In the ever-changing landscape of supply chain management, two strategies have garnered significant attention: Just in Time (JIT) and Just in Sequence (JIS). Both approaches aim to optimise production processes and reduce waste, but they do so in slightly different ways. This article will explore the nuances of JIT and JIS, their benefits, and how they can be implemented effectively in modern manufacturing environments.
Just in Time (JIT)
The Just in Time strategy, pioneered by Toyota in the 1970s, is a production model where components are delivered to the assembly line precisely when they are needed. This approach aims to minimise inventory costs and reduce waste by ensuring that parts arrive ‘just in time’ for production.
Key principles of JIT include:
- Minimal inventory: Only the necessary components are kept on hand.
- Frequent, small deliveries: Suppliers make regular, smaller shipments instead of large, infrequent ones.
- Continuous improvement: Constant refinement of processes to eliminate waste and inefficiencies. Continuous improvement is a core principle of the Kanban methodology, which aims to achieve kaizen, or ongoing enhancements to processes, practices, and workflows to improve outcomes and customer value.
- Strong supplier relationships: Close collaboration with suppliers is crucial for timely deliveries.
Benefits of JIT:
Reduced inventory costs
- Improved cash flow
- Increased production flexibility
- Reduced waste and improved quality
However, JIT is not without its challenges. It requires precise coordination and can be vulnerable to supply chain disruptions. A delay in the delivery of a single component can potentially halt the entire production line.
Just in Sequence (JIS)
Just in Sequence, often considered an evolution of JIT, takes the concept a step further. In JIS, components are not only delivered just in time but also in the exact sequence they will be used in production. This strategy is particularly beneficial for manufacturers dealing with high product variability or customisation.
Key principles of JIS include:
- Sequenced delivery: Parts arrive in the order they will be used on the assembly line.
- Real-time communication: Constant information exchange between manufacturer and suppliers.
- Synchronised production: Suppliers align their production schedules with the manufacturer’s needs.
- Advanced planning: Detailed production schedules are shared well in advance.
Benefits of JIS:
- Reduced line-side inventory
- Improved assembly line efficiency
- Better handling of product variability
- Reduced errors in component selection
JIS sequencing is particularly advantageous in industries like automotive manufacturing, where vehicles with different specifications are produced on the same assembly line.
Comparing JIT and JIS
While both strategies aim to optimise the production process, there are key differences:
- Delivery timing: JIT focuses on delivering components when needed, while JIS emphasises both timing and sequence.
- Inventory management: JIT aims to minimise overall inventory, whereas JIS focuses on reducing line-side inventory.
- Complexity: JIS is generally more complex to implement due to the need for precise sequencing.
- Flexibility: JIT can be more flexible in responding to sudden changes, while JIS requires more advanced planning.
- Application: JIT is suitable for a wider range of industries, while JIS is particularly beneficial for manufacturers with high product variability.
Implementing JIT and JIS
Successful implementation of either strategy requires careful planning and consideration of several factors:
- Technology infrastructure: Both JIT and JIS rely heavily on robust information systems for real-time communication and tracking.
- Supplier relationships: Close collaboration with suppliers is crucial, particularly for JIS sequencing.
- Staff training: Employees need to be well-versed in the principles and practices of these strategies.
- Risk management: Contingency plans should be in place to handle potential disruptions.
- Continuous improvement: Regular evaluation and refinement of processes are essential for long-term success.
Case Study: Automotive Industry
The automotive industry provides an excellent example of how JIT and JIS can be used in tandem. A car manufacturer might use JIT for common components like bolts or wires, ensuring they are delivered just when needed. However, for components that vary significantly between models, such as seats or dashboards, JIS sequencing would be employed.
For instance, if the production line is assembling a luxury car followed by a hatchback, the seats for these vehicles would be delivered in the exact sequence they are needed. This approach minimises line-side inventory and reduces the risk of errors in component selection.
Conclusion
Both Just in Time and Just in Sequence strategies offer significant benefits for manufacturers looking to optimise their supply chains. JIT provides a broad framework for reducing inventory and improving efficiency, while JIS offers a more specialised approach for handling product variability.
The choice between JIT and JIS – or indeed, the implementation of both – depends on the specific needs of the business. Factors such as product complexity, production volume, and supply chain capabilities all play a role in determining the most suitable strategy.
As supply chains continue to evolve, particularly in light of recent global disruptions, manufacturers must remain agile and open to adapting their strategies. Whether implementing JIT, JIS, or a hybrid approach, the key lies in continuous improvement and close collaboration with suppliers.
By carefully considering these strategies and tailoring them to their specific needs, manufacturers can significantly enhance their production efficiency, reduce costs, and improve their competitiveness in an increasingly challenging global market.
AMCO and JIT/JIS
AMCO customers include a growing number of Tier 1 and Tier 2 suppliers who are required to adhere to Just-In-Time (JIT) and Just-In-Sequence (JIS) protocols for the OEM automotive manufacturers they serve.
AMCO provides comprehensive JIT and JIS sequencing and logistics solutions designed to optimise assembly line space, reduce in-house inventory, expedite engineering changes, and ultimately lower the overall cost per vehicle or item produced. While JIT and JIS methodologies originated in the automotive industry, they have since been successfully implemented across various other sectors.
Are you searching for a reliable warehousing partner to manage high-volume parts supply to your customer’s production line without fail? Leave pre-production parts supply to AMCO, so you can focus on what matters most! To learn more or to get a quote, contact AMCO today.