Just in time (JIT) concept in Harley-Davidson Motorcycle Company

Just in time (JIT) is a production strategy that strives to improve a business' return on investment by reducing in-process inventory and associated carrying costs. Just in Time Manufacturing (JIT) refers to a system of manufacturing in which products are not built until the product is ordered and paid for. Some companies that have successfully implemented JIT include Toyota, Dell and Harley Davidson. This is about Harley-Davidson Motorcycle Company, also use just in time (JIT) because it is very important to the company.

Harley-Davidson Motorcycle Company was established in 1903 by William Harley and Walter, William, and Arthur Davidson, who built their first three motorcycles in a shed in Milwaukee. In 1909, the company introduced its trademark bike a 2 cylinder, v-twin engine (the fastest motorcycle at that time), able to reach speeds of 60 mph.

 Using management principles adopted from the Japanese it is JIT, new marketing strategies, and manufacturing techniques, Harley improved quality and began the long battle to its market share.

Although all three methods are not new concepts in the business world, just-in-time inventory (JIT), employee involvement (EI), and statistical operator control (SOC) are the attributes of the productivity triad. Just-in-time inventory was the driving force of Harley's quality-improvement program. Very simply, as you operate with lower and lower inventories, it becomes essential that your entire inventory is usable. If you're only going to get a few parts, they all have to be good ones. Suppliers of Harley had to implement JIT into their production process in order to compliment Harley's system.

Harley Davidson’s use of JIT is mostly characterized by its transformation in the late World War 2 era from an inefficient manufacturer that solved all of its problems with extra inventory to a nimble manufacturer able to meet demand and provide short lead times.

Results of Harley Davidson’s JIT implementation it is inventory levels decreased 75 percent and increased productivity. Harley recorded impressive improvements that is inventory turns up from 5 to 20, inventory levels down 75 %, percentage of motorcycles coming off the line completed up from 76 % to 99 %, scrap and rework reduced by 68 %, productivity up by 50 % and space requirements down by 25 %.

This is good for Harley-Davidson Motorcycle Company. Harley Davidson’s success with the implementation of JIT had a lot to do with the fact that when JIT was put into practice, process problems could no longer be hidden by costly inventory that helped to meet ship dates. The inefficiencies in the processes were quickly identified and solved.