KANBAN micrologistics system into production, have changed the approach to quality control and management at all stages of the production process and subsequent service. Ultimately, this resulted in the already mentioned philosophy of total quality management. The concept of "just in time" helps to strengthen control and maintain the level of product quality in the context of all components of the logistics structure. Micrologistics systems based on this approach, associated with the synchronization of all processes and stages of the supply of material resources, production and assembly, delivery of finished products to consumers, require the accuracy of information and forecasting. This explains, in particular, the short components of logistics (production) cycles. For effective implementation of JIT technologies, they must work with reliable telecommunication systems and information and computer support.

JIT (Just-In-Time) / Just in time - a material management system in production, in which components from a previous operation (or from an external supplier) are delivered exactly at the moment when they are required, but not before. This system leads to a sharp reduction in the volume of work in progress, materials and finished products in warehouses.

The JIT system involves a specific approach to the selection and evaluation of suppliers, based on working with a narrow circle of suppliers selected for their ability to guarantee the delivery of high quality components just in time. At the same time, the number of suppliers is reduced by two or more times, and long-term economic ties are established with the remaining suppliers.

Just-in-time system has a huge potential in combating various types of production losses: losses from downtime and waiting, transportation losses, warehouse losses, technological losses, losses from product defects.
This concept is a set of principles, tools and techniques that allow the company to produce and deliver products in small batches and in a short time, satisfying specific consumer needs. Delivering products on time and in the right quantities avoids wastage, inconsistency and inappropriateness and improves process efficiency. This idea was first proposed by Toyoda Kiichiro, the father of the Japanese automobile industry, and his successors developed a production system based on it. It should be remembered that in accordance with this principle, everything should happen not only on time, but also exactly at the appointed time.

The JIT system is about producing what is needed, when needed, and no more than what is needed. Anything more than the required amount is considered a waste.
Although the idea of ​​JIT is simple and understandable and its advantages are quite obvious, it still remains inaccessible to most companies, including Russian companies. The main reasons for this are the need to provide two basic conditions for the implementation of the JIT production system. The first condition is the availability of a fail-safe, self-adjusting mechanism that ensures the accuracy and consistency of deliveries in time and space. The second condition is that all supplied production components must be defect-free, otherwise this entire synchronous system is instantly destroyed.
To implement JIT, it is necessary to carry out a number of activities, such as the creation of compact enterprises, the creation of integrated teams, the combination of professions, the use of integrated technologies, the supply of parts in minimal quantities, the reduction of equipment changeover time, and the elimination of overloads of production capacities.
A compact plant is a complex production unit with no more than 300 employees that produces one or more similar products. Limiting the number and assortment creates a sense of community among the personnel of the enterprise, simplifies management and facilitates work on the "just in time" method.
The creation of integrated teams and the organization of labor by the team method allows the implementation of group technologies, in which work is performed not by specialized functional areas, but by production cells that perform all operations for the manufacture of certain parts.
The combination of professions is one of the important conditions for the effective work of members of integrated teams.
Integrated technologies involve the installation of various types of equipment in one production cell to speed up the production process.
In the JIT system, the supply of parts to the workplaces is carried out in minimal quantities and exactly matches their needs.
Reducing equipment changeover time reduces equipment downtime, that is, it allows you to drastically reduce technological losses and losses from downtime and waiting.
Eliminating production capacity overload also reduces process losses due to possible equipment failure.
At the heart of the JIT system are the pull principle and the kanban card mechanism. The manufacturer does not manufacture the product in stock, but only in the case when the client has shown interest in this product. The customer initiates a "pull" mechanism that cascades throughout the entire value stream, and no one upstream has to do anything until an internal customer downstream requests it. So "just in time" means when the internal customer informs the manufacturer through the kanban mechanism of the need for parts.
Kanban cards are one of the tools to control throughput. Kanban control cards are an effective mechanism for controlling the movement of components. The kanban card is the authorization to receive or produce the next batch of parts.

