Just in Time in Supply Chain Management

Analysis of the Application of the JIT methodology in the Supply Chain Management- a Case Study of the TOYOTA Supply Chain Management

Contents

1. Introduction 2

2. Application of JIT Methodology in SCM 3

2.1 Reducing Logistics Cost 3

2.2 JIT Production 4

2.3 Planning and Control of the Supply Chain Management 4

3. Case Study in the Toyota’s SCM 5

3.1 Features of Toyota’s Supply Chain Management 5

3.1.1 Integrative design of the supply chain 6

3.1.2 The Operational Management of Supply Chain 8

3.1.3 Supervision of the Supply Chain 8

3.1.4 Improvement of the Supply Chain 9

3.2 The Benefits of Applying JIT in the Toyota’s SCM 9

3.4 Challenge of Applying the JIT Methodology in SCM 10

4 Conclusion 10

References 11

1. Introduction

JIT is the meaning of Just-in-time production or stockless production. It is an integrative management methodology which was originally promoted by the Japanese automobile manufacturers. It aims to eliminate different kinds of wastes in the manufacturing processes. The fundamental ideas of JIT are producing products strictly base on the clients’ requirements, shortening the production cycle, compressing the proportion of the work-in-process goods, whereby improving the efficiency and reducing the production cost (Amrik S. Sohal, etc., 1993). Therefore it can be understood as producing necessary products based the right time and right amount, at the mean while avoiding untimely production or producing unnecessary products.

Supply Chain Management (SCM) is a modern management methodology which appears after the essential changes of the enterprise’s business environment. The original single enterprise production is not able to meet the clients’ increasing requirements and the time limits. Moreover, as the cost of the product is getting lower and lower the enterprise is hard to survive in the fierce competition of the market. Therefore, those scattered enterprises in the supply chain realize that to...