JUST-IN-TIME

JIT technique was first introduced by Henry Ford

in “MY LIFE AND WORK” IN 1922.
JIT or just in time, inventory is a inventory
management strategy that is aimed at monitoring
the inventory process in such a manner as to
minimize the costs associated with inventory
control and maintenance. To a great degree, a
just-in-time inventory process relies on the
efficient monitoring of the usage of materials in
the production of goods and ordering replacement
goods that arrive shortly before they are needed.
This simple strategy helps to prevent incurring the
costs associated with carrying large inventories of
raw materials at any given point in time.
Just-in-time (JIT) production, sometimes
called lean production, turns traditional
manufacturing thinking on its head.
Rather than producing goods and supplying
customers from stock, JIT processes
focus on producing exactly the amount you
require at exactly the time your
customers require it.
Flow of goods from warehouse to shelves
improves
Minimizes waiting times and transport costs
Provides better scheduling & work hour
consistency
Lower stock holding
Reducing the capital you have tied up in stock
Employees who possess multiple skills are
used more efficiently
Implementing JIT procedures may be difficult
and expensive to introduce.
There is little room for mistakes as minimal
stock is kept for re-working faulty product
Production is very reliant on suppliers and if
stock is not delivered on time, the whole
production schedule can be delayed
There is no spare finished product available to
meet unexpected orders, because all product is
made to meet actual orders.