JUST IN TIME (JIT)

NAJIHAH BT MOHD RADZI

NURFARTIMA AMIRA BT
ZULKEPLI
MOHAMAD IMRAN B AMER

ADVANTAGES

Advantages
Lower Warehouse costs
It helps to reduce inventory cost, inventory keep in
hand and also lower insurances cost.

Better Supply Chain Management

JIT help Proton to be more efficient on their supply
chain management so that they can provide lower
cost throughout the manufacturing process.
The cost impose by customer can be reduce through
faster and effective manufacturing process.
Therefore the cost saving can be passed to the
customer.

Cont
Can Eliminate waste
JIT has a much faster setup and saves resources by
streamlining production process.
This as a result prevents overproduction of car,
which will therefore help proton to elimination of
waste within their company.

Better customer satisfaction

Proton have greater level of control over entire
manufacturing process.
So they can quickly and easily respond the need of
customers change.

DISADVANTAGES

Disadvantages
Good supplies delay
Supplier that did not deliver goods exactly on time and
in the correct amount.

Long Process
Weigh up risks it could have on their business.

Difficult and very expensive

Possible large initial set up costs, which may put some
businesses off.

Not consistent

inventory management system do not appear to be

consistent across all industries.

RECOMMENDATION

Recommendation
Build good relationship with all of its suppliers.
Investment should be made in IT, to link the
computer system of the company and its supplier.
To look in depth into the buying patterns of their
customer base.
Must critically evaluate the strengths and
limitations of implementing just in time systems
within their operations.
Knew the long term benefits would mean that
they would become more profitable if they
introduced this method.

Conclusion
Just in time method is a philosophy,
which believes that waste can be
eliminated by cutting unnecessary
inventory and removing non valueadded activities in operations. The
goals are to produce goods and
services
as
specifications
and
continuous improvement through
value additions.