JUST IN TIME INVENTORY CONTROL

Concept

It presents itself as a work philosophy, in which raw materials and

the products arrive just in time, good for manufacturing or for the
customer service.
Philosophy or a mental attitude with applied common sense, which aims to
to ensure that raw materials reach the industrial company as they are needed
needing, to be consumed in the production of finished goods,
maintaining a relatively involved inventory investment
minimum, with the continuous effort of managers, workers, and employees,
through the gradual elimination of wasteful practices.

The philosophy of 'just in time' is primarily based on:

The reduction of waste

The quality of the products or services
Deep commitment (loyalty) from each and every one of the
members of the organization.
Strong focus on their tasks (getting involved in work)
Greater productivity, lower costs, quality, greater satisfaction of
client, higher sales and very likely higher profits.

Characteristics

Philosophy with common sense, or rather,

Mental attitude with common sense,
Its purpose is to ensure that the raw material reaches the company.
just-in-time industrial production for consumption in the manufacture of items
finished,
Maintaining an investment in raw material inventories, products in
relatively minimal processes and finished products
Through which the goods arrive at the commercial company "just in time".
time to be sold to customers and consumers
Maintaining an investment in inventory of goods relatively
minimum.
Through the elimination of wasteful practices
Among some of the applications of JIT, the following can be mentioned:

Reduced inventories.
The improvement in quality control.
The reliability of the product.
The utilization of personnel.

Just in time means producing only exactly what is necessary to meet the
goals requested by the client. Produce the minimum number of units in the
smallest possible amounts and at the last possible moment, eliminating the
need for storage, since minimum and sufficient stock arrives
just in time to replenish those that have just been used and the elimination of the
finished product inventory.

Companies generally have excessive inventories due to flawed calculations.

based on the uncertainty of the expected demand for finished products and
the variability of the replenishment lead time from suppliers or
manufacturing; for this and other reasons, the habit of improving day by day should be adopted.
To this day, eliminating wasteful practices, starting with ourselves.

It is considered that the excess of inventory:

Absorb capital that is not necessary and that could be better invested.
shape.
Generates higher storage costs.
Increases the risks of damage and obsolescence.
It can hide opportunities for operational improvements.

What it's about is that with the just-in-time methodology, the company
can support itself to build a sustainable competitive advantage in the market;
the development of a competitive strategy at the business level entails defining
those variables in which one wants to be superior to the competition and that
they make customers buy our products and not those of that one.

We can list five variables that will serve as a basis to achieve that
competitive advantage

Cost
Quality
3. Service
4. Flexibility
5. Innovation.
Advantages

Reduce the necessary inventory levels at all steps of the

productive line and, consequently, the costs of maintaining
higher inventories, purchasing costs, financing costs of the
purchases and storage.
Minimize losses due to obsolete supplies.
It allows (requires) the development of a closer relationship with the
suppliers.
This better relationship facilitates agreeing on secured purchases throughout
year, which will allow suppliers to plan better and offer
best prices.
The system is more flexible and allows for faster changes.

Disadvantages

Danger of problems, delays, and suspensions due to lack of supplies.

that can cause delays and suspensions of the production line and
negatively impact expenses.
It limits the possibility of reducing purchase prices if the purchases are
of low amounts although, depending on the relationship with the
supplier, this disadvantage can be mitigated.
The transfer cost and the cost of switching suppliers increase.

Benefits:

Investments to maintain inventory are decreasing.

Increase inventory turnover.
Reduce material losses.
Improve overall productivity.
Financial costs are decreasing.
Savings in production costs.
Smaller storage space.
Quality issues, coordination problems are avoided.
unreliable suppliers
Rationalization in production costs
Obtaining minimal waste.
Effective knowledge of deviations.
Decision making at the right time.
Each operation produces only what is necessary to meet demand.
There are no random or disordered processes.
 The components involved in the production arrive at the
moment to be used.

