Just-In-Time (JIT) is a purchasing and inventory control method in which materials are obtained just-in-time for production to provide finished goods just-in-time for sale.
2. Just-in-time (JIT)
Just-in-time (JIT) manufacturing, or the Toyota
Production System (TPS), is a methodology aimed
primarily at reducing flow times within production
system as well as response times from suppliers and
to customers.
Its origin and development was in Japan, largely in
the 1960s and 1970s and particularly at Toyota
3. WHAT IS JIT?
• Just-In-Time (JIT) is a purchasing and inventory control
method in which materials are obtained just-in-time
for production to provide finished goods just-in-time
for sale.
• JIT is a demand-pull system. Demand for customer
output (not plans for using input resources) triggers
production.
• Production activities are “pulled” not “pushed” into
action.
4. Objectives of Just-In-Time (JIT)
Method:
• JIT aims to achieve the following objectives:
• (i) Zero inventory
• (ii) Zero breakdowns
• (iii) 100% on time delivery service
• (iv) Elimination of non-value added activities
• (v) Zero defects.
5. Benefits of JIT
• Low Inventory
• High output per employee
• Minimum indirect labour
• Less space needed
• Waste reduction
• Smaller investments
6. Disadvantages of JIT
• Risk of running out of stock
• Lack of control over time frame
• More planning required