October 25, 2003
IT 3700 - 6:30am
JIT in Internet Technology
Just-In-Time is a Japanese manufacturing management method that was developed in the 1970’s. It was first adopted by Toyota manufacturing plants by Taiichi Ohno. The main concern at that time was to meet consumer demands along with providing good quality. After WWII, Japan had much to do to rebuild their economy and gain a stable footing on production. Along with their strong work ethic, Japan strived to implement JIT practices to eliminate all the waste associated with managing materials and keeping inventory costs to a minimum. The Toyota company implemented this into their plant and turned the management and accounting principals around to effectively and efficiently move inventory in and out very quickly while also concentrating on the manufacturing aspects of their cars. They gained much success and quickly rebuilt their economy. Many other companies in Japan utilized JIT as well and helped shape the way that Japan is technologically advanced today. After the first introduction of JIT by Toyota, many companies around the world followed step, and around mid 1970’s, it gained extended support and was widely used by many companies in many countries, including the United States.
Before the introduction of JIT, there were many manufacturing defects for the existing systems at that time. This included inventory problems, product defects, rising
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costs, large lot production and delivery delays. The inventory problems included the unused accumulated inventory that was not only unproductive, but also required a lot of effort in storing and managing them. Other implied problems such as parts storage, equipment breakdowns, and uneven production levels. Management was also concerned with the production workers, which brought forward the study of bottlenecks, which is any part of a production line that creates waste. Careful inspection of machines, people and time of processes were created and any such thing to create a time delay or defective product was eliminated or transformed to become productive.
There are three main objectives in JIT, which include, increasing the organization’s ability to compete with others and remain competitive over the long run; increasing the competitiveness of firms by the use of JIT manufacturing processes; increasing efficiency within the production process and reducing wasted materials. There are several other uses of JIT that businesses of all trades utilize. JIT can be employed in several different industries such as automotive, retail, manufacturing and even fast food. All of these industries require different uses for JIT and technology using JIT, but in the end each industry uses JIT for the same ultimate goal – to create
prompt service with good quality.
JIT has been around since the early 1970’s, however, the implementation of JIT using Internet technology has only just begun within the last decade or so. The use of computer systems, along with the Internet has increased the use of JIT applications. It is a much-needed process as many companies have found. The need to get ahead of competition in any way is always a constant goal. The use of JIT allows many aspects
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of gaining efficiency along with effectiveness possible. With Internet technology, large companies prosper using JIT to keep up with real time information. Now, to keep companies ahead of competition and constantly improving, information must be kept as accurate and up-to-date as possible. Companies can use the Internet to relay information back and forth. Technology is constantly increasing in ways to utilize JIT.
Many applications of allow for implementation of JIT. Generally speaking, "Just-in-Time" Inventory is proven in diverse industries. For example, automotive, fast food, retail, and warehouse industries all use JIT. Recent advances in PC computer power and speed make this technology affordable to smaller companies. If you want to increase your company’s competitiveness you could profit from a JIT inventory that uses Electronic Data Interchange. Electronic Date Interchange is defined as this:
“EDI is an acronym for Electronic Data Interchange. EDI is a system set forth so
that institutions can exchange data in an orderly format. There are actually two
different organizations that govern the format of the messages. One of the
organizations is the ASC X12 committee. This Committee governs the operation
of the North American trade” (Wong 1).
Many people do not even know that they are using EDI. Many forms of information transfers occur everyday. Submitting orders online is a form of transferring data to a company. Often times this information is passed through several different locations via the Internet and utilizing software that receives, inputs and stores data to be retrieved and sent at any time.
There are several software programs that cater to a company’s inventory. These are used not only to keep a record of the complete inventory, but to analyze it and
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create hypothesis of all different kinds of possibilities for managing the inventory as well. The software can analyze a company’s data to see if too much inventory is being held, how long items have been held, the probability of an item to sell, the defect rate of an item and so on and so forth. People could complete many of these actions, however, the importance of this kind of software is the time it takes to output this data and the ability to transmit it.
Other systems that cater JIT principles are frequently used by large regional companies, or companies that expand nationally or even globally. Take for instance Sears Department store. Whenever a sale is made, that information is transferred to the computer and stored, to later be submitted to various computers that use the information to update inventory, calculate sales and create other statistical reports. Another example would be a restaurant such as Applebee’s. When food is ordered, the waiter submits this into a computer. At the present time, the information is used for the cooks and for check calculation. Later, the stored information is used in reports for management to clearly see what items have been sold and need to be reordered. The uses span far, as management can also use this data to see sale progressions of certain items and to see what sells the most at various times of the day, week or month. Using the Internet, this information can be sent to several locations and management and accounting teams can access the data and analyze it, to project a much larger picture for the restaurant chain instead of just one store.
Software companies still work to find various programs to provide companies with accurate, important and timely information. The data that is inputted by a customer
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has many ways to be transformed into very valuable reports, graphs and timelines. With new ways to analyze and compare data, a company can always stay ahead in competition by getting the most out of what they know from their daily operations.
The JIT principle and uses span much farther than just inventory. It is a common practice that many companies have adopted and many more are realizing the need to pursue the concept. The process of becoming the most effective and efficient in operations, while satisfying the customer, is a primary goal for most companies. Eliminating waste, which is the utmost of importance in JIT can be used for all levels of operation in a company, not just inventory. Internet technology has only just begun to pave the way to transmit and receive data in real time situations that offer dependability and lasting solutions to everyday and long-term business needs. More and more uses of JIT in Internet Technology will be introduced and implemented as businesses seek to maximize the quality of their operations.