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Just in time (JIT) is a production strategy that strives to improve a business' return on

investment by reducing in-process inventory and associated carrying costs. Just in time is a type
of operations management approach which originated in Japan in the 1950s.
It was adopted by Toyota and other Japanese manufacturing firms, with excellent results:
Toyota and other companies that adopted the approach ended up raising productivity (through
the elimination of waste) significantly.[1] To meet JIT objectives, the process relies on signals
or Kanban (看板?, Kanban) between different points, which are involved in the process, which
tell production when to make the next part.
By using just-in-time concepts, there is a greatly reduced need for raw materials and work-inprocess, while finished goods inventories should be close to non-existent. The use of just-intime inventory has the following advantages:


There should be minimal amounts of inventory obsolescence, since the high rate of
inventory turnover keeps any items from remaining in stock and becoming obsolete.
Since production runs are very short, it is easier to halt production of one product type
and switch to a different product to meet changes in customer demand.
The very low inventory levels mean that inventory holding costs (such as warehouse
space) are minimized.
The company is investing far less cash in its inventory, since less inventory is needed.
Less inventory can be damaged within the company, since it is not held long enough for
storage-related accidents to arise. Also, having less inventory gives materials handlers
more room to maneuver, so they are less likely to run into any inventory and cause
Production mistakes can be spotted more quickly and corrected, which results in fewer
products being produced that contain defects.

Despite the magnitude of the preceding advantages, there are also some disadvantages
associated with just-in-time inventory, which are:
A supplier that does not deliver goods to the company exactly on time and in the correct
amounts could seriously impact the production process.
2. A natural disaster could interfere with the flow of goods to the company from suppliers,
which could halt production almost at once.
3. An investment should be made in information technology to link the computer systems
of the company and its suppliers, so that they can coordinate the delivery of parts and

Benefits Main benefits of JIT include:          Reduced setup time. This saves the company money. When parts move directly from the truck to the point of assembly. either by not having to pay workers overtime or by having them focus on other work or participate in training. Production scheduling and work hour consistency synchronized with demand. Increased emphasis on supplier relationships. it is not made. A company without inventory does not want a supply system problem that creates a part shortage. Small or individual piece lot sizes reduce lot delay inventories. If there is no demand for a product at the time. The flow of goods from warehouse to shelves improves.4. which simplifies inventory flow and its management. Waste Elimination Supports Continuous Quality and Productivity Improvement [6] Problems[edit] Within a JIT system . Cutting setup time allows the company to reduce or eliminate inventory for "changeover" time. Employees with multiple skills are used more efficiently. since it has few or no stocks of finished goods. This makes supplier relationships extremely important. Minimizes storage space needed. The tool used here is SMED (single-minute exchange of dies). Supply is synchronized with production demand and the optimal amount of inventory is on hand at any time. A company may not be able to immediately meet the requirements of a massive and unexpected order. Supplies come in at regular intervals throughout the production day. Having employees trained to work on different parts of the process allows companies to move workers where they are needed. Smaller chance of inventory breaking/expiring. the need for storage facilities is reduced.

. several other suppliers immediately took up production of the Aisin-built parts by using existing capability and documentation. they could be removed. Ohno saw this as a feature rather than a bug.Just-in-time operation leaves suppliers and downstream consumers open to supply shocks and large supply or demand changes. As noted in Liker (2003). Since one of the main barriers was rework. there was an exception to this rule that put the entire company at risk because of the 1997 Aisin fire. However. not an end. For internal reasons. since Toyota also makes a point of maintaining high quality relations with its entire supplier network. Once barriers were exposed. This means Toyota is especially susceptible to flow interruption. A key tool to manage this weakness is production levelling to remove these variations. Just-in-time is a means to improving performance of the system. He used an analogy of lowering the water level in a river to expose the rocks to explain how removing inventory showed where production flow was interrupted. For that reason. lowering inventory forced each shop to improve its own quality or cause a holdup downstream. Toyota uses two suppliers for most assemblies. Very low stock levels means shipments of the same part can come in several times per day.