Just-in-time production (JIT)

JIT (just-in-time) originated from Toyota Corporation in Japan and is a modern new way of organizing production. JIT Chinese generally translates as "just-in-time production". JIT embodies the idea of eliminating "consumption" and establishes an integrated management approach embodied in the "inventory-free" production method. JIT Applicable Industries:

1. The production and manufacturing enterprises with stable and mature process, production cycle and market demand fluctuations within the controllable range. Such enterprises account for the majority of the manufacturing industry, suitable for the food, clothing, automobile, home appliances, electronics manufacturing industry and so on.

2. Industries with high unsalable products, such as aircraft and ship manufacturing industry. The production cycle of such industries is long, and the single product occupies more enterprise funds, and the customer demand is relatively unstable, resulting in the risk that if too many products are not sold, the enterprise will face the risk of capital chain breakage, so such industries often use JIT to take orders for production.

3. The production process and the consumption process must be carried out at the same time

For example, the vast majority of service industries such as catering, logistics, consulting and so on meet this condition.

4. Enterprises that need to meet the individual needs of customers

In order to meet the personalized needs of customers, customized enterprises engaged in clothing, mobile phones, computers and other products take one-on-one customization for customers to meet customer needs, and such enterprises also meet the characteristics of enterprises that adopt the JIT order-based production model.

　　　Comparison of JIT procurement with traditional procurement

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project　

JIT procurement　

Traditional sourcing　

Purchase in bulk

Small quantities, high delivery frequency

Large quantities, low delivery frequency

Vendor selection

Long-term cooperation, single source supply

Short-term cooperation, multi-source supply

Supplier evaluation

Quality, delivery time, price

Quality, price, delivery time

Check the work

Gradually decrease, and finally eliminate

Receiving, ordering, quality acceptance

Negotiation content

Long-term relationship, quality and reasonable price

Get the lowest price

transport

On-time delivery, the buyer is responsible for arranging

Lower cost, seller arrangement

paperwork

Less paperwork and the ability to change delivery times and quality is required

Large amount of paperwork, change the delivery time and quality of the procurement

Product description

Supplier innovation, emphasizing the relaxed performance requirements

The buyer cares about the design, the supplier has no innovation

wrap

Small, standardized container packaging

Plain packaging, no special instructions

Information exchange

Fast and reliable

General requirements

It can be seen from the comparison with traditional procurement that the just-in-time production system is to produce the necessary products in the necessary quantities at the necessary time, but not too much and prematurely to produce the products that are not needed for the time being. The just-in-time production system is a production management system that emphasizes the greatest economic benefits, emphasizes "punctuality" and "quasi-quantity", and does not simply pursue high operating rate, high labor productivity and high output value of equipment. Its basic idea is to produce products strictly according to the needs of users, shorten the production cycle as much as possible, and compress the amount of work in process, so as to maximize capital savings, improve efficiency, reduce costs, and increase profits.