Just-in-Time Production (Glossary)

4.3
(962)

Just-in-time (JIT) production is a term from the fields of Industry and Industry 4.0, automation, and sustainability and Environment 4.0. It describes a method where materials and parts are delivered and processed exactly when they are needed in production – hence, „just in time“. The goal is to minimise warehousing and thus save costs.

In just-in-time production, car parts, for example, are only delivered for assembly when they are actually needed. A car manufacturer does not order the necessary steering wheels in stock, but only places the order when the assembly line in production is about to need them. This saves warehouse stocks and unnecessary storage space.

Using this method, companies reduce their storage costs and tie up less capital. At the same time, just-in-time production makes processes more flexible and helps to react more quickly to changes. This makes the concept particularly important for companies that want to produce competitively and sustainably.

How useful was this post?

Click on a star to rate it!

Average rating 4.3 / 5. Vote count: 962

No votes so far! Be the first to rate this post.

Spread the love

Leave a comment