JIT (Just In Time)

Published by MBA Skool Team, Last Updated: December 15, 2017

What is JIT (Just In Time)?

JIT stands for Just in Time, is system in operation management under which the production is made as per the demand at a particular moment.

There is no prior production for any anticipated demand. This was pioneered by Toyota at their facility.

The aim is to reduce non profitable activities and make the manufacturing system more flexible, eliminating the associated costs of carrying and maintaining the inventory. There is no scope for Inventory what so ever.

There are various methods in which just in time or JIT can be achieved. However, all these methods are important but not exhaustive:

1. Elimination of defects & waste

2. Balancing the flow and scheduling the output

3. Multi-skilled labor force to carry out specific operations

4. Maintenance of equipment and machinery for flawless operations

5. Cellular manufacturing i.e. making in small batch sizes.

6. Streamlined design and process flows & layouts

There are several advantages which have been beneficial for organizations who have adopted JIT. Some of the advantages of JIT are mentioned below.


1. Reduced setup time and low wastage

2. The flow of goods from warehouse to shelves improves

3. Employees with multiple skills are used more efficiently

4. Increased emphasis on supplier relationships

5. Minimizes storage space needed thereby saving warehousing costs

6. Smaller chance of inventory breaking/expiring

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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