The limits of Japanese production theory

The limits of Japanese production theory

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Article ID: iaor1993448
Country: United States
Volume: 22
Issue: 5
Start Page Number: 14
End Page Number: 25
Publication Date: Sep 1992
Journal: Interfaces
Authors:
Keywords: production: JIT
Abstract:

The concepts in ‘Japanese’ production theory , also called zero inventory or just-in-time, have often improved productivity dramatically, sometimes by 100 per cent or more. The theory’s central principle is that inventory reflects underlying waste and that eliminating waste causes inventory to drop and productivity to rise. Costs are reduced, response time to customers is improved, and the ability to market in niches is enhanced. Ordinarily, as setup time or costs are reduced, inventory and production costs should decline. But in some circumstances, setup reduction can increase inventory and cost. An exploration of these contradictions may lead to a new and more powerful production theory that resolves these contradictions.

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