In the world of business there are a lot of production models and as a manager it is sometimes hard to find one that fits all your needs. We are experienced in working with different models of business and personally endorse the Just-in-time model. The Just-in-time model works in a way that tries to minimize waste, reduce times of production and times of response and is supported by a subsystem called kanban, a scheduling system associated with Just-in-time production. Just-in time production is a good model that will help you and your company achieve better levels of production, this way the profit will increase and the success of the manufacturing process will be evident. Just-in-time production has a lot of advantages and we will list some of them right now.
- Improvement of the supply chain management: Just-in-time production will greatly help manage the supply chain and use this advantage to assemble products for the customers. This way, not only will costs be reduced but the customer satisfaction with the products will also be better. By using the Just-in-time model, the production prices will get lower and this will directly affect the final price of the product, making it more affordable and improving the market share and competitiveness of the company.
- Less waste: The Just-in-time model will help reduce the number of unsold products of the company and this way the company will avoid wasting unnecessary money. By reducing the waste, the company will not be obliged to reduce the price of the unsold products just to get rid of them. This will also be reflected in the perceived price of the company’s products and will help you respond to the needs of your customers faster and better.
- Customer will be more satisfied: Another advantage of the Just-in-time model is that you will have a lot of control over the manufacturing process and can make changes to any step of the process that may be causing problems among the customers. You can easily change priorities during production and this way satisfy the clients better by producing the most wanted products.
- Improvement of the quality of the products: The Just-in-time production will allow the company to quickly and effectively reduce the amount of defective products. The model makes it easier to spot the mistakes and flaws that happen during production and will make them easier to correct. This will also make the improvement of other products easier and will also affect the cost and profit of the production.
- Reduction of warehouse costs: Just-in-time production reduces the number of products in stock greatly and this way the warehouse space and maintenance required for them will be lower. It will reduce the number of warehouses needed to keep all the stock and this will make the handling and storing of the products a lot cheaper.
The Just-in-time management has a lot of advantages, it allows the company to have better profits and will reduce most of the costs during production. But, just like all the other models of production, it has some disadvantages that may come with it and you should make sure that the company would be able to handle them. We will list some of the things you have to take into account before using the Just-in-time model of production.
- You must be able to make investments in technology and infrastructure that will allow you to implement the Just-in-time model to coordinate the production and supply needed for production. You have to make sure you can actually afford this, if your company tries to implement Just-in-time without proper infrastructure it may lead to financial and production difficulties.
- External factor may interfere with the production and may stop the production completely. Some of these factors may be things as complicated to deal with like natural disasters or accidents during the production process.
- The company may not be able to take on really big unexpected orders, as they may not have enough products in stock to meet the requirements. This can make the company lose big orders or fail to fulfill them.
- Any delay with the delivery of the materials needed for production will impact the production and have negative effects. So if you want to implement the Just-in-time model you must be sure your supplier will be punctual with the deliveries and is a trustworthy supplier.
So make sure your company is able to endure difficulties that may rise from implementing the model. As you can see the model can give you great advantages and may be what your company needs to improve and be successful, take into account that with every change there will be problems and difficulties, but sometimes the advantages are more and that is the case with Just-in-time. So if you are willing to take a risk, try implementing it and you may find really good results.