Just In Time Systems

For many business owners, it is always hard work to design an effective system to calculate and maintain inventory of inventory items. With the proliferation of electronic catalogs and the use of computer software and network-based ordering / monitoring systems, the old method of cataloging by part number or project number almost disappeared. Inventory management is necessary for owners who want to maintain fast turnaround inventory services to help ensure customer satisfaction. Projects in the managed inventory list must be maintained to avoid lack of common items.

In a timely inventory management system, products are not completely solved due to product shortage and usability problems. The Timely Inventory (JIT) system is one of Toyota's unique innovation technologies introduced in the Japanese automobile industry, and is currently used in all automobile manufacturing industries. Many principles and practices can be used to achieve efficiency and effectiveness of the production process. As management points out, the task of reducing waste is often unnecessary for human, capital or material resources as it instinctively knows that waste will be removed once the waste is identified It starts with identifying the use. Once waste is a goal, you can design a new process or exercise to handle it.

Kanban or "pull" system is a way to manage the instant production process. Implement instant method using kanban system. It is an information system that manages the production volume of each process. The next step is to proceed to the previous step and perform the necessary steps. However, the previous process needs to supplement what was taken. Overall, the concept of JIT is not only that everything needs to be executed quickly, but most importantly, there is an organizational resource allocation in the company. Certainly JIT implementation is a costly process, but companies can solve problems and difficulties and achieve high level workflow. For large companies that can not divide stock ordering costs, the EOQ system is excellent. However, SMEs prefer to use the JIT system. In other words, the JIT system is superior to EOQ for companies with low annual demand levels.

Lucey (2002) defines an immediate system as a production system that can only execute production to fulfill demand, so the inventory is low or zero, emphasizing perfect quality. The main focus of the timely system is to eliminate resource waste by controlling input and output costs. Therefore, the material for production is necessary only when production is necessary, not only for speculative purposes but only production to meet the needs of existing customers. Therefore, this makes the production line more streamlined and makes the distribution chain more reasonable. In addition, the organization can not use resources that might otherwise be associated with finished product inventory or raw materials. Both Liker (2004) and Lucey (2002) point out that timely production methods can produce highly desirable results for organizations if they are carried out properly.