Exploration of the JIT Production Mode

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  Abstract : With the prosperity of knowledge economy, the production, sharing, spreading and utilization of knowledge have become important pushing power in economic society. How to deliver right knowledge to right people in the right time is a key issue in knowledge management research. This paper based on the previous theoretical research achievements, analyzing the case of Toyota in the respective of Just-in-time and at last, some important points that should be taken into consideration are put forward, reaching corresponding conclusion.
  Keywords : Just-in-time; Toyota; management
  1. Introduction
  With the social development and the advancement in science and technology, the business market is undergoing significant changes gradually. With more and more requirements from customers on the quality, cost and categories of products, the updating speed of products is becoming higher and higher, with fiercer market competitions. The production operation pattern of an enterprise should have a rapid responsible ability to the market, with the provision of various qualified and low-cost products. Therefore, large amounts of disadvantages in the production operation mode gradually appeared. Just-in-Time (JIM) which is originated in the Toyota Motor Corp in Japan is an effective way to reduce wastes in enterprises through the improvement activities. Therefore, cost is lowered down correspondingly. Just-in-Time is a way to thoroughly eliminate the waste in inventory, cost and labor. It transfers the traditional "Push System" based on calculation and lot size into "Pull System", making great changes in the production procedure, production efficiency, organized structure and the ideal of the enterprise. (Towill, D. 2006)
  2. Literature Review
  The concept of Just-in-Time production can be summarized as "to product necessary products according to demands in due time", that is to pursue a kind of production system with zero inventory or minimum inventory through production plans and management in inventory. The core of Just-in-Time is a production system with non-in-stock, or a production system which make the stock to the least. Therefore, series of concrete measures have been developed including "kanban", gradually forming a set of special production operation system. (Morey D. 2001)
  JIT teaching model research is limited in the Chinese research field. Professor Qi E'shi from Tianjin University has conducted deep research in this field. Recently, Kuang Jinyun from Nanjing University has carried on research on the new thinking pattern of JIM production model. Yang Xianzhi and Wang Yin from Northwest A&F University have analyzed the characteristics of JIM production model in detail. (Ghilardi F J. 1997).   3. Application of JIM-The Useful Operation Environment
  (JIT in high variety and low volume pro-
  duction environment- Toyota)
  In the 1960s, Japanese auto company Toyota adopted the production mode of JIT, since 1973, JIM plays an important role in helping Toyota live through the first energy crisis, so it achieved great attention from production enterprises of other countries and this kind of production mode was promoted gradually in the Japan-funded enterprises in the Europe and the USA. Now JIM has been called the "Japanese Mode" together with other production and circulation modes from Japan. (Tsui E. 2005) The Japanese production mode and circulation mode had important functions to the logistics in Europe and the America. In recent years, JIM as general management mode is not merely a kind of production mode; it is promoted in areas such as logistics and digital business.
  In the late half of the 20th century, the whole auto market entered a new stage with diversified market demands. The requirements for quality of products are becoming higher and higher, therefore, how to effectively organize small-lot production for more categories, otherwise the over-production will cause a lot of waste in the equipment, labor and unnecessary cost, influencing the existence of enterprises. In this condition, the vice-president of the Toyota Company Taiichi Ohno took the distinctions and advantages of the single-unit production, and then created a kind of production mode which can produce high-qualified products with low consumptions under the condition of small-lot mixed production conditions. JIM means to send necessary amounts of units to the production line in the necessary time, the category of units, the time for delivery, the necessary time is exact. This production system is to adapt to the fact that consumption demands are diversified and individualized in the 1960s.
  Before the advocacy of JIM production mode, the global auto companies including the Toyota Company had adopted "general mobilization production mode" put forward by Ford, which means half of the time, personnel and equipment are to wait for units while the rest produce instantly as soon as the units arrive. This kind of production mode makes the logistics in the production process irrational which can be typically represented in the overstock and shortage in the inventory. The production line was stopped, or over-produces once starting up. Therefore, large great waste was created under this mode. On the contrary, Toyota has adopted the small-lot for multispecies and short-cycled production mode, which can eliminate inventory, optimize production logistics and reduce waste.   4. Suggestions to Make JIT better theoretically and practically
  From what has discussed above, we can see that there are some obstacles in the promotion of JIM production mode in some fields; therefore, the universal use of JIM still requires the provision of more convenient conditions. In order to make JIM better, efforts should be made from both the theory and practice angles.
