Just in Time

In the last 50 years, the way we make and store goods to meet demand has turned on its head. Largely thanks to this man, Toyota executive, Taiichi Ono.Traditionally, companies stored enough stock to meet current demand but also kept an extra amount in case there was a problem or a sudden increase in demand for their product. This was called 'Just in Case'.But in the 1970s Ono realised that storing excess parts and components cost Toyota money. So he devised a system where instead of storing parts, the company only ordered what was needed, making sure that parts arrived 'Just in Time' the moment they were required. And so 'Just in Time' was born.The results were spectacular. Just in time increased Toyota's profits and freed up enormous amounts of capital that had been tied up in expensive warehousing. This enabled Toyota to reinvest, expand and stay ahead of the competition.Today, Just in Time systems are everywhere from supermarkets to our health services, and from airplanes to motor vehicles as almost every area of business have gone in search of the spectacular efficiencies that Just in Time systems promise.