There is much strength to incorporating JIT manufacturing in a company. JIT allows manufacturers to purchase and receive components just before they are needed on the assembly line, thus relieving manufacturers of keeping and managing idle parts. It helps prevent manufacturers from being stuck with inventory that may become obsolete. JIT was initially developed and justified based on benefits of cost reduction and quality improvement dimensions. JIT manufacturing reduces and minimises inventory costs, and can be a real money-saver for a company. Companies are not only more responsive to their customers, but they also have less capital tied up in raw materials and finished goods inventory that allows them to optimise the transportation and logistics operations. Thus, JIT reduces costs and waste of inventory. There are other advantages apart from reduced inventory costs. There is no risk of overproduction if demand falls or of idle workers waiting for work-in-process to arrive. It shortens lead time, which increases productivity. One more benefit of JIT production is improved product quality. It means that defects or quality problems are noticed more quickly. Thus, JIT makes production operations more efficient, cost effective and customer responsive.
