Just in Time (JIT) is a disciplined approach to improving overall productivity by eliminating wasteful activities from organisational processes. It provides for cost-effective production and delivery of only the necessary quantity of material at the right quality, at the right time and place, while using the minimum amount of facilities, equipment, materials and human resources. It originated in Japan and was quickly adopted by the Toyota automotive organisation.
In manufacturing, JIT is closely associated with the shift away from the traditional Push systems to a Pull system:
- A Push System provides supplies of materials in anticipation of demand
- A Pull System is one that controls the flow of work through a factory by releasing materials into production when they are required, not before
The key objectives of JIT are illustrated in Figure 3:
Figure 3: The Key Principles of JIT
These objectives demonstrate the critical role logistics plays in a JIT strategy and it presents a major challenge for the function.