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Just In Time Part 2

Conclusion

In dealing with high costs, declining profits, and the sharpening of competition has resulted in companies looking for ways to streamline activities their efforts and gather more accurate data for decision making purposes. Hence came the idea of \u200b\u200bJust In Time (JIT), which only produce if there is demand. As a result, waste can be eliminated on a large scale, namely in the form of improved quality and lower production costs. The main purpose of JIT is to improve the company's earnings and competitive position, achieved through cost control efforts, improved quality and delivery performance improvement.

basic principle of JIT is to improve continually the ability to respond to changes by minimizing waste. There four main aspects of the JIT system, namely:

• Eliminate all activities or sources that do not provide added value to the product.

• A commitment to quality.

• Encourage continuous improvement to improve efficiency.

• Giving emphasis on simplification of activity and increased visibility that adds value.

JIT inventory is for inventory system that is designed precisely in order to obtain goods time. In the JIT inventory requires that the process or the people who make defective units can be sent to wait or to rework the remaining ingredients. JIT systems remove the need for inventory because there is no production until the goods will be sold. This means that the company should have an order to produce continuously for