What is meant by "Just-In-Time" (JIT) production?

Just-In-Time (JIT) production refers to a manufacturing strategy that seeks to minimize inventory levels and produce goods in response to actual demand rather than relying on forecasts or excess stock. This approach is designed to reduce waste, increase efficiency, and improve overall productivity.

By producing only what is needed, when it is needed, and in the quantity required, JIT allows companies to save on storage costs and reduce the risk of overproduction, which can lead to excess unsold inventory. This also encourages a more streamlined production process, enables quicker response times to customer orders, and reduces the likelihood of inventory obsolescence. Overall, JIT aligns production processes directly with customer demand, fostering a lean manufacturing environment focused on efficiency and responsiveness.