JIT
JIT
JIT -A tool to achieve competitive advantage
Just-in-time is an approach according to which every step in a process should be right at the right time and place. For being ahead in competition one can gain only by offering the customer greater value either by low prices or by making the product worth its value by providing benefits and service. Today JIT is of utmost importance in the cut throat competition scenario of every industry. The margins are going down; the players in each sector are increasing, so to have an edge over the others one needs something that would help to be one step ahead of all. That's when JIT comes into the picture. JIT works on the philosophy of quality cost reductions, reduced lead times, and zero inventory. Inventory is defined to be a waste according to JIT philosophy. JIT believes in minimizing the waste in manufacturing; be it of time, energy, material or errors.
JIT helps in reducing inventories, the new stock is ordered when stocks drop to reorder level. It not only helps in reducing the inventory of raw material but also Work-in-progress inventory. This leads to reducing the operating expenses as the need for a warehouse for inventory storage would be reduced. It also increases the inventory turnover ratio.
JIT fastens the process of quality monitoring and response capability. It stabilizes the operations. The responsiveness to the changing market increases drastically that helps in reducing losses due to fading out of something. For instance, in the fashion industry only "Change" is a word that is constant. Everything is fast-moving and so is the fashion cycle of a product or particular style. With JIT, as soon as demand decreases one can easily stop producing that style as there would be fewer inventories at stake and you can adapt to something new that the customer wants or desires.
To conclude it can be said that JIT is the need of the hour as it helps to increase quality and efficiency. In financial terms we can say, the probability of better Return on investment increases if JIT is adapted and put to use efficiently. Thus it improves the competitive advantage of the business.
JIT - To learn more about this author, visit Rahul Jain's Website.
Like this article? Share it with your friends
JIT -A tool to achieve competitive advantage
Just-in-time is an approach according to which every step in a process should be right at the right time and place. For being ahead in competition one can gain only by offering the customer greater value either by low prices or by making the product worth its value by providing benefits and service. Today JIT is of utmost importance in the cut throat competition scenario of every industry. The margins are going down; the players in each sector are increasing, so to have an edge over the others one needs something that would help to be one step ahead of all. That's when JIT comes into the picture. JIT works on the philosophy of quality cost reductions, reduced lead times, and zero inventory. Inventory is defined to be a waste according to JIT philosophy. JIT believes in minimizing the waste in manufacturing; be it of time, energy, material or errors.
JIT helps in reducing inventories, the new stock is ordered when stocks drop to reorder level. It not only helps in reducing the inventory of raw material but also Work-in-progress inventory. This leads to reducing the operating expenses as the need for a warehouse for inventory storage would be reduced. It also increases the inventory turnover ratio.
JIT fastens the process of quality monitoring and response capability. It stabilizes the operations. The responsiveness to the changing market increases drastically that helps in reducing losses due to fading out of something. For instance, in the fashion industry only "Change" is a word that is constant. Everything is fast-moving and so is the fashion cycle of a product or particular style. With JIT, as soon as demand decreases one can easily stop producing that style as there would be fewer inventories at stake and you can adapt to something new that the customer wants or desires.
To conclude it can be said that JIT is the need of the hour as it helps to increase quality and efficiency. In financial terms we can say, the probability of better Return on investment increases if JIT is adapted and put to use efficiently. Thus it improves the competitive advantage of the business.
JIT - To learn more about this author, visit Rahul Jain's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
|
To learn more about the Evan Elite Author Program please contact us. |
 | |
|  |
Subscribe to Rahul's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
 |
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Human Potential Institute Free SEO Report Leadership 2.0 Performance Emotional Intelligence Explode Expo Results |
|
 | ||
 |
Top 50 Franchising Blogs
Top 50 Franchising Blogs | |
 |
The Top 10 ProBlogger Posts
Best Posts for Bloggers | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
