Analyze the use of Just in Time approach in the automotive industry and how it has improved performance

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Prudence K. Magezi

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Today’s increasingly competitive business environment has made it essential for manufacturing companies to produce high-quality products in order to survive. For companies to gain a competitive advantage, it has become vital for them to not only produce high-quality products but produce them at lower cost and within the shortest possible time. It has become essential for companies to implement procedures that ensure that their products meet the highest standards of quality.  Good quality products can boost an organization’s brand reputation, increase efficiency, protect it against risk, reduce waste, and boost its growth. In the process of trying to produce high-quality products, most companies have failed to respect the lives of employees who ensure that the systems work perfectly.  However, Just in Time (JIT) manufacturing Initially developed and perfected within the Toyota manufacturing plants by Taiichi Ohno, focuses on more than the production of high-quality products, it focuses on plants, systems, and people who play a major role in the production of these high-quality products. While using JIT, Toyota realized that success was dependent on the commitment of every employee of the organization as well as processes that are set for maximum output and efficiency, and if quality and production programs are scheduled to meet exact demands.
This essay will analyze the use of the JIT approach in the automotive industry and how it has improved product quality.
 

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•  the use of the Just in Time approach in the automotive industry and how it has improved the industry’s performance Case Study
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 the use of the Just in Time approach in the automotive industry and how it has improved the industry’s performance Case Study

Key Learning Outcomes

1.0 INTRODUCTION

Just-in-time manufacturing is a system where the production of goods is based on demand. Compared to the traditional manufacturing idea where manufacturers aim at producing as much supply as possible in expectation of demand, JIT relies on lean inventory, which reduces costs and increases agility. It reduces all work-in-progress and produces goods that are in demand which in turn reduces the inventory as much as possible. According to Drury (1990), JIT is designed to increase the ability of workers to operate and manage more than one machine. Workers can also help each other if any challenges occur in the production line. JIT helps manufacturers minimize inventory, shorten lead times, and also address other inadequacies by aligning supplies with production schedules. It minimizes waste and extra costs associated with manufacturing surplus goods. This is because it produces exactly what, when, and how much was ordered either by the next workstation sequence or the customer. It is dependent on accurate demand forecasting.
JIT was founded on the idea that materials for production arrive at the scheduled time for production and manufactured products are finished just in time to be delivered to the customer. Despite all its advantages, JIT has limitations. In an environment characterized by supply chain challenges, JIT is not suitable for just-in-time manufacturing. Due to semiconductor shortages during the COVID-19 pandemic, most automobile companies including Toyota shifted from JIT manufacturing to traditional manufacturing. Alongside Toyota, Ford also stockpiled key parts and materials, to avoid shortages, something out of the ordinary for manufacturers that have relied on JIT (Keckarovska 2022). 
Nevertheless, it is unlikely that auto manufacturers would entirely replace just-in-time manufacturing. This is mainly because holding lower SKUs (stock keeping unit) has numerous advantages. It eliminates waste, and reduces costs, making savings and efficiencies a great advantage (Keckarovska 2022). 
 

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