JIT manufacturing has various business benefits, including:
Like any industrial process, just in time technique has its drawbacks too. For instance, you might not have surplus stock to meet unexpected demands, something that can taint your relationship with suppliers. At the same time, your whole operational schedule relies on suppliers that can hinder rapid scaling.
The JIT approach is a go-to option for many manufacturers who want to cut inventory costs. Prevalent examples include:
Both the JIT approach and traditional processes focus on sustainable supply chains. However, traditional processing focuses more on cutting the costs of creating a particular product, by creating it in voluminous numbers.
On the other hand, the just in time technique is aimed at optimizing the intermediate production process with regard to the prevailing market demand. In other words, this process relies on the current customer needs to reflect them in the final product design.
Well, it’s Taiichi Ohno, when he was working at a Japanese Toyota assembling plant in the 1970s.
This technique is synonymous with car and mobile phone assembly processes. Players in these industries often get into just-in-time relationships with independent manufacturers who are close to the consumer.
This technique might fit your business if you often produce items that rely on the customer placing an order to sell, such as food. This approach might be ideal if your business keeps a low inventory or the inventory is non-existent altogether.
The prerequisites for implementing just-in-time manufacturing are:
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