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Running head: JUST-IN-TIME (JIT) INVENTORY
Just-In-Time (JIT) Inventory
Just-In-Time (JIT) Inventory
Just-in-time (JIT) inventory is an inventory control process that reduces in process or standing inventory to the minimum amount necessary to maintain flow. The process requires the ordering of raw materials in a manner that will support the manufacturing floor with no stock outs and maintain the business inventory turns at an acceptable level. This paper will discuss the importance of Just in Time materials management, as well as a brief history. Furthermore, we will provide a complete view of how the system is implemented and sustained through the use of daily metrics and visual management. Just in Time has a long standing proven history of minimizing the affects of high cost raw materials with long lead times.
JIT philosophy
Just in Time requires a discipline that comes from understanding today's business environments. Recently companies have been moving towards a more matrix type business structure. What this means is all of the assets necessary to bring a product from raw material to finished goods have been place into one reporting structure based on a product or process. This is the foundation of Value Stream Management, Integrated Product Team, or Integrated Manufacturing Teams. Whatever name given to these teams they have one focus; get the product to the customer, with world class quality, on time every time, and at a fair market value that generates profit for stockholders.
The concept of JIT is to eliminate the wastes in the processes that are generated by not having the material necessary for operators to pe ...