Visualization

Visualization is any medium that informs how work should be done. This is such an arrangement of tools, parts, containers and other indicators of the state of production, in which everyone at a glance can understand the state of the system - the norm or deviation.

The most commonly used imaging methods are:

1. Outlining

2. Color coding

3. Road signs method

4. Paint marking

5. "It was" - "became"

6. Graphical work instructions

Imaging methods	An example of using the method
Outlining is a good way to show where tools and assembly fixtures should be stored. To outline means to outline assembly fixtures and tools where they should be permanently stored. When you want to return the tool to its place, the contour will indicate to you the storage location of this tool.
Color coding indicates what specific parts, tools, fixtures and molds are used for. For example, if certain parts are needed in the production of a certain product, they can be painted in the same color and be in a storage location painted in the same color.
Road signs method - uses the principle of pointing to objects in front of you (WHAT, WHERE and in what QUANTITY). There are three main types of such signs: pointers on objects, indicating where objects should be placed; pointers on places, telling exactly which objects should be there; quantity indicators, telling how many things should be in this place.
Paint marking is a technique that is used to highlight the location of something on the floor or in the aisles. Paint marking is used to mark dividing lines between work areas or traffic lanes.
“Before” - “After” The image of the workplace / site / shop “before” and “after” the changes clearly demonstrates the changes that have taken place, increases the motivation of employees and maintains the new standard.
Graphical work instructions describe the work steps and quality requirements at each workplace in the most simple and visual form. Graphical work instructions are located directly at the workplace and standardize the best way to perform work, ensuring worker universality and compliance with standards.

U-cells

Arrangement of equipment in the form of the Latin letter "U". In the U-shaped cell, the machines are arranged in a horseshoe-shaped manner, according to the sequence of operations. With this arrangement of equipment, the last stage of processing takes place in close proximity to the initial stage, so the operator does not have to go far to start the next production cycle.

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In the course of the study, the main goals and objectives of the system, the principles and advantages, as well as the features of organizing work on the Just-in-Time system were considered. The experience of implementing the JIT concept in Russia is given. The main directions for improving the concept of "Just in Time" at domestic enterprises are considered.

logistics

costs

competitiveness

logistics concept

manufacturing process

1. Burakov V.I. Prospects for the development of logistics technologies in production, commercial and foreign economic activity // Electronic scientific journal "Izvestia" of the Irkutsk State Economic Academy. Number 3. 2012.

2. Logistics: textbook / Ed. B.A. Anikina. – M.: INFRA-M, 1999. – 327 p.

3. Rogozhina N.V. The use of logistics systems at industrial enterprises // Problems of the modern economy: Eurasian International Scientific and Analytical Journal [Electronic resource]. – Access mode: http://www.m-economy.ru/art.php?nArtId=2040.

4. Sergeev V.I. Corporate logistics. 300 answers to the questions of professionals - M .: INFRA-M, 2005. - 976 p.

5. Encyclopedia of production management [Electronic resource]. – access mode: http://www.up-pro.ru/encyclopedia/just-in-time.html.

The purpose of the work is to study the JIT production system, as well as to assess its applicability in Russian enterprises.

Today in Russia there is a rather high level of logistics costs for placing orders, supplying products, warehousing, and external transportation. These indicators significantly reduce the efficiency of trade and production, and they also negatively affect the competitiveness of companies and the country as a whole.

The main task for the manager in the event of such problems is to determine just such a logistics concept that would help to competently get out of such situations.

One of such concepts, used all over the world, as well as in Russia, is the technology "just in time" (Just-in-time).

The relevance of the application in Russia of the concept of "just in time" is the reduction of large inventories and costs in the production sector.

The concept of "just in time" is the concept of "pull" systems. JIT is a technology for building the organization of a logistics process that provides an abundance of material resources for work in progress, as well as finished products in the required quantity, exactly at the appointed time and place.

The use of the concept of "just in time" allows the organization to improve relations with customers, increase the volume of sales, stabilize the market position, improve financial condition, as well as increase competitiveness.

The JIT system's main goal is to save the enterprise from any unnecessary expenses, effectively use the production potential of the enterprise, and ensure a high level of product quality and reliability.

