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Just-in-time production

Just-in-time (JIT) production strives to coordinate the flow of components and inputs in a supply chain to minimise costs. As its name implies, parts are scheduled to arrive as they are needed, so excessive levels of inventory are not held. JIT started out as a manufacturing concept but is becoming increasingly common in service industries.

When to use it

  • To make your production process more efficient.
  • To identify the bottlenecks and inefficiencies in your supply chain.

Origins

While ‘just-in-time’ is typically viewed as a Japanese invention, the original ideas underlying it can be traced back to the Ford Motor Company and the work of Ernest Kanzler, who was tasked with reducing manufacturing costs in Ford’s ...

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