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Benefits of JIT (Just in Time )


JIT or just in time is a production and inventory control system in which materials are purchased and units are produced only as needed to meet actual customer demand. Just In Time manufacturing system inventories are reduced to the minimum and in some cases they are zero.

JIT Benefits

Industries that practice JIT manufacturing often experience advantages and benefits such as:

  1. More cost efficient production
  2. Continuous quality improvement
  3. Waste Elimination
  4. Improve productivity
  5. Improve supplier relationships
  6. Improve storage space used
  7. Reduce costs associated with storage
  8. Reduce manufacturing time
  9. Reduce work in progress
  10. Defect free output

When JIT programs are evaluated often companies will find that by keeping lower stock holdings mean a reduction in storage space allowing areas previously used to store inventories to be used for other more productive uses. Less space for storage can also mean rent savings and lowered insurance costs.

When a business obtains stock supplies on an as needed basis, then less working capital is required which appeals to a lot of business owners because funds that were tied up in inventories can be used elsewhere.  With less stock there is also the less likelihood of stock supplies perishing, becoming obsolete or out of date.

With a JIT program sudden changes in demand can be responded to quickly and a build-up of unsold finished product can be avoided.  This means that less time is spent on checking and re-working the product of others as the emphasis is on getting the work right first time. In turn defect rates are reduced, resulting in less waste and greater customer satisfaction.

There are many advantages to a Just in Time program. Valley Box Company can work within your just in time needs for packaging. Contact us to learn more. 

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Valley Box Company

Written by Valley Box Company

Valley Box demonstrates what is possible beyond just the typical wooden box. This specialty packaging manufacturer works with a wide variety of materials from wood to plastic, corrugate, metals and more. Discover how to take specialty packaging to the next level.