Just-in-time (JIT)

A manufacturing techniques adopted by companies to increase production

efficiency and decrease waste by receiving goods only as they are needed in
the production process, thereby reducing inventory costs.

JIT philosophy means getting the right quantity of goods at the right
place and the right time
JIT uses pull production
It works best where there is a close relationship between manufacturer
and suppliers

The best example would be a automobile manufacturer that operates

with very low inventory levels, relying on its supply chain to deliver the
part it needs to build cars. The parts needed to manufacture the cars
arrive just as they are needed

Toyota Motor Company was the first one to implement fully

functioning and successful JIT system, in 1970s.
 Advantages Disadvantages

Production runs Danger of disrupted

remain short production due to
non-arrival of
Reduced Inventory supplies.
Improved quality Danger of lost sales
Lower costs High dependence on
Reduced space suppliers
requirements Less time for quality
control on arrival of
Shorter lead-time materials
Increased
productivity