JUST IN TIME

The Just in Time was created in Japan, where it was applied by the Toyota car
company that started using it in the early 50's and the main purpose of this system
was to eliminate all the unnecessary elements in the production area (which
includes the department of purchases of raw materials, up to the customer
service and is used to achieve cost reductions never imagined and meeting the
needs of customers at the lowest possible costs, is an integrated set of activities,
designed to achieve a high volume of production, using minimum inventories of
raw material, work in process and finished products.

The Just in Time System is based on the logic that nothing will happen until it is
needed. Industrial philosophy of elimination of everything that implies waste in
the production process, from purchases to distribution, that is, elimination of
activities that do not add value to the client.

One way to extend this definition is as follows: the just-in-time system implies that
the necessary materials are brought to the necessary place to produce the
necessary products at the exact moment they are required.

As a complement to this definition of just in time, there are two rules that must be
observed for the implementation of the system.

First, only high quality parts and processes should be used. The just in time
requires minimum security stocks in materials and their assemblies. Therefore,
when the time comes to elaborate the product, the parts of the production process
must be the improvements that can be obtained. This rule ensures high yields
and foresight in the production line.

The second rule has to do with the dimensions of the lot of the products to be
processed. The magnitude of the ideal lot in the just in time is one. For this
reason, the second rule is as follows: always the smallest lot size must be made
for any product, regardless of the production volume of the same.
These two rules constitute the pillars of the principles of operation of the just in
time. A violation of any of them would cause serious problems is the
implementation of the system.

The main objective of JIT is to guarantee complete customer satisfaction, while

minimizing costs, understanding customer satisfaction as Total Quality. The
Strategy consists of a program of continuous improvement, which provides:

• Products of perfect quality.

• In the necessary quantities.

• At the time they are needed.

• Lowest total delivery cost.