An inventory and production control approach where materials are pulled to the line only as they are consumed. By eliminating buffer stock, manufacturers reduce overhead and floor space requirements. The method forces a factory to solve underlying quality and machine reliability problems, since there is no safety stock to hide behind when a breakdown occurs.
The new just-in-time system is great for the balance sheet, but it leaves zero margin for error on the stamping press.
Related terms
JIT
Just-in-time, a production strategy that coordinates material delivery precisely with manufacturing schedules.
JIS
Just in sequence, an inventory strategy where parts arrive exactly in the order they will be assembled.
Demand-driven
A manufacturing strategy where production schedules are dictated by actual customer orders rather than sales forecasts.
Takt time
The maximum allowable time to produce one unit in order to meet customer demand.