Some observations on the advantages and implementation issues of just‐in‐time production systems

Abstract

Abstract U.S. industry has been bombarded with prescriptions for catching up with the Japanese. Surprisingly absent from many lists of these prescriptions is the Japanese just‐in‐time (JIT) production system. The JIT approaches are simple and generally require little use of computers, and they appear to provide far tighter controls on inventory than are attainable via U.S. computer‐based approaches. More importantly, Japanese JIT tends to promote major improvements in quality and productivity, as well as increased worker responsibility and commitment. JIT applications and benefits apply not only to the shop floor but also to the distribution and the purchasing ends of the business. In the article, JIT is contrasted with MRP, and the JIT production system is explained with reference to a graphical cause‐effect model. The necessity, under the JIT system, of revising traditional assumptions with regard to cycle stock and buffer inventories is explained. The author's views on how JIT affects plant configurations are presented, along with personal observations on how one Japanese subsidiary in the U.S. has been reconfiguring its plant in the process of adopting a JIT production system.