Just In Time

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JUST-IN-TIME

The just-in-time (JIT) approach to conducting the activities of an organisation is often incorrectly considered to relate solely to the manufacturing environment.

In fact, just-in-time is a very broad philosophy that emphasises simplification and continuously reducing waste in each and every area of business activity.

JUST-IN-TIME (JIT) is a 'System whose objective is to produce or to procure products or components as they are required by a customer or for use, rather than for stock.

A JIT system is a pull system, which responds to demand, in contrast to a push system, in which stocks act as buffers between the different elements of the system, such as purchasing, production and sales.'

JUST-IN-TIME PRODUCTION is a:

'Production system which is driven by demand for finished products whereby each component on a production line is produced only when needed for the next stage.'

JUST-IN-TIME PURCHASING is a:

'Purchasing system in which material purchases are contracted so that the receipt and usage of material, to the maximum extent possible, coincide.'

Key features of operating in a JIT

The key features of companies operating in a JIT environment can be summarized as follows:

  1. high level of automation

  2. high levels of overheads and low levels of direct labour costs

  3. customized products produced in small batches

  4. low stocks

  5. emphasis on quality

  6. Close relationship with suppliers.

  7. Flexibility in the form of production smoothing so that all processes operate at the same throughout speed.

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