JIT, TPS and Lean Operation
Just-In-Time (JIT) was introduced by Toyota, most manufacturers kept large amounts of
inventory available just in case they needed it. Taiichi Ohno of the Toyota corporation
developed a production system in which parts would be ordered in small quantities based
on short-term needs. The process was designed to ensure that a part would arrive just in
time to be used, eliminating the need to keep it in inventory. Toyota found that the
just-in-time system reduced lead time on orders by one third and reduced production costs
by 50 percent, and the system eventually spread to many other companies. Lean
manufacturing takes the concept of JIT and reexamines it from the perspective of customer
value. The first step in the lean manufacturing process is to consider what aspects of the
product add real value for the customer. For instance, if a customer is buying a stereo
speaker, he might be looking for sound quality, durability and affordability. The first
principle of lean manufacturing is that every step in the production process must add
something of value that the customer actually wants.
JIT and TPS Implementation at Arnold Palmer Hospital
JIT and TPS are implemented at Arnold Palmer hospital for the supply of surgical
materials required by the hospital, e.g. At Arnold Palmer Hospital, McKesson General
Medical serves as one of the major suppliers which supply the hospital with one quarter of
the surgical materials. A supply chain layout highlights the flow of materials from the
manufacturer to the end user such as individuals in an organization or the final customer.
