Preview

Jit Application in Toyota Company

Satisfactory Essays
Open Document
Open Document
293 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Jit Application in Toyota Company
JIT Application in Toyota Company

Toyota is one of very large company in automobile. In their production, Toyota Company has applied JIT (Just in Time) approach in their manufacturing. The advantages of using JIT approach is to reduce or minimize the waste of production, reduce hands-off, reduce re-work and any other delays on manufacturing process.

One of characteristic in JIT approach is the flow of work. Parts or component of material will flow from one work center to many others with intermediate storage, and flow into work centers will also come from many work centers with intermediate storage. In the large company like Toyota, this approach is the most suitable to be applied.

The derivative applications of JIT approach is karban system. Karban means “card” or “visible record” and refers to cards used to control the flow of production through a factory. Karban is useful system for company like Toyota that has many work centers. For example there are two work centers with difference function, work center 1 is to producing component parts and work center 2 is to making assemblies. And there is an intermediate storage area for component parts. Let say Work Center 1 is producing component 101 and 102. After do production, that components will move to intermediate storage part and each component is labeled with kanban card 101 and 102 that contain component’s information. If Work Center 2 is need part 101 in assembly, the box 101 (labeled card 101) will moved to Work Center 2 and so on for box 102.

Toyota uses a “two-card” kanban system. The first is transport or conveyance, card, which moves container of parts from one stock location to another. The second is a production card, which authorizes

You May Also Find These Documents Helpful

  • Better Essays

    Supply Chain Task 1

    • 2621 Words
    • 8 Pages

    References: Ahmed, S. (2014, March 25). Just in Time (JIT) Manufacturing and Inventory Control System. Retrieved from Management Accounting: http://accounting4management.com/just_in_time.htm…

    • 2621 Words
    • 8 Pages
    Better Essays
  • Good Essays

    CMO1 Wgu

    • 694 Words
    • 3 Pages

    The JIT approach has the most profound effects on the operations of manufacturing companies that maintain all three classes of inventories: raw materials, work in process, and finished goods.…

    • 694 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    With the new process transitioning to the just-in-time (JIT) method, the technology portion of the organization will need to be upgraded to a system that monitors from the point of order to the point of delivery.…

    • 3640 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Murphy Case Analysis.

    • 1236 Words
    • 4 Pages

    Just-In-time manufacturing, or JIT, is a management philosophy aimed at eliminating manufacturing wastes by producing only the right amount and combination of parts at the right place at the right time. This is based on the fact that wastes result from any activity that adds cost without adding value to the product.…

    • 1236 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Case 2

    • 504 Words
    • 3 Pages

    With the JIT system Ballenger would be less concern about maintaining a large inventory and they would less likely to experience shrinkage. The just-in-time system will also ensure that parts are available to manufacture products and will better serve customers more effectively and efficiently.…

    • 504 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Jit Management

    • 2938 Words
    • 12 Pages

    The main purpose of a just in time system is to eliminate through improvement activities various kinds of waste lying concealed within a company. During periods of slow growth the Toyota production system which was developed by Toyota Motor Corporation could actually make some form of profit by reducing costs and eliminating excessive inventory and getting rid of excessive staff. (Yasuhiro Monden, 1994).…

    • 2938 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Toyota’s competence is its production system known as the “Toyota Production System” or TPS. TPS is based on the Lean Manufacturing concept. This concept also includes innovative practices like Just in Time, Kaizen, and Six Sigma and so on.…

    • 548 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Product Costing System

    • 1565 Words
    • 7 Pages

    Wilson, J. (2010, 05 18). Real-Life Examples of Successful JIT Systems. (M. McDonough, Editor) Retrieved 01 19, 2013, from Bright Hub PM: http://www.brighthubpm.com/methods-strategies/71540-real-life-examples-of-successful-jit-systems/…

