Just in Time (JIT)

Just in Time (JIT), is an industrial philosophy that makes flow of work done visible at a glance so that waste/problems/defects can be identified at a glance and dealt with when they are smallĀ  This results in very responsive and flexible customer services which produce right first time quality at low cost .

In other words, it is a policy of stock management that uses methods aimed at improving the production process, not trying to optimize both production stages upstream, to reduce the stocks of raw materials and semi-finished goods (WIP- Work in Progress) needed for production.

Just in Time combines elements such as reliability, lower inventory and lead time, increased quality and customer service. This greatly reduces the cost of storage, handling, loading and unloading of stock.

Benefits of JIT

The Just-In-Time Inventory System (JIT) can provide many benefits. The main benefits of JIT are listed below:
Preparation times are greatly reduced in the warehouse. Reduced preparation time allows the company to be more productive to improve profits in order to be more efficient and spend time on other areas that may need improvement.
The flow of goods from the warehouse to the shelf improves. Making sure that workers are focused on specific areas allows them to quickly process the goods and not be fatigued by too many jobs at once.

Employees who have multiple skills (ie, that are flexible) are used more effectively. Training employees to work on different phases of the inventory system allows the company to use operators in situations where they are needed when there is a lack of workers and a high demand for a certain product.

JIT provides a better planning and greater consistency of working hours. If there is no current demand for a product, the workers need not work. This allows the company to save money by rationalising shifts and working hours.

The emphasis on the relationship with the supplier increases. The company does not want problems in its logistics system, problems that would create a lack of available stocks. This means that the relationship between the company and the supplier is very important.

Stocks arriving 24 hours a day keeps operators and production company focused on sales. Having management focused on meeting deadlines motivates employees to work hard to achieve the objectives of the company and then get benefits in terms of job satisfaction, promotion or a pay rise.

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