JUST IN TIME (JIT) INVENTORY PHILOSOPHY
Just in time is product oriented management philosophy perfected by Japanese industrialists to eliminate all forms of waste_ whether of time, labor, raw materials or materials.
JIT has been defined as:
The discipline and continuous problem- solving approach which eliminates all forms of wastage by employees, suppliers, product design and process design in order to deliver all forms of goods and services at the right time and place.
JIT system is designed to eliminate inventories of raw materials and purchased products ready for marketing to the customer. This objective is achieved by closely synchronizing deliveries from suppliers; deliveries to internal departments and final products to customers with the time when this items are needed.
CHARACTERISTICS OF JUST IN TIME
- A commitment by top management and continuous improvement and the elimination of waste.
- A participatory management Approach
- An increased emphasis on TQM
- Reduced purchasing quantities
- Regular deliveries and highly reliable delivery schedules
- A reduction of suppliers to a few good ones.
- Shortened and highly reliable internal and external lead times
- Respect for people and a strong focus on external and internal customers
ADVANTAGES OF JUST IN TIME
- Lower inventory levels are achieved as a result of large number of small deliveries demanded by JIT
- Small buffer stock is achieved, owing to the nature of supply market
- Shot and reliable lead times improve the adaptability of production schedules
- Quantity improvement. The higher quality of products purchased translates into an improved quality of products produced.
- Cost savings; The business relationships between purchasing and supplier to reduce costs.