BTOES Insights Official
April 08, 2022

Supply Chain Planning Live: Speaker's Article: Rethinking Just In Time

Courtesy of Veryable's, Gauthier Duval wrote a synopsis of her speaking session discussing 'Rethinking Just In Time'.

BLOGS COMPANY LOGO - 2022-03-08T141423.555


The Toyota Production System (TPS) and lean started 70 years ago. Lean has evolved, but not significantly. The business environment has changed a lot with digital technology playing a role that none of the architects of TPS could have anticipated. In this article, I’ll be making the case for an update to how lean is structured and practiced.
Just In Time predates TPS: it was conceived by Kiichiro Toyoda in 1936–i.e., before Toyota Motor Company was founded. While Jidoka (built-in quality) is just as important as JIT in the current form of TPS, I believe Just In Time is the true North Star of lean.
Back when TPS was developed, Just In Time was not feasible for two important production factors: labor and assets. Heijunka (production leveling) was the main countermeasure to these limitations. Heijunka has so often been presented as a foundational element of the TPS house that it is unquestioned dogma. Today, however, JIT is possible for labor and assets and leveling should become a thing of the past. This is what we can call “Full JIT”, and companies that adopt it will see effects as powerful as those that came with the original JIT.

Click Below To View Recorded On-Demand Session Video:

Gauthier Duval

What has changed is the near complete elimination of transactional costs with digital marketplaces. In “The Nature of the Firm”, Ronald Coase concluded that firms grow so long as it is more effective for them to accomplish transactions internally rather than through the market. This theoretical underpinning is key to understanding what’s happening today with digital manufacturing. But in Coase’s days and until recently it was a devil’s bargain: lower costs in exchange for higher rigidity. Now, however, digital marketplaces have changed the equation in favor of markets and flexibility.
With B2B marketplaces offering on-demand resources, leveling is no longer needed. This doesn’t mean companies should forget about SMED or heijunka boxes. Indeed, we should differentiate between leveling and smoothing: leveling is the artificial setting of uniform daily workloads—we should abandon it. Smoothing is the pursuit of batch size 1 and the “spreading out” of parts production to ensure a smooth demand and supply of parts and components throughout the value stream at the scale of a single day or shift—we should pursue this. Said another way, leveling requires higher inventories, whereas smoothing enables lower inventories.
I anticipate four big things will happen when businesses start moving to “Full JIT” and into the next generation of manufacturing:
  • A tremendous leap in productivity and ROA with a corresponding reduction in lead time
  • The Amazon effect will make companies that successfully manage this change very successful while driving their slower competitors out of business
  • The successful companies will not become smaller as Coase predicts. They’ll become more value-intensive as they get rid of non-value adding business functions like HR and FP&A and use their ability to rapidly seize on new customer needs to expand their revenues.
  • They will become more decentralized as Operations people regain more power.


About the Author

more-Mar-08-2022-08-41-12-04-AMGauthier Duval,
Director, Lean Center of Excellence,

Gauthier has over 18 years of lean experience in the automotive, pharma, electronics, and paper industries and is the Director, Lean Center of Excellence at Veryable.

Prior to Veryable, he held Senior Consultant and Project Manager roles in consulting (GrowtthConsulting Europe and Simpler Consulting) and was Manager of Training Operations at Lean Alliance, where he developed the Lean Engineering “black belt” program.

He trained over 100 Lean Six SigmaBlack Belts in Europe, the Americas, and Asia. He was responsible for the introduction of lean management systems at MacLean-Fogg (company-wide) as Executive Lean Advisor and at Hillenbrand(Global Functions) as Sr. Director, Hillenbrand Operating Model.

He has led over 160 kaizens in 14countries, with up to $943,000 in savings, and has led over 100 Value Stream Mapping workshops.


Supply Chain Planning Live

The Largest Premier Gathering of Supply Chain Industry Leaders & Senior-Executives sharing key solutions to current & future challenges


The Business Transformation & Operational Excellence Industry Awards

The Largest Leadership-Level Business Transformation & Operational Excellence Event



Proqis Digital Virtual Conference Series

View our schedule of industry leading free to attend virtual conferences. Each a premier gathering of industry thought leaders and experts sharing key solutions to current challenges.

Download the most comprehensive OpEx Resport in the Industry

The Business Transformation & Operational Excellence Industry Awards Video Presentation

Proqis Events Schedule

Proqis Digital

Welcome to BTOES Insights, the content portal for Business Transformation & Operational Excellence opinions, reports & news.


