A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.
Just-in-time manufacturing, or just-in-time production as it is also known, is a system that involves only placing orders for raw materials when the orders are placed by customers. The philosophy behind this strategy is that rather than storing stock in bulk based on predictions of customer demand, the company will produce when the customer actually places the order.
This practice was first implemented by Toyota after World War 2 in an attempt to conserve scarce resources. They could not afford to produce something that could potentially not be sold, so they only replenished stock when there was an explicit need for it.
Some of the processes that are included in a just-in-time system are - elimination of defects, small lot sizes, employing multi-functional workers with skill diversity, streamlining the movement of material, establishing a pull system, and Kanban.