Just in Time Technology


Just in Time (JIT) is a management tool to control inventory. It also enables the internal process of a company to adapt the sudden changes.

Just in Time (JIT) means producing the right part in the right quantity, at the right time, at the right place, thus reducing manufacturing waste.

Just in time is an inventory control system in which materials are purchased at the right time and units are produced only as needed to meet actual customer demand.

It is a strategy to increase the cash flow of the organization as JIT technology reduces inventory. Lesser inventory increase efficiency.

Need of JIT

For the growth of any organization, cash flow is very important. Cash flow can be increased by reducing the amount of inventory or stock because excess inventory is one type of waste, inventory has money and this inventory blocks the money.

Just in Time (JIT) helps to reduce the inventory by providing material in the right quantity at the right time, which maintains healthy cash flow as well as the growth of the industry.

How to Apply JIT

Just in Time (JIT) is all about inventory so, by providing inventory in Right quantity, at Right place, in Right time we can apply JIT in any industry. It is actually a management technique where the role of sourcing people and merchandiser is vital.

To sustain this technique follow-up of every action is needed.

Supply the material on a daily basis in required quantity but not in excess. To apply JIT everyone should have a little bit proactive about the requirement.

For example:- whenever cutting department require fabric roles then executive of cutting department has to inform the store department before that day if you are using just in time technology. Otherwise, the next day, there will be a shortage of material.

Problems Involved in the JIT System

  1. The first and major problem involved in Just in Time (JIT) is to change the mentality of people. For Example.  Labour and supervisor will not ready to work with less inventory, as they think there will not be continuity in production and they will end up with less production
  2. If inventory supply is not proper then it will affect the production rate
  3. Lack of management may collapse JIT

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