Advantages
JIT manufacturing is an advantageous system. The many advantages offered by this system differ from company to company. Overall, JIT makes production operations more proficient, cost effective and customer receptive. Manufactures who utilize JIT receives components right before they are needed on the assembly line eliminating the cost and burden of housing and managing idle parts. This in turn helps prevent manufacturers from being stuck with inventory that may become obsolete. JIT can save companies a lot of money. Businesses are more responsive to their customers and have less capital tied up in raw materials and finished goods inventory. This allows the businesses to optimize their transportation and logistics operations. Companies who use JIT also have reduced throughput times, resulting in greater output and quicker response to customers. JIT manufacturing has also proven to have less defect rates that result in decreased waste and greater customer satisfaction.
Disadvantages
Introducing JIT in an organization can be complicated and costly.
References: Steyn, P.D. (2010). Investigating the Potential for the Development of a Just-In-Time Knowledge Management Model. South African Journal of Business Management, vol 41(2), pages 1-12.