What does JIT delivery mean
Just in time
This article will give you a brief definition of the subject Just in time and explains to you what to look for in the Just in time delivery and production should pay attention.
Do you want to understand the topic even better? Then take a look at our video, because here we have summarized the most important things for you in a nutshell!
Just in time definition
First of all we will give you a short one Just in time definition: Just in time (also JIT or demand-synchronized production) is a production concept for the Production and Logistics department. With the just-in-time principle, the materials are delivered to you in the exact quantity and exactly at the time you really need them for production .
Just in time procedure
Why should one pursue this concept? Your value chain is made simpler, the process is leaner and you can save costs. Ideally, the material and production flow are optimally adapted to one another. On the one hand, this should reduce the overall throughput times of your production. Since the materials are delivered “just in time”, i.e. only when you request them from your supplier, your company can save considerable storage costs. In addition, the precise strategy has the advantage that you do not tie up your capital unnecessarily.
Just in time delivery
With just-in-time delivery, we refer to the logistics aspect. A company's supplier must ensure that the goods arrive at their customers on time and on time. For this, both parties agree in advance on a certain lead time, which is granted to the supplier after the customer has placed the order.
Just in time production and procurement
As an entrepreneur, you decide to only produce just in time in the future. To do this, you and your supplier have to be in close contact and communicate seamlessly with each other. Your supplier must always be well informed about your situation and know when you will need new materials for production. This type of procurement can significantly reduce your storage costs.
In addition to just in time, there is also the term just in sequence (JIS for short). There is even less work for you as a manufacturing company. Your supplier doesn't just deliver when you need your raw materials. No, he or she will sort the goods for you too! Upon delivery, the materials arrive in the order that corresponds to the sequence of your assembly.
When and where is the strategy actually used? Just in time is especially important Mass production popular. An example of this would be the automotive industry or aircraft production. In assembly line production, parts of the required material are delivered with pinpoint accuracy in order to be able to produce efficiently.
The just in time procedure does not suit every company. There are prerequisites that should be met so that JIT processes can also be implemented successfully.
- The most important factor is the cooperation between the manufacturing company and the supplier. They have to work hand in hand and ensure that the flow of information runs smoothly.
- Suppliers should also be flexible.
- A very good infrastructure is also necessary so that the goods can get from A to B on time.
- The products supplied must be of a certain quality and must be perfect for further processing.
- There must be continuous demand with as few fluctuations as possible, ideally in the form of large orders.
- Since the company does not work with storage bins, it must have sufficient space on which the delivery can be parked.
- The individual set-up times in the value-added process must be as short as possible.
Just in time example
Imagine you are producing airplanes. Since the assembly of the passenger aircraft is clocked, you are always aware of which aircraft and which equipment is being put together on which day.
With the help of this data, you know that the aircraft for the airline StudyAir should roll off the production line at noon tomorrow at noon. You order from the supplier you trust so that his truck with the aircraft wheels arrives on time for the final assembly of the landing gear, tomorrow at 10:00 a.m. Thanks to this perfect planning, you did not incur any additional storage costs for the tires and your fitters were able to complete the aircraft without waiting for delivery.
Just in time advantages and disadvantages
The production and logistics concept has both Pros and conswhich we will explain to you below.
Just in time advantages
- As already mentioned above, on the one hand, your company can minimize storage costs. You don't have to pay for the pitch or for the staff who keep control of the storage.
- The time required to transport the parts from the warehouse to the conveyor belt is eliminated.
- The lead time can be reduced.
Just in time disadvantages
- Both the supplier and the manufacturing company are dependent on each other.
- The just-in-time strategy also assumes that there is error-free communication between the two parties. Since humans are not robots, this assumption is only possible in theory.
- It can also happen that an emergency situation arises in production. This occurs, for example, if there is a delivery bottleneck or failure. However, since you do not have any temporarily stored components, your production may come to a standstill.
- There is also a major disadvantage for the environment. Most of the goods are shifted to the streets and are mostly transported by truck. The supplier must now deliver all parts precisely and precisely. Due to time constraints, there is no longer any possibility for him to plan his deliveries effectively. As a result, his trucks are on the move more often and are not optimally utilized. This leads to increasing environmental pollution.
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