The methodology ‘Just in time’ or by its translation into Spanish ‘Just in time’ is a philosophy, which seeks to eliminate all waste in the production process, ranging from distribution to purchases. It is based on limiting its stock, making sure that the raw material and its finish are there when it is needed.
Having an inventory increases production costs, which may or may not be necessary depending on the company’s strategy. For this reason, in the Just In Time methodology, the material must be available at the time it is to be used and in the exact quantities. . Today we will see which companies use this methodology, and the benefits it has.
Which companies apply the Just In Time methodology?
This production methodology is commonly used, since it eliminates waste, focuses on demand, simplifies the production process, and highlights problems. Thanks to this, several companies and sectors use this methodology, to mention a few, fast food restaurants, and appliance factories use it. Now in more detail we will mention and explain where this methodology is applied.
Fast-food restaurants
They are a great example of Just In Time, this is because fast food companies, they have all the ingredients available, but they don’t have hamburgers or pizzas ready before they are ordered, they wait until they are ordered to make a meal and will be sold at once. This applies to the vast majority of restaurants and venues.
computer factories
These companies do not manufacture a computer until it is requested by a client, in addition, all the components that one requires are ordered from different suppliers. This makes them produce according to the demand they have.
Toyota
This methodology is very common in the automotive industry, and the example that we bring is one of the first companies that started with this philosophy in 1970, being the first success of Just In Time. Toyota’s production strategy has been highlighted in that raw material does not arrive at the factories until they receive an order from a customer.
This has allowed them to reduce their costs when it comes to changing their products, since they do not have a stock that is in danger of not being sold.
What are the benefits of the Just In Time methodology?
This methodology helps in various aspects to business production and cost reduction, all this with quality services, and reducing unnecessary elements. All this structured in real purchases, without wasting time or money on inventory that does not sell.
Consequently, our costs decrease, productivity increases, there is less fictitious inventory, the quality of the products is improved, the employees work in a better way thanks to the fact that by having only the necessary personnel, the worker remains active in his different tasks, achieving company goals.
What other alternatives exist for the Just In Time methodology?
Although we talk about how good it can be for our company, this methodology does not work for all companies, so each one must first examine their personal case, it may be that they do not have the facility to order only the materials they need. .
In case it has not worked for a company, there is an alternative called Materials Planning Requirements, which consists of using sales forecasts to push production with goods. Businesses that can figure out the demand for their product will want to opt for this valuation and inventory management system instead.
We hope that this article on the Just In time methodology has been useful to you. And which one works best for you?
