Question

What are some limitations of Just in Time Processing? Can it work for any production process?

Answer 1

Solution. Just in Time processing is a strategy adopted to align materials ordered from suppliers with production schedules to reduce wastage and cost along with increased efficiency in production. It comes with some disadvantages as well which are enlisted down:

1. As there is just enough inventory to support demand characterized by non presence of unwanted inventory, any further increased push of demand can not be satisfied. There exisits a risk for the organization to run out of stocks.

2.Suppliers forms a major share in just in time processing, only reliable suppliers can be trusted with the work under this strategy process along with efficient and trained personnel. Good and reliable relationship with suppliers are necessary.

3.There should be no room for error in forecasting of demands or supplies as that can delay the completion of order leading to loss of customers to competitors.

We can conclude, Just in Time processing can increase efficiency in production process along with minimizing costs if proper care of above mentioned criterias are followed.