YES...WE FOLLOW JUST IN TIME
JIT means to produce instantaneously with perfect quality, perfect quantity with minimum waste.
Conventionally, inventory of finished goods and raw materials are considered as an asset to the manufacturing company. But this belief has changed drastically once Just In Time came into the picture. The inventory has become a dead asset which adds to additional cost and space.
JIT implies handling of inventory in a much-disciplined way. According to this concept material and components are supplied to the work station just in time and in perfect quantity. So the manufacturer just make the required amount of finished goods
The purpose of JIT is to avoid the waste associated with overproduction, waiting, excess inventory, total quality control, and devotion to the customer. JIT inventory is intended to avoid situations in which inventory exceeds demand and places to manage the extra inventory. JIT uses a pull system instead of a push system.
There should be minimal amounts of inventory obsolescence since the high rate of inventory turnover keeps any items from remaining in stock and becoming obsolete or outdated. Since production runs are very short, it is easier to halt production of one product type and switch to a different product to meet changes in customer demand. The very low inventory levels mean that inventory holding costs are minimized. The company is investing far less cash in its inventory since less inventory is needed.
Less inventory can be damaged within the company since it is not held long enough for storage-related accidents to arise.
Moreover, having less inventory gives materials handlers more room to spare, so they are less likely to run into any inventory and cause damage. Production mistakes can be spotted more quickly and corrected, which results in fewer products being produced that contain defects.
A stitch in time saves nines, but JUST-IN-TIME saves many!!
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