The JIT (Just In Time) production method originated from Toyota Motor Corporation in Japan, which is a low-cost, high-quality flexible production method born in Japan. The following is a Toyota jit management paper organized by me, thank you for reading.
Toyota jit management paper a
JIT management style application research
Abstract: JIT (Just In Time) production method originated from Japan's Toyota Motor Corporation, which is a kind of low-cost, high-quality flexible production methods born in Japan.The basic concept of the JIT production method is: in the time needed, according to the amount needed, to produce the needed products. The basic concept of JIT production method is: in the required time, according to the required amount, to produce the required products. In the second half of the last century, the manufacturing industry entered a new era, with a single species of mass production methods have been unable to meet the requirements of the new market, the market demand into the diversified, this stage of the urgent need for a new type of production methods, that is, small batch, multi-species, low-cost, high-quality production methods.
With the integration of the Chinese economy into the world economy, more and more products made in China are entering the international market, and the globalized market economy has brought opportunities for enterprises as well as fierce market competition. In order to enhance the competitiveness of enterprises, it is already difficult to maximize the profitability of enterprises by simply suppressing the cost of materials, at this time, a new production mode --- the emergence of JIT production method for enterprises to create a new competitive advantage.
Keywords: JIT production mode, JIT procurement, suppliers, zero inventory
Classification number: F253.4 Literature identification code: A
Since the 1980s, with the diversification of the global market demand, the quality of the product, the price, the performance and other requirements have become more demanding, the shortening of the product development cycle, the market should change the flexibility in this context. In this context, the emergence of JIT production mode greatly meets the new demands of market changes. Countries all over the world, all walks of life are exploring and researching the JIT production and management mode, and its implementation of on-site inspection, theory and practice, after a comprehensive refinement of the summary, derived from the lean production mode (Lean Production).
Lean Production, as its name suggests, expresses the concept of production and management to eliminate waste and save resources. The theory is applied to the entire supply chain process, from accepting customer orders, arranging production schedules, making raw material procurement plans, domestic and international transportation of goods, until the delivery of the goods of the entire process. At the same time, lean production is also applied to the overall management of enterprises. In recent years, China's automotive industry, electronics industry, machinery industry, electrical industry and other manufacturing enterprises in the wide application of JIT management methods, improve production efficiency, and has achieved significant results.JIT production and management methods to improve the economic efficiency of enterprises, enterprises in the reduction of operating costs at the same time, but also to obtain a wealth of experience in the production and operation management, the JIT production methods have been widely promoted and JIT production has been widely promoted and utilized.
1. JIT production goal
The ultimate goal of JIT production is to maximize profits and achieve zero waste, any production activities will not bring benefits to the enterprise that is waste, can be summarized as follows:
1.1 Zero Inventory
Zero Inventory Management is the key to the enterprise's supply chain management, manufacturing In terms of the manufacturing industry, refers to the production process, the elimination of raw materials, semi-finished products, finished goods in the library time; reduce the time of ineffective action, such as reducing the handling action, the number of handling, such as the lack of materials generated by the waiting time; according to the order of the production, the effective control of the enterprise product inventory.
1.2 Zero Defects
Enterprises should be centered on quality, the implementation of full participation in management. The overall quality of the enterprise includes product quality, service quality, cost quality, quality management throughout the entire process of production, in order to improve customer satisfaction, eliminate defects, reduce waste, enterprises need to establish a perfect quality assurance system. Problems occurring in the production process need to stop production immediately, so that the problem is fully exposed to analyze the problem, improve, over time, the production of problems in the continuous reduction of product quality continues to improve.
2. JIT Purchasing
2.1 JIT Purchasing Advantages
2.1.1 Reducing raw material inventories, improve inventory turnover
The implementation of JIT Purchasing can gradually reduce the inventory of raw materials, reduce the occupancy of liquidity, accelerate the turnover of liquidity, and thus reduce the cost of material inventories. At the same time, JIT procurement requires enterprises to carry out comprehensive scientific management of suppliers, JIT mode of procurement of suppliers more rigorous requirements, more rapid response, more stringent quality requirements, the implementation of JIT procurement greatly improves the management level of the enterprise itself and suppliers.
2.1.2 Reduce the cost of enterprise quality, improve the quality of purchased materials
The implementation of JIT procurement enterprises can make the quality of purchased materials doubled, according to the survey, JIT procurement can reduce the cost of enterprise quality, quality costs are weighed and optimize the quality of the enterprise management of a means of JIT purchasing requirements for the quality of the responsibility of the supplier, at the same time, due to the purchased materials At the same time, due to the improvement of the quality of the purchased materials and the reduction of the cost of material quality, for the enterprise to save resources to provide a good operating environment.
2.1.3 Expose the problems in the production process, improve the efficiency of the enterprise
JIT procurement that excessive inventory not only increases the cost of inventory, slowing down the enterprise
cash flow, but also cover up the process of production management of all kinds of contradictions in the production process, the production of the problem can not be solved, will hinder the development of the enterprise, reduce the efficiency of the enterprise. JIT procurement method by reducing the inventory of raw materials, continue to expose the production process problems, so that it is solved from the root, in order to improve the efficiency of enterprise production.