The essence of the JIT concept is to ensure that the enterprise creates continuous-flow subject production.

Currently, many domestic enterprises are trying to implement and put into practice this concept in order to avoid a rapid increase in costs.

One of such companies that already uses the Just in time system is the KAMAZ Corporation. The company's first step in this direction was: "Optimization of warehouse and transport transportation through the use of interchangeable bodies." The application of this approach made it possible to speed up domestic transportation by 5-6 times.

Another important major project for the implementation of the "just in time" system in our country is the organization of the delivery of rolled products from Magnitogorsk using traction arms - the Kamateiner transportation system. This technology has made transportation ten times faster, while reducing costs by several times.

For managers, when applying this concept, the goal is to obtain an economic effect, but for this, the enterprise should adhere to such principles as:

1. Produce products only when there is a demand for it.

2. When performing each operation in the production process, only what is required in the subsequent stage of production should be produced.

3. In the production process, materials are only delivered at the point of use.

So the above principles in domestic production are used by many companies, for example, Master-SNAB - a leading supplier of industrial equipment, EURO-SIB-Logistics - the supply of auto complexes and large-diameter pipes, as well as OJSC Severstal, which since May 2003 began to supply the material flow to Caterpillar Tosno LLC based on the principles of JIT.

Some Just-in-time principles apply when hiring staff. This method is effective for businesses that hire temporary workers exactly when they are needed, instead of maintaining a large staff of permanent workers. An example of such a situation is a seasonal increase in the volume of work. The use of the concept of "just in time" in such situations seriously saves the resources of the enterprise.

It can also be said that the JIT concept provides for advantages in its implementation in production. These benefits include: cost savings, shorter lead times, faster material availability, long-term planning.

Examples of Russian companies in which a positive effect was seen during the initial implementation of the JIT system:

1. A network of self-service stores in Moscow "ABK" supplied goods using the JIT system. In turn, this made it possible to significantly increase the volume of retail space, to avoid an overabundance of goods.

2. The Ulyanovsk plant, when introducing the JIT system into production, increased time savings up to 20%.

3. Ural Machine-Building Plant, which upgraded production according to the "JIT" system. Labor productivity has increased, the quality of machines has improved significantly.

4. Pavlovsk Bus Plant, with the introduction of this system, increased sales by 40% during the year

5. JSC "Zavolzhsky Motor Plant" improved the quality of its products, increased productivity.

It should also be said that with the concept of "just in time" the elimination of work in progress and the fulfillment of production orders by the day or by the hour are fully achieved.

Just-in-time is being implemented and applied in Russia in the construction, transport, and market sectors. Thus, the Russian-Czech construction company U-Group, using the JIT system, offers its services in the construction and design of facilities using prefabricated steel structures. Also, the use of JIT in our country was the impetus for the introduction of modern information technologies in the field of road transport, as it is more suitable for the delivery of goods "right from the wheels from door to door" in accordance with the concept of "just in time". So, for example, one of such firms is the company "TransLogistic-Moscow". Its software and hardware complex is built according to the technology and provisions of JIT and is a set of circuits that are responsible for the activities of a motor transport enterprise. These circuits include:

The TL-Route contour allows you to implement all the standard capabilities of the RS Miler/Europe complex for calculating routes and a number of its own functions (for example, to specify your warehouses that can be included in the calculated routes).

The TL-Map contour allows you to view the calculated route on the map, as well as view the calculated parameters for each stop point specified by the user.

The TL-Planning contour allows you to build an optimal route, as well as build a temporary schedule for the movement of a road train, and conduct an economic assessment of the upcoming transportation.

The contour "TL-Waybill" allows you to quickly prepare a normalized route.

"TL-Normative route" processing of normalized route calculations.

Thus, the concept of "just in time" is aimed at synchronizing work and ensuring strict discipline in contractual relations. The introduction of the JIT concept to domestic enterprises helps them reduce lead times; reduce the capital costs of maintaining storage facilities for stocks, this leads to a reduction in the risks of obsolescence of stocks; reduce the volume of documentation, as well as reduce losses from marriage and reduce the cost of sending products to the workshop for processing.

