OPM500 Discussion Mod 4 Just-in-Time Approach Business Essay

JUST-IN-TIME APPROACH
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Just-in-Time Approach
Just-in-time approach philosophy in management that was invented by Toyota to realize lean management processes by reducing the requirement to hold excessive inventories via connecting demand and production (Ohno, 1988). This approach allowed the production of goods after an order has been placed to enable minimal stock and labor needs, reduced sourcing costs and reduced costs of writing off stocks. Its most significant features include continued improvement, eliminated waste, reduced inventory levels, reduced set-up time r, mixed production and housekeeping. Considering continuous improvement, JIT involves the manufacturing of goods to satisfy consumer demands precisely in time, quantity and quality. The approach eliminates waste on the bottom line. No businesses want to write off stock for disposal as they have invested much capital. Looking at inventory levels, JIT assists to reduce inventories held in warehouses thereby reducing the costs involved. It further enables the reduction of set-up tim...