Companies often use the Kanban scheduling system to ensure they don't run out of raw materials during their production efforts. You can begin the production run as normal to meet the company's goal and the client's needs. Once the supplier delivers the raw materials, you can begin the production run. When you make purchases, it's important only to purchase exactly what you need for the production run.

Many businesses use the same suppliers consistently because this can offer them the best deals for specific materials. Purchase raw materialsĪfter you know what you want to order, you can contact the supplier to purchase the raw materials. Then, they can choose where they want to order from so they can complete the production run to the client's satisfaction. You can analyze whether you have the raw materials necessary to complete the order and what more you might want. When a client makes an order for a product batch, a project manager typically reviews the order request. You can use the JIT inventory system to increase efficiency and reduce wastage. With the Kanban system, you can have a visual cue to indicate when an item is low and specify how much to order from the supplier. This system helps improve efficiency by measuring the cycle and lead times. The Kanban system uses visual cues to prompt the next actions necessary to maintain a process flow. The success of a JIT production process generally depends on reliable suppliers, competent staff, machine efficiency, and steady production.Ĭompanies who adopt the JIT production process typically supplement it with the Kanban scheduling system. This strategy can help increase efficiency and reduce waste. Companies that use this system work closely with their suppliers to receive goods only when requested. What is a just-in-time inventory system?Ī just-in-time inventory system is a management strategy in which raw materials arrive as needed and no sooner. In this article, we explain the meaning of a just-in-time inventory system and how it relates to lean manufacturing, explain how it works and where you can implement continuous improvements, outline its advantages and disadvantages, and give an example. Learning about this production strategy can help you maximize profit and minimize waste.

Just-in-time production processes can help them manage expenses and streamline their production. Companies are constantly looking for innovative ways to gain a competitive advantage in the manufacturing industry.

Just in time inventory strategy