Continuous Improvement
Firms that use the JIT system aim at continuous improvement in quality and productivity by identifying areas that require improvement. Problems are detected before they actually occur, and they are solved in the minimum possible time, to ensure the smooth flow of work. For manufacturing operations, the percentage of scrap can be reduced by following better work methods and training employees. Imbalances in capacity can be eliminated by developing an appropriate master production schedule and maintaining a flexible workforce. Relationships with suppliers should be maintained to ensure timely delivery of raw materials with the prescribed specifications. Manufacturing operations can be improved on a continuous basis through the complete involvement of employees and the management.
In the case of service operations, the process of continuous improvement aims at reducing the number of people involved in providing the service, without affecting the quality and rate of service. The management of a service-providing firm reduces the number of employees until the point where the provision of the service becomes slow or stagnant. The management then explores ways to improve the service process.
Though JIT is a powerful tool for reducing the firm's inventory and improving productivity, the implementation of JIT principles is difficult as it has to overcome the following barriers: workers' resistance to change, difficulty in accomplishing zero lead-time, zero safety stock and zero idle time. The implementation of JIT manufacturing principles requires great support and commitment from the top management and extensive employee training.
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