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Definition of the just-in-time principle
The just-in-time principle consists in the production-synchronous procurement of materials. Just-in-time means that the planning of short-term material requirements and capacities is adapted to the current production situation. It was developed by the Japanese automobile company Toyota in the early 1970s and introduced in the German automotive and electrical industries at the end of the 1970s, and later in other industrial sectors. This concept is still of great economic importance.
Production takes place on demand in all stages. The process ends with the quick delivery of the finished products to the customer. The unit of measurement for the period length in the individual production levels is e.g. B. a day. In this way, what is needed tomorrow is produced today.
Goals of the just-in-time principle
- Reduce manufacturing errors
- Reduce inventory
- Put product ideas into practice quickly
- Lead times shorten from manufacturing to delivery
- Manufacture products without time delays
- Deliver to customers quickly
- Increase productivity.
A higher productivity is achieved in this concept by the fact that the stocks are reduced to the minimum necessary stock. This will make the Warehousing limited to the amount of stock determined by the production lead time, which leads to a reduction in costs. With the just-in-time principle, however, the possibilities of reacting quickly to changes in the market can be reduced.