  From the theoretical angle, firstly, the market system should be improved. JIM production mode is not a pure management technological problem; it is the output in fierce competitions under the market system as well as the inevitable result in the development of diversified market demands. The standardization and improvement of market system is an important premise of JIM production mode, therefore, corresponding reform in economical system will be established.
  Secondly, a smooth logistic supply and production circulation system should be established. The JIM production mode has the requirements that there is no inventory for raw materials, thus the sales channels and physical supply by the enterprises should be correspondingly smooth, and otherwise products will be over-stocked due to enterprises' prevention of interruption. This kind of external influence will lead to the failure in JIM production mode and the lost in balanced production.
  Thirdly, an exact production plan should be made. The synchronized production requires an ordered state of production from the material input to the production output. Therefore, an exact production plan is needed. As first, pre-arrangement and plan should be made according to every link of the production sales and the material supply, procedure production, to maintain the harmonious production and to avoid the retention of time and space due to irrational plans. Then a flexible adjustment system should be possessed to coordinate the production speed of each procedure and each department.
  Conclusion
  In conclusion, JIM production is a kind of scientific management concept by which the passive production operation can be transferred into an initiative one, increasing economic profit and making the enterprise develop stronger in fierce competitions. JIM is a production mode that can continuously improve productivity and reduce waste to create more profits for enterprises. Enterprises should free their mind and change concepts, to consider problems on the whole and to achieve the JIM production. The reform in production management way is an important content for the reforms in enterprises as well as a key link in transferring economical increase way. And the initiation and implement of JIM production mode will give distinct effects to every aspect of the resource utilization of manufacturing enterprises, equipping enterprises with stronger competitive power in the market.   Reference
  [1] Allon, A, Wilson, S. (2008), "Equilibrium between supply and demand". Traffic Engineering and Control. Vol.42.2001. pp,194-198.
  [2] Anowden D., (2003), "Just-in-time knowledge management:part1 KM Review", Vol.5 No.2, pp,14-17.
  [3] Burton-Jones, A., (2002), "Knowledge Capitalism: the new learning economy". Polcy Futures in Education, Vol.1 No.1. pp,143.
  [4] Carter, Jonathan, Ghorbani, Ali A. ,(2003), "Just-in-time information sharing architectures in multiagenet systems", Proceeding of the International Conference On Autonomous Agents. Pp,657.
  [5] Conteh, Nabit Y., (2003), "Foreignne,
  Guisseppi. Intelligent decision making support through just-in-time knowledge management". Lecture Notes in Artificial Intelligence. Vol,27. pp,108.
  [6] Chastek, F.J&Donohoe,P&McGregor,J.D., (2007), "A production System for Software Product Lines". Software Produc Line Conference,pp,117-119.
  [7] Snowden D.,(2003), "The knowledge you need, right when you need it". KM Review, Vol.8 No.4,pp,35.
  [8] Davanport T, Prusak L., (1998), "Working knowledge". USA: Harvard Business School Press, pp,66-72.
  [9] Davenport, T.H.&Glaser, J., (2002), "Just in Time Delivery comes to Knowledge Management".Vol 6 No.9. pp.111.
  [10] Ferraiolo D F, Sandhu R, Gavrila S, et al,
  (2001), "Proposed NIST standard for role-based access control", ACM Transon Information and System Security, pp,223.
  [11] Ghilardi F J, (1997), "Mellor Getting to real-time' knowledge management Online", Vol.7 No.3, pp,52-69.
  [12] Harris,A.,(2006), " Automotive special report-Made in the USA_Uprooting the Toyota Production System and transplanting it to Kentucky in the United States has proved to be a great success for Toyota". Manufacturing Engineer,pp,17-19.
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  (Unit of work: Tianjin polytechnic uni-
  versity)
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