Just In Time (JIT)
Candlefocus EditorThe central premise of JIT is to eliminate activities that do not add value in order to maximize efficiency. This means the limiting of inventory on site to only those items that are necessary to produce the goods and services needed. It ensures that resources are only used to produce what it is actually required – and only when it is actually required. This means that the resources used are always fresh and to eliminate the risks of storing large amounts of inventory for an extended period of time. The JIT approach to inventory control helps businesses reduce costs and improve productivity through better management of resources.
JIT works when businesses clearly identify the steps in their production process and then coordinate the delivery of resources and components so that these same steps can be repeated at the same rate of efficiency. Kanban is a scheduling system often used in conjunction with JIT to avoid overcapacity of work in process, meaning that workers know exactly what is expected of them and when, and when the resources are needed. This helps keep production running smoothly and efficiently.
Just-in-time manufacturing is a great way of minimizing costs as it eliminates wasted resources and stock, meaning more of the money is used on actually producing goods and services, rather than being tied up in stock and inventory. It also means that businesses can move quickly when responding to consumer demands, meaning they can respond to changing markets more effectively. However, the success of the JIT system relies on reliable suppliers, high levels of quality control, no unexpected machine breakdowns, and steady production. It also demands a significant amount of advanced planning to ensure that all resources are delivered in time and quality is not compromised.
In the modern business world, where competition is tough, JIT has become an essential component of a company’s overall strategy. It is becoming increasingly common for businesses to embrace this system and make it part of their operations for the numerous cost-saving and productivity increases it brings.