Pgbarranca's Blog

March 17, 2010

Just in time

Filed under: Uncategorized — by pgbarranca @ 5:16 pm


Just-in-time (JIT) in its simplest form refers to a method of inventory control with a focus on waste elimination. The visible performance improvements of some firms adopting JIT led to a great deal of excitement. Implementing JIT at the operational level and creating competitive advantage through JIT became topics of widespread interest. Yet despite its popularity, clinical analysis of JIT at the organizational level has been sparse. One can ask, for example, exactly how and to what degree does JIT impact the organizational design of the logistics function, the management of logistics, and the performance of the firm.

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Just In Time (JIT): An inventory control system that controls material flow into assembly and manufacturing plants by coordinating demand and supply to the point where desired materials arrive just in time for use.  An inventory reduction strategy that feeds production lines with products delivered just in time. Developed by the auto industry, it refers to shipping goods in smaller, more frequent lots.

Just in Time II (JIT II): Vendor-managed operations taking place within a customer’s facility.  JIT II was popularized by the Bose Corporation.  The supplier reps, called “inplants,” place orders to their own companies, relieving the customer’s buyers from this task.  Many also become involved at a deeper level such as participating in new product development projects and manufacturing planning (concurrent planning).

Just-in-Time Logistics (or Quick Response): The process of minimizing the times required to source, handle, produce, transport, and deliver products in order to meet customer requirements.

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“Just-in-time” and its Logistic

This figure illustrates a relatively recent concept in the domain of industrial manufacturing; “just in time”. This new notion amplifies the role of freight transport, particularly trucking and containers when global supply chains are concerned. It involves the delivery of a component just before the assembly line requires it. Consequently, freight forwarders must respect tighter delivery schedules and must plan their operations accordingly in order to avoid strict delay penalties. The production unit (the factory) assumes a lower level of warehousing. As a result, the trucks (vehicles) themselves assume the task of moving storage units, thus the inventory is constantly in circulation.

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1 Comment »

  1. hi paula!
    good post!
    i have blogged too about just in time
    if you are interested in reading and maybe giving me feedback visit

    kind regards

    Comment by johanneswoe — April 7, 2010 @ 1:54 pm |Reply

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