Question

Why Just in Time is your favorite tools, describe it and explain why.

Answer 1

The Just-In-Time (JIT) inventory system is a management strategy that aligns raw-material orders from suppliers directly with production schedules. Companies employ this inventory strategy to increase efficiency and decrease waste by receiving goods only as they need them for the production process, which reduces inventory costs. Under Just In Time inventory system, the producers hold sufficient inventories to have enough product to absorb maximum market demand. JIT helps to reduce inventory costs as well as increase efficiency. JIT inventory system is successful in organisations which have steady production, high quality workmanship, well equipped plant and machinery and reliable suppliers.

Just In Time is a favourite tool. Because,
(Develop the answer from the key points given below.)

- Short production runs help the manufacturers to move quickly from one product to another.
- Less storage of inventory reduces the costs and expenses associated with inventory holding and storage.
- Less need of raw materials cost as the raw materials are purchased 'just in time' to make the ordered products.
- Increases efficiency in operations
- Reduces wastage of inventory
- Focuses on continuous quality improvement
- Reduced manufacturing time
- Production mistakes can be spotted more quickly and corrected
- Improved relation with suppliers
- Lower inventory means lower investment and reduced working capital investment which may leads to better Return On Investment and profitability for the organization.

JIT is an effective tool for inventory control which is followed by number of organisations across the world.