JIT Just in Time 'To Essay

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Many JIT factories contain fail-safe mechanisms such as providing all workers with a box in which to put the component parts of the items they are assembling -- if a part is left in the box, the worker knows that he or she has forgotten to include it.

High standards of quality lessen the need to 'do things over' which can also slow down the production line. To ensure that high standards are maintained, a low inventory means that there are few excess parts. This demand for accuracy keeps costs downs, and the pressure high upon workers not to 'slack off.' Moving needed components to workstations is coordinated in a careful and systematic process. Often there are workers on the floor whose sole responsibility is to ensure that the production floor moves smoothly. This responsiveness is echoed in the organization's JIT responsiveness to consumer demand. Responsiveness to the market means lower costs because of lower inventories in general of unwanted products.

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No parts are made without authorization. Keeping unwanted inventory low is especially valuable for technical companies, where products rapidly grow obsolete, like computers.

The strength of taking a JIT approach to maximizing value is that efficient processes and activities are rewarded. Instead of across-the-board cuts, cutting the 'fat' is stressed, and cuts result in process improvements that become assets for the organization, through hard times and boom times. To reduce and improve costs in JIT firms, a process audit is required, rather than an audit of costs alone. While improving productivity is emphasized, cost-cutting occurs as a result of improved productivity. And productivity is not increased simply to ensure there is enough -- the focus is on supplying exactly what is needed, no more and no less.

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