Chapter 13: Just-In-Time

The logistics field is full of acronyms and jargon representing the latest production management techniques. One of the terms frequently discussed in a spectrum of disciplines is just-in-time (JIT) production. This chapter explains the concept of JIT and its development, and then explores the effect of JIT implementation on transportation.

JIT manufacturing has far-reaching effects on all areas of the production chain (e.g., accounting, purchasing, distribution) and, consequently, on goods transportation. The literal and narrower view of JIT refers to the delivery of components to the production process only when needed. This view may also be referred to as zero inventory production systems (ZIPS), point of sale driven "pull" inventory replenishment systems (IRS), or manufacture as needed (MAN). But whichever terminology is used, the effects of low inventories on all inputs to the manufacturing process are pervasive. If component parts are to be produced and delivered only when required, communication with customers and suppliers must be effective, transport must be reliable and responsive, paperwork (and hence time) must be minimized, quality must be adequate, and so on. JIT, by definition, cannot be forgiving of errors in quality or timing, and hence there is a much greater emphasis on perfect delivery every time. Inadequate quality components arriving on time for production is simply not good enough for JIT manufacturing.