Methods

Just-in-Time


Lean Methods: Just-in-Time

Just-in-Time (JIT) is a production strategy in which materials are delivered in exact quantities only when they are actually needed for production.

The Just-in-Time strategy aims to design the entire material flow in such a way, that it is timed to match the production process. Thus, the total process of value creation can become leaner. By reducing lead times, warehousing and capital tie-up, the economic success of a company can be increased.

The decision for JIT strengthens the competitiveness. Especially in markets where more and more substitutes are offered and individual companies can no longer distinguish themselves sufficiently by price or quality from their competitors, the internal value creation process is decisive. Due to low inventory levels, companies can respond more quickly to changing market- and customer needs. However, JIT requires a much closer cooperation between companies and suppliers and especially a detailed and smooth planning. Companies have to accept the risk of a greater dependency on suppliers and have to reckon with delivery failures in the event of bottlenecks.