Identification of wasteful practices

They are generally identified:

When excessive inventories are maintained both for protection and for
security (overinvestment in inventories)
Excessive lead times for raw material replenishment
Interruptions in production processes
Pressures and discord among administrators
Wasting time and delays in processing purchase and sales orders
Products with quality issues
Defective, late, inaccurate information and lack of truthfulness
Manufacturing of large batches of defective production, etc.

To avoid excessive accumulation and overinvestment in inventories, we must

gradually and constantly eliminate wasteful practices in the
following areas:

Purchasing Department
Production Department
Quality department
Department of Systems
Administrative departments

JUST IN TIME

Elimination of wasteful practices

Department Department Department Department Departments

shopping of production of quality of systems administrative
Just in time in the purchasing department:

To apply the just-in-time philosophy in the purchasing department in a way

exemplary and not limited, it will be necessary:

Eliminate uncertainty surrounding purchases

Having the conviction that purchasing problems stem both from the
providers like ourselves
The purchasing department must function well.
Request only what is needed
Make sure it is at the highest speed possible.
Closely monitor the shortages
Postpone or cancel unnecessary orders
Formulate specific programs for suppliers
Apply the principles of Kanban to purchasing:
Small deliveries, Frequent deliveries, Clear specifications of the
what is required, Minimum paperwork
Immediate response to the needs of the company
Evaluation of the performance of the purchasing department
Establishment of special relationships with key suppliers
Limit the number of suppliers
 Just in time in the department
shopping

Coordination of Ask only for what you know To watch Cancel orders
Speed
suppliers needs missing not necessary

Programs Small deliveries Clarity Response

Minimum
weekly for the frequent and specifies immediate to
paperwork
suppliers constants of what is needs
requires

Evaluation of Agreement of the

performance of conditions of
Purchasing Department purchases

Establishment of
relationships
special with
suppliers
main

Limit the number

of suppliers
Increase the
dependency of
our relationship
with the
Specifications of
suppliers
characteristics of
main
quality

Reduction of
practices of
protection
Just in time in the production department

The application of the philosophy of 'just in time' in the production department

the distinction between production workers and workers should be abandoned
support qualified, simplifying and standardizing the activities so that they are
carried out by production workers in the best possible way; the
The KANBAN technique focuses on producing only what is needed.

Just in time in the

production department

Reduce the setup time Plant configuration Programmed systems of

pull the production until
donde sea posible“

Identification of mounts Adjustable workbenches A lower level of

focused on reduction of must work with production only produces in
tiempo neutralidad response to the demand of the
next higher level

Analyze the elements

Combination of operations Control kanban
internals and externals of
montajes identificados

Maximize the elements Specialization - reduce the Piece of paper, cardboard or

externals number of products metal that represents a
autorización para fabricar

Focus production on
Internal installation speed Retention line principle
important areas and coverage
otras con sub contratos

Closely monitor the programs

Reduce adjustment time Continuity in operation
royals
Just in time in quality departments

To apply the just-in-time philosophy in the quality control department:

Quality starts with communicating the statement to employees.

company's issuance, in which a philosophy of improvement must be explicit
relentless long-term quality, based on the principle that 'assets
The most important aspect of a company are its workers and employees.

Only through the education and training implicit in this principle,

companies will discard the levels of delays that they have traditionally accepted,
errors, defective materials, and poor workmanship.

Reducing the rate of defective products and services will involve decreasing in
that measure the total cost of producing bad products, and allocate those resources to
achieve additional good products.

Improvements in quality increase productivity and reduce costs

production, operating costs and sale prices, and they develop the pride of the
workers for the quality of their work.

Just in time in administrative departments

The modernization of management styles arises through the effort caused

by increasing the participation of companies in the market, while also
they reduce waste of labor, raw materials, indirect materials,
time-machine and costs in general.

To do this, the management must know what to do and outline policies that allow them to
to remain in the market and provide more and more job opportunities,
through understanding the design of the product and the service, the acquisition of
raw materials and materials, production problems, process control, and
the barriers that deprive the worker of their right to be proud of their work

Improving administrative quality increases productivity by reducing costs and

reprocessing, mistakes and delays, as well as making better use of time
machine and materials through the change of production systems and of the
help from workers to work more intelligently.