The concept of JIT

The purpose of corporate activity can be to create value. On the other hand, it is obliged to deliver this value to the market with high QCD. Designing value (Development) and transforming it into a marketable form (Production) are inseparable pair. Through them, creating value that their customers highly evaluate is the focus of corporate activities. They are often seen as being carried out by separate business management administration, but it is a significant misconception.

For example, JIT, advocated by Toyota, is regarded as the most well-thought-out production system. The core idea of its management is the elimination of waste. When value creation is regarded as the maximisation problem, eliminating waste becomes a dual problem of maximisation in linear programming. We can say that is the idea of minimising the opportunity cost. In other words, it is an approach that looks at value creation from behind the scenes. In the practical principle there, the concept of synchronisation plays a critical role in place of the algorithm. If it is not permeated as a business management principle, JIT will not be effective, and it will not be effective from a competitive point of view.

Synchronisation of value creation and business management

On the other hand, if we consider the actual product development problems, they are caused by the mechanisms that internalise the development activities asynchronicity. These are because causes are hidden on the following matters.  One is defining the activity category by assessing both involved in each move’s value creation and the difficulty (risk) of these activities.  And it is a lack of competence in arranging (Project Networking) those. Ultimately, its development suitability depends on whether or not the concept of synchronisation is central to management.

In other words, if a company is managed in such a way that synchronisation is at the heart of its management, it is likely to do equally well in production and development activities and to have fewer cases of bankruptcy in total. From the point of view of value creation, the division into different activities and their integration is the most significant business management theme. Exactly, the fundamental concept is synchronisation. Companies taking those matters seriously would not consider the idea of JIT operations and product development to be different activities.