After world war 2 in Japan, resources were utilized through lean management, and it was structured upon the basic principle of Just-in-time. An idea founded on taking off waste from the organization's processes to attain a smooth extremely efficient and robust system that offers products at a very low cost but maintaining the same high-quality to cater the customer requirements. needs and expectations. It took several years for Toyota to streamline the Just-in-time production management, which is now known globally in various industries and adopted by many successful businesses, for example, McDonald’s, Dell, and Harley-Davidson.
We can relate to Just-in-time manufacturing or processing as a philosophy rather than some serious or strict guidelines. However, when properly implemented, JIT assists organizations to empower their advantage and competitiveness in the market. Just-in-time empower organizations to do the following:
• Minimize waste (according to lean concept) and eradicate activities that don’t offer value.• Enhance the quality of organization's products and processes.• Enhance productivity levels and minimize expenses.
Pull verus Push System
Production processes are decided by the supply chain department or the planning department. For instance, the planning department schedules it, procurement department orders the raw materials as per the planning schedule, and the production produces as per the planning schedule. The planning is done on the basis of market forecasting. The market forecasting depends on many things and it is not appropriate at times. The discussed process flow is known as the push production and is manoeuvred significantly by the inputs being given into the start of the production process and the planning or Material Resource Planning (MRP) controls the remaining processes.
Pull production on the other hand functions in reverse, when a consumer consumes a product from the downstream of the organization's production process, a Kanban signal is generated and then pushed down the line to initiate the production of the subsequent unit.
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