2.1.4 Require suppliers to deliver on time to improve the continuity and stability of production
Require suppliers to deliver on time is another important feature of JIT procurement. First of all, in order to
ensure on-time delivery, suppliers need to improve the stability of their own production, and continuously improve the quality of
products, so as to avoid production instability and product quality problems caused by delivery delays. Secondly,
companies need to continue to improve the supplier production management process, requiring suppliers to also use JIT
management mode, and the pace of the customer to achieve **** win.
2.2 JIT procurement problems
2.2.1 Procurement price
JIT procurement more to take a single supplier supply mode, resulting in raw material purchasing costs dependent on
attached to the supplier, not conducive to enterprise control of procurement prices, to the enterprise purchasing cost management has brought
the corresponding risk.
2.2.2 Quality Issues
JIT procurement is a single source of supply and eliminates the incoming inspection, the supplier sends the raw materials directly to the
production line, once the supplier's products have quality problems, the enterprise's products will also be affected.
2.2.3 Information Leakage
JIT procurement involves information sharing with suppliers, enterprises and suppliers in the process of cooperation, suppliers will know some important information within the enterprise, such as the company's production capacity plan, production data, product technology, etc., this information in the process of cooperation with suppliers there is a certain risk of internal information leakage.
2.2.4 Inventory issues
Both companies and suppliers, due to abnormalities in the production line, in the JIT purchasing process, if the supplier stops production, it will lead to the production of the enterprise out of stock; if the enterprise production line stops, the inventory of the supplier as well as the enterprise inventory of semi-finished products will be increased.
2.2.5 Supplier cooperation
JIT procurement management will transfer the inventory cost pressure to the supplier, the enterprise inventory cost pressure is relatively small. Suppliers in the environment of cost pressure will gradually lose interest in enterprise cooperation, thus making the enterprise in a passive position, is not conducive to long-term cooperation between enterprises and suppliers.
3. Comparison of JIT purchasing and high-volume purchasing
3.1 Supplier selection
In the way of supplier selection, JIT purchasing chooses fewer suppliers, or even a single supplier, the enterprise and the supplier relationship is stable, and the quality of the purchased materials is relatively stable. Traditional high-volume procurement to choose more suppliers, but also often change the supplier, the enterprise and the supplier's relationship is not solid, the quality of the purchased materials are also quite a lot of problems.
3.2 Supplier Delivery
For the supplier delivery method, JIT procurement method is by the supplier to arrange their own shipments, the enterprise purchasing staff do not need to spend a lot of time to communicate with the supplier to arrange the shipment, which greatly reduces the workload of the purchasing staff to improve the work efficiency, and can ensure that the delivery of the on-time performance. Traditional bulk purchasing is notified by the enterprise purchasing staff suppliers delivery, the buyer needs to spend more time and each supplier to communicate to ensure that the supplier delivery to meet the production needs of the enterprise.
3.3 Purchasing batches and logistics
Regarding purchasing batches and logistics, JIT purchasing batches are large and small, and logistics deliveries are more frequent. Traditional high-volume procurement batches are fewer and more numerous, and logistics transportation is relatively less frequent.
3.4 Inventory management
In the inventory management approach, JIT procurement requirements of what the enterprise needs, when the need, the supplier in accordance with the requirements of the direct delivery to the point of demand, raw materials and purchased parts inventory pressure on the side of the supplier. Traditional high-volume procurement is inventory-oriented management model, suppliers of large-volume delivery, to ensure that a certain amount of inventory to ensure that the enterprise production operations, inventory pressure on the side of the enterprise.
3.5 Packaging Requirements
For purchased parts packaging requirements, JIT procurement using standard, specific specifications, and recyclable containers packaging, saving product costs. Traditional large-volume purchases are packaged in non-reusable containers such as cardboard boxes, and there are no specific requirements for this type of packaging.
3.6 incoming inspection method
About incoming inspection, due to the JIT procurement method for suppliers of strict quality requirements, the procurement of raw materials, purchased parts quality assurance, at the same time, JIT procurement requires suppliers to supply at the point of demand, the supplier does not need to deliver incoming inspection, which shortens the procurement cycle and improves production efficiency. Traditional high-volume procurement requires suppliers to arrange each delivery of incoming inspection.
Into the 21st century, due to the rapid development of the world economy, the globalization of the market economy urgently needs us to take advanced and effective management to ensure the sustained and stable development of enterprises, the emergence of JIT production management is a product of the development of the global economy. JIT advanced scientific management model is widely used in the domestic enterprise, so that the enterprise profit can be maximized, it is for the enterprise to integrate into the international market, towards internationalization, has a very important role. JIT production management is a comprehensive and complex management system, which involves enterprise human resources, technology, research and development, production, sales, logistics, supply, quality and other departments, JIT ideas into the overall strategic operation of the enterprise, and in practice, continuous improvement and enhancement, and gradually formed to suit the characteristics of the enterprise's own management model to reduce corporate waste, reduce corporate costs, realize the true meaning of lean JIT management mode has a reference role in the reform of China's enterprises, it not only improves the level of enterprise management, enhance the competitiveness of enterprises in the market, but also to maximize the benefits of the enterprise. JIT has the advanced and superiority in the support of e-commerce and information network technology, invincible in the global market.
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Author: Jazao Zeng Southeast University, College of Economics and Management, Master of Business Administration in the study of the unit: Wuxi City, OTEM Machinery Manufacturing Factory
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