JIT System In The Toyota Manufacturing System

The JIT system plays a vital part in the elimination of costs (e.g. raw material, inventory costs, product storage costs etc.) as it holds the idea of producing only what is needed, when it is needed, and in the quantity needed. From my point of view, the profitability of a business grows in the most healthy and efficient way when there is no unnecessary cost incurred during the production process. By applying JIT, it enables Toyota to source raw materials close to the manufacturing time, and ships out the vehicles to the their customers immediately without the need of taking up a large storage space. The substantial savings from not storing unneeded inventories resulted in lower manufacturing cost. It also helps to improve product quality

Excessive production is highly costly as it produces more than what is sufficient to meet the demand thus led to degrade in quality and productivity. Any unnecessary waste creates from overproduction, product defects, or storage of finished goods can be avoided with the implementation of JIT system. Toyota's main goal is to produce high quality vehicles with a minimum waste. JIT system enables Toyota to ensure a smooth flow of goods or processes with an effective production process. The defect rates of vehicle will be reduced which led to less waste, higher quality product and greater customer satisfaction.

However, there is no spare finished product available to meet unexpected orders, as all products are made to meet actual orders. Buffer stocks can help an organization to respond to unpredictable demand instantly. To implement JIT system in Toyota successfully, it requires a precisely planned schedule and flow of resources in the production

Nur Syahirah for the support and teaching she has given us throughout the preparation of this assignment. By completing this assignment, I have learnt the importance of JIT concept in the business operation of Toyota Motor Corporation. With the use of JIT system, Toyota is able to save the warehouse space and unnecessary cost-carrying that helps to improve their productivity and efficiency in the production process. Also, I have understood how Toyota applies the JIT system in their daily manufacturing system. In order for the implementation of JIT to be successful, each individual within the organization has to be highly involved in the management process. Also, the organization has to rearrange the operation process for maximum output and reschedule the quality and production programs to meet demands accurately.

Moreover, I have learnt the impacts of the implementation of JIT in Toyota. Toyota Production System (TPS) has evolved and improved based on the JIT concept after many years of trial and error. The concept of TPS is now used and implemented by different companies (e.g. Hewlett-Packard, Motorola, General Electric etc.)