Just-in-time (JIT) manufacturing

Definition

Just-in-time (JIT) manufacturing is a production strategy aimed at reducing inventory and increasing efficiency by receiving goods only as they are needed in the production process. This approach minimizes waste and aligns production schedules with customer demand.

5 Must Know Facts For Your Next Test

1. JIT manufacturing aims to reduce holding costs of inventory.
2. It relies heavily on precise scheduling and supplier reliability.
3. JIT can lead to significant cost savings but may increase the risk of supply chain disruptions.
4. Toyota is widely credited with popularizing the JIT methodology.
5. Key components of JIT include continuous improvement, reduction of waste, and a focus on quality control.

Review Questions

• What are the primary goals of Just-in-time (JIT) manufacturing?
• How does JIT manufacturing impact inventory management?
• Which company is most commonly associated with the development and implementation of JIT?

Related terms

Lean Manufacturing: A systematic method for waste minimization within a manufacturing system without sacrificing productivity.

Supply Chain Management: The management of the flow of goods and services from raw materials to final products delivered to customers.

Kaizen: A Japanese business philosophy of continuous improvement involving all employees.