a just in time inventory system usually reduces costs for

Contrary to more traditional 'push' methods of mass production which are based on an estimated number of expected sales, kanban's 'pull' system creates greater flexibility on the production floor, such that the organization only produces what is ordered. Kanban. Often referred to as the 'nervous system' of lean production, kanban is a key technique that determines a processes production quantities, and in doing so, facilitates JIT production and ordering systems. Production Sequencing. This involves calculating the pattern for making each product type in the required amount for any given day, by calculating the takt time for the daily quantity of each type. It is the rate at which each product must be completed to meet customer needs, expressed in amount of time per part. Takt time is critical to the daily scheduling required in leveled production described above. This technique allows organizations to produce products with a variety of customer specifications each day (using a daily schedule), in a smooth sequence that minimizes inventory and delay. Load leveling. This technique involves determining appropriate quantities and types of products needed in a given day to meet customer orders. Key elements of JIT, and techniques for achieving JIT, are discussed below. The end result is typically a significant reduction in waste associated with unnecessary inventory, WIP, and overproduction. The company signals its suppliers, using computers or delivery of empty, reusable containers, to supply more of a particular component when they are needed. Many companies implementing lean production systems are also requiring suppliers to deliver components using JIT. In some cases, a limited number of reusable containers are used as kanban, assuring that only what is needed gets produced.

JIT frequently relies on the use of physical inventory control cues (or kanban) to signal the need to move raw materials or produce new components from the previous process. Varying the mix of products produced on a single line, sometimes referred to as 'shish-kebab production', provides an effective means for producing the desired production mix in a smooth manner. JIT techniques work to level production, spreading production evenly over time to foster a smooth flow between processes. Under conventional mass production approaches, large quantities of identical products are produced, and then stored until ordered by a customer. JIT enables a company to produce the products its customers want, when they want them, in the amount they want. JIT leverages the cellular manufacturing layout to reduce significantly inventory and work-in-process (WIP). Just-in-time production, or JIT, and cellular manufacturing are closely related, as a cellular production layout is typically a prerequisite for achieving just-in-time production. Implications for Environmental Performance.

A just in time inventory system usually reduces costs for