Just-in-time Inventory Management Technique

JUST-IN-TIME

JIT technique was first introduced by Henry Ford in “MY LIFE AND WORK” IN 1922. JIT or just in time, inventory is a inventory management strategy that is aimed at monitoring the inventory process in such a manner as to minimize the costs associated with inventory control and maintenance. To a great degree, a just-in-time inventory process relies on the efficient monitoring of the usage of materials in the production of goods and ordering replacement goods that arrive shortly before they are needed. This simple strategy helps to prevent incurring the costs associated with carrying large inventories of raw materials at any given point in time.

Just-in-time (JIT) production, sometimes called lean production, turns traditional manufacturing thinking on its head. Rather than producing goods and supplying customers from stock, JIT processes focus on producing exactly the amount you require at exactly the time your customers require it.

Flow of goods from warehouse to shelves improves Minimizes waiting times and transport costs Provides better scheduling & work hour consistency Lower stock holding Reducing the capital you have tied up in stock Employees who possess multiple skills are used more efficiently

Implementing JIT procedures may be difficult and expensive to introduce. There is little room for mistakes as minimal stock is kept for re-working faulty product Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed There is no spare finished product available to meet unexpected orders, because all product is made to meet actual orders.