Question

From Text Two, you will find the concepts of JIT (“Just In Time”) as one of many schools of process innovation focused on reducing waste. As a manufacturing principle, it focuses on working on a task or item in order to meet demand and nothing more. Nothing is completed in excess, as that is considered waste (think standing inventory). Look up the concepts. Describe it in at least one paragraph.

Answer 1

Just in time (JIT) as the word means, inventory of raw materials required when production is on for a particular product. So just in time inventory management system is a management strategy to cut inventory holding cost along with the miscellaneous cost to handle that inventory. But to achieve JIT management system to really work for organization which have the efficient manpower, break free equipment and reliable suppliers matches with the frequency of the organization production requirement. Waste minimization is the primary objective of JIT, by minimizing waste in transportation, inventory, processing, overproduction and waste from product defects.

JIT has advantages in reducing cost specifically in inventory management but also have a disadvantage if any supplier, due to the uncontrollable condition could not deliver as per order or delay in supplies, will have a ripple effect in the overall production system of organization and that will cost them very huge.

No need to remind that the best example of JIT is Toyota motors, however, they incur a huge cost when one of its suppliers unable to deliver raw material due to fire at suppliers plant.