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The objective of this paper is to give a summarization of the definition the advantages and disadvantages ordering systems and decision making that goes into the Just -In-Time inventory control system Definition and History Just-In-Time JIT is a process for optimizing manufacturing processes by eliminating waste including wasted steps wasted materials and excess inventory Damiano 2004 The Just-in-Time Inventory JIT concept was developed in the 1950s by Taiichi Ohno who was employed by the Japanese Toyota Motor Co Mr Ohno had observed Henry Fords processes while visiting America and then taking ideas of his own improved upon Fords systems JIT depends upon logistics that include transportation warehousing and strategies for handling supply chain uncertainties Basically everything must happen just in time W Edward Deming W Edward Deming was an American statistician and quality control expert who helped develop the first US Census and then later the Japanese Census Demings ideas of improving quality while still increasing productivity would become known as Total Quality Management TQM and would be strongly embraced by Japan at first but not in the USA The fourteen principals that Deming outlined helped Japan to become an industry leader throughout the world These principles are as follows 1 Create contrary of purpose 2 Take the lead in adopting new philosophy 3 End the practice of awarding business on the basis of cheapest cost 4 Improve constantly 5 Institute training on the job 6 Institute leadership 7 Drive out fear 8 Break-down barriers between departments 9 Eliminate management by numbers and management by objectives Substitute leadership 10 Eliminate slogans exhortations and targets 11 Remove barriers to pride in workmanship 12 Institute education and self-improvement 13 Put everybody to work to accomplish the transformation 14 Cease dependence on inspection to achieve qualityHugh 2001 Advantages of JIT The Japanese automobile industry has shown us several advantages of JIT They include a better quality products b higher inventory turnover c higher productivity and d lower production
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