    • 1565 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Brasilia Case

    • 1008 Words
    • 5 Pages

    Challenges that surface when implementing a JITD system include resistance from sales and marketing departments and on the part of the customer. Salesmen fear the harnessing of a JITD system would flatten their sales numbers if customers are no longer purchasing high volume of product. Many sales people’s compensation are tied to sales numbers, so it’s only natural that any system that would reduce manufacturing and inventory would negatively affect their ability to reach these sales numbers. This would result in lower compensation in their minds.…

    • 1008 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Just in Time

    • 251 Words
    • 2 Pages

    Reduced Turn Around time – The competition is steady among companies that provide services, so a company that uses JIT concepts reduces the turnaround time and increase their…

    • 251 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Just-in-Time is an inventory management philosophy that aims to reduce inventories by implementing systems and processes to supply a product or service exactly when it is needed, and how it is needed in the production process. The concept of JIT is widely accepted today by many American manufacturing companies, and it is a means of controlling costs through striving to maintain lean inventories—in fact, the concept of JIT was introduced in the early 1980’s to the U.S. as a concept know as “zero inventories”. This inventory control concept involves close relationships with vendors or suppliers, who are able to provide components of the product direct to the work-in-process area, in a “pull” type fashion, whereby the components are delivered immediately before they are required. Since the introduction of the JIT concept, it has evolved to become a management philosophy that requires a corporate-wide commitment to do a process right the first time, and to reduce non-value added activities in the manufacturing process. Because the concept largely centers on this element of focusing on the elimination of waste in the manufacturing process, the JIT concept emphasizes the need for the supplier and the receiver of goods to never have to wait on the other. Ideally, the concept is beneficial to both supplier and manufacturer in this way, because it allows both companies to reduce their Work In Process (WIP) and finished goods inventory, while reducing inefficiencies and bottlenecks in the system—thus cutting costs and improving profitability.…

    • 2057 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    Mid Term Exam

    • 1151 Words
    • 5 Pages

    Just-In-Time (JIT) manufacturing may affect a Job Shop both positively and negatively. The most important affect is that it improves the performance of job shop production. JIT also eliminates waste and/or decreases work in progress (WIP) in that same sense. JIT allows for products that are produced to fulfill an immediate demand for them. JIT emphasizes on quality. Quality is very important in JIT manufacturing because it decreases or eliminates costs and increases profits by producing high quality products the first time around. JIT allows for quality products to be transformed from raw materials into finished goods as expediently and efficiently as possible without delay.…

    • 1151 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Toyota Case

    • 1063 Words
    • 5 Pages

    Toyota can improves its JIT manufacturing system to face the fluctuating demand of its trucks. As a robust supply chain has already been established among suppliers, Toyota may implement a full JIT system to manufactures its pick up trucks. This may effectively resolve the potential overstock problem of pick up cars at its dealers. Therefore, it is essential to be engaged in closed collaboration and good relationship with reliable suppliers.…

    • 1063 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Toyota reduces in-process inventory through Just in Time set of techniques. The process is driven by a series of signals, or Kanban that tell production processes to make the next part. Kanban are usually simple visual signals such as the presence or absence of a part on a shelf. JIT causes dramatic improvements in a manufacturing organization's return on investment, quality, and efficiency.…

    • 1968 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Advagraf Case Study

    • 1381 Words
    • 6 Pages

    The Toyota Motor company who manufacture automobiles and trucks were at the time being out produced by American motor companies. This was when Japanese industrial leaders such as Toyada, Shig Shingo, and Taciichi Ohno developed a new discipline which was process-oriented and is known today as “Toyota Production System”, or “Lean Manufacturing”. As mentioned above waste reduction is one of the dimensions necessary for continuous improvements, which the Toyota production system focuses on identifying the main source of waste, this is where when lean tools come into play such as Just in Time (JIT), production smoothing, setup reduction are used to eliminate the waste. These industrial leaders also identified that the first point of appreciation is the customer. Therefore, the company should always be aware of the customer desires for the product they are producing. (Borris,…

    • 1381 Words
    • 6 Pages
    Good Essays

Related Topics