Just in Time Production
Just In Time (JIT) is a method of stock control. This involves stocks being delivered just before they are needed.
It is a Japanese management philosophy. It was first developed and perfected within the Toyota manufacturing plants. Toyota realised that JIT would only be successful if every individual within the organisation was involved and committed to it.
JIT has been used to strengthen the businesses competitiveness.
ADVANTAGES
1. Can improve cash flow, as a lot of money is not being tied up in stock.
2. Reduces waste, as the stock will not deteriorate, as it will be getting uses straight away.
3. Improves product quality.
DISADVANTAGES
1. Businesses need very reliable suppliers.
2. Stock may not arrive on time.
3. The business may lose large orders if not able to fulfill demand.
by Int 2 Pupils, Saint Roch's Secondary
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