{"id":111907,"date":"2023-03-27T09:49:14","date_gmt":"2023-03-27T09:49:14","guid":{"rendered":"https:\/\/businessyield.com\/?p=111907"},"modified":"2023-03-27T09:49:16","modified_gmt":"2023-03-27T09:49:16","slug":"just-in-time-manufacturing","status":"publish","type":"post","link":"https:\/\/businessyield.com\/business-strategies\/just-in-time-manufacturing\/","title":{"rendered":"JUST IN TIME MANUFACTURING: Meaning and How It Works","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

Just in time manufacturing is a strategy that several companies adopt to limit expenses and manage resources. In many organizations, the production department usually manufactures goods in surplus, just in case there are needs or orders. Nowadays, some companies choose to adopt just-in-time manufacturing because it shields them from excessive production, and assists in managing their resources better. In this article, you will learn what just-in-time manufacturing is, the five (5) principles of JIT, its advantages, disadvantages, and its main purpose.<\/p>

Just In Time Manufacturing<\/strong><\/span><\/h2>

The term \u2018\u2019just-in-time\u2019\u2019 also stands for JIT manufacturing. It is a system whereby business organizations manufacture goods just in time to be sold. The idea of just-in-time was initially formed by the Toyota Motor company in Japan, in the 1970s. Then, transformed into a management system when the company met the specific demands of its customers, such as the car\u2019s model and color. This helped Toyota Motor company<\/a> to meet the demands of their customers just in time, with minimum delays.<\/p>

Moreover, since the Toyota Motor company was the first to apply JIT manufacturing, its founder Taiichi Ohno is called the father of the JIT inventory system. Just-in-time is a system that has been adopted by several business organizations and industries such as automobiles, tech manufacturing, publishing on demand, retailers, etc.\u00a0<\/p>

What Is Just In Time Manufacturing<\/strong><\/h2>

Just-in-time manufacturing is a Japanese inventory management technique, in which manufactured goods and materials are only provided when they\u2019re in demand. This simply means that business organizations or industries that apply this inventory technique, do not manufacture their goods in surplus. Such industries only produce the number of goods and materials that are in demand.<\/p>

With the proper application of the JIT technique, many industries are able to extend a competitive advantage through the increment in production capacity. Also, it aids consistent improvement, minimizes waste, and increases the quality of productivity.<\/p>

Elements of JIT<\/strong><\/h3>

The elements of JIT manufacturing are what make up the entire technique. There are several elements of the JIT technique, however, these are the two (2) main ones, they include:<\/p>