Just In Time (JIT) is one of the production management strategies. It reduces work in progress and inventory levels in production and warehouse processes by providing each process with all the necessary elements in the required quantity and at the right time. The main advantage associated with JIT is to reduce inventories, thereby optimizing the company's costs and increasing production efficiency.
Taiichi Ōno − a Japanese engineer, manager, and creator of the Toyota Production System is considered a precursor of this system.
It is worth mentioning that the assumptions of the Just In Time method are also the basis of a comprehensive Lean Management system.
The purpose of the Just In Time
Zero stocks - cost reduction - maximum optimization of production time.
To achieve the intended objectives of this method - timely deliveries and loadings are necessary, therefore the persons responsible for transport play one of the key functions in this system.
How does the production process work following Just In Time?
Production starts only when there is a demand for the product. Thus, the cost of warehousing the goods associated with maintaining stock is reduced. This is the opposite of mass production, in which the goal is to achieve the lowest possible unit cost of production by producing goods on a mass scale.
The advantages of JIT
improve the efficiency of production management,
reduce production time,
reduce inventory in the warehouse,
reduce storage and transportation costs,
improve the fluidity of production and storage processes,
reduce the risk of damaged or expired products.
Implementing the Just In Time method is a complex process. Many factors need to be taken into account, such as the size and strategy of the company as well as the requirements of the customers. One cannot forget about the timely transport and good communication between the company and the transport operators, which are crucial in the production of Just In Time.
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