Just in Time Inventory

Just In Time (JIT) is a production and inventory control system in which materials are purchased and products are manufactured only as needed to meet actual customer demand.

Just in time production and inventory system was specifically designed to minimize the amount of inventory, improve the quality, reduce lead time, and saving overall cost. JIT approach can be used in both manufacturing and merchandising companies. Using JIT inventory system in pharmaceutical industry can improve new product development process as well as improve quality in the production environment. Statistical results indicate that compared with traditional organizations, companies who adopted JIT principles developed new products with 61 percent better quality, 52 percent less development time, 38 percent less development cost, and 33 percent less manufacturing cost. Also, frequency of new product introduction for JIT organizations is 71 percentages faster than the traditional companies. When Companies use Just in Time (JIT) manufacturing and inventory control system, they purchase materials and manufacture products only as needed to meet actual customers demand. In just in time manufacturing system inventories are reduced to the minimum and in some cases is zero.

Many pharmaceutical organizations adapted Toyota production system and this production control system has been established based on many years of continuous improvements, with the objective of making the vehicles ordered by customers in the quickest and most efficient way, in order to deliver the vehicles as quickly as possible. The Toyota Production System (TPS) was established based on Just-in-Time concept in which each process produces only what is needed by the next process in a continuous flow. Benefits:...