If you think of optimizing your process management, reducing inventory and ending waste once and for all, Just in Time may be the ideal option for you!
The concept, which in Portuguese means “at the right time”, was born in the 1950s, in Japan, and the first company to adopt the model was the Toyota Motor Company, which still uses the method today, and is one of the foundations of the that became known as Toyotism
The system, fundamental for the country to rebuild after World War II, has become a philosophy based on production on demand, in which the product manufactured after it has been sold.
This allows everything to have an immediate final destination and there is no surplus of stock, including in relation to the raw material, which only arrives at the factory when it is needed. Thus, the model, which goes against the idea of mass production, starts to minimally use its equipment, facilities and teams.
To put Just in Time in operation, it is necessary to have a lot of discipline and organization, but some methodologies enter the field to assist in the task, such as Kanban.
An excellent example of management in sight, the system has three well-defined stages of the process: to do, to do and done. Within a Just in Time scenario, it offers a holistic and transparent view of what is happening so that everything can accomplished at the right time.
If you are interested in the concept, learn a little more about its advantages and check out tips on how to join the model!
Main benefits of Just in Time
Process optimization
By operating on demand, the processes become much faster and leaner, giving the company greater productivity.
In addition, product quality is highly targeted, which makes the company more competitive in the market.
Cost reduction
Have you ever imagined not having to do inventory management? Or never worry about inventory again? These are examples of how Just in Time is able to reduce the environment, leaving only the spaces necessary for the production and delivery of the product.
For not storing raw materials everything that is purchased, is used. So say goodbye to waste and leftovers!
Flexibility
Unlike Fordism, which mass-produced a standardized type of product, just in time brings a more flexible proposal and gives greater diversity to the merchandise.
This is an extremely positive point, as it allows the customer to personalize their order.
Quality
Since you will be working with the minimum inventory required, there is an increased focus on quality management. It is natural that there is an effort to eliminate problems and defects as much as possible during production, that is, the decrease in stock generates a positive cycle of constant search for continuous improvement
How to implement Just in Time?
We have organized the implementation into 5 major stages, which we deem to be critical for the proper functioning of a just in time system:
1) Rethink the industrial layout
To adopt JIT, it is necessary to change the entire production model in your company. Give up spaces and create a new layout that allows quick fulfillment of your customers’ orders.
2) Think about the organization
There is a feature that cannot be missing within the Just in Time model!
Try to understand the different methodologies that can be apply in your business and be attuned to new technologies.
One type of system that can increase the productivity of the teams even more is that of real-time monitoring, since with it you have total control over what happens on the factory floor and can make an excellent management of people from a distance, relocating employees as needed and avoid wasting time.
3) Train your team
Moving to a new model requires discipline and joint efforts.
Therefore, ensure that your team receives all the necessary instructions to head the new first method, is available to follow the processes at Gemba and clarify possible doubts.
4) Transparent communication
It is important to establish a dialogue with everyone so that the methodology is always align.
Establish with your suppliers so that the raw material always arrives at the right time and clarifies the changes for your customers. Ensure all of this in an integrated management system, with clear and well-defined KPIs throughout the process.
In this way, you will be able to enter into good agreements for both parties regarding demand and delivery time.
5) Rearrange the goals
The focus now is not to sell, but to design orders.
Since it no longer needs to generate inventory, its strategy should be aim at attracting customers and guaranteeing orders in a volume that keeps the factory in good production levels throughout the year.
We moved from a pushed production strategy to a pulled production strategy.
How Novidá can help with the implementation of Just in Time
Wasting time is not an option for those who believe in the great potential of Just in Time. So it is essential to know everything that happens in your company and if it is in real time, even better!
With that in mind, we developed a solution focused on understanding and improving operational processes focused on people and their operational activities, alone in their operation or in command of equipment
Through a set of proprietary technologies that involve indoor and outdoor Geolocation (RTLS), Internet of Things and Artificial Intelligence, we provide our customers with a holistic understanding of these processes, allowing the measurement of reliable data and full control – in real time – of several critical indicators on its operation
As a result, we have already generated consistent impacts on our clients’ operations, in the order of millions of dollars per year, with an average ROI of 14x the amount invested!
Do you want to know more about our work? Click here and check it out!
