What is Just in time inventory and lean systems. Give example and/or thoughts
Just-in-time (JIT) inventory management is the process which means ordering as well as receiving inventory for the increase in the production and sales of customers only when it is required. Safety stock is not hold by the company and is managed with the low level of inventory. This method of inventory helps all the companies to lower the carrying cost and leading in better effectiveness.
For example, Toyota opted with just-in-time inventory controls and it took quite a long time to be just right. Toyota use to send off orders for the parts as when they use to get new order from the customers. This method helped Toyota and was successful as well, leading the company to have stable manufacturing, no break downs, trustful suppliers and so on.
Lean system management is an approach makes the organization to work for the process of continuous development and also an approach to work for longer time by which methodology which seeks out to achieve small, changes bought in the process for better efficiency as well as quality.
Toyota also started this lean management system, this system helps in getting employee feedback for manufacturing. This feedback is taken from the process of manufacturing, which experienced the waste at the time of production and build up ideas in order to avoid them.