Practice shows that for the effective implementation of the Just-in-Time strategy, it is necessary to change the way of thinking of the entire team dealing with production and marketing issues. The traditional “more is better” mindset should be replaced by “less is better” when it comes to inventory levels, capacity utilization, lead times, or lot sizes. Let's hope that such a system of organizing production will be more widely used in Russian enterprises and will give a new impetus to increasing the competitiveness of domestic enterprises.

Bibliographic link

Mugak T.A., Terekhin I.A. APPLICATION OF THE JUST-IN-TIME CONCEPT AT DOMESTIC ENTERPRISES // Successes of modern natural science. - 2014. - No. 7. - P. 141-143;
URL: http://natural-sciences.ru/ru/article/view?id=34163 (date of access: 03/24/2020). We bring to your attention the journals published by the publishing house "Academy of Natural History"

The Just-In-Time concept originated as part of the Toyota Production System. Shortly after the introduction of the system at Toyota Motors, Japanese experience began to be adopted by Western companies.

The famous became one of the pioneers of the American Just-in-Time implementation experience. The use of JIT in four subsidiaries ( Greeley, Fort Collins, Computer Systems, Vancouver) allowed to increase labor productivity (by 100% in Greeley) and the number of shipped products (by 20% in Vancouver), reduce the production cycle time (by 50% in Fort Collins).

History of JIT creation

The concept of "Just-in-time" as part of the business model was first used by Toyota in the 70s. It took more than 15 years to improve the methodology, which took a significant place in together with lean manufacturing.

The prerequisites for using the concept of Just-In-Time must be sought in the post-war period. The development of a new production philosophy was influenced by 3 factors:

• the financial crisis and the lack of cash in circulation made it impossible to finance large-scale inventory production methods (as was done, for example, in the United States).
• there was not enough space in Japan to build large factories and warehouses for the production and storage of products.
• high unemployment - at the same time, the wages of a Japanese worker were several times inferior to those of an identical American work, and women's work was estimated at 40% lower than men's.

It seemed that for a couple of decades, Toyota has adjusted the mechanics like clockwork. But for Just-In-Time to work perfectly, a number of conditions must be met:

1. stable production
2. highly qualified staff
3. no breakdowns in factories
4. reliable suppliers
5. quick installation and readjustment of the mechanisms responsible for the final assembly of cars.

Violation of one of the conditions almost led to the complete collapse of the methodology in February 1997. A fire at a brake factory led to a sharp decrease in the output capacity of P-valves for Toyota cars.

However, the company was the only supplier of these parts, and the fact that the plant was closed for several weeks could destroy the Toyota supply line. Because she sent orders for parts only when new orders were received from buyers, the supply of P-valves was exhausted in one day. The production lines stopped for two days while the supplier was unable to continue assembling the required parts.

Other Toyota suppliers also had to stop work, because the automaker did not need other parts due to production downtime. A fire at one plant cost the company about $15 billion in lost profits and 70,000 vehicles due to two days of downtime.

In the West, the use of JIT was first learned in 1977 thanks to two articles:

• A. Ashburn "Toyota's famous Ohno System" (the name came from the personality of businessman Taichi Ohno, who is considered the father of lean manufacturing)
• Y. Shugimori “Toyota Production System and Kanban: Materializing Just-in-Time and Respect-Human Systems”.

Since the 80s, Just-In-Time has been used by companies in the US and other developed countries. A great theoretical contribution to the introduction of the concept into production was made by speech by Fujio Cho (he later became president of Toyota Motor Corp.) at a conference in Detroit at the Ford International Headquarters in 1980. In it, he explained in detail the features of the Toyota Production System and emphasized the benefits of JIT and the Toyota Production System.

A vivid and contagious example of the successful application of the Just-in-Time methodology at that time was Omark Systems (now ). She created modification of the concept called ZIPS (zero inventory production system), which gave an increase in productivity of about 35%.

