Just-in-time (JIT) production – what is it?
Just-in-time manufacturing (JIT) is a production management strategy that involves producing goods exactly when they are needed, thus minimizing inventory and storage costs. The JIT concept was developed in Japan, and is particularly known for its implementations at Toyota, which used it to optimize its production processes.
The main goals of JIT are:
- Reduce inventory: JIT reduces the amount of inventory held, which reduces the costs associated with storing and maintaining inventory.
- Increasing efficiency: Production is carried out in response to current orders, improving resource utilization and reducing production time.
- Minimizing waste: JIT promotes the elimination of all forms of waste, such as overproduction, redundant processes or excess inventory.
JIT implementation requires close cooperation with suppliers and flexibility in production processes. Companies must be able to respond quickly to changes in demand, which often involves advanced IT and communication systems.
JIT is particularly beneficial in industries where demand is volatile and speed of delivery is critical. While the approach has many advantages, it also comes with risks, such as supply chain disruptions that can lead to production delays.
Frequently asked questions
1 What are the benefits of just-in-time (JIT) production?
Benefits include inventory reduction, lower production costs and increased operational efficiency.
2) What are the challenges of on-time production (JIT)?
Challenges include the need for precise planning, the risk of supply disruptions, and the requirement to work closely with suppliers.
