How Does Just-In-Time Inventory Practices Tie-In With The Principles of
Lean Manufacturing
Jay Patel
5/3/2016
Operations Management
Abstract
When people first started to transform raw materials into finished products, much thought was
not given to the efficiency of the process. As we know now, much thought and planning need to
be put into manufacturing and inventory systems, to make the process as efficient and profitable
as possible. But how did we get from the crude primitive manufacturing systems of the past to
what we know of the highly productive and efficient systems of today? To answer this question, I
will not only consider the people who changed the system, but also analyze how their ideas and
contributions changed the way we manufacture today. To understand the how the system has
changed and why it does function so well, I will consider how Just-In-Time inventory practices
tie-in with the principles of Lean manufacturing. I will consider the types of decision making
tools, and how they are used as well as the positives and negatives associated with each system.
As people began to learn and understand that there was a better way to do things, the face of
manufacturing had to change, but change never comes quickly or easily.
Just-In-Time Inventory Practices
The Just-in-time (JIT) inventory strategy is an inventory management strategy that wishes to
have as much finished product at the right time, consequently reducing inventory costs and
wastes without negatively impacting customer supply. The JIT inventory management
methodology uses signals, which automatically activate the replenishment of inventory, cut down
on inventory ordering in anticipation of reduced requirements, and improve financial outputs of
the business. Basic elements of the JIT inventory management process include minimum
inventory levels, Pull-through production, quick setup and flexible work cells, a multiskilled
work force, high levels of product quality and effective preventive maintenance (Powers,
Needles, and Crosson).
Lean manufacturing and Just-In-Time inventory systems are two principles that we will examine
to understand why and how business has the productive capacity and efficiency that it has today.
The origins of Just-In-Time systems can be credited to Eli Whitney and his interchangeable parts
and to Henry Ford with his Model T manufacturing strategy. These systems and the ideas were
even adapted by Japanese manufacturers like Toyota, after World War II (A Brief History of
Lean, 2014). Getting to where we are at today with high-tech automotive manufacturing, from
the introduction of interchangeable parts was not a quick or easy process. This journey involved
