Special Reasons Why You should Implement Just In Time Inventory Management it in Your Plant?


Just in Time (jit) is an inventory management method and a form of lean operational strategy, which helps to increase the efficiency of a manufacturing unit, reduce costs, and cutting down costs through the production of goods as they are needed. While the benefits are there for all to see, its implementation is not always easy because manufacturers are required to be highly adaptable. In this post, we will look at the benefits associated with using JIT in your plant.  

A Brief History of JIT 

JIT, also referred to as Toyota Production System (TPS), was developed by Taichi and first used within the Toyota manufacturing system to help cut down cycle time. It is a method of minimizing the goods that you hold at any particular moment without negatively impacting your production volumes. Now, other companies have adopted the same strategies but with different names, such as the short-cycle-manufacturing (SCM) used by Motorola. 

Benefits of using JIT in Your Manufacturing Plant 

Whether you have a new business or a well-established manufacturing system as noted here, JIT implementation comes with unique benefits, including the following.


  • Reducing order to payment period: Many businesses today suffer from cash-flow issues because they buy large quantities of raw materials and stock them. Through the implementation of JIT, you can avoid the problem by ordering the raw materials for producing only what the customer wants. 
  • Reducing the space needed: When you avoid holding large quantities of stock of finished products and raw materials, it implies that less space is required for storage. The cost involved also comes down significantly.
  • Improved quality: When raw materials and finished products are stored over a long time, there is a danger of product quality going down. However, JIT helps to enhance the quality of the product by over 25%.
  • Problems are noted faster: One of the crucial aspects of JIT is ensuring that the system is in top condition all the time. Using automation and timely maintenance, you will be able to promptly identify problems and correct them for optimal performance. 


While these benefits are easy to note, it is also important to understand that JIT also comes with a few cons, such as poor adaptability to a sudden increase in demand.

If you want to be successful in business, make sure to adopt the right operating philosophy for faster production and growth. Although JIT comes with several cons, they are outdone by the benefits, and you should consider adopting it in your enterprise.