What is Just-in-Time and why does your company need it?

"Just-in-time" or Just-In-Time- a system of production in which only those products are produced that are needed by consumers at exactly the right time and in the required quantity.

This is a diametrically opposed approach to mass production. The two key differences are:

• in mass production, products are produced in large batches, which enter the warehouse and are delivered to consumers when the order arrives. With the JIT system, release occurs as orders are made.
• mass production is tailored for the production of one type and product specification in large batches, Just-In-Time - for small batches of various products.

At the same time, the concept of "Just-in-time" cannot be mechanically adopted. The transition to it requires a new approach to planning and regulation of production, since in JIT it is based on customer orders. It is also necessary to analyze the need to expand the staff and functions of operators to work with clients, change the location of equipment.

A striking example of the implementation of Just-In-Time is the company. Michael Dell chose the path of direct sales, when the assembly of the PC began only after it was ordered. This decision made it possible to start installing Pentium 4 processors almost three months earlier than HP, since there simply wasn’t a huge amount of unsold CPUs of the previous generation in stock!

Losses- An element of the production process that increases costs and does not add value.

The DRIFT concept as a development of Just-In-Time ideas

DRIFT stands for Do it right the first time. This concept came after JIT in the 80s. It involves setting up processes and systems in such a way that the sales department receives products from production once, but without the slightest mistake.

DRIFT potentially reduces the cost of production by removing the need to reallocate excess inventory or manage customer returns.

The essence of the concept is simple -
everything that is produced has zero chance of error.

This means that everything that comes out of the pipeline is performed for the first time. The risks of rework and corrections disappear, and with them the loss of brand reputation.

To implement the DRIFT methodology, it is necessary to link systems, processes and control levers into a single whole in order to reduce the risk of errors to zero at the first start. This is where checklists come in handy.

Unfortunately, there are no studies on DRIFT in the CIS countries. Meanwhile, it is used even in the US Army: chief warrant officer Caleb Kittrell in the entrusted division embodies three DRIFT strategies:

1. Understand the high price to pay for making mistakes.
2. Leaders constantly monitor and go to places where soldiers are less likely to make mistakes and waste time.
3. Work actively to eliminate the shortcoming and help the command to implement decisions.

Advantages and disadvantages of JIT

The clear benefits of Just-In-Time include:

• maintaining the company's competitiveness- it becomes possible to better meet the needs of customers and at the same time reduce costs (in particular, for the storage of finished products).
• flexible response to changing demand- production is sharpened for quick readjustment. There is no accumulation of products - there is no moral obsolescence in warehouses. A vivid example of what will happen if you do not apply the just-in-time technique is the Amstrad GX4000 game console. Released in the early 90s, it is hopelessly outdated in terms of technology, although it was made with high quality. After the first six months, it became clear that no one would buy a hopeless console, but the production was not ready for such a turn. For 2 years, the development company constantly reduced the price, trying to sell at least something, and, as expected, went bankrupt.
• shortening the production cycle- in addition to the obvious plus in the form of production speed, it provides another advantage - a quick return on investment in production.
• release of resources can be directed to the manufacture of other products or tasks for which there was not enough budget and time before.

At the same time, the Just-in-Time concept is useful not only for the company as a whole, but also for each employee.

The benefits of the book include:

1. job security due to increased competitiveness of the company
2. elimination of excess work in progress
3. there is no need to transport and store work in progress
4. reduction of equipment changeover time
5. identification and elimination of the causes of defects and breakdowns of equipment, due to which there are delays in the production cycle.

