Just in Time (JIT)

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What exactly is Just in time? It’s an inventory management strategy to increase efficiency and decrease waste by only receiving the goods and making them after a payment has been completed. There are a couple of companies out there that use the JITsystem. A company that uses the JIT system would be Toyota. They implemented the system in 1970 and quickly became the most successful companies to practice JIT. To avoid waste of raw materials they will not assemble a car until an order has been placed and paid. Having low inventory not only allows it to keep the cost of their products low as they have no inventory sitting around but it also allows them to keep up with customer demand. Changing and adapting to the needs of the customers makes their brand more reliable.

Another company to mention that used the JIT system would be Harley Davidson. Just like Toyota, they switch over to the program and quickly saw a change in their outcome. As they began to only build the product when the order was placed inventory dropped by 75% but the productivity quickly rose. With now having more space in the factory they were able to use it

More effectively by redesigning how the product was made and how to properly keep up with future orders. Without JIT raw materials would become more limited as some companies would have more than they need without knowing when it will be used next. This allows them to conserve their budget in the right manner to increase profit and expand to meet the demand. Without it, companies will struggle as resources become limited in the future.

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