Advantages and Disadvantages of JIT ?

Requirements for Successful Implementation of (JIT)

For JIT to be successful the following requirements must be met:

1. The environment has to support it.
2. The most appropriate way to implement JIT is to do it step by step.
3. A hybrid model (traditional + JIT) is the most appropriate. If JIT fails, the traditional model will be used as a fallback position.
4. A flexible management system is essential.
5. Key elements of the JIT system must be in place. They are:

(i) Close ties with few reliable suppliers.
(ii) Low inventories of raw materials, work-in-process inventories and finished goods.
(iii) Appropriate material handling system, so that there won’t be work-in-process inventories.
(iv) Small lot sizes with shorter lead times.
(v) Low cost set-up times.

Advantages or Benefits of JIT

1. Continuous improvement in quality.
2. Cost is reduced.
3. Elimination of waste.
4. Manufacturing time is down.
5. Better productivity.
6. Lower Work in progress.
7. Better supplier relationships.
8. Cost efficient production.
9. Defect free output.

Drawbacks or Disadvantages of JIT

1. JIT system may not be able to manage sudden variations in demand.
2. Production is very reliant on suppliers and if stock is not delivered on time, the whole production schedule can be delayed.
3. There is no spare finished product available to meet unexpected orders, because all products are made to meet actual orders. However, JIT is a very responsive method of production.