Many people think that having FG stock to meet the customer’s demand is Just-In-Time (JIT) manufacturing. No. You’ll be able to serve the customers, but this is not JIT.

JIT manufacturing emphasises on pull production, only when there is a trigger from the customer, the upstream processes starts manufacturing. This trigger depends on the lead-time of manufacturing (not including the waiting and other wastes in the processes)

You’ll achieve JIT when:

1. The product flows from one process to the next without waiting

2. Set-up times are very less (target 1 min)

3. No Defects arise in the processes (zero defects)

4. Work-In-Process is minimal (target 1 piece)

5. No inspections (as there are no defects)

The moment you start the first process, the product should continuously move through the value stream and becomes a Finished Product – without delays, stoppages, reworks and other wastes. This is called Just In Time Production.

Many auto OEMs are asking their vendors to keep 5~7 days of stock as FG. This may be required for the unforeseen business situations. But, please don’t call this as JIT.