Excel dashboard for JIT management and operational scorecards

Excel dashboard for JIT management
Understanding JIT, the management system and the key issues and benefits for the company
Just in time or JIT is a management strategy that strives to enhance a business' return on financial commitment purely by lowering the inventory level and delivery cycles. It is a form of processes management tactic that originated in Japan. Just in focuses on continuous enhancement in operations and processes and can drastically strengthen a manufacturing plant or even service processes.

JIT as a management system relies on other aspects in the supply chain and inventory systems as well. For instance, its productive platforms are not able to be independent of the rest of the management systems in order to avoid any potential sub optimization.
Inventory systems and programs that are based on the JIT principles are not necessary complicated solutions, The business organization should be streamlined through all activities to make the change painless. While JIT in many cases relies on high tech solutions, technology is not a required ingredient for success. Many small businesses are able for example to implement just-in-time as a management principle and develop rules and process logic to implement it.
Because Inventory is an ongoing costs and carries indirect costs like storage, handling and warehouse related costs, the JIT implementation can bring many benefits for the company in terms of immediate hard cost savings. It is always useful for the business to develop cost savings calculator by using spreadsheet program like Excel to estimate savings among different scenarios and create the strategy.

Based on JIT the inventory level in the business should be kept to minimum – just enough for the organization to be able to deliver the expectations for the customers. JIT works based on the assumption that all the input elements in the process has to be justified continuously.
The just-in-time management philosophy has been also utilized into other business segments and industries other than manufacturing. All , supply chain and distribution based companies rely on JIT as a way to stay competitive and drive the costs out of the system.
However many small business owners make mistake assuming JIT is just an internal process or exercise. It is quiet contrary – in addition to production and operational processes and activities inside the company – it must extend and look at the big picture and involve vendors, suppliers and other external stakeholders. This is the only way to get the full benefits of JIT management for the business.
Measuring, monitoring and tracking JIT activities in your excel dashboard
Many organizations have successfully implemented the JIT KPI management system by linking the JIT management to their balanced scorecards and dashboard reporting.
The steps included in developing your JIT and operational scorecards:

1. Identifying the business goals and objectives of the overall business
2. Defining the JIT goals and objectives
3. Analyzing the impact as well as the requirements and link between JIT and the balanced categories. This is the crucial stage because it goes beyond the impact and needs of the business process perspective but also includes the human factor like training, and employee development, The financial perspective should be also included to estimate the benefits.
4. Defining the few critical JIT system or metrics so management can track and react on any changes on time
5. Finalizing the excel dashboard design and layout for maximum efficiency for KPI monitoring and developing the balanced scorecard templates