Manufacturers expect their orders to be scheduled for completion before a deadline date and must be delivered to their customer by or before the expected delivery date. To achieve this goal you must have inventory on time and ready for production. Just in Time or JIT is a type of inventory system that was an idea that was thought of by an engineer who wondered how to find out where parts would be stored when a facility had no warehousing space. The conclusion would be that the parts would be at the correct place and ready for the production line at the right time, no later and no sooner and this would be done by the just in time theory.

When a customer places an order , the purchasing department figures what inventory items are needed for production, if the inventory is on hand and what needs to be ordered. Once the system knows the items that need to be placed on order it then needs to figure out what vendors sell this item to the company and what steps need to be taken to ensure the inventory is available for the line at the precise time of production, no later and no sooner.

Just in Time was created by automobile manufacturers and has been a very large success for some organizations. If the employees are not aware of how the system works or the software implemented is a poor quality software or not configured to meet your needs; using just in time can cause a mess so choose a system that is user friendly and configured to meet the needs of your business.