Just in Time Explanations

Short for JIT by abbreviationfinder, Just in Time promises a minimization of expensive storage costs and shorter changeover and lead times. Material inventories can be reduced considerably and the production processes can be designed much more flexibly. When asked which company JiT is worthwhile for, there is no general answer with a yes or no. Each company has to find the answer to this individually. It is important that as many requirements as possible for implementing the concept just in time can be met . Only then is the changeover and the effort involved really worth it.

What advantages does a customer have from just-in-time delivery?

Both companies and customers benefit from Just in Time. Founders in their early stages can benefit from many advantages as customers. This is especially true if the customer also needs storage space for the goods on offer. He, too, can save a lot of money for his circumstances through lean storage.

What requirements should be met for just in time production?

As an entrepreneur, if you want to introduce the just-in-time system to yourself, you must first create the conditions for it. A maximum minimization of costs is only possible if the right conditions are met. The following requirements must be met:

  1. Infrastructure: It is important to create a good infrastructure inside and outside the company. The better this is, the shorter the delivery times. You have to keep in mind that warehousing will be shifted to the road or the rail. The infrastructure is therefore an essential factor that determines the short delivery times and possible alternatives.
  2. Information flow: An optimal information flow is another essential component for a well-functioning just in time. Both you as an entrepreneur and your supplier must be available for short-term changes to the delivery or order.
  3. Turnover frequency: If the storage times of the individual goods are short, then the prerequisites for JiT are ideal. JiT is only worthwhile if there is a high turnover rate.
  4. Flexibility of the supplier: If there are delivery problems, the supplier must be able to resolve them as quickly as possible. You need a supplier who can react immediately to orders as well as other requirements.
  5. Trust: Just in time is only possible for you if you can trust a supplier. You must be aware that this person has a high level of responsibility with regard to the production process in your company.
  6. Contract drafting: Standard contracts are not suitable for the just-in-time system. A special design of the contracts is required here, because there must be the highest possible protection for both the supplier and you as an entrepreneur.
  7. Quantities: Just in time is usually only worthwhile when large quantities are required. The introduction of JiT requires a lot of effort. Small quantities do not justify the introduction, because the savings potential is too low compared to the effort.

Legal basis at Just in Time

The JiT logistics system requires special contractual agreements . The following questions in particular should be considered very carefully in these contracts:

  • Contractual regulation on delivery quantities, delivery schedules, delivery dates and the consequences of delivery delays
  • Establishment of product liability, quality and quality assurance
  • Contractual agreements on prices and terms of payment and delivery
  • Determination of possibilities how the supplier can also find potential for rationalization

In which areas is just in time particularly useful?

Just in time is not suitable for all industries. If only a few quantities of operating resources are required, the effort for JiT is in no relation to the savings potential in storage. There are, however, areas and industries in which the use of just-in-time is perfect.

Just in time in the production of cars

Just in time is mainly used in the automotive industry . This logistics system is always useful if, for example, there are individual components in different designs. This also applies to all the parts that cannot be deposited directly on an assembly line. It does not matter if the parts to be installed are required in different variants of assemblies.

In the automotive industry, for example, this applies to wheels, the front end or the cockpit. What is special is that the supplier for the required components is in most cases only informed of the requirement a few hours in advance. As a rule, it is often the case in the automotive industry that suppliers are located very close to the production facility. In this way it is possible for a company to involve its supplier almost immediately in the production process.

Just in time in the aviation industry

In addition to the automotive industry, the aviation industry is another area in which just in time plays a very useful and at the same time extremely important role. In the aviation industry, however, not only the construction of aircraft plays an important role. The subject of maintenance and repairs is even more important. The international aviation authorities impose the strictest requirements on the airlines. The demands on quality, safety and, above all, speed are extremely high. There are always situations in which not only planned maintenance is required.

The demands on JiT are even higher in the case of unplanned maintenance . Constant availability of the supplier, minimal reaction times and active monitoring must have absolute priority here. In the aviation industry, many aircraft manufacturers often rely on decentralized hubs located at European hubs.