Explain Just-in-Time (JIT)
Just in time method is operation strategy that is lead to improving the business returns on investment. And it works on the basis of reducing the process inventory and associated carrying a cost. This method is also known as the "Toyota production method".
The process s of the just in time method is relying on the signals between the different points in the process and that tells that when you have to make the next productions.
Just in time is work on this system of the on the current status of the stock means if an organisation there is no stock and whole stock is end today night than the next production for the customers will available till next morning anyhow, this current system is called the just in time method means all the things should have happened in the just end of previous and within time.
This process of the method saves the many things of the warehouses like inventory cost, space. There are so many benefits of this approach that are given below to better understanding of this approach.
- It reduces setup time. The main benefit of setup time is that it allows the company to reduce or eliminate the inventory for changeover time. Hear the single minute exchanges of dyes tool used here.
- The flow of the goods from the warehouse to sales is improving. The small and individual lot size reduce lot delay inventory. And this simplifies the inventory flow and its management.
- The employee those have the multiple skills are used more effectively. In this worker are need to work on the different parts of the process and this gives the opportunities to move where they are needed.
- The scheduling of the production and the work hour are consistently synchronized with the demand of the products. Like if there is no demand for the product then it will not make. This saves the company money and time.
- The supply in the organization come at the regular interval throughout the production day.
- It minimizes the storage space needed for the production. And less chance of inventory expiring.