JUST IN TIME(JIT)

Inventory Management System

Presented By:
Holysp Shatakshi
What Is Just-in-Time (JIT) in Inventory Management?

An inventory strategy companies employ to increase

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

Just-In-Time, commonly known as “Toyota Production

System.”
Examples of Just-in-Time Inventory
Toyota Motor Corporation

Dell technologies

The Boeing company

Harley-Davidson USA

Amazon.com
 Zero
inventory

Zero
Zero defects
breakdowns
Objectives
of JIT
inventory

Elimination 100% on
of non- time
value added delivery
activities service
 History of JIT
• Origin : Japan
• Initially known as : Toyota Production System
• Taiichi Ohno : father/originator of JIT
• Scenario after Second world war
• Taiichi Ohno examined American industry
• Devised a new system based on elimination of
waste i.e. Just-in-time.
Elements of JIT

Flexible resources

Quick setups

Supplier networks

Uniform production levels

Quality at the source

 Process of JIT
Customer places an order

Manufacturer orders the materials

required/product from supplier

Supplier delivers the materials required/product

to the manufacturer

Manufacturer assembles the product from the

materials received

Customer receives the product

Importance of Just-in-Time

Reduces Decreases Gives the

Local Smaller
inventory warehouse manufacturer
sourcing investments
waste holding cost more control
 Improve
Greater
customer
efficiency
service
Minimize Greater
excess stock flexibility

Better
Improve cash
equipment
flow
utilization

Less waste
Advantages Reduce space
of JIT requirements
 Disadvantages of JIT
Risk of running out of stock

Dependency on suppliers

More planning required

Missed opportunities
 Top
managements
commitment
and culture of
an organisation Employee’s
involvement
Quality
and
commitment

Success factors
Delivery for successful Supplier’s
coordination
compliance
implementation and
relationship
of JIT

Maintenance of
Inventory levels
equipment

Product variety
and flexibility
THANKYOU