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What is Just-in-Time Manufacturing? Why Is It Important?

by | Sep 30, 2022

Just-in-Time manufacturing involves procuring inventory only when there is a requirement and not obtained in excess or advancement. This approach’s primary goal is to lower the cost of keeping inventory and boost inventory turnover.

The purpose of JIT system production is to eliminate waste associated with excessive production, waiting, and surplus inventory. Just-in-Time Manufacturing systems can drastically impact an organization’s productivity, operating costs, and risk management. The JIT system is also called Motorola’s short-cycle Manufacturing and IBM’s continuous-flow production.

The main aim of this method is to minimize inventory holding costs and maximize inventory turnover. To carry out the entire process till delivery, Just-in-Time carefully plans the supply chain and usage of superior software, which develops efficiency and removes the scope for error as each process is observed. Retailers, on-demand publishing, restaurants, automobile manufacturing, and tech manufacturing are industries that have gained from Just-in-Time inventory.

The JIT production method depends on consistent output, excellent craftsmanship, no equipment failures, and trustworthy suppliers for its success. If you are looking for contract manufacturing companies that can meet your supply requirement on time, why not reach out to Violin Technologies? They can be your best manufacturing and supply chain partners.

Main Principles Of JIT Manufacturing

These are the main principles of JIT management

  • Total Quality Management
  • Production Management
  • Supplier Management
  • Inventory Management
  • Human Resource Management
  • Cost efficient manufacturing
In a JIT manufacturing model, the manufacturer has complete control over the production flow.

Importance Of Just-In-Time

Listed below are some of the benefits of a Just-in-Time inventory management system:

Decreases Warehouse Holding Cost

Warehousing is very costly, and excess inventory can double the holding costs. In a Just-in-Time system, the warehouse holding costs are at the lowest cost because when the customer places an order, the item is already sold before it reaches them, so there is no need to store the items for a long time. Companies that follow the Just-in-Time inventory model can reduce the number of items in their warehouses or reduce them altogether.

Toyota, as an illustration, waits to purchase raw materials until it has an order. This has allowed the company to keep minimal inventory, thereby reducing its costs and enabling it to quickly adapt to demand changes without worrying about existing inventory. Because the automaker Toyota pioneered the practice in the 1970s, Just-in-Time manufacturing is also referred to as the Toyota Production System (TPS).

Reduces Wastage of Inventory Costs

A Just-in-Time strategy removes overproduction, which happens when the production of an item in the market surpasses the demand. It leads to an accumulation of uncommercial inventories, and these products turn into dead inventory stock, which expands waste and consumes inventory space.

Local Sourcing

Since Just-in-Time manufacturing requires beginning production when an order is placed, the need to source the raw materials globally will be transported to the unit much earlier. Also, local referring reduces the shipment time and cost involved. It meets the demand for numerous auxiliary enterprises to operate concurrently, improving employment rates for particular demographics.

Control With The Manufacturer

In a JIT manufacturing model, the manufacturer has complete control over the production flow, which works on a demand-pull basis. They can respond to customers’ needs by quickly increasing the production of an in-demand product and reducing the production of slow-moving items. As a result, the JIT approach is adaptable and able to meet the constantly shifting market needs.

Smaller Investments

Only necessary stocks are obtained in a JIT manufacturing model, and less working capital is needed for finance procurement. Therefore, the organization’s return on speculation would be high due to the amount of stock held in the inventory. JIT manufacturing models use the “right first time” concept, which means to carry out the activities right the first time when it’s completed, thereby decreasing inspection and rework costs. It requires less amount of investment for the company.

Apart from the above mentioned, there are a few of the quantitative advantages experienced by the manufacturers worldwide following JIT:

  • Depleting in inventory
  • Reduction in space needed to operate
  • Limiting labor costs
  • Reduction in WIP (work in process)
  • Improvements in product quality (lower rates of defects)
  • Increase in production
  • Reduction of standard hours
  • Reduction of throughput time
  • Increase in number of shipments

JIT Inventory Methodology

The JIT inventory methodology uses different techniques to smooth operations. The lean manufacturing method focuses on advancing organization, encouraging cell manufacturing and using a pull approach, paying attention to detail, having small lot sizes, and increasing transparency. The lean resource management was based on the Just-in-Time production cycle philosophy.


Violin Technologies has a targeted strategy to meet your needs for worldwide supply. Violin Technologies also offers services to enable your supply chain/manufacturing capabilities, including warehousing support, acting as an engineering staffing partner for your product development, and providing worldwide vendor consolidation and logistics support. Thereby Violin Technologies can be your best suit for your manufacturing and supply chain needs.

P Geetha Pyari

P Geetha Pyari

About the Author

P Geetha Pyari from the city of destiny, Visakhapatnam. She is a computer graduate and very passionate about writing. She spends her free time fulfilling and relaxing pursuits such as cooking, reading, knitting, and reading blogs. She is a very personalized writer who enjoys connecting with people. She likes to put in her thoughts and experiences in a generalized way. She enjoys elaborating on minor details with a plethora of information. A few months ago, she was fascinated with content writing. She wanted to explore more about it, to exercise her skills. Kloud Portal gave her a great platform to showcase her talents and improve her expertise.