Just in Time
The "Just in Time" production strategy was originally developed in Japan in the 1960s. It became particularly well known through the Toyota Production System (TPS). The basic principle of JIT is to optimise production processes so that materials and parts arrive at the right place at exactly the right time. This reduces the need for large inventories, as only the required quantities are produced and delivered.
A key feature of JIT is working closely with suppliers to ensure that materials are delivered on time and in the right quality. This requires reliable and flexible supply chains to cope with sudden changes in demand. Companies that implement JIT often also rely on modern technologies and digital systems. These systems make it easier to monitor and control the flow of materials.
The advantages of JIT are manifold: cost savings through lower warehousing costs, reduced throughput times and greater flexibility in production. At the same time, there are challenges, such as the need for precise planning and the risk of delivery interruptions. These factors can lead to production stoppages.
Unlike the Just in Time process, Just in Sequence (JIT) focusses on the exact delivery of materials in the precise order in which they are to be used in the production processes.