Just-in-Time

System
by Group 4

Niezel Blanze Belonio

Christian Miranda
Jehoney Belle Sanchez
Jason Villaganas

Just-in-Time
Definition

is an inventory management method in which

goods are received from suppliers only as they
are needed. The main objective of this method
is to reduce inventory holding costs and
increase inventory turnover.
History
JIT is a Japanese management philosophy that has
been applied in practice since the early 1970s in
many Japanese manufacturing organizations. It
was first developed and perfected within the
Toyota manufacturing plants by Taiichi Ohno as a
means of meeting consumer demands with
minimum delays.
Taiichi Ohno is frequently referred to as the father
of JIT.
How does it work?

Customer Manufacturers Suppliers delivers

Places an orders the the materials
order materials required required.

Manufacturer
Customers assembles the
recieves the product from the
product. materials received.
 Goal
to receive new products just as they’re needed—any
sooner and you’ll have excess inventory levels, and
you’ll encounter stockouts if shipments come too
late. When implemented correctly, a JIT inventory
system can help retailers and lean manufacturing
businesses reduce their storage costs and keep
their inventory fresh.
 Advantage/Importance
Reduces inventory waste

A just-in-time strategy eliminates overproduction, which happens

.
when the supply of an item in the market exceeds the demand
and leads to an accumulation of unsalable inventories.

Decreases warehouse holding cost

The warehouse holding costs are kept to a minimum because you
order only when your customer places an order, your item is
already sold before it reaches you.
 Advantage/Importance

Increase Productivity
.
Reducing the time and resources required for manufacturing.
This ensures faster production and shorter production runs.

Optimize Production
Can eliminate bottlenecks and delays across the entire
production cycle, by reducing product defects and automating
processes.
 Advantage/Importance

Improve Quality .

This allows your management to focus on optimizing

processes and building high-quality products. High-quality
products with fewer defects improve customer satisfaction
and reduce wastage.
 Disadvantage/Drawbacks

No Errors
JIT production can be very sensitive
. to any kind of error. Since bare
minimum inventory levels are maintained, there is no room for any kind of
error.

Disruptions
1. No excess stock to fall back on, and sales may come to a halt.
2. JIT production can leave factories unable to meet demand and worsen
an economic downturn.
 Disadvantage/Drawbacks

Supplier Dependence
.
A supplier who does not deliver goods on time and in the right amounts
can disrupt the entire production process. Dependent on suppliers’
performance and timeliness, which are hard to ensure.

Acts of nature
A natural disaster that interferes with a vendor’s flow of goods can halt
production.
How Start tracking sales data.
This will help you determine demand fluctuations
does and seasonal trends—all of which will help you
order the right amounts of product at the right

it times when you move to a JIT strategy.

Works Build relationships with reliable vendors.

This will help you determine demand fluctuations
For and seasonal trends—all of which will help you
order the right amounts of product at the right

You? times when you move to a JIT strategy.

How Look into local production.

does If your supplier is local, you’ll be able to get your

purchase orders fulfilled faster since your supplier
doesn’t have to ship your items halfway around the
it world.

Works Sign up for an inventory management software.

Cloud-based inventory management systems often

For provide real-time inventory tracking, meaning you

can see down-to-the-minute details on your stock

You?
levels.
 References
https://www.business.org/finance/inventory-management/what-is-just-
in-time-inventory-management/

https://www.netsuite.com/portal/resource/articles/inventory-
management/just-in-time-inventory.shtml

https://www.zoho.com/inventory/guides/what-is-just-in-time.html
 Thank
You
For
Listening