The Just-in-Time (JIT) inventory model is a manufacturing strategy that aligns raw material orders with production schedules to reduce excess inventory and waste. Popularized by Toyota Motor Corporation through the Toyota Production System, it focuses on efficiency, continuous improvement, and demand-driven production. By receiving goods only as they are needed, companies lower storage costs and minimize the risk of overproduction. When executed effectively, JIT enhances operational agility, improves quality control, and drives overall manufacturing success.
WEB STORY JUST IN TIME INVENTORY
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Why JIT matters for your business
Just-in-Time inventory management aligns material flow with production schedules. Companies receive components exactly when needed, eliminating waste and reducing carrying costs while improving cash flow and quality detection.
Implementation checklist
- Supplier partnerships: Develop relationships with 95%+ on-time delivery reliability
- Strategic buffers: Maintain 3-5 days safety stock for critical components
- Digital integration: Implement real-time demand sensing and Kanban systems
- Workforce agility: Cross-train teams for flexible response to changes
- Continuous improvement: Regular kaizen events to optimize flow
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