The system "Just-in-time" is not without its shortcomings. These include:

• greater dependence on suppliers it is essential to find suppliers who are geographically close to your production facilities or who can quickly provide the necessary materials in a limited time.
• possible increase in the cost of materials- Ordering small batches of parts leads to an increase in their cost.
• labor vulnerability of workers — despite the increase in the competitiveness of the company, and hence the guarantee of employment, attempts to respond in a timely manner to the conditions of supply and demand lead to the spread of non-traditional labor regulation mechanisms (contracts, temporary / project work).
• in some cases, it is more profitable to store goods in a warehouse than to constantly deliver them- relevant mainly, the suppliers of which are located in another region / country.
• increased transport costs- since the goods are delivered as needed, and not stored in a warehouse and issued from there.
• increased requirements for project management- in the case of an unsettled workflow, downtime among workers is likely. Can't do without!
• increased vulnerability to deteriorations in the international and national economic situation- for example, price fluctuations in the production of fuel for transport will significantly affect the cost of logistics, and hence the profitability of production.

TOP-5 useful literature on the topic

Mostly, the concept of Just-In-Time is considered as an element of kanban or lean manufacturing.

We have formed our top 5 books in which maximum attention is paid to this system:

Verdict

The concept of Just-In-Time allows you to satisfy 3 desires of consumers: high quality products, reasonable cost and fast order delivery.

Applying Just-In-Time is a powerful tool for eliminating waste in the manufacturing process.

It increases the competitiveness of companies by producing a wide range of products at low cost, good quality and a short production cycle.

The concept and purpose of the JIT concept

Definition 1

The concept of JIT - Just-in-time ("Just in time")- an approach to organizing the movement of material flow in such a way that all materials and semi-finished products arrive at the right place in the required quantity and exactly on time.

The concept originated in the 1950s within the production system of Toyota Motors during the development and implementation of the Kanban production management system. The concept is also one of the principles of the Lean manufacturing system. Today, the Just-in-time concept is known all over the world, its principles are used not only in production, but also in other functional areas of logistics.

The main purpose of the JIT concept is to eliminate safety stocks. Due to the fact that the product arrives at a given point at a precisely set time without delays and delays, the safety stock becomes unnecessary. This allows you to reduce the overall level of inventory in the enterprise, free up storage space, reduce inventory holding costs and free up capital frozen in inventory.

On the basis of the JIT concept, production logistics systems of the "pull" type work.

Principles of the JIT concept

The implementation of the concept of Just-in-time requires the implementation of a number of principles.

1. Stable production program. All production operations must be synchronized and proportionally loaded
2. Reducing the time of installation operations and equipment changeover operations. The ideal option is the installation of parts for processing "in one touch".
3. Reducing lot sizes and delivery lead times. To achieve this, it is necessary to establish long-term partnerships with the most reliable suppliers. More frequent deliveries will be required, so suppliers must be located close to each other
4. Carrying out preventive maintenance of equipment. This is necessary to avoid cases of equipment stoppage in the production process due to breakage.
5. The use of a universal workforce, this allows workers to carry out work planning and quality control operations at their workplaces, increases responsibility for the results of work
6. Complete elimination of marriage. In the JIT system, any actions that lead to defects must be eliminated, since the system does not assume the presence of reserves to eliminate them.

Advantages and disadvantages of JIT

The advantages of the JIT system include the following.

1. Reducing inventory management costs and freeing up capital frozen in inventories
2. Release of warehouse space allocated for stocks, the ability to use them for other needs
3. Flexible response to changing demand. If demand for products decreases, the amount of unsold goods will be minimal.
4. Reducing the volume of production batches makes it possible to quickly adapt to customer needs.
5. Elimination of defects, which leads to an increase in the quality of products and a reduction in the cost of correcting defects.

The most obvious disadvantages of the JIT system are the following

1. The inability to correct the marriage that has arisen and missed for the next operation, since JIT does not provide for the availability of stocks and time reserves. As a result, to eliminate the marriage, it is necessary to stop all production.
2. Strong dependence on suppliers. To work in the JIT system, it is necessary that suppliers are geographically close to the enterprise, have high reliability both in terms of delivery time and in terms of product quality. Therefore, any problems of the supplier can cause a stop in production.
3. Low ability to meet the sudden increase in demand, since the JIT system does not assume the availability of stocks of finished products.
4. The high interdependence of all departments of the enterprise, a failure in one of the links in the production chain (due to equipment breakdown or human factor) will lead to a halt in the entire production, since the system does not have safety stocks.