JIT: The Zero Inventory Philosophy
Just-in-time (JIT) is a zero inventory philosophy that Lean businesses implement by means of a series of manufacturing, planning, and control techniques.
The goal of this philosophy is to create a smooth and efficiently flowing production process that eliminates all forms of mud , thereby reducing cost and improving production quality and delivery.
To ensure highly efficient inventory management, a company needs to apply the fundamental requirements that lead to JIT.
Produce only on demand
JIT is a pull manufacturing system where manufacturers produce only on demand. When production responds to demand, there is no inventory, which in turn translates into good management and efficiency without waste.
Supply only the requested quantities
The JIT approach demands that all components of a production process supply only the requested quantities. When this occurs, a company fulfills the principles of the zero inventory philosophy.
Aim to reduce lead times
Reduced lead times eliminate waste and enable the company to produce quickly and efficiently according to demand.
Rely on a highly efficient production process
Companies that apply the JIT approach rely on a highly efficient production process so that they can supply products according to demand. When products are made according to demand, there is no need for an inventory.
Organize production for optimal efficiency
Lean businesses that advocate the JIT approach of zero inventory organize production for optimal efficiency. They do this by ordering only the components or finished goods that are in demand.
Rely heavily on good management that uses all necessary expertise
A Lean business implements flat organizational structures in order to make the most efficient use of its employees' expertise.
Kanban as a typical JIT technique
Kanban fulfills all the JIT requirements because it advocates that supplies may only be delivered to the...