Is It A Cost Saving For Mechanism?

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Just in Time – Is It A Cost Saving for Mechanism? In the 1950’s Toyota introduced the concept zero inventories. Today known as Just in Time, it is a lean concept used in manufacturing. Lean thinking is a systematic approach that maximizes value and minimizes waste. It is a method that strives improves processes through continuous improvement and elimination of waste. Just in Time is a part of lean thinking, and it looks at how production is organized and reviews company inventory process (Liker 2004). Lean thinking provides a method to specify value and line up activities that create value. Essentially, lean provides a means of doing more with less human effort, less equipment, less time and less space while providing the customer with exactly what they want (Jones 2003). "Just-in-Time" means making "only what is needed, when it is needed, and in the amount needed (Toyota Global Site 2014)." Just-in-Time or zero inventory was developed in the 1950’s in Japan, and it can be traced to American manufacturing to the early 1980’s. The goal of zero inventories was to have limited amount of inventory available. This concept brought widespread changes in how manufacturers conducted business. It removed waste, but supplied parts only as and when needed. The Just in Time cut the need for each stage of the manufacturing process to store inventory (The Economist 2009). The Just-in-Time inventory management system is simple. It strives for zero inventory. It requires
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