What is Just In Time or JIT ?
The just-in-time (JIT) inventory system is a management strategy that aligns raw-material orders from suppliers directly with production schedules. This is driven by management philosophy of continuous and forced problem solving by using less input to get maximum output and by decreasing the waste in resources due to stocking on inventory by planning to have supplies and components are ‘pulled’ through system to arrive where they are needed when they are needed. This method requires producers to forecast demand accurately. The Goal is to Achieve the minimal level of resources required to add the necessary value in the system.
Objective of JIT
- Produce only the products the customer wants
- Produce only at the rate that the customer wants them
- Produce with perfect quality
- Produce with minimum lead time
- Produce with only those features the customer wants
JIT Principles
Create flow production
- one piece flow
- machines in order of processes
- small and inexpensive equipment
- U cell layout, counter clockwise
- multi-process handling workers
- easy moving/standing operations
- standard operations defined
Quality of execution typically determines how low inventories can be reduced!
How to Accomplish JIT Efficiently ?
If JIT principles are applied correctly the benefits can be multifold such as
Processes are easy to understand & visible, Quality issues are apparent immediately, Scope of problems are limited because of lower inventory levels