Submit an Article

Become a Regular Contributor

Access all 75 Award Finalist Entires
Subscribe to Business Transformation & Operational Excellence Insights Now
ATTENDEE - Proqis Digital Event Graphics-2
ATTENDEE - Proqis Digital Event Graphics (2)-1
ATTENDEE - Proqis Digital Event Graphics (1)-1

Featured Content

  • Best Achievement of Operational Excellence in Technology & Communications: IBM
  • Best Achievement of Operational Excellence in Oil & Gas, Power & Utilities: Black & Veatch
  • Best Achievement in Cultural Transformation to deliver a high performing Operational Excellence culture: NextEra Energy
Operational Excellence Frameworks and Learning Resources, Customer Experience, Digital Transformation and more introductions
  • Intelligent BPM Systems: Impact & Opportunity
  • Surviving_the_IT_Talent_deficit.png
  • Six Sigma's Best Kept Secret: Motorola & The Malcolm Baldrige Awards
  • The Value-Switch for Digitalization Initiatives: Business Process Management
  • Process of Process Management: Strategy Execution in a Digital World

Popular Tags

Speaker Presentation Operational Excellence Business Transformation Business Improvement Insights Article Continuous Improvement Process Management Business Excellence process excellence Process Optimization Process Improvement Award Finalist Case Study Digital Transformation Leadership Change Management Lean Enterprise Excellence Premium Organizational Excellence Lean Enterprise Lean Six Sigma Execution Excellence Capability Excellence Enterprise Architecture New Technologies Changing & Improving Company Culture Agile end-to-end Business Transformation Execution & Sustaining OpEx Projects Culture Transformation Leadership Understanding & Buy-In Lack of/Need for Resources Adapting to Business Trends Changing Customer Demands Failure to Innovate Integrating CI Methodologies Lack of/Need for Skilled Workers Lack of/Need for Support from Employees Maintaining key Priorities Relationships Between Departments BTOES18 RPA & Intelligent Automation Live Process Mining BTOES From Home Financial Services Cultural Transformation Customer Experience Excellence Process Automation Technology Healthcare iBPM Healthcare and Medical Devices Webinar Culture Customer Experience Innovation BTOES Video Presentations Exclusive BTOES HEALTH Strategy Execution Business Challenges Digital Process Automation Report Industry Digital Workplace Transformation Manufacturing Supply Chain Planning Robotic Process Automation (RPA) BPM Automation IT Infrastructure & Cloud Strategies Artificial Intelligence Business Process Management innovation execution AI Lean Manufacturing Oil & Gas Robotic Process Automation IT value creation Agility Business Speaker Article Systems Engineering RPAs Insurance Process Design Digital Speaker's Interview data management Intelligent Automation digital operations Six Sigma Awards thought leaders BTOES Presentation Slides Transformation Cloud Machine Learning Data Analytics Digital Transformation Workplace Banking and Capital Markets Data Finance Professional Services Education IT Infrastructure IT Infrastructure & Cloud Strategies Live Blockchain Interview Solving Cash Flow with AI BTOES White Paper investment banking Analytics Insight BTOES19 Consumer Products & Retail Enterprise Agile Planning Government Operational Excellence Model Project Management Algorithm Automotive and Transportation Banking Business Environment Digital Bank Enterprise architecture as an enabler Hybrid Work Model Primary Measure of succes Relationship Management Sales business expansion revenue growth Adobe Sign Agile Transformation CoE Delivery solution E-Signatures Electricity Global Technology HealthcareTechnologies Innovation in Healthcare Reduce your RPA TCO Transportation Accounts Receivable (AR) Big Data Technology CORE Cloud Technology Cognitive learning Days Sales Outstanding (DSO) Logistics Services Operational Excellence Example Risk Management business process automation transformation journey Covid-19 Data Entry Digital Experience Digital Network Digital Network Assistant (DNA) Digitization Drinks Effective Change Leaders HR Internet Media NPS Net Promoter Score Program Management Portal (PgMP) Sustainability TechXLive The Document is Dead The New Era of Automation Automated Money Movement Banking & Financial Services Biopharmaceutical Blue Room Effect Building Your Future Workforce in Insurance Business Process Governance Capital Market Creative Passion Digital Transformation Workplace Live Digital Workforce Digitalization ERP Transformation Finance Global Operations (FGO) Financial Services Software Frameworks Hoshin Planning Human Capital Lean Culture Natural Gas Infrastructure Natural Language Processing Organizational Change Pharmaceutical Pharmaceuticals & Life Sciences Project manager Supply Chain Management Sustainable Growth The Fully Automated Contact Center Transformation Initiatives Workplace Analytics eForms eSignatures 3D Thinking BEAM BFARM BTOES17 Big Data Processing Business Analytics Business Growth Centralized Performance Monitoring System Communication Creativity Digital Technologies Digital Technology Educational Psychologist Energy Management Health Insurance Health Maintenance Organizations Hospitality & Construction Human Centered Design Integrated Decision Approach Integrated Decision Making Intelligent Document Processing Kaizen Medicare Moodset for Excellence Natural Language Processing (NLP) Offering Managers Oil and Gas Optical Character Recognition (OCR) Pharmaceuticals and Life Sciences Photographing Price and Routing Tracking (PART) Process Design Document (PDD) Product Identifier Descriptions (PIDs) Python Quote to Cash (Q2C) Resilience SAP Sales Quota Team Work Telecommunications Text Mining Visually Displayed Work Culture master text analytics virtual resource management