Advantages and Disadvantages of Just-In-Time Manufacturing

Just in Time, (JIT), represents a management movement, which whilst introduced by the Japanese in the 1980s, has gained currency among Anglo-American businesses in the last fifteen years. Integral to the modern-day concept of lean manufacturing, JIT focuses on streamlining inventory management; it aims at firms operating with minimal inventory levels and having supplies at the precise moment of their requirement. Working with minimal practically zero levels of inventory helps firms to save on inventory carrying costs and reduces wastage on account of obsolescence, redundancy, deterioration, and spoilage.
JIT aims to reduce wastage through various means, key among them being the reduction of (a) inflated inventory, (b) excessive store personnel, (c) paperwork, and (d) other activities that do not add value. The adoption of JIT techniques, though challenging, provides significant operating strength and flexibility to business organizations. It enables manufacturers to increase the efficiency of their production operations, make them more cost-effective and increase their responsiveness to customer demands.