JIT manufacturing is well known as lean manufacturing described by the Pull System. This philosophy is used for efficient inventory control and all the benefits coming with it.
We distinct 2 main types of production, named Push or Pull System. Push system can be associated with the traditional production, we made as much as we can, and then we push the products for selling. The newly adopted system is the Pull system, in which case, we start producing for customers’ orders, and equally with the predefined stock.
In Pull system production begins with the customer’s order. The production produces the predefined quantity of products, to complete the order. This strategy allows companies to save storage space, and money, without an excess of inventory. Using the JIT system, the inventory level can be kept, to a minimum.
A disadvantage of the JIT system is the possibility to don’t be able to deliver the products on time, because of the supplier. If the supplier is unable to ship on time, the production can’t fulfill customers’ satisfaction. JIT works very well together with Kanban philosophy, organizing, and preparing every part before they are physically required. The purpose of the JIT system in the automotive industry permits companies to produce personalized cars. Every part must fit perfectly for the first time because it’s no other option. Using JIT in manufacturing, every problem in production is in real-time observed and immediately has to be fixed.
JIT philosophy is used beside lean manufacturing, in other systems too. A great example would be McDonald’s or Starbucks serving. When a customer places an order they starting to prepare the food or drink for serving. The fact that you produce after order, it allows the customer to personalize their products from the available options the producer offers. Personalized products are more expensive because you pay extra for each option you choose. Customers don’t care about paying more, if they prefer their coffee, with extra topping, so Starbucks is happy to serve them and take their money.
A similar example would be the options you can choose when you buy a car. Starting from the exterior color of the car to the interior materials and engine type, we had a lot of options to create a unique car for ourselves. This is a win-win situation because customers are satisfied, when they can personalize a product, it doesn’t matter if the price is double. On the other hand, the supplier is happy to make more money by letting people choose what they want.
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