Page 135 - BA1 Integrated Workbook STUDENT 2018

Tools and techniques of operations management

Just-in-time (JIT)

JIT aims to produce or procure products or components as they
are required by the customer or for use, thus keeping the levels of
inventory to a minimum.
JIT purchasing involves ordering materials only when a customer
places an order.

JIT production is a pull system whereby each component on a
production line is only produced when needed for the next stage.

Requirements

 High quality and reliability.
Disadvantages
 Elimination of non-value added
activities.
 Little room for mistakes.
 Speed of throughput.
 Requires a change in
 Flexibility. culture.
 Reliant on suppliers.
 Lower costs.

 Not suitable for all
organisations.

123