Concept of the JIT System
The concept of just-in-time states: 'nothing is produced until it is required.' As already stated, the practice of just-in-time aims at assembling finished products just before they are sold, and in the same way the sub-assemblies are made just before products are assembled, and components are fabricated just before the sub-assemblies are made. Thus, the system always keeps work-in-process inventory as low as possible; thereby reducing production lead times.
In order to ensure smooth flow of materials in just-in-time systems, firms should achieve and maintain high performance levels in all their operational areas. Organizations should maintain consistently high quality in their products and processes. This is possible only when their various production processes are coordinated well. Firms can achieve such quality and coordination only with the active participation, involvement, and cooperation of all its employees. Just-in-time manufacturing is therefore based on the concept of continuous improvement, which includes two important and mutually supporting components:
1. Total Quality Control
2. People Involvement
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