Just-In-Time (JIT) Theory

Just-In-Time (JIT) Theory is a management approach that aims to improve efficiency by receiving goods and materials only when they are needed in the production process, rather than stockpiling large inventories. This methodology reduces waste, lowers storage costs, and increases cash flow. Originating from manufacturing, particularly in the automotive industry, JIT relies on precise planning, strong supplier relationships, and quality control to ensure materials arrive exactly when required, enabling organizations to produce products efficiently while minimizing excess inventory and associated costs.