JIT vs. Lean Manufacturing: What’s the Difference
The terms “just in time” and lean manufacturing are often used interchangeably, but they aren’t identical concepts. Just-in-time manufacturing is about creating efficiency, while lean manufacturing is about building efficiency that can create value for the end consumer.
Lean is a broader concept that is now increasingly being applied to non-manufacturing settings along with manufacturing applications. For instance, lean quality management systems are an excellent example of lean principles being applied to non-production settings.
On the other hand, just-in-time practices are more limited in scope and can be implemented on their own or in conjunction with lean manufacturing.
Let’s take a look at the differences between the two.
Just-in-time Manufacturing
The just-in-time principle was introduced by Toyota as a means of controlling inventory costs. Prior to this, most automobile manufacturers would keep large amounts of inventory as backup.
Toyota Corporation’s revolutionary JIT system was based on ordering small quantities of parts and developing shorter production cycles. The process was designed in a way that parts would arrive just as soon as they were needed for production, thereby eliminating the need for excess inventory.
After implementing and perfecting the system, Toyota found that it had cut production costs by half and reduced lead time by an impressive 33%. Learning from the success of Toyota, manufacturing companies across the world have implemented JIT systems.
Lean Manufacturing
Lean manufacturing takes the JIT concept and tailors it to incorporate customer value. Each step in lean manufacturing must add to the value of the product. With this perspective, it becomes easier to eliminate unnecessary steps and develop a truly customer-centric approach.
For instance, if you’re making headphones, the customer will derive value from the sound quality and durability. As a result, all processes are designed to meet these customer needs.
Applications in Non-Manufacturing Settings
Although both JIT and lean principles originate from manufacturing settings, they are now being applied to a variety of sectors. For instance, when used in the context of services, JIT involves developing efficient processes that ensure timely delivery.
There are several examples of fast-food restaurants and delivery service providers like Domino’s Pizza and Federal Express that have implemented JIT principles.
When we talk about applying lean principles in non-manufacturing settings, there’s a growing trend of developing lean quality management systems (QMS). In this case, the ‘customers’ are internal employees that place value on a well-designed and effective QMS to guide them during operations.
If you’re looking for guidance on the lean management tools, consult with the experts at Lean ISO Management Systems today. Our goal is to help organizations improve operational efficiency by identifying root causes and leaning down their quality management systems. Get in touch with us today to learn more.
