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Just in time logistics or just in time, aims to have the amount of raw material or product that is needed in a given place and time. To fulfill this mission, several challenges must be overcome.
The basic idea is to have a minimum of stock, backed by an efficient production system. This is how the push system, in which each phase accumulated stock of its production, evolved to the pull system.
A more efficient process in terms of the reduction of raw materials, storage, and delivery time. Because in this system, each phase requests from the previous one only what it needs and when it needs it.
To coordinate each phase of production with suppliers and customers, a system called Kanban is used. It is based on a label system with instructions.
How is the Just in Time philosophy
The cornerstone of this philosophy is having just what you need when you need it. You should not have anything extra because it would generate storage costs. Nor should it be undermined, because this can generate a delay, and therefore, the client can be left with a bad impression of our company.
According to this philosophy, it is essential to eliminate any expense that can be taken as waste. In other words, all expenses that do not add value to the product or service must be reduced.
Therefore, it is a concept that can be extended to other areas and not only to production. Fulfilling this premise, it is possible to not have a still or security stock and at the same time helps to minimize the dreaded bullwhip effect.
Another important point of this philosophy is the importance that is given to the control of the global quality of the product or service, always trying to improve constantly. The justification for this premise is that any defect in the materials, for example, would cause a high cost of waste in both raw materials and other resources.
Of course, the most important thing is the customer and that is why it places great emphasis on the quality of the product or service and its demand.
