C HAP TE R 2 1 Accounting for just-in-time systems Teaching tips and points to stress Just-in-time systems Correcting students misconceptions Many students believe JIT is simply a stock reduction tool. However, as the five major features of JIT reveal, JIT is abroad management philosophy that is much more extensive than simply a focus on stock reduction. Stock reduction is just one among many results of JIT. Example As production processes changed, many conventional manufacturing companies made quick- fix accommodations in plant layout. The resulting flow of production was often illogical and haphazard, so it was difficult for management to see what was happening by walking around the plant. For such a company, a major benefit of JIT implementation is the complete reorganisation of the plant into manufacturing cells. For example, in a company that supplies bumpers to Toyota, the goal is fora piece of raw steel to come in one end of (the) building and go out the other side the same day as a finished bumper. With the old layout, bumpers would be stamped, ride on forklifts to a storage area at the far end of the plant and – days later – return to the weld station. (After implementation of JIT,) bumpers go from (the) process of (stamping to) welding with only a brief stop between. This streamlined production process reduces non-value-added activities (e.g. stock storage and moving) and makes value-added activities more visible and amenable to control.
