Benifits of Just In Time (JIT)

 

Etradealliance offers VIP members Just in time (JIT) services. Just-in-Time inventory system focus is having “the right material, at the right time, at the right place, and in the exact amount”, without the safety net of inventory.

Etradealliance can do the following for you:

• You purchasing a high value product that newly to the market, and sending request to us;

• We collect the products from the manufacturer, or the manufacturer delivery to our association warehouse in China;

• Your customer placing order through your online shop;

• You sending all delivery details to us;

• We will arrange express delivery to your customer;

• Your customer could track online without calling you.

• You do not have to operate own warehouse and handling.

Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. To meet JIT objectives, the process relies on signals or Kanban between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization's return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality. www.etradealliance.com.au

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Benefits

Main benefits of JIT include:

1. Reduced setup time. Cutting setup time allows the company to reduce or eliminate inventory for "changeover" time. The tool used here is SMED (single-minute exchange of dies).

2. The flow of goods from warehouse to shelves improves. Small or individual piece lot sizes reduce lot delay inventories, which simplifies inventory flow and its management.
   Employees with multiple skills are used more efficiently. Having employees trained to work on different parts of the process allows companies to move workers where they are needed.

3. Production scheduling and work hour consistency synchronized with demand. If there is no demand for a product at the time, it is not made. This saves the company money, either by not having to pay workers overtime or by having them focus on other work or participate in training.

4. Increased emphasis on supplier relationships. A company without inventory does not want a supply system problem that creates a part shortage. This makes supplier relationships extremely important.

5. Supplies come in at regular intervals throughout the production day. Supply is synchronized with production demand and the optimal amount of inventory is on hand at any time. When parts move directly from the truck to the point of assembly, the need for storage facilities is reduced.

6. Minimizes storage space needed.

7. Smaller chance of inventory breaking/expiring.