The main idea of JIT is that nothing is produced until the next process in the assembly line needs it. JIT is a "pull system" rather than a "push system." In a push system, a department produces and sends all that it can to the next step for further processing, which means that the manufacturer is producing something without understanding consumer demand. This can result in large, useless stocks of inventory. Because the idea of JIT is that nothing will be produced until the next process needs it, technically this means that nothing will be produced until a customer orders it. However, this is not actually possible, so production is driven by the expected demand for the product.
This is a true statement.
This is a true statement.
This is a true statement. JIT is a pull system, which is based on a manufacturing philosophy that combines purchasing, production and inventory control into one function. This reduces the level of inventory that is held within the company at all stages of production, and lowers the cost of carrying the inventory.
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