Just in Time Inventory System

in a manufacturing.
Introduction

Just-in-time also known as JIT is an inventory management method whereby labour, material and
goods (to be used in manufacturing) are re-filled or scheduled to arrive exactly when needed in
the manufacturing process.

JIT approach has the capacity, when adequately applied to the organisation, to improve the
competitiveness of the organisation in the market significantly by minimizing wastes and
improving production efficiency and product quality.
The main focus of JIT is to identify and correct the obstacles in the production process. It shows
the hidden problems of inventory. The prime objective of JIT is to increase the inventory
turnover and reduce the holding and all connected cost.
The three elements of JIT are
1) Takt Time
2) Flow Production
3) Pull System
Key Features of JIT

For each business, the situations and circumstances in day-to-day operations may
vary.
For instance, your business may require you to hold or manufacture more inventory
than what is actually needed for processing current order requirements.
A just in time inventory management system makes it possible for businesses to
operate by keeping realistic levels of bare minimum inventory.
So, let’s have a look at the key features to see if adopting JIT would be the right step
for your business.
Brief working of the JIT system
Just-in-time (JIT) manufacturing addresses these concerns.
It's a system that targets reducing the times a product spends going through production and, at
the same time, cutting back the response time from suppliers.
Controlling the variables is the key to holding down production costs while increasing
productivity.
Benefits of JIT (Just in Time )
More cost efficient production.
Continuous quality improvement
Waste Elimination.
Improve productivity.
Improve supplier relationships.
Improve storage space used.
Reduce costs associated with storage.
Reduce manufacturing time
Problems to the JIT system
Risk of Running Out of Stock - With JIT manufacturing, you do not carry as much stock.

Dependency on Suppliers - Having to rely on the timelessness of suppliers for each order
puts you at risk of delaying your customers' receipt of goods

More Planning Required - JIT inventory management requires companies to understand

sales trends and variances in close detail.