Just-in-Time (JIT) Manufacturing
Just-in-time manufacturing (JIT) is a management approach where goods are produced in the exact quantities requested by customers and delivered immediately without additional inventory. In a JIT system, products are manufactured only when ordered, rather than maintaining a stock of goods in anticipation of sales.
The concept of JIT is largely attributed to Toyota executive Taiichi Ohno. In the early 1970s, Toyota’s management team visited the United States, where Ohno observed how a Piggly Wiggly supermarket efficiently managed inventory by restocking shelves based on customer purchases without over-ordering. Inspired by this system, Ohno developed the JIT model, which later spread to western manufacturers.
JIT manufacturing differs from traditional manufacturing, which often involves producing large quantities to lower costs and improve efficiency, especially when machine start-up times are lengthy. Traditional methods also typically result in:
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Long lead times
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Many products in development at once
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Significant amounts of unsold finished goods
With JIT, companies produce only what customers request, reducing production volume, lead times, and excess inventory. This approach minimizes the risk of unsold goods and can lower delivery costs by avoiding unnecessary material purchases, while also reducing storage space requirements.
Additionally, JIT manufacturing can lead to better quality products and improved productivity. By focusing solely on actual customer demand, businesses can streamline operations, cut waste, and enhance market responsiveness.