What is a just in timne system in terms of manufactoring?
Answer:
Part of production processing is to keep all of the lines (creating different parts/components) running.
To do this you need to have sufficient raw/initial materials that are going to be used in the production process to hand at all times.
You can eitehr buy in masses of the raw materials so that there is always plenty available, but this ties up cashflow and requires additional storage space to keep it in.
If you know what you are likely to produce then you know how much of the raw material you are likely to require for that day.
If your supplier of raw materials can guarantee to deliver your supplies within a set period then you do not need to store more than you need to operate and can meet your production requirements.
Having new raw materials delieverd, just as your current supply is running out is therefore supplied "Just in Time" and this keeps overheads down and cashflow fluid.
cheers
Gray
meaning that there is little to no inventory in te place of manufactuer, this keeps cost lower since you do not store inventory and parts, the assebled items are immediatel shipped out rather than stored, therefore you do not sit on assest yet ot be paid for..
the big drawback / risk is that should there be a kink in your supply chain you risk a work and production stoppage
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