Thermoformed Plastics Solutions Blog

Streamlining the Process by Utilizing JIT Manufacturing

Posted by Jeffrey Geiman on Sep 17, 2013 12:20:00 PM


Popularized by Toyota in the 1970s, Just In Time (JIT) manufacturing is a production strategy that allows manufacturers to effectively manage inventory and business costs. Implemented correctly, this strategy minimizes waste in terms of time, inventory and scrap.

Fotosearch k12216608Companies that utilize JIT manufacturing do not make products until orders are placed. Put simply, production is driven purely by customer demand. One of the biggest advantages of this strategy is that it eliminates the hidden costs of maintaining an inventory, especially if inventory turnover is slow.

The successful implementation of JIT also confers a host of other benefits. Reducing or eliminating inventory improves the flow of goods from the warehouse to shelves. It saves money on overhead by removing the need to pay workers in times of low or no demand. It also reduces the risk of inventory expiring and minimizes the amount of storage space needed for successful operation.

The JIT model requires careful monitoring of prices, quality, demand and supply. For the model to work, the cost of parts must remain relatively stable to eliminate the need to buy in advance of price hikes. Similarly, quality must remain stable so there is no need to stockpile high quality parts.  Demand for products must be steady to ensure optimal operation. Lastly, supply must be stable so that the manufacturer can meet its production schedules.

McClarin Plastics follows the JIT model for all custom manufacturing projects. The streamlined service produces everything from individual plastic components to complete assemblies for OEMs, so that they are free to focus on their core business. Through this model, we are able to reduce overall costs by carefully managing orders and inventory levels. The JIT model enables us to successfully complete each order to exact specifications in a timely manner.

Accepted globally as a successful production strategy, JIT manufacturing allows manufacturers like McClarin Plastics to pass on the benefits of a streamlined manufacturing service to all of our clients.

For more information on McClarin’s contract manufacturing services, please contact us today!

 

Request a Consultation:  Speak to an Engineer
Read More

Topics: McClarin Plastics, Just in Time, Toyota