JUST IN TIME is the term related to production. It helps to improve Return On Investment by reducing inventory. Origin country for JIT is japan and it comes into the picture during the year of 1950. It was adopted by TOYOTA and other Japanese firm successfully.
“Storage of unused inventory is waste of resources” is the philosophy on which JIT works. Automobile industry widely accept this approach in their production. With a just-in-time approach vehicles, components are produced at the time of requirements to meet the demand. Sub-assemblies are move into the final assembly section just as final assemblers are ready to work on them. This approach keep the capital chocked up in inventory as minimum as possible as the amount of space devoted to costly warehousing rather than to revenue-generating production. Nissan’s just-in-time process depends not on human frailty but on machine precision.
Other Benefits of JIT are
- Less space required for storage
- Less vulnerability to the cahnge in technology
- Increase in case flow
