Theory And Techniques Of A Management Philosophy Essay
Just in time is usually a management philosophy that originated from Japan, it aims at cutting down the cost through reducing the amount of materials and goods that an organization holds in its stores and warehouses. This technique involve producing and delivering goods just in time to be sold, assembling partly finished goods into finished goods just in time, assembling parts just in time to partly finished goods and assembling materials just in time which are made into parts.
It involves pulling through the production instead of pushing through. This means that goods and services are produced according to customer orders hence the production cycle starts only when the firm receives a customer order.
Just in time which is a management philosophy now days means producing with minimum waste whereby minimum waste means; wastage of time, resources and materials that are used in the production cycle.
Advantages of Just In Time
It strengthens the organization to have a competitive advantage in the market through reduction of wastes and the improved quality of the products.
It increases the efficiency of the firm by reducing delays and wastage of time and resources.
A firm does not need warehouses or storage space to store materials and finished goods hence reducing cost that would have been incurred through renting or buying of space
It is an ideal inventory management tool for smaller companies that do not have large investments to purchase huge…