A supplier provides parts to a manufacturing company that demands JIT deliveries. At the present time it
takes 6 hours to make a round-trip between the supplier’s warehouse and the customer, including
loading, travel and unloading time. The lot size is 12 pallet loads on a truck, and the manufacturer uses 2
pallets per hour.
How many trucks are needed to ship the pallets to the manufacturer?
What is likely to happen if the trucks break down?
How can the supplier ensure that the customer does not run out of parts even in the face of delivery
problems or other uncertainties?
What will happen if the manufacturer runs into trouble and shuts down for a period of 6 hours?
If unexpected overtime is required, how do you effectively communicate the need to your workforce?
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Addressing today’s increasing unpredictable environment; it is relatively important to
have the ability to manage any potentially at risk shortages of the workforce and time waste
reduction. This why, most manufacturers use JIT or Just in Time system to avoid any delay in
production or delivery system. JIT is a managing operation that provides a lean and efficient
workflow. Using this system, it allows a rapid transmission or flow of demand and a fast, and
flexible production system which encourages minimize waste and increases quality production.
Following its origin and development in Japan, JIT became the used method or system
for manufacturers in order to build a strong tie with the supply chain. This paper will provide
further discussion about Just-in-Time system and its importance. Moreover, a given problem will
be added in this paper which will provide a further understanding of how to use the method
effectively and efficiently. Furthermore, the paper will also address the importance of effective
communication to the workforce towards a quick and efficient flow of production.
Keywords: JIT, Just in Time, workforce
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Just in Time (JIT)
Just In Time (JIT) is an inventory system that materials, sub-assemblies, and support
items are provided on time or if needed. The philosophical management of JIT is a lean approach
towards production that utilizes several tools to attain its overall objective. JIT aims to change
business conditions through just-in-time workforce – the ability to fast and efficient skills based
on demand. Fundamentally, JIT system is competitively time-based and relies on waste
reduction, high-quality production, and high customer responsiveness. Using Just in Time (JIT)
production system and its notable Kanban system will ensure a continuous supply of product or
inventory (“Just In Time (JIT) Definition | Investopedia,” 2003; Mind Tools Editorial Team,
2016; WebFinance Inc, 2016)
Problem: A supplier provides parts to a manufacturing company that demands JIT
deliveries. At the present time, it takes 6 hours to make a round-trip between the supplier’s
warehouse and the customer, including loading, travel and unloading time. The lot size is 12
pallet loads on a truck, and the manufacturer uses 2 pallets per hour.
Question a: How many trucks are needed to ship the pallets to the manufacturer?
By using the formula; n= DT/C, wherein the number of truck is required: 2(6)/12= 1 truck
Addressing the first question using the above formula and computation; 1 truck would be
needed to deliver the pallets to the producer or manufacturer.
Question b: What is likely to happen if the trucks break down?
If the truck has a disruption, the possibility that the provider will not be able to transport
the required pallets at the right time could happen. Thus, the need for one spare truck is
significant to ensure the delivery.
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Question c: How can the supplier ensure that the customer does not run out of parts even
in the face of delivery problems or other uncertainties?
If there is an emergency, the provider/supplier could demand to have an inventory for
one-day safety stock at the client’s warehouse, using (2 pallets per hour) x (working hours). It
will serve as a contingency plan towards unavoidable possibilities of supplier plant shutdown or
short-term shortages; freeway shut down due to accidents, and bad weather.
Question d: What will happen if the manufacturer runs into trouble and shuts down for a
period of 6 hours?
If the manufacturer’s operation would be interrupted for about 6 hours, there would be a
disturbance in the supplier delivery cycle. The supplier can declare delay to the customer when;
a) If the truck is still at the supplier’s plant or hub; wherein, the supplier keeps the truck for six
hours before shipping; b) When the truck or vehicle is on its way to the client’s plant or hub; in
this scenario, the truck waits for six hours at the customer’s plant for unloading; and c) When the
truck is on its way back; within this scenario, the truck has to wait for six hours for loading.
Therefore, with the given situations, one delivery cycle will be missed.
Question e: If unexpected overtime is required, how do you effectively communicate the
need to your workforce?
The most efficient approach to communicating with your employees/workforce about the
need for overtime are: a) The employer or the management must determine why there is a need
for overtime before requesting the staff to work over forty (40) hours during the week; b) Have a
meeting with the employees if they can render overtime; c) Clarify and give an explanation why
there is a need for overtime as well as the number of hours required to complete any task or
project; d) Inform the staff about the added compensation for their overtime. And lastly, thank
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the workers in advance for devoting extra hours, because this will encourage for possible
participation of the needed extra working time.
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Just In Time (JIT) Definition | Investopedia. (2003). Investopedia.
Increase Profits with a Production Planning Scheduler【Calculating the Amount of Just-In-Time
Inventory by Means of Mid-Term Scheduling】. (2016). Lean-manufacturing-japan.com.
Mind Tools Editorial Team. (2016). Just in Time (JIT): Reducing Inventory, Minimizing Waste,
and Responding to Your Customers. Mindtools.com.